PPIAF Annual Report 2017

PPIAF Annual Report 2017

CICA Summary

PPIAF goals:

  • strengthen the policy, regulatory and institutional underpinnings of private-sector investment in infrastructure in emerging markets and developing countries;
  • building institutions;
  • reducing policy, regulatory and institutional risks;
  • building the capacity of counterparties;

this foundation allows governments to generate a pipeline of bankable projects.

PPIAF is targeting specific interventions and issues through introduction of strong thematic elements,

such as :

– climate change;

– fragility;

generating impact in 30 priority countries enabling infrastructure investments.

To be noticed: reinforcement of PPIAF’s field presence with the creation of a new Asia/Pacific regional office in Singapore.

PPIAF wants to be the only global facility dedicated to strengthening the policy, legal, and institutional underpinnings of private-sector investment in infrastructure. PPIAF call this the “critical upstream.” Often governments lack the necessary policies, laws, regulations, institutions, and capacity needed to encourage private investment for the benefit of the public and private sectors and the general population.

To reach this objective PPIAF help governments to adopt a clear strategy, operating within a solid regulatory framework.

SOME PARTICULAR FOCUS

Climate:

The cost to developing countries to adapt to climate change is estimated at $ 70-100 billion annually, but damages are estimates as high as $150 billion per year. Transport, will bear the largest share of these future climate adaptation costs.

Urbanization:

Infrastructure capital requirements in urban areas over the next 15 years are estimated at $50 trillion

Sub-National Technical Assistance (SNTA)

Building systems and capacities of Sub National Entities (SNEs) in developing countries thanks improvement of their access to market-based financing.

Important outcomes:

  • better public financial management;
  • improvement of credit ratings,
  • stronger institutional capacity and systems;
  • more successful implementation of innovative debt financing transactions.

SOME GUIDES AND PUBLICATIONS

  • Benchmarking Public-Private Partnerships Procurement 2017 to improve the legislative and institutional framework for PPPs.

http://bpp.worldbank.org/

  • Infrastructure risk management framework (IRMF) to enable government to support projects with guarantees and subsidies while managing consequent liabilities and fiscal risks.

https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/highwaystoolkit/6/pdf-version/3-33.pdf

https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/highwaystoolkit/index.html

  • Creation of the Infrastructure Guarantee Fund (IGF) to provide guarantees for government obligations.

https://ppiaf.org/pillar/access-infrastructure-finance

  • Viability Gap Financing Tool (VGFT) that enables the use of government grants to improve the financial viability of projects.

http://ppp.worldbank.org/public-private-partnership/financing/government-support-subsidies

  • Project Development Fund (PDF) to assist in project preparation and delivery

https://pppknowledgelab.org/glossary/project-development-fund

  • Development Plan

An example in Indonesia: geothermal development plan to increase confidence in government commitment, including tax incentives and a stimulating tariff regime to improve project financial viability.

PPIAF’s KNOWLEDGE SYSTEM

PPIAF technical assistance activities provide lessons àLessons are distilled and compiled as knowledge products for global dissemination à Lessons captured help inform and improve future PPIAF technical activities & global projects. To achieve this objective, PPIAF works with various strategic partners to develop knowledge solutions for wider infrastructure problems

PPIAF’s emphasis on capturing and using knowledge is central to its role as a center of excellence.

  • Knowledge Lab and
  • Public-Private Partnership in Infrastructure Resource Center (PPPIRC),

to scale up rigorous screening of project pipelines through peer reviews and market reactions.

BUILDING PARTNERSHIPS

PPIAF develops knowledge with various strategic partners such as educational institutions, development institutions, and PPP knowledge centers to help tackle wider infrastructure problems i.g. :

  • Public Utility Research Center at the University of Florida;

http://warrington.ufl.edu/centers/purc/

  • PPP Reference Guide, and the PPP;

https://ppp.worldbank.org/public-private-partnership/library/public-private-partnerships-reference-guide-version-20

  • APMG Certification Program.

https://ppp-certification.com/

THE KNOWLEDGE TO IMPROVE ENABLING ENVIRONMENTS

Economist Intelligence Unit’s :

  • 2015 Infrascope for Africa;
  • Benchmarking PPP Procurement study;
  • The State of PPPs in Fragile;
  • Conflict States.

KEY KNOWLEDGE PRODUCTS FY15–FY17

 APMG PPP CERTIFICATION PROGRAM

Standard certification process to enhance basic understanding of PPPs in low and middle-income countries.

  • MOBILIZING ISLAMIC FINANCE FOR INFRASTRUCTURE PPPs (Total amount of financing: 1.9 USD trillions).

https://ppiaf.org/documents/5369/download

  • POLICY GUIDELINES FOR MANAGING UNSOLICITED PROPOSALS IN INFRASTRUCTURE PROJECTS.

https://ppiaf.org/documents/5367?ref_site=k

 HIGHLIGHTS OF FY 17

PPIAF approved $18.2 million grants for 60 new technical assistance and knowledge activities in FY17.

Leverage effect: USD 0.5 for every 1 USD.

10% in in fragile & conflict affected States.

Breakdown of PPIAF support to the regions – FY 2017 (in %)
S-SAEAPALACECAMENASA
Transport10498222510
Energy13315301447
Water14181310308
ICT600000
Multi-sector573064383135
Total100100100100100100

S-SA : Sub-Sahara Africa

EAP  : East Asia pacific

ALAC: Latin America – Carribean

ECA : Europe Central Asia

ECA : Europe Central Asia

MENA: Middle East-North Africa

SA: South Asia

THEORY OF CHANGE & RESULTS FRAMEWORK

In FY14, PPIAF developed a theory of change that describes the infrastructure gap problem and the necessary institutional, regulatory, financial, and market changes that need to happen to increase private-sector participation in infrastructure development projects globally. Within this broader theory of change, PPIAF’s Results Framework focuses on developing client countries’ capacity to identify, assess, and enable private-sector participation opportunities, adopt appropriate policies and regulations, and put institutions in place that catalyze PSP infrastructure delivery.

Supporting SNEs’ capacity to access market-based financing without sovereign guarantees and improving their administrative, technical, and fiscal capacity to raise finance.

PPP CAPACITY & REFORM CONSENSUS

PPIAF Publications

  • Investigating the Infrastructure Financing Gap : assesses the key factors that determine the degree of private financing in infrastructure projects with a special focus on institutional, political, and governance characteristics.

https://ppiaf.org/activity/globalinvestigating-infrastructure-financing-gap

  • South Africa’s Renewable Energy IPP Procurement Program: Success Factors and Lessons: examines lessons learned from the renewable energy IPP procurement program (REIPPP) in South Africa. The report’s recommendations on attracting investments in renewables has made it a reference guide on renewable energy auctions throughout Africa.

http://ppp.worldbank.org/ppp/library/south-africas-renewable-energy-ipp-procurement-program-success-factors-and-lessons

POLICIES & INSTITUTIONS

Vietnam

Guidance documentation for the Ministry of Transport:

  • Viability Gap Funding Mechanisms and Fiscal Management Framework. Outcome: greater ministry capacity, awareness, and understanding of the issues and mechanisms involved.

https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/highwaystoolkit/6/pdf-version/3-34-3.pdf

https://pdfs.semanticscholar.org/2118/90d2b5761279b93374e266aab5d4067528a9.pdf*

https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/highwaystoolkit/6/pdf-version/2-35.pdf*

*Miguel Almeyda and Sergio Hinojosa.

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