PPP pipeline – steps to get it flowing
The Public-Private Infrastructure Advisory Facility (PPIAF), attached to the World Bank Group, is leading in building skills and processes to step up the supply of PPP projects across Africa. It is also preparing to provide 60% of its geographically focused assistance to in sub-Saharan Africa.
PPIAF approved 60 activities for nearly $17m in total in the financial year to June 2015 and had a pipeline of $14.6m of technical assistance activities outlined for the year to June 2016. It reopened its regional bureau in Dakar, Senegal in the financial year..
Some of the key steps to build the project pipeline.
- The facility works in partnership with United Nations Economic Commission for Europe (UNECE) to develop a standardized PPP process and documentation that incorporates global best practices. This began with a pilot in Ghana. Standardization of PPP documents will provide the basis for scaling up to other countries in Africa in coming years.
- Created a global certification programme for individuals working on PPPs, conceived by the World Bank Group as a way to foster a common minimum level of knowledge and understanding amongst practitioners working on PPPs.
- Partnered with regulatory experts at the University of Florida’s Public Utility Research Center to update the body of knowledge regarding improving infrastructure regulations, with support of regulatory practitioners, academics and multilateral development banks including AfDB. IDB and the WBG, as well in developed and developing countries.
- Support to the Public Private Infrastructure Research Center PPPIRC, an initiative of the World Bank with funding from the AfDB’s African Legal System Facility and the IADB’s Multilateral Investment Fund. PPPIRC is recognized as a unique resource for PPP legal documents, which often have restricted disclosure, making it difficult for international legal experts to support projects in specific contexts. The website collects and presents legal documents in a way that allows commercial-in-confidence items to remain undisclosed, providing a rich public-goods product to clients, the private sector, and the wider development community.
- Partnership with the Sustainable Infrastructure Foundation and multilateral development banks to support the International Infrastructure Support System, developing a web-based platform to support standardized project preparation and connect public projects with private investors.
PPIAF recent projects
- UEMOA (Union Economique et Monétaire Ouest Africaine/West African Economic and Monetary Union) regional institutional and project financing strategy to support implementing regional and national PPP projects over coming ten years.
- Chad - Institutional, process and capacity review
- Ghana – business plan for Ghana Infrastructure Investment Fund.
- Rwanda - Kigali Bulk Water PPP Project involves supporting the government in managing private-sector participation in the water sector for the city of Kigali with 1m people, including institutional support to Energy, Water, and Sanitation Authority (EWSA); technical support to EWSA to boost its understanding of the distribution network and its operational performance; and capacity building so government officials improved their understanding of PPPs.
- Senegal - City of Dakar moves towards being West Africa’s first city to issue a municipal bond without a sovereign guarantee. Dakar has secured a €10m ($15.8m) loan from AFD after following recommendations from a Public Expenditure and Financial Accountability (PEFA) assessment tool supported by PPIAF.
- Somalia - support to ICT sector and broadband connectivity
- South Africa - PPIAF has also been financing catalytic local urban development projects in South Africa
- Uganda – Kampala City Council Authority stepped up its financial management and won an investment-grade credit rating.
- Tanzania - work with the Government to build capacity for agencies coordinating and implementing PPPs
Activities to provide transferable lessons to lower–income countries are being carried outin priority African middle-income countries including Egypt, Ghana, South Africa and Tunisia. Other countries which received targeted technical assistance were Guinea, Kenya, Malawi and Mozambique.
PPIAF stepped up work with partners including Agence Française de Développement (AFD), the Asian Development Bank (ADB), the Inter-American Development Bank (IDB), and the World Bank and the International Finance Corporation (IFC) and African Development Bank.
Web-based PPP toolkit
The Public-Private Infrastructure Advisory Facility (PPIAF) financed the development of a PPP toolkit for francophone West Africa, as part of its support to the Government of Senegal. The toolkit provides key information and materials on PPPs on the PPP institutional and legal framework as well as on PPP preparation phases and methodology
The toolkit is managed by the Senegalese PPP Unit and other countries including Mauritania, Guinea and Madagascar have incorporated this tool as part of their training materials.
The toolkit was launched in April 2016 and is available using this link (here)