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Harvard Kennedy School and IFC team up for Senior Training on PPPs and Project Finance

Isabel Chatterton's picture

I recently had the chance to get to know dozens of forward-thinking, dynamic individuals from the public and private sectors. Despite their varied backgrounds, resumes, and perspectives, they shared one thing in common: they have all been influential in shaping the Asia Pacific PPP landscape. Our gathering was part of the IFC PPP Transaction Advisory Services Unit’s four-day Senior Training Program on PPPs and Project Finance, in collaboration with the Harvard Kennedy School in Singapore.

All of the participants – government representatives, donors, private sector clients, World Bank and MIGA staff, as well as senior IFC staff -- offered a different view on how best to combat today’s global PPP challenges. We captured a few key insights from the training program to share with others:

3 ways countries can improve water supplies in small towns

Fadel Ndaw's picture

Also available in: Français

A public faucet that serves 1,000 families in
el Alto, Bolivia.
Photo credit: Stephan Bachenheimer / World Bank

Small towns* typically have not been well served by national or regional water utilities. Decentralization has become increasingly widely adopted, but even if local governments at the small town level have the power to operate a water utility, they often lack the capital and skills to do so. In response, some local governments and public institutions concentrate improvements on upgrading public utilities’ operations or strengthening community based management. In other cases, they choose to bring in the private sector knowledge of how to get clean water and sanitation services to more people more efficiently, affordably or sustainably. There is no one solution to addressing often very complex water and sanitation challenges.

There are many ways in which the public sector can leverage its own resources through partnering with the private sector. For the domestic private sector to fully realize its potential at scale in the small town sub-sector, we found they need capable and enabled public institutions to structure the market and regulate private operators.

Lessons learned from case study countries (Colombia, Bangladesh, Philippines, Uganda, Cambodia, Niger and Senegal) in a new global study published by the Water Global Practice’s Water and Sanitation Program suggest the following three key ways to support public institutions in order to build a conducive business climate for market players in small towns Water Supply and Sanitation (WSS) service delivery:

Mythbusters: Using data to disprove PPP fallacies

Schuyler House's picture
Photo Credit: NATS Press Office

Editor’s Note: The World Bank Group is committed to helping governments make informed decisions about improving access to and quality of infrastructure services, including using Public-Private Partnerships (PPPs) as a delivery option when appropriate. One of the PPP Blog’s main goals is to enhance the understanding of PPPs while eliminating misconceptions about them, ultimately enabling better decision making throughout every stage of the PPP cycle. To that end, the new “Mythbusters” series, authored by PPP professionals, addresses and clarifies widely-held misunderstandings.

In the PPP universe, both advocates and detractors use anecdotes to prove their points about PPPs and infrastructure. PPP successes and debacles are recycled endlessly to argue for one side or the other. But we can move past the myths, in part with the help of the World Bank’s Private Participation in Infrastructure (PPI) Project Database, which includes information on over 6,000 projects from 1984 onwards, capturing data across 30 fields, including contractual form, project closure date, location, contract duration, private sector partners, and multilateral support. By drawing on that resource, alongside other large data sets and comparative case studies, we can confirm or debunk PPP myths rooted in popular commentary. Here are a few examples that show how research can set rumors right.

How a parking project in Bhutan contributes to Gross National Happiness

Adele Paris's picture
Photo by Flickr user Khaled Monsoor

In Bhutan, the only country that measures success on a scale of Gross National Happiness (GNH), government officials actively research ways to make residents’ lives happier. So when it became apparent that the growing number of vehicles in Thimphu, the capital city, was increasing traffic congestion and causing intense frustration among locals, the authorities started looking for a solution to restore contentment among its citizens.

The staircase of relationships: 10 key questions

Malcolm Morley's picture

If public sector organizations are to maximize the value from public-private partnerships (PPPs), they need to move their joint working within the public sector from transactional to collaboration to true partnership working.  To do this requires them to move up the Staircase of Relationships (see previous blog).
 
In moving up the Staircase of Relationships, performance will improve within the public sector and the public sector will become a more effective partner with the private sector.  Improvement in performance, however, is not enough.  Public sector organizations should be seeking to transform their performance through public-to-public (P2P) partnerships and to transform the performance that they achieve through PPPs.

A PPP to take pride in: Early education in Brazil

Tomas Anker's picture

Photo: Inova BH

In English, “Belo Horizonte” means “beautiful horizon,” and this is an apt description of the long-term possibilities for educating the children of Belo Horizonte, the sixth largest city in Brazil and capital of the state of Minas Gerais. As a Brazilian who went through the national school curriculum, I believe that this system should be accessible to all citizens, and so I took a particular interest in the goals of this public-private partnership (PPP).

Greater access to education was a widely-shared ambition among the government team as well. The Municipality of Belo Horizonte already believed that a competitive workforce – and a functioning society – depends on good schools. That’s why it made early education a top priority and sought out advisory services from our Brazil-based team to find out if PPPs could help government make the grade. It seemed like this was a proposal the community could stand behind: Demand for better education was already strong, with over 11,000 children, many underprivileged, on a waiting list to enroll in school.

Free, French course on PPPs offers customized case studies, relevant regional perspectives

Olivier Fremond's picture



Cette page en Français.

This post was originally published on the Voices blog.

As a former country manager in Benin, my team and I advised the national administration on the Public-Private Partnerships (PPP) Project Law then under consideration and engaged in PPPs. This effort took place after the private sector, both domestic and international, made a strong commitment to finance large infrastructure programs. Timing is everything, of course, and the window for passing the legislation through parliament before legislative elections was tight – ultimately, too tight. A better understanding of PPPs and the options these partnerships can offer to a country like Benin, which needs substantial infrastructure investments, would have helped the process tremendously.

Private sector, meet irrigation: Planning better ways to feed the future

Cledan Mandri-Perrott's picture

Headlines about climate change often focus on food scarcity, but the problems facing the irrigation sector – which is critical to our ability to feed the future – are usually too complex to make it into the news. For stakeholders in the sector, however, the challenges are all too clear.  Growing investment needs in irrigation have highlighted what’s wrong with the system’s status quo, such as:

Public-private partnerships and the 2030 Agenda for Sustainable Development

Krishnan Sharma's picture

The implementation of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals presents an immediate challenge. In particular, the financing required for new infrastructure (including clean water, healthcare, and access to energy for all) is huge--amounting to about $5 trillion per year globally.  Given limited government resources, a considerable amount of private finance will be required to fill this gap, and public-private partnerships (PPPs) have been seen as a possible modality through which to attract these additional resources.

How can we accommodate climate-related risks in infrastructure?

Nuwan Suriyagoda's picture

In 2011, Don Muang International Airport in Bangkok, Thailand was affected
by one of the worst floods in 50 years. Photo: Neramit Sisa\Shutterstock
 

If you were traveling through Don Muang International Airport in Bangkok, Thailand in the fall of 2011, you already have a picture of the damage to infrastructure assets brought by unprecedented levels of rainfall.  Water flooded every element crucial to airport operations – airplanes, runways, hangars – and all airport infrastructure was shut down until the crisis passed and repairs could be done. There was no option, as the airport was simply submerged.

But what if future infrastructure projects could be built with an option that allowed them to continue to operate even in the most catastrophic climate-related crisis? What if service delay interruptions were not inevitable, and economic losses were not inescapable?


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