Public-Private Partnerships (PPPs) require the coordination of an impressive number of stakeholders to mobilize the commercial financing needed to achieve sustainable, inclusive growth in challenging environments. A great deal of analysis, negotiation, and hard work goes into every project. And each one presents an opportunity to encourage investors to venture into countries and compete for projects they wouldn’t have considered before and, ultimately, to create new markets.
While the commercial and legal challenges involved in structuring PPPs are well known, the efforts that go into conducting rigorous technical due diligence are less well known. For example, projects that aim to provide utility scale solar PV on short order, like the World Bank Group’s Scaling Solar program, require a team of experienced engineers from IFC’s Energy and Water Advisory working hand in hand with our PPP transaction advisors, legal experts, and environmental and social specialists to make them a reality.
Islamic finance assets represent only around 1% of the global financial market, so how can tapping into these funds help close the $452 billion annual infrastructure finance gap in Emerging Markets and Developing Economies? The percentage may be small now, but the Islamic finance market is growing at an impressive pace—and not just in Muslim-majority countries.
There is a famous saying that a successful person can lay a firm foundation with the bricks others have thrown at him.
In real life however, the art of building a firm foundation is not always that simple. Waiting for others to simply throw bricks at you is not enough when the grand task is transforming infrastructure into an asset class. There is a need for a skillful bricklayer—and this is the role we see for the multilateral development banks (MDBs).
To meet this challenge, our two institutions – the International Finance Corporation (IFC) and the Asian Infrastructure Investment Bank (AIIB) – co-hosted a session moderated by AIIB’s Vice President Joachim von Amsberg at the recently-held 2017 Global Infrastructure Forum. The objective was precisely to discuss how to construct and promote infrastructure as a tradable asset class.
*A version of this post was originally written for KPMG's Insight Magazine. The content/data has since been updated for this blog post.
Social media is both a driver and an enabler of change. It is beyond simply a broadcasting platform, and individuals and organizations that recognize this are the ones that are truly able to harness its power. Social media drives conversations about infrastructure; it amplifies social reaction and sentiment; it encourages transparency and empowers individuals. Simply put, social media should not be ignored. So here is what you need to know.
Last Saturday, tens of thousands of people gathered on the Washington D.C. mall for the March for Science alongside hundreds of sister marches around the world to coincide with Earth Day. Climate change and environmental protection were high on the agenda as the planet continues to warm and countries confront an increasing number of extreme weather events.
Meanwhile, down the road at the Inter-American Development Bank (IDB), the 2017 Global Infrastructure Forum was in full swing, discussing how to deliver inclusive and sustainable infrastructure to ensure we achieve the objectives of the Paris Agreement and the Sustainable Development Goals (SDGs).
Photo: paulisson miura | Flickr Creative Commons
It is well-established that the lack of infrastructure is one of the main problems facing developing countries. Good infrastructure is one of the most important drivers for development and competitiveness. The question that follows is straightforward: how can we mobilize private financing for high-quality infrastructure investment in these countries?
The Public-Private Partnership Reference Guide has been downloaded more than 18,000 times since it was first launched in 2012. The Guide’s popularity reflects its value. The Guide offers:
- A solid overview of the core elements of public-private partnerships (PPPs); and
- A rich collection of references to the best-available PPP-related materials.
This version, however, offers several additions and improvements that add greater value to PPP practitioners:
- Version 3 is available online. Besides increasing accessibility, the online version allows new reference materials to be added as they become available. This makes the Guide a living document that is always up-to-date.
- A section on Stakeholder Communication and Engagement addresses an important element of PPP governance that is often overlooked.
- In response to growing demand, a new section, Environmental and Social Studies and Standards, has been included.
Going forward, we will publish monthly posts that highlight specific sections of the Guide, illustrating how seasoned practitioners and novices alike can use it to strengthen their knowledge of PPPs and apply it to real-world developmental challenges.
One year ago, the multilateral development banks (MDBs) came together for the very first time to kick off a new approach to addressing infrastructure development. The Global Infrastructure Forum, an outcome of the Addis Ababa Action Agenda on Financing for Development, offered a platform allowing governments, MDBs, United Nations agencies, and other developmental partners to mobilize resources for infrastructure development.
This year, the Global Infrastructure Forum 2017 will be held on April 22nd in Washington D.C. Besides improving coordination, the Forum aims to stimulate infrastructure investment by both the public and private sectors and support implementation of infrastructure projects in developing countries.
Why is this important? Because the Forum brings all major players in infrastructure development to the same table around four key themes:
Editor's Note: Join us April 22nd at 10AM ET for the 2017 Global Infrastructure Forum when the Multilateral Development Banks (MDBs), the United Nations, the G-20, and development partners from around the world meet to discuss opportunities to harness public and private resources to improve infrastructure worldwide, and to ensure that investments are environmentally, social and economically sustainable. Check out the event site to view the livestream on April 22.
Imagine the difficulty of designing, financing, building and operating a €360 million, 1,000-bed hospital campus that serves a region of 1.6 million people? This is exactly what the government of Turkey is doing in Elaziğ, a city of 350,000 in eastern Anatolia. The facility will serve and accommodate about 20,000 patients and their relatives per day with a broad range of services including women and children’s health, psychiatric services, and a dental clinic.
A project of this size is bound to be challenging and complex. But the approach taken by the Turkish Government has been a success—to involve a private-sector partner through a public-private partnership (PPP) with support from multilateral development banks. How did they do it?