Region: Global
Country: Global / Non-Specific
Keywords: About PPP, Knowledge Lab
Document Link(s):
Document(s):
- 2017 Global Infrastructure Forum: Outcome Statement149.8 KB
- Principles of MDBs’ strategy for crowding-in Private Sector Finance for Growth and Sustainable Development166.83 KB
- Mobilization of Private Finance by Multilateral Development Banks 2016 Joint Report1.32 MB
- Annotated Agenda740.43 KB
- Plenary Speaker Bios 11.29 MB
Document Summary:
The 2017 Global Infrastructure Forum was organized under the theme “Delivering Inclusive, Sustainable Infrastructure”. The 2017 Forum focused on meeting the challenges and finding innovative solutions to facilitate investment in sustainable infrastructure in the different regions of the world.
Document Details:
As set out by the 2030 Sustainable Development Agenda, sustainable, inclusive and high-quality infrastructure is of cross-cutting importance to increasing economic growth, attaining the Sustainable Development Goals (SDGs) and meeting the ambitions of the Paris Agreement (2015 COP21). In pursuit of the achievement of the SDGs, the 2015 Addis Ababa Action Agenda (AAAA) called on the MDBs to establish the Global Infrastructure Forum (Forum) in order to “improve alignment and coordination among established and new infrastructure initiatives” while bringing together the full range of stakeholders.
In view of the enhanced importance of infrastructure, many countries are now scaling up their plans based on their ownership of the SDGs and to meet their strategic infrastructure targets and their NDCs.1 MDBs historically have focused their efforts on increasing infrastructure investments with particular emphasis on developing economies. In line with their commitments under the Billions to Trillions Agenda, MDBs are increasingly seeking to devote a substantial part of their annual financing resources in support of sustainable infrastructure investments.
Principles of MDBs’ strategy for crowding-in Private Sector Finance for Growth and Sustainable Development:
Achieving the objectives set forth in the 2030 Sustainable Development Agenda calls for stepping up cooperation among all partners; enhancing domestic revenue mobilization; improving public spending efficiency; mobilizing and catalyzing private finance; and enhancing the role of the private sector across a broad spectrum of development activities including agriculture, climate change, education, health, finance, infrastructure, logistics, manufacturing and services. The MDBs, within their respective institutional mandates and lending capacities, play an important role in helping their borrowing member countries implement the 2030 Agenda in coordination with other relevant parties including the private sector. MDBs catalytic role in crowding-in the private sector by supporting reforms and reducing risks, and hence the cost, of private capital is among the relevant contributions to implementing this Agenda.
Because of the demand-driven nature of the MDBs’ work, client countries are ultimately responsible for engaging the MDBs in catalyzing private investment. Each of the MDBs therefore works to tailor its approach to the specific opportunities in each of its member countries, taking into consideration their own development plans, specific governance and legal frameworks, political and social realities, and institutional, financial market and sectoral characteristics. The Principles on Crowding-in Private Sector Finance provide a common framework among MDBs to increase levels of private investment in support of their development objectives.
Mobilization of Private Finance by Multilateral Development Banks 2016 Joint Report:
In 2015, the global community adopted the 2030 Sustainable Development Agenda and the Sustainable Development Goals (SDGs) that underpin it, as well as actions needed to fulfill the commitments made at the 21st Conference of the Parties to the UN Framework Convention on Climate Change.
As we highlighted at the Third International Conference on Financing for Development in July 2015, the financial resources needed to achieve the SDGs far exceed current financial flows. Indeed, as explained in a paper prepared for the Conference and endorsed by the World Bank/IMF Development Committee in April 20151, the world needs to move from billions to trillions of financing in order to meet the challenge of promoting inclusive, sustainable growth, reducing poverty and inequality, and protecting the planet.
At this time, we came together as Multilateral Development Banks to reaffirm our pledge to catalyze more investment from private investors and other sources of capital such as pension funds, sovereign wealth funds and insurance companies. We do this by leveraging our own capital base by borrowing from capital markets to increase our own ability to finance development. In addition, we catalyze greater private investment by: i) helping evaluate and structure high quality investment projects; ii) helping mitigate risk (real and perceived) associated with investments that have a positive development impact; iii) mobilizing resources from and co-investing alongside both traditional investors and new sources of commercial financing for development; and iv) developing new financial products to help unlock additional flows.
Updated: April 29, 2022