Building Stronger Institutions to Mobilize Private Capital in Infrastructure—with notable results
With over 20 years of experience, the World Bank supported Public Private Infrastructure Advisory Facility (PPIAF) is the only global facility dedicated to strengthening institutions to realize sustainable infrastructure with private participation. Since its inception, PPIAF has funded 1,700 activities in over 100 countries and helped facilitate Public-Private Partnerships (PPPs) that have attracted $27 billion in private investment in infrastructure.
In 2018, PPIAF established the PPP Institutions Building Program (the Program) that capitalizes on this experience. The Program successfully implemented PPP institution-building activities that enhanced the capacity of government officials across the globe and catalyzed the adoption of PPP laws, regulations, and guidelines. Program results include the development of strong PPP pipelines in Ethiopia, Kenya, Lesotho, Peru, Senegal, and Tanzania. In Kenya, the Program supported the development of a PPP Directorate that developed a strong PPP pipeline that is expected to mobilize $1.25 billion in private capital in the transport, energy, education, and agriculture sectors.
More than 5,000 municipalities in Brazil rely on outdated, inefficient, high-pressure sodium and mercury vapor lamps for lighting streets. When combined with “smart” management and control systems, LED technology for public street lighting can deliver energy savings of up to 80 percent. However, many municipalities struggle to access financing to upgrade their streetlights.
In partnership with the World Bank Group, the Global Infrastructure Facility (GIF) supported CAIXA, one of Brazil’s public banks, to structure and procure a set of public street lighting modernization PPPs in 10 Brazilian municipalities.
As of 2022, five municipalities had started using the LED technology. Ten upcoming pilot transactions will reduce emissions by about 21,563 tons of CO2 per year and provide a model for a future program of investments, expected to increase reductions up to an annual total of 565,556 tons. This will contribute to one-fifth of Brazil’s Paris Agreement target to improve energy efficiency in electricity by 10 percent by 2030.
Supporting West Africa’s first PPP Framework– ECOWAS
Governments in the Economic Community of West African States (ECOWAS) – Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Mali, Liberia, Niger, Nigeria, Senegal, Sierra Leone, and Togo – are looking for a regional solution to infrastructure development.
ECOWAS’ regional infrastructure masterplan comprises 201 projects in connectivity, digital development, energy (including renewable energy), and transport from 2020 to 2045 with an estimated investment requirement of $122 billion. With Public – Private Infrastructure Advisory Facility (PPIAF) support, ECOWAS successfully developed a comprehensive PPP framework. This is a critical step towards establishing a conducive and investor-friendly environment and closing a substantial regional infrastructure gap estimated to be between $20 billion and $36 billion annually.
The Parliament approved resolutions on regional PPPs and associated guidelines in December 2021. Once in place, the new regional framework will facilitate delivering regional infrastructure and public services in the ECOWAS region.
Improving Urban Mobility in Abidjan, Côte d’Ivoire
With the support of the World Bank and the Global Infrastructure Facility, the government of Côte d’Ivoire is building a Bus Rapid Transit (BRT) system aligned with the country’s 2016-2020 National Development Plan and Greater Abidjan Urban Master Plan.
The BRT is part of the World Bank’s broader $400 million Greater Abidjan Port City Integration project, one of the largest public transport PPPs in Côte d’Ivoire and among the first BRT systems in West Africa. It is expected to mobilize $130 million from the private sector.
The 20-kilometer BRT will transform the public transport system along the Yopougon-Bingerville corridor and its feeder lines in Abidjan. It will reduce travel time and increase access to jobs from low-income, outlying areas into the Abidjan city-center, with an estimated 600,000 additional jobs becoming more accessible. The BRT system will also encourage safe and equitable access and promote employment opportunities for women in its operations. Importantly, it will use climate-friendly technology.
The World Bank is collaborating with Pakistan’s PPP Authority (P3A) to advance private sector investment. With PPIAF support, three projects have been selected by the P3A for accelerated development: training on PPP pipeline screening, fiscal commitment and contingency frameworks, and climate considerations to build the capacity of the P3A. A follow-up activity is being planned, in partnership with the Global Infrastructure Facility (GIF), to further develop the multi-window financing vehicle, expand the PPP pipeline to include social infrastructure projects, and provide additional capacity building support.