Grain Storage PPPs

PPP projects for grain storage can be done through a variety of models depending on policy imperatives of governments and actual demand for storage. Globally, only a few projects have been successfully implemented in this sector as PPPs. There has been some recent interest in adopting this approach in countries such as India, Pakistan, Oman, Nigeria, Philippines, and Zambia. However, not all of these countries have ended up adopting the PPP mode.  This section looks at some sample agreements, as well as general reference materials and lessons learnt.

Sample Agreements

Summary of Model Concession Agreement (MCA) for Grain Storage Silos and Model Concession Agreement - This model concession agreement has been developed by the Food Corporation of India to encourage the use of PPP in grain storage facilities.

Tools and Guidance

Handshake Issue #5: Food & PPPs - Handshake Issue #5: Food & PPPs examines how public-private partnerships (PPPs) in agriculture can help governments feed generations to come.

Projects and Case Studies

India: Punjab Silos - India has been successful in developing agriculture in its fertile northern belt, resulting in an abundance of grain. Unfortunately, its ability to store it has lagged behind. Today, India has neither the capacity nor facilities to store grain safely, leading to excessive losses through exposure, deterioration and pests. Poor inventory management has only added to the problem. In response, the Government of Punjab, India’s leading agricultural state, turned to IFC to structure a pilot public-private partnership to address this issue. The resulting concession—the first of its kind in India at the state level—was awarded in May 2010.

Missing Food: The Case of Postharvest Grain Losses in Sub-Saharan Africa - This report is based on the desk study undertaken by experts of the U.K. Natural Resources Institute (NRI).

Lessons and Analysis

A Harvest of Practical Insights - This SmartBook presents practical lessons learned by staff from across the IFC and the World Bank, on approaches for engaging in agriculture that have led to success (includes lesson on Punjab Silos PPP on page 24).

Partnerships IQ: Grain Storage Public-Private Partnerships - India has a number of early lessons to offer in the development of grain storage PPPs: from specific bid requirements and clauses in draft contracts, the importance of ensuring early understanding and acceptability of project structures by investors, to the critical role of transparency.



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Updated: June 17, 2022