A global decline in PPP transactions has been observed in recent years despite the critical need for investments in various sectors, particularly in infrastructure development. Among reasons identified for the loss of confidence in PPPs are approaches taken in PPP contracts to risk allocation and dispute resolution. This brief recommends incremental reforms to current PPP contracting practices, incorporating various alternative arrangements and taking into account the associated governance challenges.

Infrastructure investment gaps impose fundamental impediments on sustainable economic growth and social development across developing countries in the APEC region. With real GDP increasing from 16 trillion USD in 1989 to 20 trillion USD in 2015, the region has outperformed global growth generating 59% of worldwide GDP and 50% of global trade (APEC, 2017). The 21 APEC economies represent half of the world’s population building a young and dynamic workforce and creating a large demand for infrastructure.

A presentation on Performance Based Contracts in Non- Revenue Water Reduction Programs, delivered on March 2017

Session 7: Exercise on PBC Design and Risk Allocation

As part of its leading practices mandate, the GI Hub has developed an update to its PPP Risk Allocation Tool originally published in 2016. As was the case with the 2016 version, the new PPP Risk Allocation Tool 2019 Edition contains a set of annotated risk allocation matrices for PPP transactions addressing the risks and issues on a sector by sector basis.

Presentation delivered by Maud de Vautibault, Principal advisor, GI Hub Seoul, Republic of Korea, May 23-24 2019.

As part of its leading practices mandate, the GI Hub has developed an update to its PPP Risk Allocation Tool originally published in 2016. As was the case with the 2016 version, the new PPP Risk Allocation Tool 2019 Edition contains a set of annotated risk allocation matrices for PPP transactions addressing the risks and issues on a sector by sector basis.

As part of its leading practices mandate, the GI Hub has developed an update to its PPP Risk Allocation Tool originally published in 2016. As was the case with the 2016 version, the new PPP Risk Allocation Tool 2019 Edition contains a set of annotated risk allocation matrices for PPP transactions addressing the risks and issues on a sector by sector basis.

There’s a strong emphasis on “quality infrastructure” afoot and we emphatically support it, as the focus plays a fundamental role as governments seek to deliver on their economic, social, and environmental goals.

This blog is managed by the Infrastructure Finance, PPPs & Guarantees Group of the World Bank. Learn more here.

Disclaimer: The content of this blog does not necessarily reflect the views of the World Bank Group, its Board of Executive Directors, staff or the governments it represents. The World Bank Group does not guarantee the accuracy of the data, findings, or analysis in this post.

This current edition of the Guidance on PPP Contractual Provisions, 2019 Edition (“Guidance”) is largely based upon work done by the international law firm of Allen & Overy LLP, under a team led by David Lee, Helga Van Peer, Tim Conduit, Fleur Clegg and Sarah Garvey, with input from across Allen & Overy’s global PPP practice.