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May 2016

Real-time data as an early warning signal

Fida Rana's picture

The risks inherent in public-private partnerships (PPPs) are real. These long-term projects require substantial investment: typically, PPP project funding structures constitute 70 to 80 percent debt, with the remaining coming from equity sources. Because of the nature of these projects, their loan repayment profile demands a longer tenor. In a practical sense, once lenders start disbursing funds to a PPP, the loans could remain on their balance sheet for around 20 years. This is a typical scenario.

For such prolonged engagement in PPP projects, lenders’ ability to monitor the project during the construction and operation phase becomes critical. The approach to monitoring we’ve been offered so far serves its purpose up to a point, but promising developments in real-time data monitoring have the potential to serve as effective early warning signals—assuring the success of a PPP in ways that could revolutionize certain sectors.

4 game-changing public-private partnership training tips

Michael Opagi's picture
 

Most public-private partnership (PPP) trainings open with speakers who review definitions of PPPs, outline their “Dos and Don’ts,” and illustrate the path to success with dazzling Power Point presentations. But at the International Finance Corporation (IFC)’s first PPP training seminar for representatives from fragile and conflict-affected states (FCS) earlier this year, we swore off business as usual in favor of an interactive discussion among participants. Throughout, we tailored the conversation to the expectations of participants, who already knew that our number one expectation was their active participation. 

As soon as we kicked off the meeting, participants were encouraged to loosen their ties and scarves, prepare to tell their stories, and engage with us on the journey. It was an unusual start to a rigorous three-day training – and it worked.

Pension investment in infrastructure debt: a new source of capital for project finance

M. Nicolas J. Firzli's picture

At the start of the decade, the World Pensions Council (WPC) and the Organisation for Economic Co-operation and Development (OECD) helped convene some of the first international summits focusing on the future of long-term investments in the post-Lehman era, arguing that infrastructure would soon become an asset class in its own right.
 
At that time, we thought that the crisis would usher an era of durably low interest rates, pushing more pension and insurance investors to pursue a “quest for yields,” increasing mechanically their allocation to non-traditional asset classes such as:

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?

10 candid career questions with PPP professionals – Aijaz Ahmad

Aijaz Ahmad's picture

Editor's Note: 
Welcome to the “10 Candid Career Questions” series, introducing you to the PPP professionals who do the deals, analyze the data, and strategize on the next big thing. Each of them followed a different path into 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 PPP career story candidly and without jargon. We believe you’ll be as surprised and inspired as we were.  

 

Steering Colombia’s future: Ruta del Sol lays the foundation for nation’s road PPPs

Richard Cabello's picture
Photo: Euroestudios

Like other countries in Latin America, Colombia has been expanding its road network over the years using a variety of public-private partnership (PPP) models and contractual structures. However, many of these projects were not properly prepared and structured, which in some cases has led to contract renegotiations. In addition, these projects attracted very limited participation from international investors.