Contract Management in Asset Recycling

Asset recycling transactions involving a long-term concession or lease of an asset to a private partner constitute a long-term commitment by the private sector to operate and maintain, and sometimes redevelop and/or expand, a Relevant Authority's existing infrastructure project to deliver services to the public or the Relevant Authority. These activities are governed by the project agreements.

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.

Leveraging PPPs to tackle climate change – A new resource

According to the World Bank’s Private Participation in Infrastructure – Investment in Low-Carbon Infrastructure report, approximately 70 percent of global greenhouse gas (GHG) emissions emanate from infrastructure construction and operations. At the same time, extreme weather events or changing patterns can bring transport, electricity, and water networks to a halt—or lead to longer-term gradual deterioration of infrastructure assets with severe economic and human impacts for communities and countries. With economies across the globe in urgent need to build new or rehabilitate aging infrastructure, we need to ensure these investments are innovative, low-carbon, energy-efficient, and resilient to the effects of climate change.

The power of sunlight: incentivizing private investment in solar PV

With falling costs of solar photovoltaic (PV) technology, advancing storage technology, and grid integration, prices for solar PV electricity have been falling rapidly around the world and solar is now in many countries price competitive with traditional energy sources and has become particularly attractive for developing countries.

Investing in a brighter future: PPP street lighting projects

Switching from outdated systems to modern technology is a win-win solution for many municipalities worldwide, but high upfront costs can be a deterrent. Attracting private capital via Public-Private Partnerships (PPPs) can help municipalities raise the funds needed to implement clever street lighting systems that secure efficiency and high technical standards in the long run.

Energy-Efficient Street Lighting PPPs

Street lighting is an essential public service typically provided by public authorities at the sub-national and municipal level. Cities are increasingly investing in energy-efficient street lighting systems to replace or enhance their outdated systems. While reliable and bright public lighting reduces accidents and crime and allows for economic activity after sunset, modern energy-efficient street-lighting technology can also lower energy consumption as well as operation and maintenance costs significantly. Many different models have been developed world wide to deliver energy-efficient street lighting projects, including public-private partnerships. This section looks at sample contracts, bidding documents, policies, laws and regulations, and other tools related to street lighting projects.

Agreements for Renewable Energy Projects: Power Purchase Agreements

A Power Purchase Agreement (PPA) specifies the contract between two parties: a) the seller, who generates electricity,and; b) the buyer, who is looking to buy electricity. It defines all the terms for the sale between the two. A PPA secures the payment stream for a Build-Own Transfer (BOT) or concession project for an independent power plant (IPP). It is between the purchaser (often a state-owned electricity utility) and a privately owned power producer.

Carbon Capture and Storage

With many countries depending on fossil fuels for energy generation, in particular in the developing world, carbon capture and storage (CCS) could support the worldwide efforts to ensure energy security and to tackle climate change and reduce greenhouse-gas (GHG) emissions. CCS is the process of capturing waste carbon dioxide CO2) from large point sources such as fossil fuel power plants, transporting it to a storage site and depositing it so that it will not enter the atmosphere. Leveraging finance from the private sector is attractive for the further deployment of CCS projects but so far high costs and risk associated with CCS projects tend to restrict this option. Below are examples of policies, laws and regulations on carbon capture and storage, and further online resources and databases