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International cooperation

 

Enabling environment - Assessment

The Country PPP Readiness Diagnostic Tool, published in 2016, assesses a country’s readiness to implement PPPs by reviewing the PPP environment and comparing it to global best practice standards, so as to determine areas that need improvement. UN ECE and ESCAP created similar readiness assessment tools many years ago.

Infrascope follows a similar approach. It’s a bi-annual benchmarking exercise to assess country readiness for PPP, was first launched by IDB’s Multilateral Investment Fund (MIF) and the Economist Intelligence Unit (EUI) in 2009 and now includes EBRD and the Asian Development Bank as well. The latest study was published in 2017. The World Bank also launched for the first time in 2017 a benchmarking exercise of PPP Procurement practices from more than 100 economies. The 2018 edition is now available.

The InfraCompass, a G20 initiative managed by the Global Infrastructure Hub, provides an assessment of around 50 countries regarding their capability of delivering infrastructure projects while identifying priority reform areas.

The IMF’s Public Investment Management Assessment (PIMA) framework evaluates key institutions that shape decision-making at the three key stages of the public investment cycle (planning sustainable investment across the public sector; allocating investment to the right sectors and projects; and implementing projects on time and on budget).

The European Investment Advisory Hub aims to strengthen Europe's investment and business environment. The Hub is a joint initiative by the European Commission and the European Investment Bank, and is part of the Investment Plan for Europe.

Capacity building

The APMG Public-Private Partnerships (PPP) Certification Program, launched in June 2016, was developed by the ADB, EBRD, IADB, IDB, IsDB, the Multilateral Investment Fund, and the WBG and partly funded by Public Private Infrastructure Advisory Facility (PPIAF). It aims to strengthen the skills of PPP practitioners.

Other learning tools include the UNESCAP’s online training course on PPPs, which provide a basic minimum knowledge of various issues that policy-makers dealing with PPPs have to be aware of.

The European PPP Expertise Centre (EPEC) is an initiative involving the EIB, the European Commission and European Union Member States and Candidate Countries. EPEC helps strengthen the capacity of its public sector members to enter into Public Private Partnership (PPP) transactions.

Project screening

The Infrastructure Prioritization Framework (IPF) developed by the World Bank Group as an alternative approach to selecting and prioritizing PPP projects, uses a multi-criteria methodology incorporating social, environmental, financial, and economic factors.

To support Governments in early stage identification and selection of projects suitable to be delivered on a PPP basis, the UN-ESCAP secretariat developed a Qualitative Value-For-Money Toolkit.The toolkit is designed for screening PPP projects across developing countries in Asia and the Pacific. Similarly, the PPP Screening Tool produced by the World Bank later on is uses a combination of qualitative and quantitative inputs for screening projects.

Project Preparation & Structuring - Tools

Source, a platform created by the Sustainable Investment Foundation, offers governments a global standard, reliable, and user-friendly project preparation software that aims to maximize public sector users’ ability to expand their financing options through preparing and presenting projects in a consistent and transparent way to the international community of contractors, investors and lenders.

Different tools have also been created to deal with specific aspects of PPP projects, such as:

Fiscal Risk: The PPP Fiscal Risk Assessment Model (PFRAM) developed jointly by IMF and World Bank Group, is an excel-based tool that aims to identify the fiscal risks of PPP projects including contingent liabilities. 

Unsolicited Proposals (USP)s: The World Bank and PPIAF issued Policy Guidelines for Managing USPs in Infrastructure Projects. USPs is 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.

Risk Allocation: The Global Infrastructure Hub has produced an online tool to look at how to best allocate risks between public and private partners in PPP contracts. The tool consists of a series of 12 sample risk allocation matrices, covering various sectors, that are designed to assist countries with the allocation of risks between public and private partners in PPP transactions.

Disclosure: The WBG and the OECD launched a Framework for Disclosure in PPP.

Project Preparation & Structuring – Financial Support

There are a number of platforms and funds available for project preparation:

The Global Infrastructure Facility (GIF) is a global open platform that facilitates the preparation and structuring of complex infrastructure public-private partnerships (PPPs) to enable mobilization of private sector and institutional investor capital. Currently GIF is working on a business plan for downstream financing and credit enhancement to help mitigate risks in projects and to make more projects investible for private sector investors and financiers.

African Development Bank has set up a Project Preparation Support Facility which will operate through the Africa 50 Infrastructure Fund.  

The Asian Development Bank has set up the Asia Pacific Project Preparation Facility that encourages private sector participation in infrastructure by adopting a more consistent and higher-quality approach to public private partnership project preparation development and transaction advice across the region.

The Inter-American Development Bank has several facilities that support project preparation: the Project Preparation Facility (PPF), the Project Preparation and Execution Facility (PROPEF), the Infrastructure Fund (InfraFund), the Fund for lntegration Infrastructure (FIRII), and the Fund for Financing Disaster Prevention (FDP).

The EBRD’s Infrastructure Project Preparation Facility offers an improved support mechanism focused on bankable project preparation, coupled with a coordinated approach to infrastructure policy dialogue.

JASPERS (Joint Assistance to Support Projects in European Regions) is a technical assistance partnership managed by the EIB and co-sponsored with the European Commission (EC) and EBRD.