When it comes to infrastructure projects, “unsolicited proposals” (USPs) represent an alternative to the traditional project initiation method where the private sector, rather than the government, takes the leading role in identifying and developing a project. In practice, many public authorities across the world resort to USPs motivated by the perspective of solving the challenges brought by their lack of capacity to identify and develop projects. However, many projects that originate as USPs experience challenges, including diverting public resources away from the strategic plans of the government, providing poor value for money, and leading to patronage and lack of transparency, particularly in developing countries. To ensure governments can mobilize the strengths of the private sector while protecting the public interest, USPs, when accepted, should be managed and used with caution as an exception to the public procurement method.
Africa is a continent rich in natural resources and boasts a large young, ambitious, and entrepreneurial-minded population. Harnessed properly, these endowments and advantages could usher in a period of sustained economic growth and increased well-being for all Africans. However, a lack of modern infrastructure is a major challenge to Africa’s economic development and constitutes a significant impediment to the achievement of the Sustainable Development Goals.
This PPIAF-funded report aims to discuss and disseminate information on how Islamic finance has been applied in infrastructure projects through PPP schemes, what the structural challenges and solutions are, and what can be done to deepen and maximize the use of Islamic finance for this purpose. This report has two broad dimensions. The first is to enhance the understanding of Islamic finance building blocks as they relate to financing infrastructure PPP projects, and the second, and perhaps less well understood, is to explore how the building blocks of Islamic finance can fit within a PPP context. This report paves the way for providers of Islamic finance capital to become partners in infrastructure development and thus contribute to its overall global financing pool. Read the full report here.
A major factor hindering infrastructure implementation and delivery is the absence of good governance, according to the 130 delegates from 27 countries who came together for the first Regional Roundtable on Infrastructure Governance in Cape Town in November.
There’s no denying infrastructure is crucial to Africa’s growth prospects. Nor can one ignore the ever-growing need for infrastructure on the continent—in Sub-Saharan Africa, only 35% of the population has access to electricity, and 23% still lack access to safe water and sanitation. Despite an estimated shortfall of nearly $100 billion in infrastructure investment in Africa, lack of financing is not the biggest problem.
Downtown Yerevan. Gusty winds, frosty air. Inside a hotel in the town square, cocktails and canapés, speeches and signatures. On this evening in November 2016, representatives of the State Committee for Water Economy (the Armenian water authority) and Veolia (a large international water operator) gathered to celebrate the signing of a new partnership: a 15-year national lease to provide water and wastewater services for the whole country. The lease began in January 2017, thus marking the start of a “second generation” of water PPPs in Armenia. Solid gains had already been made under the “first generation” between 2000 and 2016. At this crucial juncture, a World Bank study reviewed Armenia’s experience so far and analyzed the way forward under the new national lease.
Getting to commercial close on a Public-Private Partnership (PPP) transaction is a major milestone. But the deal is far from done. Getting from commercial close to financial close involves satisfying a long list of PPP contract Conditions Precedent, the terms, and conditions of lenders, among other requirements. The process is tricky and involves a lot of heavy lifting, particularly in emerging markets where the market for PPPs and supporting institutional structures may not yet be robust. None of this is news. Continue reading
Deadline: 11-Jan-2018 at 11:59:59 PM (Eastern Time – Washington D.C.)
Objective: SCOPE OF WORK: Under this consultancy work, a Multi-Sector Screening and Prioritization Tool for proposed infrastructure projects (from the 19 infrastructure sectors as defined in Perpres 38/2015), will be developed for the Indonesia’s Ministry of National Development Planning (BAPPENAS).
Deadline: 14-Dec-2017 at 11:59:59 PM (Eastern Time – Washington D.C.)
Objective: The Finance and Markets Global Practice and the Infrastructure, PPPs and Guarantees (IPG) Group of the World Bank, supported by DFID, intend to engage the services of a consulting firm qualified and experienced in PPP related technical, financial, institutional and legal work to develop and deliver a comprehensive training program for relevant government entities and other relevant stakeholders in PPPs and infrastructure financing. The services expected are described in the Terms of Reference.
RebelGroup (or “Rebel”)—the majority Dutch firm with offices in Rotterdam, Antwerp, Manila, Johannesburg, and Washington D.C.—has been advising governments on the development of infrastructure projects for 15 years. Over the past decades, Rebel has both experienced and shaped some of the major trends in the global infrastructure market—including a significant growth in the use of public-private partnerships (PPPs).
PPPs allow a government to engage a private company for the construction, maintenance, operations, and financing of an infrastructure project in a long-term contract that—through its focus on optimal risk allocation and performance incentives—maximizes value to society. PPPs have relieved many governments from the cost overruns and delays that traditionally plagued infrastructure projects, allowing more projects to be delivered on-time and on-budget.
Deadline: 18-Dec-2017 at 11:59:59 PM (Eastern Time – Washington D.C.)
Objective: This consultancy will support the government of Cameroon to build a more conducive PPP framework in Cameroon. Through a modernized PPP legal and institutional framework and enhanced capacity of PPP institutions, in particular CARPA, to identify and prepare PPP projects, the Government in Cameroon will be in a better position to attract private sector participation in infrastructure development.