Watch this space. Lessons learned for post-pandemic Public Private Partnerships and Post-Pandemic Planning.
Let us know what you think by taking a Quick Survey.
To find out more: Search the PPPLRC Library. Subscribe to the PPPLRC Newsletter. Contact us.
Preparing for disruption starts well before the contract stage, during project selection and preparation. Useful guidance can be drawn from the global experience of the impact of disruptive events on PPPs; analysis of underlying issues, occurrences, and impacts of risks and ways to address them; and tools that have been developed to deal with the growing number of disruptive events in the context of PPPs.
The lessons learned, and approaches that have been discussed or implemented with regard to specific disruptive events, provide a useful basis for the development of guidelines aiming to enhance resilience of PPP contracts and contract management in the context of the exponential pace of technological change.
In this section we highlight resources developed to understand the impact of Covid 19 on PPP projects moving forward.
COVID-19 and Public-Private Partnerships Practice Notes
Covid-19 has impacted infrastructure PPP Projects around the globe, and we have seen disruptions not only to operational projects, but also to the planning, preparation and procurement of PPPs. The COVID-19 and Public-Private Partnerships Practice Notes include three different notes on Assessing Operational PPP Portfolios, Assessing the Impact of COVID-19 on PPP Pipelines and Projects in Preparation and Stocktake of government responses to the impact of COVID-19 on PPP projects.
Governments responded in different ways to the impact of Covid-19 on their infrastructure and PPP Projects, and the Stocktake of government responses to the impact of Covid-19 on PPP projects presents a snapshot of how a wide range of countries initially responded to the crisis, whether through legislative or regulative measures, sector-wide actions to maintain basic essential services, or through negotiating project-specific solutions.
The reponses received from 43 countries takes a snapshot of the following:
Impact of Covid-19 on operational PPP Projects
Impact of Covid 19 on the procurement of new PPP projects
Implementation of laws, regulations, or administrative measures to mitigate the impact of Covid-19 on PPP Projects.
The Practise note complements two other World Bank Practise Notes that dealt with the effect of Covid-19 on PPPs,
Assessing the Impact of Covid 19 on Operational PPP Portfolios, and
Assessing the Impact of Covid-19 on PPP Pipelines and Projects in Preparation.
Disruption and PPPs
The objective of the Disruption and PPP section in PPP Resource Centre is to help governments of emerging economies to better understand the increasing impact of disruptive technologies on PPP infrastructure projects, and to provide guidance on how to manage existing and design future PPP contracts.
The discussion of disruptive technology and its impacts on PPPs can be considered in the broader context of disruptions that have in recent years increased, and that present unprecedented worldwide challenges, such as climate change, natural disasters, economic crises, and global pandemics such as Covid-19.
The PPP Contracts in An Age of Disruption section addresses these questions systematically by
Defining disruptive technologies and their potential impacts on infrastructure projects and PPP contracts;
Outlining different policy options during the project development phase that encourage private sector adoption of innovative technology while improving resilience towards technological disruption; and
Discussing considerations for PPP contract management as well as future contracts to embed flexibility that allows for the integration of new technologies and accounts for technology disruptions that will inevitably occur.
Fiscal Implications of Public-Private Partnerships in a Sustainable and Resilient Manner
Managing the Fiscal Implications of Public-Private Partnerships in a Sustainable and Resilient Manner: A Compendium of Good Practices and Lessons Learned from the COVID-19 Pandemic - This report aims to illustrate how to improve fiscal risk management and treatment of Fiscal Commitments and Contingent Liabilities (FCCL) arising from PPP projects, to build better Infrastructure post-COVID-19. It intends to be a resource for World Bank client countries, including low income and fragile economies, to design their fiscal PPP management frameworks in a viable way that helps them develop their PPP programs while maintaining medium-to-long-term fiscal sustainability and resilience.
Volume I highlights and contextualizes the main findings from a set of case studies that assessed the PPP fiscal risk management framework in select countries, and synthesizes the observable and qualitative results in managing the impact of crises, in particular the COVID-19 pandemic. Based on that, it also explores how this crisis has affected PPP projects and overall PPP programs, and suggests improvements to FCCL management frameworks in order to strengthen the capacity of countries to continue with their PPP programs in a sustainable fiscal manner. Volume II contains the detailed case studies on which Volume I is based.
The World Bank Benchmarking Infrastructure Development (BID) website
Both the infrastructure deficit and country debt levels were already large before the pandemic; now COVID-19 is exacerbating debt crises and creating an even more challenging path to financing infrastructure services that boost people’s quality of life.1
Governments have many tools under their control to improve efficiencies in infrastructure investments. Some more cost effective than others. One tool is the creation of clear rules of the game that encourage private actors to participate in a sector that is often considered risky. Establishing these rules is invaluable to getting more resources devoted to infrastructure development. But just as important is the consistency and implementation of those rules. The latest database update of The World Bank’s Benchmarking Infrastructure Development (BID) website reveals that out of 140 economies assessed, 60 have enacted reforms between June 1, 2019, and June 1, 2022.
COVID-19 and Public–Private Partnerships in Asia and the Pacific: Guidance Note
The Covid-19 and PPPs in Asia and the Pacific Guidance Note from The Asian Development Bank considers the contractual implications of COVID-19, how relief can be provided outside of the contractual provisions, and the broader government considerations in managing the impact of COVID-19 on PPP projects moving forward. A number of case studies are included in the guidance note.
Check out the Municipal Case Stories section for examples on disruptive events or see some examples below.
Mongolia – Addressing Disruptive Technology through Renegotiation and Energy Regulation
Australia – Considering Future Technology Improvements to Victoria Water Desalination Plant
Portugal – Renegotiation of PPP Highway Contracts after Global Financial Crisis
Puerto Rico - Technological Upgrades and Contract Extension for P- 22 and P-5 Toll Roads
Join the ChatPPP Forum and see webinars like PPP Legal Frameworks Post Covid-19
Footnote 1: https://blogs.worldbank.org/en/ppps/what-gets-measured-gets-done-50-countries-reform-their-ppp-regulations
