Peter Brocklebank, Sub-Saharan Africa Transport Policy Program (SSATP), World Bank December 2014

Tracking Number: ValueforMoneyRefinancingApplication_Undated_EN

Tracking Number: ValueforMoneyRefinancing_2005_EN

Editor’s notes

This issue focuses primarily on the various aspects of wind energy though we take time out from that subject for two articles on the oil industry. We will continue with the topic of wind energy in the third quarter issue.

Draft Model Legislative Provisions: Road Network Financing and Management, 5th draft, developed by the Southern Africa Transport Communications Commission (SATCC) and USAID in March 1999

Related Information: 

PPPs in Roads 

Tracking Number: 

ModelLegislativeProvisionsRoad_1991_English

Summary:

The COVID-19 emergency requires all of us to work together to protect the public and workers, our vital public services and our economy. This includes the delivery of vital public services to the NHS through PFI contracts.

Typically, a Concession Agreement or a PPA will provide for Force Majeure relief to extend beyond the Concession Agreement/PPA to other project agreements that the Concession Agreement/PPA parties are also party to, including the EPC contracts or the O&M agreements. For example, where the occurrence of a Force Majeure event prevents the EPC contractor from building the power plant, the project company may be able to seek relief from its contractual obligation under the Concession Agreement/PPA.

Risk allocation is an essential component of a successful public-private partnership contract. For many of these projects, demand risk is large and mostly exogenous, which motivates considering contract designs that do not force the concessionaire to bear risk it cannot manage. In this paper we study present-valueof-revenue (PVR) contracts, which achieve this objective. Under a PVR contract, the regulator sets the discount rate and tariff schedule and frms compete on the present value of tariff revenue.

Both sovereign green bonds and FFSR bonds offer a promising framework to deliver sustainable recovery finance. There are significant opportunities for investment in key sectors like renewable energy, clean water supply, and waste management, as well as the potential to reduce reliance on fossil fuels. These sectors are particularly important to a post-COVID-19 economic recovery and will require trillions of dollars of investment over the coming decades.

In PART I of the report, blended finance data and insights provide a market overview with a look back to last year’s report and an assessment of the current challenges, macroeconomic impacts, and exogenous shocks that have equally shaped the broader climate finance market and the climate-related blended finance market. This section reviews recent downturns in sustainable investment and points at opportunities where blended finance can serve as an active mechanism to respond to the global challenges that adversely impact funding flows.