This new section of the PPP Resource Center (PPPRC) focuses on Project Development Funds (PDFs), dedicated vehicles that governments establish to systematically support the preparation of public-private partnerships (PPPs).
The section is build around the resource Project Development Funds (PDFs): Supporting Project Preparation to Structure Successful PPPs - A Primer, developed by the World Bank’s Infrastructure Finance, PPPs and Guarantees (IPG) Group as part of the Building Stronger Institutions to Deliver Better PPPs program.
To understand the motivations behind governments establishing Project Development Funds (PDFs), it is important to consider the challenges faced by PPP programs.
When structuring a Project Development Fund (PDF), it’s important to consider the context in which it will be established. The optimal structure varies depending on each country’s institutional, legal, and financial environment. This section explores key determinants of a PDF’s structure.
Funding sources and financial sustainability require governments to carefully decide how to finance and sustain a Project Development Fund (PDF), including identifying funding sources, estimating funding requirements, and whether to require repayment of project preparation costs as part of a long-term sustainability strategy.
Project selection and eligibility criteria determine the scope of support a PDF provides, the point in the PPP project cycle at which projects may apply for PDF funding, in particular whether prefeasibility work is supported by a PDF, and the eligibility criteria used to assess PDF funding applications.
Once critical design decisions are taken around how a PDF is structured, how it is funded, and the nature of projects it will support, there remain a wide range of PDF operational issues that need to be considered:
Operational considerations and staffing include key issues such as PDF staffing, managing demand for PDF support, facilitating PPP advisory services, and ensuring transparency in PDF operations.
Clear lessons that may be useful to practitioners to develop effective PDFs.
