PPIAF Highlights

PPIAF Welcomes Australia and the International Finance Corporation as New Members!

Third Quarter Commitments Show Demand in Africa for Public-Private Partnerships

PPIAF approved twenty-nine new activities in the third quarter of FY07 for a
total of US$4 million. Africa continued to receive the largest share, about
forty percent of the portfolio, reflecting a rising demand in by governments to
explore partnerships with the private sector. One-third of the activities
support multi-sector projects. For a complete list of activities click here, or
for a breakdown by sector, region and type of activity click here.

Kenya-Uganda Rail Concession Receives 'African Transport Deal of the Year' for 2006

In December 2006, the Kenya-Uganda Rail Concession reached financial closure after seven years of preparation. That it not only closed successfully, but became The Project Finance 'Africa Transport Deal of the Year', is testimony to the efforts of many in preparing the contract, structuring the financing, devising innovative risk mitigation measures, as well as rescuing the deal from the brink of collapse at the last minute. PPIAF funded preliminary studies and both the World Bank and International Finance Corporation supported the project.

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Trends

Developing country companies becoming a driving force of private participation in water projects

Developing country companies are becoming a driving force of private participation in water projects. Since 2002 developing country companies have been the main sponsors in a growing number of water projects. By investment commitments, however, developing country companies accounted for a small share of private activity except in some large Asian water utility concessions. Read more in the PPI database »

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New PPIAF Publications & Research

Trends and Policy Series

New Guide Reviews Risk Mitigation Instruments for Infrastructure Financing

A new World Bank/PPIAF study reviews risk mitigation instruments (i.e. guarantees and insurance) used in the financing of public and private infrastructure projects in developing countries. This comprehensive guide summarizes the major providers, presents recent trends and presents 18 transaction cases and the instruments offered by 30 multilateral and bilateral institutions. For the full publication, click here, or read the Gridline.

Gridlines

Port Reform Success in Nigeria Sparks 20 Concessions

In late 2004, the Nigerian federal government began one of the most ambitious port concession programs ever attempted. Less than two years later, 20 long term port concessions were awarded. What contributed to their success? Read more »

Chile Uses "Expert Panels" to Solve Regulatory Disputes

To ensure success with the private sector, the Chilean government created independent ad-hoc entities to solve regulatory disputes. Learn how these “expert panels” worked and how they can be an effective solution for managing tariff reviews, energy transfer payments and interpretation of contracts. Read more »

What are the Risks and Opportunities for Unsolicited Proposals?

Unsolicited proposals from private investors can introduce interesting ideas but also risks, such as opportunities for corruption. When should governments allow for unsolicited proposals and can they help competition and transparency? Read more »

Recent Trends in Risk Mitigation

Risk mitigation instruments can help mobilize commercial debt and private equity when governments or local infrastructure entities lack the creditworthiness or track record to attract finance on their own. Learn more about the main types of instruments, recent trends and find an overview of who provides what. Read more »

 Is Project Preparation Limiting New Projects in Africa?

More than US$8 billion of investment in Africa has been identified by the New Partnership for Africa’s Development (NEPAD). But is it lack of funding, or project preparation that is holding Africa back? Find out what Africans are doing to attract private capital. Read more »

New PPIAF Working Papers

Expert Panels in Regulation of Infrastructure in Chile »

Evaluating Regulatory Decisions and Sector Outcomes in Infrastructure Industries: Results from Africa and Other Developing Countries

Infrastructure Regulation in Developing Countries: An Exploration of Hybrid and Transitional Models

Outsourcing Regulation: When Does It Make Sense and How Do We Best Manage It?

Unsolicited Infrastructure Proposals: How Some Countries Introduce Competition and Transparency

Joint Publications

The Challenge of Reducing Non-Revenue Water (NRW) in Developing Countries - How the Private Sector Can Help: A Look at Performance-Based Service Contracting

One of the major issues affecting water utilities in the developing world is the considerable difference between the amount of water put into the distribution system and the amount of water billed to consumers (also called “non-revenue water”). This study provides a global overview of the situation and what it means in terms of foregone services to new consumers and the financial costs to utilities. Read more »

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New Activity Highlights

Regulatory Commission in Philippines Builds Capacity on Wholesale Electricity Spot Market Surveillance

In the Philippines, PPIAF's just-in-time support is helping the Electricity Regulatory Commission (ERC) analyze and respond to important emerging issues around potential abuse of the newly established Wholesale Electricity Spot Market (WESM). Clear protocols will be issued by ERC for the assessment of the abuse of market power and other anti-competitive behaviors, and also for ERC undertaking investigations into these matters. The work is a step towards a clearer operating framework for WESM and promotes greater investor confidence in the spot market. It is also expected to yield insights for other market surveillance bodies facing similar issues.

PPIAF Approved Two New Power Activities in Vietnam

Two new PPIAF projects in Vietnam will help the government meet demand for electricity services. The first will support the development of a standard thermal Independent Power Producer (IPP) tender to provide the government with instructions for implementation of electricity generation projects with private sector investment. The second will help the Electricity Regulatory Authority of Vietnam develop electricity licenses for transmission, to be granted to the Transmission Company which is expected to be created as a subsidiary of Electricity of Vietnam in the second half of 2007.

Support for Outreach and Stakeholder Engagement

A grassroots consumer protection NGO in India, Consumer Unity & Trust Society (CUTS), received a PPIAF grant of $60,000 to develop a comprehensive plan to provide training, research and outreach for stakeholder engagement as part of infrastructure reforms program. With more than 25 years experience, CUTS will provide training for stakeholder groups about regulation and competition issues to help them better understand and advocate their interests in the reform process.

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Activity Breakdown

A. The Geographic Focus of the 29 activities approved is summarized in Table 1. The largest share of activities was in Africa due to a high number of large size activities approved in the period under review.

Table 1:

B. The Sectoral Focus of the 29 activities approved is summarized in Table 2. Multi-sector activities were the most dominant over the quarter representing 49% of total approvals valued at $2 million.

Table 2:

C. The Primary Focus of the 29 activities approved is summarized in Table 3.

Table 3:

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