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In many developing countries a key obstacle to public-private partnerships (PPPs) in infrastructure is a lack of packaged, bankable project opportunities. Infrastructure needs may be clear, and sector reforms in place. But until project opportunities have been tested through upstream conceptualization and prefeasibility assessments, private sponsors, investors, and transaction advisors are usually reluctant to become involved on an at-risk basis.
Developing country governments are increasingly aware of this “project preparation gap.” Many are establishing entities that can assess project opportunities and perform preliminary project packaging, such as PPP units or project development funds or facilities. And many have made training a priority, recognizing that project preparation requires high levels of skill.
Global and Regional Knowledge Development
PPIAF grants support the creation of resources that can aid governments in promoting responsible, cutting-edge project facilitation. Recent activities include a global survey of risk mitigation instruments. In addition, PPIAF has collaborated with the Infrastructure Consortium for Africa in preparing a series of knowledge products on project facilitation in Africa. These include surveys of donor-funded project preparation facilities, donor debt and equity instruments for project financing, and private sector information requirements.
Technical Assistance
- PPIAF support is helping to establish new project preparation units in Kenya, Malawi, Mozambique, Nigeria, South Africa, and Uganda as well as a project development facility for the Economic Community of West African States (ECOWAS).
- PPIAF technical assistance for upstream project preparation has helped facilitate PPPs such as the Kenya-Uganda rail concession, port concessions in Nigeria, and a management contract for the Kenya Power & Lighting Company.
- In Armenia PPIAF is assisting the government in preparing a concession for Armenia Railway. Follow-up support will help hire transaction advisors to aid in managing the bid process.
- To build capacity, PPIAF is supporting the development and delivery of an advanced course in quantitative project appraisal techniques. The course will be offered by the Development Bank of Southern Africa and the Southern African Development Community’s Development Finance Resource Center.
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