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Public-private partnerships are complex transactions. For governments, they require preparing robust and comprehensive responses to the demands of investors. They also require contending with the many elements that go into their financing. Beyond dealing with legal and regulatory considerations, governments must:
- Assess the underlying economic and financial merits of a project
- Identify an appropriate financing option
- Understand investors' appetite for investing
- Be familiar with the legal, commercial, and contractual issues
- Put in place the bidding process.
PPIAF funding has supported a wide range of knowledge products designed to help governments catalyze financing while addressing the constraints faced by private investors and the risks of public-private partnerships.
Technical Assistance
- In Pakistan PPIAF is helping the Infrastructure Project Financing Facility develop its strategy and business plan. The government set up this new nonbank financial institution to help catalyze finance for PPP infrastructure projects, and PPIAF support is helping it assess gaps in the financial market and ways it could help fill them.
- In Guatemala PPIAF is helping to establish a credit facility to counter key constraints to private investment in basic community infrastructure projects in marginal areas and neighborhoods. Once this approach has been successfully piloted, the aim is to replicate it in other countries facing similar constraints.
- In Mexico PPIAF is assisting Banobras, the state-owned development bank, in reviewing its organizational structure and operational capabilities with a view to expanding its role in facilitating projects with private participation.
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