The Public – Private Infrastructure Advisory Facility (PPIAF) helps developing-country governments strengthen policies, regulations, and institutions that enable sustainable infrastructure with private-sector participation. As part of these efforts, PPIAF promotes knowledge-transfer by capturing lessons while funding research and tools; builds capacity to scale infrastructure delivery; and assists sub-national entities in accessing financing without sovereign guarantees. Supported by donors and administered by the World Bank, our work helps generate hundreds of millions in infrastructure investment.
Improving competition, efficiency, and accountability in infrastructure
Improving competition, efficiency, and accountability in infrastructure is driven first and foremost by the need to provide universal access to infrastructure and increase consumer welfare. This will be achieved via greater affordability made possible by increased market competition and the continued adoption of novel technology and digitalization both within network infrastructure and off-grid. To accomplish the goals set forth under Pillar 1, PPIAF will promote competition through offering integrative policy and planning support to create markets and providing tools to encourage PPI, ultimately leading to both increased efficiency and affordability.
Accelerating PPI program development and implementation
Accelerating PPI program development and implementation was developed based on key trends observed over the previous strategy period on the evolution of PPP programs, with particular regard to nascent versus mature markets. As such, under Pillar 2, PPIAF will continue to support governments to create the building blocks for successful PPP projects and programs, particularly tailoring initiatives to the level of market maturity. The aim is to accelerate the “conversion rate” of initiatives into capital mobilization and better infrastructure services by tailoring support to build frameworks, capacity, and institutions to deliver projects and mobilize private capital.
Reducing risks in PPI programs and increasing creditworthiness of public counterparties
Reducing risks in PPI programs and increasing creditworthiness of public counterparties builds on the efforts of Pillar 2 while also addressing the key trends observed with respect to debt, worsened by the pandemic, as well as funding and financing. To address the risks arising from high debt burdens and low creditworthiness of public contracting parties, PPIAF acknowledges that it will need to be instrumental in developing PPP debt sustainability through guidance in good project selection, procurement, and oversight while also building capacity on available financing instruments and novel sources of funding. The reform of state-owned enterprises (SOEs) and subnational governments will also be critical to best achieve financial equilibrium and PCM. Ultimately, PPIAF will aim to reduce project risk by optimizing and diversifying the use of government and International Finance Institution (IFI) funding sources to stimulate long-term, local currency financing via the mobilization of sustainable finance for infrastructure.
Mainstreaming resiliency, equity, and climate co-benefits
Mainstreaming resiliency, equity, and climate co-benefits is bolstered by the imperative need to increase both climate resiliency and gender equity in privately delivered infrastructure, particularly within fragile countries. Key trends indicate that bankability will be increasingly defined by resilience and sustainability. Accordingly, PPIAF will continue its efforts to mainstream climate mitigation and adaptation principles within its portfolio to meet policy targets as it has done in previous years through the Climate Resiliency and Environmental Sustainability Technical Advisory (CREST). As such, collaboration with industry to explore standard setting for environmental sustainability, climate resiliency and associated financing will be imperative. Concurrently, PPIAF will aim to incentivize gender equity within PPP governance structure, project design, and capacity building.
PPIAF enables EMDEs to build institutions and to strengthen capacity to better identify, assess, and enable private sector participation opportunities.
PPIAF enables EMDEs to establish and regulate markets for resilient, affordable, and inclusive infrastructure.
PPIAF enables EMDEs to broaden and diversify the sources funding & finance for infrastructure.
How can we attract investments to advance private infrastructure development?
Strong institutions and effective regulatory frameworks remain crucial for ensuring that investments in infrastructure are made strategically and efficiently.
PPIAF helps accelerate the availability of resilient, affordable, and inclusive infrastructure services by improving the enabling environment for private participation in infrastructure.