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IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.

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Knowledge for Impact

Knowledge for Impact: Enabling and mobilizing private capital through PPPs. The current market poses significant challenges to the successful implementation of Public-Private Partnerships (PPPs). Key issues include elevated risk perceptions, geopolitical tensions, market uncertainties, rising capital costs, and heightened competition for private finance. 

Legal and institutional frameworks for Public Private Partnerships in Africa: a new tool developed by the ALSF to compare them

Asset recycling allows governments to concession out or lease existing, brownfield infrastructure assets, such as toll roads, airports, ports, rail, and electricity transmission assets that have the potential for private sector efficiencies in their operations and maintenance.  Governments, in turn, can invest the realized proceeds into building new, sustainable greenfield infrastructure assets. This creates a virtuous cycle whereby the public accesses improved services provided by the private sector (operating existing assets) and benefits from additional services delivered by investment in new infrastructure assets. 

Why countries should implement asset recycling, and where to get good guidance

Asset recycling allows governments to concession out or lease existing, brownfield infrastructure assets, such as toll roads, airports, ports, rail, and electricity transmission assets that have the potential for private sector efficiencies in their operations and maintenance.  Governments, in turn, can invest the realized proceeds into building new, sustainable greenfield infrastructure assets. This creates a virtuous cycle whereby the public accesses improved services provided by the private sector (operating existing assets) and benefits from additional services delivered by investment in new infrastructure assets. 

Climate-resilient PPP: where are we?

There are several instruments and tools already used to address climate change risk in Indonesian PPP projects. In toll road projects, the PPP procurement team has been requiring bidders to consider ways to anticipate floods and to adopt the 'zero delta Q' principle (so that no water discharge increased because of new projects). In a broad sense, the Government is developing policies to achieve its commitment under the Paris Agreement to reduce its greenhouse gas emissions. We have spatial planning policies to assess investments that correspond to a specific area. We also have green building technical standards where mitigation of climate change and disaster risks is included among the principles of green building. However, there is not yet a specific integrated instrument/tool for developing climate-resilient infrastructure projects. This issue is likely to become even more critical, given the current administration's focus on the new capital city; we would hope that climate-resilience plays a significant part in the design and construction of the city's infrastructure.

PPP Legal Frameworks Post Covid-19

PPP Legal Frameworks Post Covid-19

To remedy impacts of the current COVID-19 crisis on PPP programs and projects, governments are analyzing possible actions to stabilize markets and prevent project failures. In most cases, these measures have been ad hoc and of temporary nature such as modifying and/or suspending relevant PPP contract provisions.  What are the long-term implications of the current pandemic and possible similar future crises on legal frameworks for PPP?

Toll Road PPPs: Identifying, Mitigating and Managing Traffic Risk

Through PPP models, toll revenues can be used to service private sources of finance that can enable fiscally-constrained governments to fund new road construction, improve existing roads and ensure long-term high quality maintenance. However, the credit quality of these kind of PPPs and the associated cost and availability of finance are heavily dependent on project parties being able to accurately forecast traffic and revenues over a horizon sometimes decades in the future.