PPIAF

Governments seeking new solutions for providing infrastructure assets or services are increasingly turning to public-private partnerships (PPPs). These encompass a variety of arrangements in which a private entity, under some form of agreement with the government, undertakes to provide infrastructure investment, services, management, or assets. The agreements allocate the risks involved between the government and the private partner, depending on which is better able to manage each one.
 
Public-private partnerships can range from service or management contracts to concessions to outright sale (privatization). There is no “one size fits all.” The best option will depend on many issues—the project, the risks involved, the outcomes desired, government policy, the economic environment. PPIAF doesn’t prescribe any arrangement—all should be assessed on the extent to which they provide cost-effective, sustainable solutions for improving service delivery.

Global and Regional Knowledge Development

PPIAF explores emerging trends in public-private partnerships to show their diversity and distribution. An important resource is the World Bank–PPIAF Private Participation in Infrastructure Project Database, with data on more than 3,800 infrastructure projects in 150 low- and middle-income countries.

PPIAF funds exploratory studies to help governments identify the most appropriate public-private partnership for their situation. It produces global toolkits providing governments with step-by-step guides to building a public-private partnership. And it supports regional and international conferences for sharing experiences around public-private partnerships and showcasing PPP opportunities.

Technical Assistance

• In Sri Lanka PPIAF is helping the government evaluate options for public-private partnerships for developing a national backbone network. The aim is to open up the telecommunications market so as to make services more affordable.
• In India PPIAF is helping the government explore PPP models through a review of alternative models for capturing land value appreciation, using the Mumbai Transharbor Link and affiliated infrastructure projects as a case study.
• In Mongolia PPIAF is funding a study to provide the government with options for improving access to water and sanitation in ger areas (informal settlements) and for enhancing the operational efficiency and effectiveness of water kiosks, tankers, and bathhouses.