Further Reading and Resources on FCS

Find reading materials and resources on PPPs in Fragile and Conflict-Affected States.

• Benchmarking Infrastructure Development 2020, Assessing regulatory quality to prepare, procure and manage PPPs and traditional public investment in infrastructure projects, World Bank Group, Australian Aid 2020 – The report builds on the report Procuring Infrastructure Public-Private Partnerships 2018 , which focused specifically on PPPs. It updates the assessment for PPPs in 140 economies. Recognizing the relevance of conventionally procured projects, it expands its thematic coverage to include the assessment of traditional public investments (TPIs) in 40 pilot economies. Benchmarking Infrastructure Development 2020 is designed to encourage and support governments in improving the quality of regulatory frameworks governing large infrastructure projects. It does so by measuring the adoption of internationally recognized good regulatory practices oriented towards the sound preparation, procurement and management of large infrastructure projects. The report points out that since Procuring Infrastructure PPPs 2018 was published, many economies have undertaken significant reforms of their PPP frameworks, bringing them closer to internationally recognized good practices. Some challenging economies such as Lebanon, Chad, and Georgia introduced new PPP laws and regulations and that this resulted in significant improvements in the quality of their regulatory frameworks as measured by the survey. However, in many areas, the regulatory frameworks governing infrastructure projects (for both PPPs and TPI) are still weak, in particular in low-income economies where basic infrastructure is needed to ensure connectivity and promote sustainable and broadly shared economic growth.

• Priorities for renewable energy investment in fragile states, Camilla Sacchetto, Nicholas Stern, and Charlotte Taylor, International Growth Center, November 2020 - The paper argues that there are strong reasons to invest in clean energy systems and technologies in FCS: State fragility is strongly linked to prevalent climate hazards and poor energy access. Conflict, poverty, and poor governance increase countries’ vulnerability to climate change threats, while access to electricity – especially renewable – is lowest in fragile settings. Four key factors make the scaling of renewable energy investment in fragile and conflict-affected states desirable and relevant: cost and practicality, increased and secured energy access, economic resilience, and inclusion and empowerment. In addition, the positive feedback loop between securing access to clean energy, state-building, and peace makes a strong case for pursuing renewable energy investments in tandem with other interventions that tackle state fragility and to do so in a committed, long-term fashion.

• Scaling Energy Investments in Fragile States, by Sarah Logan (IGC) and Camilla Sacchetto (IGC) on behalf of the Council on State Fragility, 2020 - Expanding energy access in fragile contexts is critical for these settings to recover from COVID-19 and escape fragility. However, investing in fragile contexts, with their higher perceived risks, more undeveloped markets, insufficient infrastructure, and constrained state capacity, remains difficult. This policy paper argues that these challenges can be overcome through the concerted efforts of a range of stakeholders, including national governments, donors, development finance institutions, non-governmental organisations, and the private sector. Each of these entities can make specific contributions to joint efforts to expand energy access, and can leverage a range of innovative financing mechanisms and business models in this endeavour.

• Governing Infrastructure Regulators in Fragile Environments: Principles and Implementation Manual, World Bank 2019 - The purpose of this manual is to contribute to improvements in the quality of infrastructure regulation in countries exiting situations of conflict and fragility. It does so by identifying key principles for the governance of infrastructure regulatory agencies, and by suggesting how those principles can be introduced successfully and maintained over time. The introduction of cross-cutting governance principles for regulators is based on the assumption that a uniform set of governance principles can be less costly and complex for governments to implement and enforce, and will provide potential investors with a more consistent and predictable regulatory environment to navigate. This publication is accompanied by materials for a 2-day training program, building on the findings of this book. The program targets analysts, practitioners, or key stakeholders concerned with revitalizing and reforming regulatory systems. It presents ideas, concepts, and perspectives designed to improve decision-making. Moreover, modules based on this book are available for online access on the Body of Knowledge on Infrastructure Regulation.

• Generating Private Investment in Fragile and Conflict-Affected Areas, International Finance Corporation (IFC) 2019 - The private sector can help break the cycle of conflict, fragility, and poverty that persists in many fragile and conflict-affected situations (FCS). This study draws on academic research and IFC’s experience with the private sector in FCS to derive lessons on how to engage with the private sector to foster growth, job creation, and stability.

• Procuring Infrastructure Public-Private Partnerships 2018, World Bank Group 2018 - This report benchmarks the regulatory frameworks of 135 economies around the world against internationally recognized good practices regarding the preparation, procurement, and management of PPPs, as well as in the management of unsolicited proposals. Among those 135 economies were 22 countries that were classified as FCS at the time of the publication of the report. (Chad, Myanmar, Papua New Guinea, Solomon Islands, Timor-Leste, Kosovo, Haiti, Djibouti, Iraq, Lebanon, Afghanistan, Burundi, Republic Democratic of Congo, Republic of Congo, Cote d’Ivoire, Eritrea, Mali, Mozambique, Sierra Leone, Somalia, Sudan, Zimbabwe, and Togo)According to the report the quality of the legal and regulatory frameworks in FCS is lower than average in all four thematic areas covered by the report.

• The State of Infrastructure Public-Private Partnerships in Countries Affected by Fragility, Conflict or Weak Institutions, World Bank Group April 2018 – The report assesses infrastructure PPP investments in a list of Fragile and Conflict-Affected States as well as the PPP regulatory frameworks during the 2012-2016 period. The report explores the links between regulatory reforms and infrastructure PPP investments (chapter 4). It comes to the conclusion that despite relatively low cancellation rates, the number of PPP projects and investments remains low in countries affected by fragility, conflict or weak institutions. Many of these countries have been strengthening their institutional and regulatory frameworks for PPPs in order to attract private sector investments, in particular for infrastructure projects and some countries have approved new PPP laws or reformed public procurement laws. Nonetheless, the overall quality of PPP legal and regulatory frameworks in these challenging countries is lower than the regional averages in all four thematic areas (preparation, procurement, management of USPs, and management of contracts). Preparation and management of contracts are the areas most in need of improvement and that show the widest variation in performance across FCS in comparison to non-FCS.

• Infrastructure PPPs in the most challenging developing countries: Closing the gap, Patricia O. Sulser, International Financial Law Review 2018 – The publication summarizes the observations and recommendations from a seasoned practitioner for overcoming the obstacles, avoiding the pitfalls and optimizing the opportunities for the development of PPPs, specifically in lower-income, fragile and conflict, affected developing countries. The publication includes four case studies of successfully concluded infrastructure PPPs. 

• Maximizing the Impact of the World Bank Group in Fragile and Conflict-affected Situations, World Bank Group 2018 - This report provides a comprehensive overview of the World Bank Group's (WBG) engagement in contexts of fragility, conflict, and violence (FCV). Its central message is that the Bank will only achieve its Twin Goals of ending extreme poverty by 2030 and boosting shared prosperity by increasing its impact in FCV settings. The report provides insight on how Global Practices and teams across the WBG are tackling these critical challenges, with a focus on cross-cutting fragility issues that appear across geographies and sectors. In cooperation with local, national and global partners, the WBG aims to strengthen its strategic and operational approach to FCV situations to enhance impact on the ground. The promotion of private sector development in FCS is addressed in chapter 2.4. 

• Providing Essential Infrastructure in Fragility, Conflict and Violence-Affected States - A toolkit for enabling SME participation, PPIAF 2017 - The purpose of the Toolkit is to assist policymakers and practitioners in government to create an enabling environment for SMEs to be engaged in private sector participation initiatives (e.g., public-private partnerships (PPPs)) in countries affected by fragility, conflict and violence (FCV), and thereby generate benefits for delivery of essential services, recovery and reconstruction, regional job creation, SME growth and competitiveness, and shared prosperity.

• Good Development Support in Fragile, At-Risk and Crisis Affected Contexts, Organization for Economic Co-operation and Development (OECD), March 2016 - This study  aims to provide guidance on how to work more effectively in fragile, at-risk and crisis-affected contexts. It identifies 12 lessons grouped into three thematic areas: i) building institutional fitness; ii) aspiring to deliver change; and iii) leaving no-one behind. These lessons are illustrated with a wealth of good practices examples from DAC members.

• Rebuilding for Tomorrow: Private Sector Development in Fragile and Conflict-Affected Situations in Africa, IFC 2015 - This “SmartBook” is a part of that knowledge management strategy, and the 12 SmartLessons1 collected here offer practical solutions to some of the tough problems of “doing development” in places where it is needed most. Written by IFC staff in the field, they provide operational knowledge on what works and what doesn’t on topics including results measurement, gender issues, public-private partnerships, and business regulation reforms. The experience drawn together in this book shows that, when the public and private sectors pull together, and when the international community provides its full support, even the most fragile of fragile states can build a solid foundation for success.The lessons are aimed at those within the World Bank Group and beyond who want to learn from IFC’s experience supporting the private sector in Africa’s fragile states.

• Output-based Aid in Fragile and Conflict Situations, The Global Partnership on Output-Based Aid, June 2015 -  Throughout the world, poverty is increasingly concentrated in countries and regions affected by fragility and conflict, which intensify already acute challenges to development. Fragility and conflict can range from persistent domestic or cross-border violence to vulnerability in the face of natural disasters or extreme weather events related to climate change, such as flooding or droughts. Where development has taken place, conflict and environmental disaster can strip years off these gains, and recovery is hampered by political instability, low government capacity, and the destruction of assets and infrastructure. The provision of basic services can support stabilization and lessen the impact of fragility and conflict on people’s lives. Output-based aid (OBA), which ties subsidy payments to the achievement of agreed upon outputs, improves access to basic services for the poor. This note discusses the challenges of service delivery in fragile and conflict-affected situations (FCS), and considers how OBA approaches can be most effectively utilized in FCS.

• Public-Private Dialogue: The Key to Good Governance and Development, Bettcher, Kim Eric, Benjamin Herzberg, and Anna Nadgrodkiewicz, Center for International Private Enterprise, Economic Reform Feature Service Washington, DC 2015 - Describes how the use of public-private dialogue can enhance governance and development outcomes.

• How Can Multinationals Engage with Government to Support Economic Development? Nelson, Jane, Brookings Institution 2014. The paper describes three distinct levels (national, sector-specific and project levels) of multinational corporate-FCS government engagement.

• Reconstruction PPPs, Handshake No. 9, IFC April 2013 - This issue of Handshake offers lessons from countries that have successfully coordinated the agendas of early relief, economic recovery and reconstruction, and longer-term development after turmoil. Experts from international organizations, government, academia, and the World Bank Group talk about the importance of early investment in critical infrastructure and the growing role of public-private partnerships. They also consider the practical steps needed to create the right environment for investment and growth, the importance of donor coordination, job training, and education, and the role of women in creating the social contract between a state and its people.

• Principles for Good International Engagement in Fragile States, Organisation for Economic Co-operation and Development (OECD) 2007 - Explains how OECD countries can improve their engagement strategies with FCS.

• Provision of Infrastructure in Post-Conflict Situations, UK Department for International Development (DFID) and Mott MacDonald, 2005 - This report reflects DFID’s infrastructure related work taking place in countries that have experienced conflict and the different approach towards infrastructure provision that this requires. The paper addresses the range of experience and knowledge resulting from this work in different countries with a view to providing a background resource for advisors and contractors working in similar situations.  The report covers the infrastructure sectors  water and sanitation, transport, shelter, communications and energy as well as the reinstatement of public buildings. It includes pertinent examples from both conflict and post-conflict countries.

• The Private Sector’s Role in the Provision of Infrastructure in Post-Conflict Countries: Patterns and Policy Options, Jordan Schwartz, Shannon Hahn, Ian Bannon, World Bank Group, Social Development Papers, Conflict Prevention & Reconstruction, August 2004 -This paper  examines private investment patterns in post-conflict countries based on the Bank’s Private Participation in Infrastructure (PPI) database. It looks at some success stories that may offer useful policy lessons for other post-conflict countries. The investment patterns show that telecoms investments, particularly mobile telephony, materialize immediately after (sometimes even before) the end of the conflict. Electricity generation and distribution projects start to emerge about three years after the conflict and increase in frequency after year five. Private investment in transport and water tend to come much later. Within the transport sector, seaports receive the majority of private investment. The experiences of a number of conflict-affected countries, suggest that there is much in the policy front that conflict countries can do to speed up private investment in infrastructure, and thus the contribution of the private sector to reconstruction processes and the resumption of growth. Policy recommendations suggest that the timing of reforms is important. Stepped arrangements may also be considered, including a planned progression from modest forms of private participation in infrastructure (e.g., service or management contracts) to deeper forms such as leases or long-term concessions. Government can also encourage (and especially refrain from constraining or regulating out of existence) the development of small-scale private service providers. Although they are generally not well captured in the data, a number of case studies and user surveys suggest that these entrepreneurs often play a key role in the absence of fully-functioning states, established public utilities and major private investments.

• Body of Knowledge on Infrastructure Regulation (BoKIR) - Website developed by the Public Utility Research Center (PURC) at the University of Florida, in collaboration with the University of Toulouse, the Pontificia Universidad Catolica, the World Bank and a panel of international experts with funding from the Public-Private Infrastructure Advisory Facility (PPIAF). The BoKIR provides guidance and links to more than 500 references on regulation. The site helps governments define regulatory standards, and includes a section with specific guidance on infrastructure in FCS.