Procurement arrangements applicable to Public-Private Partnerships (PPP) contracts financed under World Bank projects
This note aims to provide guidance on procurement of PPP contracts that are financed by the Bank by providing the interpretation of the policies.
II. Scope of PPPs related to this note
1. PPPs cover all kinds of arrangements between the public and private sectors to deliver infrastructure services. When a government agency (or a state owned enterprise) seeks private participation to deliver infrastructure services, it has several options available to structure the project.
2. The provisions of this note specifically apply to BOO/BOT/BOOT, concessions and similar kinds of private sector arrangements as mentioned in World Bank Procurement Guidelines (hereafter referred to as Procurement Guidelines).
3. The conceptual framework for PPPs and elaboration of different types of project structures is provided in a separate note “Information Note on Public-Private Partnerships (PPP) and Public-Private Infrastructure (PPI) – September 2010” that gives the relevant concepts influencing the procurement of this type of project and discusses worldwide practices.
III. Role of the Bank
The World Bank Group is associated with PPPs in several capacities (please refer to Fig. 1).
(a) Both IFC and IBRD provide advisory services to the clients.
(b) IFC also participates by lending directly to the private sector investors (non-sovereign guaranteed lending).
(c) IBRD and IDA (hereafter referred to as World Bank or WB) finance government contributions - including capital grants, land acquisitions, Output–Based Aid (OBA) subsidies, VGF, investments that are sovereign-guaranteed and consultants hired as transaction advisors.
(d) WB finances intermediaries that in turn finance private sector investors
(e) PRGs or PCGs provided by WB
(f) MIGA guarantees