Syndicate content

East Asia and Pacific

Yes they can: SMEs filling the infrastructure gap in fragile countries

Yolanda Tayler's picture


Photo: Trocaire | Flickr Creative Commons

In war-torn post-1991 Somalia, running water was a scarce commodity, to the misfortune of millions of people. Members of local communities rose to the occasion, “pooling” consortia of companies to fill the gap in water provisions. Eight public-private partnerships (PPPs) were formed through these consortia, benefiting 70,000 people in the Puntland and Somaliland regions of the country.  

As demonstrated in the Somalia case, infrastructure needs are substantial in fragility, conflict and violence-affected (FCV) contexts—especially for recovery and reconstruction in war-torn areas. Yet often there is insufficient public sector funding to address such needs, compounded by lack of interest on the part of large private sector firms, who may not even be on the scene. In such FCV contexts, small and medium enterprises (SMEs), making up a substantial share of the private sector, may be critical to filling the infrastructure services gap.

New data reveals uptick in private investment in EMDEs in 2017

Deblina Saha's picture


Photo: Creativa Images | Shutterstock

Critically constrained public resources on the one hand, and huge existing infrastructure needs for basic services on the other, make private participation in emerging markets and developing economies (EMDEs) not just critical, but in fact, imperative. Crowding in private finance is essential to spur economic development and meet the twin goals of shared prosperity and elimination of extreme poverty, as well as to achieve the Sustainable Development Goals.
 
The Private Participation in Infrastructure (PPI) Database, with data spanning over almost 27 years, has become a powerful tool and measure for gauging the level of private investment in infrastructure in EMDEs.  

日本の事例に学ぶ:インフラの強靭化に向けた官民パートナーシップ(PPP)

Sanae Sasamori's picture
このページの言語: English | Español 

2011年の震災後、営業を再開した仙台国際空港
出典:PIXTA

2011年3月、東日本大震災が日本を襲い、犠牲者と行方不明者の数は2万人近くにおよびました。宮城県の県庁所在地で東北地方の経済の中心である仙台は、震災により大きな被害を受けました。約50万人の市民が水道を利用できなくなり、仙台市の下水処理場は津波により水没しました。また津波により東北地方沿岸の鉄道施設325㎞が損壊し、高速道路約100㎞が浸水したことで、支援が必要な内陸部の被災地への交通手段は瞬時にして断たれました。

震災から4年後、地震と津波からの復興の努力が続く中、民間企業コンソーシアムが30年間の仙台空港の運営権(コンセッション)を取得し、国内で初めて民間企業が運営する空港が誕生しました。この成功は政策立案者と官民パートナーシップ(PPP)の関係者に驚きを持って迎えられました。民間の事業者がどのようにして、自然災害の多い地域での長期にわたる投資の意思決定を行なうことができたのでしょうか。
 

Learning from Japan: PPPs for infrastructure resilience

Sanae Sasamori's picture
Also available in: Español | 日本語 


Photo: MediaFOTO/PIXTA

In March 2011, the Great East Japan Earthquake struck Japan, unleashing a tsunami that left some 20,000 people dead or missing. Sendai, the capital city of Miyagi Prefecture and a regional economic hub, was heavily affected by the disaster. About 500,000 residents in the city lost access to water, and the city’s primary wastewater treatment plant was completely submerged by the tsunami. Also, the tsunami damaged 325 kilometers of coastal railway assets and flooded about 100 kilometers of national highway in the Tohoku region, leading to the immediate closure of inland transport access to the devastated towns in need of assistance.
 
Four years later, while the recovery effort from the earthquake and tsunami was still underway, a private consortium signed a 30-year concession to operate Sendai Airport, making it the first state-owned airport in Japan operated by the private sector. This success was welcomed by policymakers and public-private partnership (PPP) practitioners with surprise—how could it be possible for a private operator to make a long-term investment decision in such a disaster-prone region?

Yin Yin Lam - 10 candid career questions with infrastructure & PPP professionals

Yin Yin Lam's picture



Welcome to the “
10 Candid Career Questions” series, introducing you to the infrastructure and PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into infra and/or PPP practice, and this series offers an inside look at their backgrounds, motivations, and choices. Each blogger receives the same 15 questions and answers 10 or more that tell their career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.  

Strategies that work: New South Wales leads infrastructure development in Australia

Mar Beltran's picture


Photo: Dylan's World / Flickr Creative Commons

A decade before the financial crisis, Australia was a bastion of infrastructure successes. The country’s four major airports (Melbourne, Perth, Brisbane and Sydney) were privatized. Numerous greenfield projects were also launched, for example, extensive highway construction, and new projects were continually added to the pipeline.
 
Some of these new projects, however, faced significant difficulties: some were constructed without robust performance data, leading to overambitious forecasting and overaggressive financial structures. In part, this led Australia to suffer multiple high-profile defaults and brought the country’s infrastructure project pipeline to a halt.
 
But, today, Australia is displaying signs of promise once again. And one state, in particular, is among the developed world’s GDP growth outliers: New South Wales (NSW). The state’s economic growth has reached 3.5%, outstripping the country’s average rate of 2.8%, and even the G20 average (which stands at 3%). As such, NSW’s infrastructure model has likely had a multiplier effect on economic activity—and has been identified as a potential playbook for other jurisdictions.

Can Islamic finance unlock funds for development? It already is

Amadou Thierno Diallo's picture

Also available in  العربية | Français



Two years in the making, last week the Islamic Development Bank Group (IsDBG) and the World Bank Group officially launched the landmark report Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships at a discussion broadcast online from Washington, D.C. We illustrated that, through partnerships, the power of Islamic finance can be instrumental in unlocking financial resources necessary to meet the tremendous demand for critical infrastructure.
 
In fact, infrastructure PPPs funded with Islamic finance have proliferated in the Middle East, and have flourished in other countries throughout Africa and Asia. Both of our institutions are committed to leverage our competitive advantages, achieve effective interventions, and yield measurable results in scaling up and broadening the use of Islamic finance.

Fighting climate change with green infrastructure

Michael Wilkins's picture

Also available in 中文 | Français | Español | عربى


Image: chombosan / Shutterstock

According to NASA, 16 of the 17 warmest years on record have occurred since 2001. So—with climate change high on the global agenda—almost every nation signed the 2015 Paris Agreement, the primary goal of which is to limit the rise in global temperatures to below 2°C above pre-industrial levels. However, with the acute effects of global warming already being felt, further resilience against climate change is needed.
 
To meet both mitigation and adaptation objectives, “green infrastructure” can help.

The experience dividend for PPPs

Darwin Marcelo's picture


Photo: Gustave Deghilage | Flickr Creative Commons

Does experience in implementing Public-Private Partnerships (PPPs) reduce a country's chances of contract failure?
 
In a recent study entitled Do Countries Learn from Experience in Infrastructure PPPs, we set out to empirically test whether general PPP experience impacts the success of projects—in this case, captured by a project's ability to forego the most extreme forms of failure that lead to cancellation.

A timely report on mobilizing Islamic finance for PPPs

Clive Harris's picture
Also available in: Français | العربية


Photo: Artit Wongpradu / Shutterstock.com

Islamic finance has been growing rapidly across the globe. According to a recent report by the Islamic Financial Services Board, the Islamic finance market currently stands around $1.9 trillion. With this growth, its application has been extended into many areas — trade, real estate, manufacturing, banking, infrastructure, and more.
 
However, Islamic finance is still a relatively untapped market for public-private partnership (PPP) financing, which makes the recent publication Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships such an important resource, especially for governments and practitioners.  

Pages