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public-private partnerships

​Stories from the field: World Bank-IFC collaboration on new PPP legislation in Albania

Christina Paul's picture


Today, October 11, 2012, the World Bank is proud to join others around the world in celebrating the first International Day of the Girl Child. The World Bank, working with governments and other partners including the United Nations Girls’ Education Initiative, is committed to supporting interventions that are proven to address gender equality because we know that gender equality is smart economics. Enabling girls and young women to have the chance to learn in order to lead healthy, productive lives so they can positively contribute to their families, their communities, and their countries requires sustained investments in data collection, research, dialogue, and effective interventions. Today we celebrate the progress achieved and recognize the work ahead. 

The following are select resources on girls' education to help you celebrate the International Day of the Girl!

Making PPPs work in fragile situations

Andrew Jones's picture

The eruption of Eyjafjallajokull in Iceland could mean some good news for those of us concerned with understanding the science of climate change.

As volcanoes go, this is small stuff.  The last volcano to have a substantial effect on global climate was Mount Pinatubo which erupted in the Philippines in 1991. Volcanoes affect global climate largely because the sulfur gases that they emit oxidize in the atmosphere to form sulfate aerosols (fine particulate matter), which stay around in the stratosphere for at least 12 months, and act as a strong cooling agent. According to the National Oceanic and Atmospheric Administration (NOAA), Mt. Pinatubo caused global temperatures to dip by about 0.5 degrees Centigrade for a year. The ash, which has been of concern to airline passengers in Europe and many others across the globe recently, generally has only a small and local effect on climate –it tends to fall to earth in a matter of weeks.

Helping communicate the potential of PPPs through a new, free online course

Clive Harris's picture

Will civil societies be real as opposed to figurehead partners in what are sure to be numerous climate-adaptation projects in developing countries in the decade of the 2010s?  Accumulating comments from DM2009 finalists who have had experiences dealing with governments in their countries suggest the question is, at the very least, an open one.

Ann Kendall, whose Cusichaca Trust project in Peru was a winning DM entry, had this to say: "Currently NGOs [in Peru] are undervalued, with exclusion from paid participation in government programs because of the support of some activists to communities in some notably conflictive situations."

To be eligible for international donor-country funding that's beginning to gather momentum post-Copenhagen, Least Developed Countries (LDCs) are mandated to give highest priority to partnering with civil society in developing their National Adaptation Plans of Action (NAPAs).  Completed country plans generally pledge there will be such partnering, but here's what DM2009 finalist Nazrul Islam, Country Director in Bangladesh for the finalist project of RELIEF International, said: "Certainly we would love to be part of the [Bangladesh] NAPA since my project perfectly fits into the government's current agenda to educate people about climate change. Since the government agencies themselves will implement most of the projects, I am afraid it would be a little challenging for civil society organizations to join directly in this NAPA."

From Brian Peniston of the finalist project in Nepal developed by the Mountain Institute: "My experience is that host governments will only share resources with NGOs under duress."

In this mini-interview, Carlos Daniel Vecco Giove, whose Native Community Kechwa Copal Sacha project in Peru was a winner at DM2009, offers further corroboration that there are problems, but holds out some hope:

Q. Is your country in its adaptation program doing enough to develop capacity -- knowledge and learning -- among government and civil society organizations?

A. Definitely it isn't doing enough. The level of knowledge is very low among politicians and they aren´t able to design adequate politics to adaptation.

Q. Is the national government really listening to local communities in preparing adaptation plans and strategies?

A. Definitely it isn't. The government imposes programs and it usually doesn´t listen to local communities.

Q. Since you returned to Peru from DM2009, do you plan to work with government so that your project might be incorporated in national adaptation efforts?

A. Yes, we will do so. We hope to improve knowledge and sensitize politicians and urban people. We have good relations with technical units within regional and local governments and we are sure they will participate actively in our project.

Highlighting a free resource for PPP project development

Mark Moseley's picture

One of the countries most threatened by climate change is the Maldives, the group of South Asian islands that are coping with the rising waters of the Indian Ocean.  One of the finalists in DM2009 was Innovative Gardening and Education to Adapt to Climate Change in the Maldives.  The Live & Learn project aims to "increase the quality and quantity of local food production, using new techniques resilient to increasing groundwater salinity" caused by the rising waters.  Innovative Gardening and Education would promote women as leaders in building a sustainable community network spreading the message of "no-till" resilient food production that combats encroaching salinity.  In this mini-interview Fathimath Shafeeqa, Country Manager of Live & Learn's environmental education operations in the Maldives, talks about climate adaptation in her country, the national government's relationship with civil society, and what she and other DM2009 finalists who didn't win at the competition need to move closer to success -- in particular, from the World Bank:

Q. Is your country in its adaptation program doing enough to develop capacity -- knowledge and learning -- among government and civil society organizations?

A. Not yet, but the government is still discussing adaptation measures.

Q. Is the national government really listening to local communities in preparing adaptation plans and strategies?

A. new government is in place and trying to decentralise a lot of the decision making.

Q. Since you returned from DM2009, do you plan to work with government so that your project might be incorporated in national adaptation efforts?

A. Trying very much to discuss with the respective government agencies. No luck as yet. However, if the World Bank decides to send a letter of acknowledgement re the finalists to the Finance Ministry of the respective countries, the process would be much faster.

PPPs: Making a real difference in delivering public services in Bangladesh

Syed Afsor H Uddin's picture

Dr. Kwi-gon Kim, February 2014How can green growth policy be translated into local action? The average household has an important role to play, as was demonstrated in Gwangju, a city of 1.5 million people located 270 km south of Seoul. With an ambitious goal to become carbon-neutral by 2050, the city implemented a carbon banking system which encourages households to act green – resulting in 54% of participating households reducing consumption of electricity, gas and water in four years. Dr. Kwi-gon Kim, Professor Emeritus of Urban Environmental Planning at Seoul National University and Secretary General of Urban Environmental Accords Secretariat, who played a key role in launching the program in Gwangju, explains how and what others can learn from the city’s experience to realize green economic development.

Carbon banking doesn’t sound like something families can do. Why are you targeting households?

Welcome to the PPP Realities Blog

Laurence Carter's picture

We will not make any serious inroads to reduce incidence unless we address poverty, crowding and stigma.

Tuberculosis (TB) remains a social disease and a syndrome of poverty. The epidemic has evolved and so has its treatment, yet TB mortality cases are reported to almost two million people around different pockets of the world. It was a standard epidemic since antiquity and continues to infect at least nine million new individuals in the first decade of the 21st century.

Historically, TB has been one of the major causes of mortality worldwide and as recently as 2009 claimed approximately 1.7 million lives globally. Approximately 11-13 percent of these individuals are also HIV positive and of these, almost 80 percent reside in the African continent. However, incidence rates are falling globally very slowly in five of WHO’s (World Health Organization) highlighted regions. The exception to this is the South and South East Asia belt where the incidence is stable. These facts demonstrate that the race is being won in some quarters but the finishing line is still a mere dot in the horizon.

Institutional Investment in Infrastructure: A view from the bridge of a development agency

Jordan Z. Schwartz's picture

The Buzz on the Street: Can institutional investors really close the infrastructure gap? 

Once again, infrastructure is a hot topic.  Not since the first waves of energy, water and transport privatizations in the early 1990s has infrastructure been a central topic in the daily discourse of the media, of the development community, of economists and financiers.  Now, governments are crying for more of it, new development institutions are being built around it and even the IMF is asserting its central role in economic growth.

Not only has infrastructure re-emerged as a popular, nearly consensus solution to the economic and societal woes of developing countries and industrialized nations alike, but the font of the resources needed to fill the infrastructure financing gap has also been identified.  Suddenly, it is impossible to walk through London, Washington, Paris or Singapore without bumping into a conference on institutional investors in infrastructure.  The G20 has discovered the link along with their business counterparts at the B20.  So too has the World Economic Forum, the OECD, the UN and the international financial institutions.  Match the long-term liabilities of pensions and insurance plans with long-term assets, the mantra goes, and the infamous infrastructure gap will close.  Win-win.

If only life were so easy. 

Newest private participation in infrastructure update shows growth and challenges

Clive Harris's picture



In 2013, investment commitments to infrastructure projects with private participation declined by 24 percent from the previous year.  It should be welcome news that the first half of 2014 (H1) data – just released from the World Bank Group’s Private Participation in Infrastructure (PPI) database, covering energy, water and sanitation and transport – shows a 23 percent increase compared to the first half of 2013, with total investments reaching US$51.2 billion.

closer look shows, however, that this growth is largely due to commitments in Latin America and the Caribbean, and more specifically in Brazil. In fact, without Brazil, total private infrastructure investment falls to $21.9 billion – 32 percent lower than the first half of 2013. During H1, Brazil dominated the investment landscape, commanding $29.2 billion, or 57 percent of the global total.

Four out of six regions reported declining investment levels: East Asia and the Pacific, South Asia, Africa, and the Middle East. Fewer projects precipitated the decrease in many cases. Specifically, India has experienced rapidly falling investment, with only $3.6 billion in H1, compared to a peak of $23.8 billion in H1 of 2012. That amount was still enough to keep India in the top five countries for private infrastructure investment. In order of significance, those countries are:  Brazil, Turkey, Mexico, India, and China.

Sector investments were paced by transport and energy, which together accounted for nearly all private infrastructure projects that were collected in this update. The energy sector captured high investment levels primarily due to renewable energy projects, which totaled 59 percent of overall energy investments, and it is poised to continue growth due to its increasing role in global energy generation.

The energy sector also had the biggest number of new projects (70), followed by transport (28), then water and sewerage (12). However, transport claimed the greatest overall investment, at $36 billion, or 71 percent of the global total.

While we need to see what the data for the second half of 2014 show, what we have to date suggests that infrastructure gaps may continue to grow as the private sector contributes less. It also suggests that, in many emerging-market economies, there is much work to be done to bring projects to the market that will attract private investment and represent a good deal for the governments concerned. 
 

PPPAmericas 2015: Taking public-private partnerships to the next level

David Bloomgarden's picture

The Latin America and the Caribbean region is crying out for infrastructure improvements. An investment estimated at 5 percent of the region’s GDP — or US$250 billion per year — is required to develop projects that are fundamental for economic development. This includes not only improving highways, ports and bridges, but also building hospitals and creating better transport, public transit and other mobility solutions for smarter cities. Rising demand for infrastructure also is prompting countries to redouble efforts to attract greater private investment

At the Multilateral Investment Fund (MIF), as at the World Bank Group, we believe that public-private partnerships (PPPs) can help governments fill this infrastructure gap. However, the projects must be implemented effectively and efficiently to achieve social and economic objectives.

Governments in the Latin America and the Caribbean region not only lack financing to address the infrastructure gap, but also face challenges in selecting the appropriate large infrastructure projects, planning the projects, managing and maintaining infrastructure assets — and gaining public support for private investment in public infrastructure. 

However, PPPs are gaining ground in Latin America and the Caribbean. Beyond the larger economies of Brazil, Colombia and Mexico, assistance from the MIF and the Inter-American Development Bank (IDB) has enabled countries such as Paraguay to develop laws that pave the way for PPP projects. Just this week, Paraguay announced its first such project, which involves an investment of US$350 million to improve and build more than 150 kilometers of roads. 

PPPs have been moving beyond classic interventions in public infrastructure, which have typically included roads, railways, power generation, and water- and waste-treatment facilities. The next wave of PPPs increasingly involves and provides social infrastructure: schools, hospitals and health services. In Brazil, IFC, the private sector arm of the World Bank Group, helped create the Hospital do Subúrbio, the country’s first PPP in health, which has dramatically improved emergency hospital services for one million people in the capital of the state of Bahia.

Beyond sovereign guarantees: The case for sub-national finance

Joshua Gallo's picture

In many countries, central governments have devolved the responsibility of infrastructure service provision to the sub-national level, which is essential for economic growth. Along with this devolution of provision responsibility comes the requirement to raise revenues, enhance efficiencies, improve commercial viability, and reduce a dependence on external financial support — including central government guarantees.
 
However, central governments are increasingly unwilling or unable (due to limitations of fiscal space) to guarantee sub-national borrowings. This new paradigm is testing the sub-nationals’ ability to raise financing to fulfill newfound responsibilities in infrastructure service provision.
 
Perhaps this is a blessing in disguise. Historically, easy access to sovereign guarantees has created perverse incentives for not pursuing more sustainable financing solutions. This dependence has also tainted the way that sub-nationals are perceived by the markets, by making them seem like reactive agents of development. This in turn has limited their access to finance and therefore their ability to develop. This approach must evolve, because whether the focus is climate change, massive migratory movements, or basic infrastructure needs, the struggle to advance the global fight against poverty and unsustainable development may be won or lost primarily at the local level in developing countries.


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