PPIAFAR2018 FINAL Single-Pages PDF

PUBLIC-PRIVATE
INFRASTRUCTURE
ADVISORY FACILITY
ANNUAL REPORT
Annual Report 2018 | i

PPIAF is the only global facility dedicated to strengthening the policy,
regulatory, and institutional underpinnings of private sector invest-
ment in infrastructure in emerging markets and developing countries,
and enabling finance for sub-national entities. We call this the critical
upstream.
While many initiatives focus on developing infrastructure projects

with private sector participation, PPIAF sets the stage to make this
possible by building institutions, strengthening the capacity of
counterparties, and reducing policy, regulatory, and institutional
risks.
Turning hundreds of thousands in grant financing into hundreds of

millions in infrastructure investment—this is the role of PPIAF.
ii | Public-Private Infrastructure Advisory Facility

MESSAGE FROM THE
PROGRAM MANAGERS
PPIAF: HELPING TO SET THE

RULES OF ENGAGEMENT | 1
REVIEW OF FY18 | 17
PROGRAM FINANCES | 51
Annual Report 2018 | i

MESSAGE FROM THE
PROGRAM MANAGER
Dear Readers,
This fiscal year marks my last as the Program Manag- We still have room for further improvement, howev-
er of the Public-Private Infrastructure Advisory Facility. er. Although some factors, such as the political econ-
As my mandate comes to its end, I strongly believe omy, will never be within our control, we need to
the PPIAF team can be proud of its achievements. closely monitor the health of our activities and work
Our main performance indicators are described in hard through all our channels to support high-quality
this annual report, which I am happy to share technical assistance.
with you. While available funding resources limit the level
Fiscal year 2018 corresponds to the first year of our of “critical upstream” support PPIAF provides, the
2018–2022 Business Plan. Two things are clear at work we support is invaluable to helping our clients
this stage. First, the development of sustainable deliver on their infrastructure goals. Ghana and Ken-
infrastructure is a key component in achieving the ya, where PPIAF has been active since 2000, provide
Sustainable Development Goals (SDGs), now barely excellent examples. In both countries, PPIAF has
a decade away. And second, this cannot be accom- helped governments develop their regulations, policy
plished without the private sector’s active partici- frameworks, and capacity to attract investment in
pation. PPIAF’s activities are helping its government their infrastructure sectors over time. This legwork
clients, the World Bank Group, and development is now translating into a stream of new projects.
partners get there by fostering good governance We are grateful for the ongoing support of our
within an enabling environment that attracts private donors, without whom our work would not be
sector participation in infrastructure. possible. Their continued contributions are laying
While new grants approved at $12.5 million marked the groundwork for future investments in sustain-
a further consolidation in FY 2017, activity disburse- able infrastructure services delivery through better
ments reached an all time high at $20.3 million, governance and other upstream work. I have no
and we doubled down in our efforts to achieve key doubt that throughout our five-year business plan,
qualitative targets and performance indicators in PPIAF and its partners will continue to demonstrate
accordance with our FY18 Work Program. Some impact and bring us all closer to the SDGs.
highlights include:
hh54 percent of new activity grants approved
in Sub-Saharan Africa, exceeding our target
of 50 percent François Bergere
hh33 percent of new activity grants approved in
fragile and conflict-afflicted situation countries,
exceeding our 13 percent target
hh42 percent of approved activities are expected
to achieve climate change mitigation and/or
adaptation co-benefits
ii | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | iii
iv | Public-Private Infrastructure Advisory Facility
MESSAGE FROM THE
INCOMING PROGRAM
MANAGER
In the last year, two landmark Public-Private Part- developing infrastructure and acted as a catalyst for
nerships (PPPs) came to financial close: the Tibar informed discussions with the private sector. In this
Bay Port PPP—a first for Timor-Leste, one of the way, PPIAF grants were the first de-risking instru-
youngest countries in the world—and the Kigali Bulk ments deployed.
Water Project in Rwanda, considered the first water PPIAF is unique among global partnerships, success-
build-operate-transfer projects in Sub-Saharan Africa. fully helping governments strengthen institutions
The deal teams, sponsors, and lead arrangers did and governance. As a result, they have productive
outstanding work in difficult environments to make engagements with the private sector in developing
these deals happen. infrastructure and delivering services to their con-
Early on, PPIAF played a critical role that enabled stituencies. It is a privilege and honor to serve this
both projects. Before Timor-Leste or Rwanda had mission as its Program Manager.
project pipelines, and before their respective granting
authorities were set up or reorganized, PPIAF was on
the ground. PPIAF’s technical advisory funds provid-
ed advice to governments on their best options for Jemima “Jema” Sy
Annual Report 2018 | v

PPIAF:
HELPING
SET THE
RULES OF
ENGAGEMENT
WHY IMPROVING
GOVERNANCE IS
NECESSARY
Poor governance of infrastructure remains a key When governments take on the task of working
stumbling block to achieving the Sustainable Devel- on such improvements, they help develop a more
opment Goals (SDGs). As the backbone of countries’ inviting investment climate. Evidence suggests that
economic productivity and connectivity, infrastructure a knowledgeable government counterparty with a
facilitates many actions necessary for development. clear strategy that operates within a solid regulato-
While governance weak spots differ by country and ry framework is more likely to attract investment.
political economy context, many countries need to World Bank research shows that volumes of private
improve project planning, better assess affordability, participation in infrastructure increase as corruption
and strengthen the rules of the game in their infra- decreases, and rule of law, quality of regulations, and
structure regulations. Otherwise, poor governance third-party oversight strengthens. With the massive
and weak capacity could lead to project failure or infrastructure needs and funding gaps faced by our
projects taking too long to materialize—meaning client governments, strengthening the governing
either that infrastructure does not get built or the capacities of government entities responsible for
host government bears significant extra costs overseeing and managing infrastructure develop-
due to project delay. ment becomes paramount.
PPIAF IS THE ONLY GLOBAL FACILITY EXAMPLES OF OUR WORK INCLUDE:

DEDICATED TO IMPROVING THE hh Enabling policy, legal, and regulatory reforms
INSTITUTIONS THAT GOVERN hh Increasing the capacity of both national and local
INFRASTRUCTURE AND ENABLING implementation agencies
FINANCE FOR SUB-NATIONAL ENTITIES IN hh Developing, selecting, and screening projects
EMERGING MARKETS AND DEVELOPING with the potential to attract private sector
COUNTRIES. participation
2 | Public-Private Infrastructure Advisory Facility

.... TO FOSTER
SUSTAINABLE, INCLUSIVE
INFRASTRUCTURE
Quality institutions and clear procedures can help compassing term that includes economic, environ-
promote inclusive infrastructure development that mental, and social considerations. Governments
both reduces poverty and is attractive for private must have the foresight to develop and finance in-
investment. Inclusive infrastructure is a critical com- frastructure with participation from the private sector
ponent for reaching the SDGs—it promotes eco- in a way that does not later burden them with too
nomic activity, lowers production and transportation much debt. They also need tools to determine which
costs, improves access to health and education, and projects provide the best value for money and return
creates jobs. to society, and must understand the environmental
and climatic considerations of the infrastructure they
Stronger institutions with clear mandates and proce-
develop. This knowledge enables governments to
dures are not just needed at the national level. Cities
pursue infrastructure that mitigates carbon emissions
and sub-national entities are increasingly responsible
during construction and operation and aids the tran-
for financing and delivering infrastructure services.
sition to a low-carbon economy. Sustainable infra-
They too need stronger capacity so they can finance
structure should also be “inclusive,” meaning that
and deliver on infrastructure promises.
it should account for the voices of all citizens—rich,
PPIAF helps government clients build capacity to poor, male, and female—and ensure that it meets
plan, prioritize, and develop projects that provide their needs, is affordable, and complies with design
economically-sustainable infrastructure—an all-en- specifications.
hh Strategy development hh Robust decision-making and operating

hh Improving the viability of service providers, procedures
including state-owned enterprises hh Capital investment program and finance planning
hh Diagnosing and rating the credit of sub-national hh Operational guidance and response capacity on
entities unsolicited proposals
hh Supporting financial intermediaries of sub- hh Strengthening oversight institutions and
national entities counterparties
Annual Report 2018 | 3

BUILDING
CAPACITY AT THE
SUB-NATIONAL
LEVEL AND
IMPROVING
Urbanization is on the rise. By 2050, close to 75
percent of the globe’s population will live in cit-
MUNICIPAL
ies, a development that has big implications for
infrastructure. At the same time, many countries
are increasingly moving infrastructure develop-
FINANCE
ment, maintenance, and financing responsibili-
ties to state and local governments. This means
sub-national institutions must develop the gov-
ernance and planning capacities—and conse- PPIAF’s Sub-National Technical Assistance pro-
quently creditworthiness—to attract finance for gram (SNTA),, in partnership with AFD’s CEFEB
much-needed infrastructure. Doing so requires and the World Bank, developed a municipal fi-
that they effectively manage their accounts, nance capacity-building program. This new part-
plan for investments, and build their creditwor- nership, approved in FY 2018, will be delivered
thiness, since large investment needs necessitate over the next three years. It will support cities by
crowding-in private finance. strengthening sub-national authorities’ finan-
The biggest cities will emerge in Africa, Asia, cial management capacity and performance
and Latin America, regions where PPIAF is ac- to prepare them for market-based financing
tively engaged at the sub-national level to build transactions in local currency for climate-smart
the institutional capacity to improve access to infrastructure projects. The program will in-
finance. Building such capacity becomes ever clude seminars specifically designed for local
more pressing, as growth in populations means authorities on financial tools, urban planning,
cities will require well-designed transport net- urban utilities management, and urban project
works, effective waste management systems, management, as well as on national and mu-
and digital connectivity to run smoothly, foster nicipal PPPs. Furthermore, all learning activities
innovation, and attract industry and talent. They will address climate change issues. The program
will also become the front lines in the battle will commence in Côte d’Ivoire, Gabon, Egypt,
against climate change. Ethiopia, Benin, Algeria, and Vietnam.

AND MEETING
LONG-TERM
CLIMATE GOALS
To meet the Paris Climate Agreement’s long-term
goal of keeping global temperature rise to well
below 2 degrees Celsius, the world’s energy and
transport systems need to decarbonize. These two
sectors are responsible for close to 50 percent of
global greenhouse gas emissions. Yet, limiting
SUPPORTING emissions is only one side of the coin. Countries’

infrastructure systems increasingly face threats from
WORK AT THE
an ever-changing climate, which poses more erratic
and damaging weather. Developing, building and
managing infrastructure systems within this dynamic
NEXUS OF reality requires good governance through clear policy

frameworks and strong public-sector capacity. This
GENDER & PPPs includes having the right incentive mechanisms to

spur private investment in renewable energy, making
sure that masterplans of sectors evaluate the car-
In FY18, PPIAF supported the development of a bon intensity of proposed investments, and aligning
guide that examines how gender considerations can infrastructure, PPP and climate policies. It also means
be included throughout the PPP project cycle. The ensuring public-sector officials understand the new
relationship between gender equality and economic reality both in terms of climatic changes and financ-
development is complex and influenced by norms ing flows in which they are developing their infra-
and decisions made at the household, market, and structure systems.
institutional levels. Many opportunity gaps between PPIAF’s Climate Change Trust Fund (CCTF) primar-
men and women remain, including those affecting ily focuses on helping client countries build their
women’s health, access to education, participation infrastructure systems—particularly energy and
in the labor force, ownership and control of assets, transport—in a low-carbon way. More minimally, it
the freedom to voice opinions, and control over their focuses on developing resiliency—the capacity of
own lives. Infrastructure development can play a role countries to handle shocks to infrastructure systems
in closing these gaps, and the PPP project develop- from extreme climate events. It also helps develop
ment process offers many opportunities to do so. global knowledge goods that distill current best
The PPIAF-supported guide provides a macro-level practices for attracting private investment in low-car-
overview on how infrastructure can contribute to bon transport and energy systems. CCTF delivers
promoting equal opportunities for men and women; much of its support with key World Bank Group
what approaches have worked (or not) in the past; partners, namely *ESMAP and the World Bank’s NDC
and how to address gender when developing PPPs. Partnership Facility, crowding in not only significant
The guide serves as a starting point; going forward, co-funding but also ensuring complementarity with
we will strive to better understand how our support the work of other stakeholders. In FY18, the CCTF
contributes to inclusive infrastructure and services supported 11 activities, totaling **$1.8 million in
that meet the needs of both women and men. funding and leveraging $2.6 million in co-funding.
* ESMAP is a partnership between the World Bank Group and 18 partners to help low and middle-income countries reduce poverty
and boost growth, through environmentally sustainable energy solutions.
** All dollar amounts are in United States dollars ($) unless otherwise indicated. Annual Report 2018 | 5
INDIA
SUPPORTING LOW-CARBON
ENERGY AND TRANSPORT SYSTEMS
In building their energy and transport capacities, needed at the national and state levels to facilitate
PPIAF’s client countries can avoid the lock-in effects the adoption of low-carbon and energy-efficient
of infrastructure dependent on fossil fuels. Notably, electrification of public transportation, as well attract
this includes India—a country with more than 1 bil- commercial financing to implement it.
lion people facing rapid development and urbaniza- The PPIAF-ESMAP partnership is also encouraging
tion. Infrastructure development choices there have a the large-scale uptake of renewable energy in India’s
real impact on the global community’s ability to meet power system. The country aims to reach 175 giga-
the Paris targets. watts of installed capacity from renewable energy by
The transportation sector, which accounts for 10 per- 2022, mostly from wind and solar resources. Cur-
cent of the country’s total carbon emissions, is pro- rently, significant technical and commercial barriers in
jected to add more than 250 million cars, 185 million the power system are preventing optimal utilization
two- and three-wheelers, and 30 million trucks and of existing wind and solar resources, which hampers
vans by 2040. In FY18, PPIAF and ESMAP—as part new investments. PPIAF-ESMAP support seeks to
of their strategic partnership—began working with increase and sustain high levels of variable renew-
Kolkata, India’s third largest city, to evaluate busi- able energy generation by improving power sector
ness models for accelerated deployments of electric planning, removing commercial constraints around
vehicles to serve as a public transportation alternative current power purchase agreements, and improving
for “last-mile” customers. The activity will also lay designs and processes in the power market.
out the appropriate policies and regulatory support

FEATURE STORY: PPIAF
COLOMBIA
FINANCING INFRASTRUCTURE FOR
URBAN REDEVELOPMENT
Colombia is facing a critical shortage of land for potential in Bogota, Medellin, and other major cities
urban development as housing demand far outstrips given the value and appreciation of the real estate
supply in most cities with populations greater than market. However, to make use of this new, alterna-
100,000. Additionally, Colombian cities are poorly tive source of infrastructure finance, it is critical that
structured, having dense peripheries with few public cities explicitly include TIF as a financing structure in
facilities and infrastructure, while centrally located their development plans.
and fully serviced land is largely underutilized. Several Medellin’s experience demonstrates this. The city
major Colombian cities have initiated urban renewal wanted to use TIF financing to redevelop dilapidated
processes, with varying degrees of success. and underutilized downtown neighborhoods. SNTA
PPIAF’s SNTA program has been engaged with followed up by supporting two outreach workshops
Colombia since 2011 to help it structure and take to for relevant Medellin and national-level policy makers
market innovative financial instruments that capture and stakeholders. As a result, Medellin proposed
the increasing value of land. Specifically, SNTA tech- reviewing its tax law to allow the use of TIF financing
nical assistance is supporting the development of the to help close the financing gap for two of its current
Tax Increment Financing (TIF) instrument—a tool that urban renewal projects in Sevilla and its “Innovation
enables investment in public infrastructure and urban District.” SNTA’s analysis found that the TIF structure
redevelopment by borrowing against future proper- could help develop these areas with private sector
ty tax increases. TIF structures also aim to securitize participation.
other projected revenue streams including taxes and Annual property tax revenues for Medellin could
fees on hotel occupancy, sales, parking, and develop- grow from a $4.4 million to $18 million by 2035 if
ment. growth expectations for the Innovation District are
Initially, SNTA supported a pre-feasibility assessment met. A TIF transaction could play an important role in
of TIF financing within the country’s legal framework. achieving this goal and open many new possibilities
The study confirmed that TIF financing has great for urban development.

GHANA
18 YEARS OF PARTNERSHIP
Since 2000, PPIAF has supported 17 activities in Gha- the Ministry of Finance, and in 2011, a new Project
na to stimulate private sector participation in infra- Finance Analysis (PFA) Unit and the National Policy
structure. The scope of PPIAF’s technical assistance— on PPPs were implemented. With the passage of PPP
totaling $3.9 million—included work to enhance the laws and firmer political commitment, the PPP-en-
enabling regulatory framework, ongoing support abling framework in Ghana has the potential to be
for the development of the Ghana Infrastructure very effective.
Investment Fund, and various initiatives in the water, In the water and sanitation sector, PPIAF’s inter-
transport, and energy sectors. In FY18, PPIAF’s Tech- ventions were well-received by clients, with quality
nical Advisory Panel (TAP) assessed the impact of this and execution consistently receiving high ratings. Ac-
work for relevance, execution, and effectiveness, as tivities supported both urban and rural infrastructure
well as the overall impact of PPIAF support on the issues and ranged from the exploration of PPP con-
government’s initiatives to deliver new infrastructure cepts to establishing contracts within state-owned
with private sector participation. The findings were enterprises. One example is a study of urban water
largely positive. services that focused on the use of market-based
At the multi-sectoral level, most PPIAF-support- performance contracts in internal markets. Insti-
ed activities were highly relevant to the creation of tutional reforms contributed to improved services,
an effective PPP-enabling framework. In 2008 the especially in urban areas. TAP recommends that
Public Investment Division (PID) was created within PPIAF, in consultation with the World Bank, further

develops reforms to allow for greater private sector Ghana (ECG). The current marketing of a conces-
participation in the sector. sion with a private partner to assume operating and
PPIAF-sponsored work on bus transport was also maintenance functions for ECG could improve ECG
highly relevant at both institutional and operational as an off-taker in independent power project (IPP)
levels, but with limited results thus far. Execution has contracting. This result would be consistent with
been good and some institutional recommendations, government objectives of increasing private sector
such as the establishment of passenger transport participation in the energy sector.
regulatory bodies, were adopted. However, in its The TAP assessment provided recommendations
follow-up work, PPIAF will need to revisit the outputs on how PPIAF can improve its work in Ghana.
of the activities in the bus sector, such as improved Key among these is promoting the use of a tool
licensing and franchising procedures. for selecting and structuring PPP projects, helping
In energy, PPIAF worked with the Millennium Chal- government establish more permanent institution-
lenge Corporation (MCC) in areas highly relevant to al solutions to support infrastructure projects, and
the government. The desired outcome was the five- improving project reporting to help government
year MCC energy sector compact to improve oper- better assess the quality of transactions. The impact
ating performance and creditworthiness in electricity assessment will help PPIAF better coordinate with the
distribution by increasing private sector participation government of Ghana on policies and regulations
in the distribution utility, the Electric Company of that drive the private investment in infrastructure.

KENYA
AN ENABLING ENVIRONMENT FOR
THE PRIVATE SECTOR
PPIAF has been active in Kenya, having supported 21 PPIAF engagement. Going forward, PPIAF will work
activities at the national level with total expenditures with smaller water service providers at the county
of $5.6 million since 2000. PPIAF provided upstream level and seeking private sector options for specific
support for the legal, regulatory, and institutional operational issues.
framework to encourage private sector participation, In the energy sector, PPIAF support has been highly
as well as supported work in the energy, transport, relevant to the government’s objective of increasing
and water sectors. PPIAF’s work in Kenya, along with power-generating capacity through greater and more
Ghana, was assessed by PPIAF’s TAP. effective private sector participation. As part of the
Since 2003, the government of Kenya has engaged government’s multi-sector private sector participa-
in a long-term commitment to private sector partic- tion initiative, the energy sector has the potential
ipation in infrastructure. PPIAF activities have been to improve the overall effectiveness of the enabling
closely aligned with the government’s objectives in environment for infrastructure delivery. PPIAF support
developing the framework and the capacity to imple- contributed to the energy policy discussion with-
ment. PPIAF has played an important and effective in government, which ultimately led to regulatory
role in helping Kenya establish a reliable procurement reform and to a second phase of restructuring within
process. the energy sector, which has contributed to improve-
Overall, Kenya has made significant improvements ments in its operating performance and creditwor-
that have made it a leader in infrastructure develop- thiness. Most of the 14 private sector participation
ment with private sector participation in Sub-Saharan deals executed since 2000 that have reached finan-
Africa (SSA). It has a highly developed PPP enabling cial close in the country were IPPs. All post-2012 IPP
framework, but still needs to improve its implemen- procurements have been through competitive se-
tation capacity. Kenya is now using the World Bank’s lection involving both international and local banks,
PPP Screening Tool for project selection and assess- usually with credit support from develop-
ment (results of the tool’s effectiveness are not yet ment financing institutions.
available, however). TAP recommendations include further capacity-
In the water sector, PPIAF’s support is aligned with building at several levels within the government, for
the government’s objective of increasing private example, through toolkits; broadening the scope
sector participation. Restructuring of the sector was of the Project Facilitation Fund (PFF) so that more
initiated through the 2002 Water Act. PPIAF support upstream functions—pre-feasibility analysis, includ-
has resulted in a regulatory environment that is more ing project selection based on government priorities
conducive to PPPs, as the regulator is well-informed, and feasibility for private sector participation—are
competent, and supportive of private sector par- included and eligible for funding; and support for
ticipation. However, the water sector has been less better ex-post assessments by government of future
successful than energy or transport in identifying and initiatives. PPIAF will also draw on Kenya’s experience
structuring projects with potential to be successful with PPP transactions in middle-income countries (for
PPPs, as there is limited political appetite for PPPs in example, by profiling the Nairobi-Nakuru Toll Road
large water utilities. The TAP determined that the transaction after it reaches financial close.
utilities’ operational issues provide opportunities for

PPIAF KNOWLEDGE
IS HELPING IMPROVE
INFRASTRUCTURE GOVERNANCE
PPIAF emphasizes capturing and using knowledge effectively govern their infrastructure programs.
in pursuit of its role as a center of excellence. We Alongside this, we continually cull lessons from the
fund research, tools, and publications that explore technical assistance we support and repurpose and
the frontiers of what “best-practice” means in the redeploy those lessons in other assistance. These
emerging market and developing economy (EMDE) activities form the cornerstone of our “center of
context for fostering private investment in infra- excellence” role.
structure. We also fund capacity-building programs
designed to give our clients the skills they need to
AND PROMOTE
UNDERSTANDING
OF POLICY & INSTITUTIONAL
REQUIREMENTS FOR PRIVATE
PARTICIPATION IN INFRASTRUCTURE
Part of our knowledge program’s mandate is to which our clients operate. Tools and guides range the
develop publicly-available global knowledge goods, gamut of the considerations our client governments
which foster an understanding of the policy and will need to understand how to deliver infrastructure
institutional requirements necessary to help client in fragile contexts or develop contract structures
countries attract private investment into their infra- that account for climate uncertainty and extreme
structure. The work we support not only looks at the disasters. These products are either developed in
most ideal way for our client governments to deliver response to a strategic need or crowdsourced from
on this PPI goal, it also examines how to do this from a marketplace of ideas through PPIAF’s annual “Call
a realistic standpoint, delivering practical knowledge for Global Knowledge Proposals.” Several knowledge
that recognizes the challenging environments in products reached publication in 2018.

KEY PUBLICATIONS FY18
Procuring
PROCURING INFRASTRUCTURE PUBLIC-PRIVATE PARTNERSHIPS 2018
Procuring Infrastructure Public-Private Partnerships 2018
Infrastructure
Public-Private
Partnerships
PPIAF supported this product alongside key partners to help governments improve PPP regulatory
quality. By benchmarking country’s regulatory frameworks against internationally recognized good
practices in procuring PPPs, this assessment identifies areas for improvement in the preparation,
procurement, and management of PPPs. Building on the success of Benchmarking Public-Private
Partnership Procurement 2017, this year’s edition significantly increases the geographical coverage
2018 from 82 to 135 economies.
OPEN CONTRACTING DATA STANDARD FOR PPPs

Recognizing that government contracting is worth trillions per year, the Open Contracting Data
Standard (OCDS) defines a common data model to enable disclosure of data and documents
throughout the process. The goal? To help organizations increase contracting transparency and
allow deeper analysis of contracting data by many users. PPIAF supported a new section of OCDS,
providing a model for how to publish all information required by the World Bank Framework for
Disclosure in Public-Private Partnerships. With the OCDS for PPPs, governments can be sure to
meet all disclosure requirements and recommendations and deliver better goods and services.
Resilient Infrastructure Public-Private Partnerships (PPPs): Contracts and Procurement
Resilient
Infrastructure RESILIENT INFRASTRUCTURE PPPS: CONTRACTS AND PROCUREMENT—
Public-Private
Partnerships (PPPs):
Contracts and THE CASE OF JAPAN
Procurement
The Case of Japan
Increasingly visible impacts of extreme natural disasters and climate change heighten the need for
disaster and climate-resilient infrastructure. Theoretically, through PPPs, governments can attract
private sector partners who bring the expertise to address the challenges of natural disasters.
The Case of Japan
Japan has led the way in identifying how to best do this. In response to the Great East Japan
Earthquake in March 2011, they developed many innovative features for resilient infrastructure
PPPs, such as varying methods for conducting value for money analyses or strengthening force
majeure clauses. PPIAF, alongside partners, funded a look at Japan practices.
PROVIDING ESSENTIAL INFRASTRUCTURE IN FRAGILITY, CONFLICT

AND VIOLENCE-AFFECTED STATES: A TOOLKIT FOR ENABLING SME
PARTICIPATION Providing Essential Infrastructure in
Fragility, Conflict and Violence-Affected States:
In FCV contexts, infrastructure needs are generally vast, and public-sector funding and interest A toolkit for enabling SME participation
from large private sector firms limited. SMEs can be critical to filling the infrastructure services
gap. Together with MENA and governance practices of the World Bank, PPIAF supported a toolkit
that draws on global case studies for lessons on how to promote and address challenges inhibiting
SME and broader private sector participation in infrastructure PPPs in the FCV context.
These recent products join our existing repository of global knowledge goods that continue to play a criti-
cal role in strengthening governments’ governance of infrastructure. This was showcased by OECD’s report
Stocktake of Infrastructure as an Asset Class, where PPIAF funded eight of the 14 tools and knowledge prod-
ucts designed to promote the development of infrastructure as an asset class.

CAPACITY BUILDING
HELPS CLIENTS IMPROVE
INFRASTRUCTURE
GOVERNANCE
Another key aspect of PPIAF’s knowledge program is communities of practice, which have the benefit
to help client governments and policy makers build of enabling tailored advice and network building
the requisite capacity to deliver on their infrastructure between governments, MDBs, and the private sector.
goals. To do this, PPIAF supported several platforms In FY18, we provided such support through the Lead-
and training methodologies in FY18 providing tools ers in Urban Transport Program, an innovative train-
and information that give our clients the ingredients ing program aimed at building capacity among urban
to make better decisions about delivering on their transport practitioners. Running for over 10 years,
PPI goals. For example, in FY18 PPIAF continued the highly-regarded program has created a global
longstanding support to the Public-Private Partner- network of professionals who exchange experience
ships Legal Resources Center (PPPLRC). The platform and ideas about good practice in urban transport.
provides access to an array of sample legal materi- Additionally, in FY18 PPIAF continued its efforts to
als that can assist in the planning, design and legal promote a better understanding of how to leverage
structuring of any infrastructure project, and notably Islamic finance by establishing a strategic partnership
those procured through PPPs. We also supported the on Islamic finance and infrastructure PPPs with the Is-
further roll-out of the PPP certification exam through lamic Development Bank. The goal of the partnership
the launch of the Level 2 “Preparation Exam” and will be to inform and build capacity of key stakehold-
through funding-related exam preparation train- ers on mobilizing Islamic finance for infrastructure
ings for policy makers in several client countries. In PPPs. PPIAF also supported a series of governance in
addition to platform-based capacity-building tools, infrastructure roundtables, as profiled here.
we support face-to-face trainings, roundtables, and

INFRASTRUCTURE
GOVERNANCE
ROUNDTABLES FOR
BUILDING CONSENSUS
Good management and governance of public invest- the quality, efficiency, and capacity of their infrastruc-
ments matter, particularly when developing strategic ture delivery.
infrastructure assets. Governments, the private sec- In partnership with other developmental institutions,
tor, and the public stand to benefit from substantial PPIAF and the World Bank Group distilled global
cost savings and better infrastructure productivity, lessons of experience and disseminated technical
which translates into stronger economic perfor- knowledge that will help governments make good,
mance. In developing countries, where infrastructure well-informed decisions based on sound analysis
investment accounts for a higher share of gross that support their economic and developmental
domestic product (GDP) and institutional frameworks objectives. The roundtables were an opportunity
and capital markets are less mature, the potential to introduce policy makers and practitioners to
impact is even greater. better approaches, standards, and tools used to
That is why the World Bank Group has been working manage infrastructure planning, development,
with governments to improve their infrastructure and financing. Improvements in these areas en-
governance capacity. Beginning in Cape Town, South ables the delivery of strategic infrastructure assets
Africa, in November 2017, a PPIAF grant supported on time, on budget, and in a way that builds the
four regional roundtables in Sub-Saharan Africa, support of all stakeholders.
Asia, and Latin America, with the goal of improving
REVIEW OF
2018
HIGHLIGHTS OF FY18
33% of funds to
FCV countries
8 6
policies, laws &
institutions
regulations adopted
strengthened
$278.6 million
size of project developed/materialized

$485 million
financing leveraged w/o sovereign guarantees
66
sub-national entities
155 officials
credit rated
trained
54% of funds to Sub-

Saharan Africa
All dollar amounts are in United States dollars ($) unless otherwise indicated.

$12.5 MILLION IN GRANT
APPROVALS DELIVERED
IN FY18
PPIAF approved $12.5 million for 53 new techni- tion of FY18 approvals, FY18 disbursements stand
cal assistance and knowledge activities in FY18, a at 163 percent. This means that over the course
decrease from the $18.2 million approved in FY17. of FY18, more client institutions received capacity-
While PPIAF approved less technical assistance, we building support, more governments received help
leveraged more co-funding. For every dollar ap- identifying PPP pipelines and more policy research
proved, we crowded in 83 cents in partner resources was delivered. Compared to last year, the average
as well as their capacities and technical support. size of newly-approved activities was slightly smaller
We also saw a real impact in the flow of funds to at $351,000 (versus $385,000 in FY17); yet the total
the actual technical assistance and knowledge work. number of “live” activities increased slightly, from
Disbursements to activities increased to $23 million 131 to 135 (up from 110 in FY16).
from last year’s total of $15.6 million. As a propor-
PPIAF TECHNICAL ASSISTANCE BY INCOME LEVEL
DAC 4
9%
DAC1
DAC3 52%
36%
DAC 2 DAC= Development assistance committee

20 | Public-Private Infrastructure Advisory Facility 3%
PERCENT OF TRUST FUNDS APPROVED IN FRAGILE AND CONFLICT COUNTRIES
NON-FRAGILE
33%
FRAGILE
67%
As a continuation of our long-term strategic objec- fragile countries and while no longer an overt PPIAF
tives, we aim to achieve greatest impact by focusing target, shepherding significant resources to low in-
on fragile and low-income, low-capacity countries. come countries (LICs). We achieved both these aims,
For FY18, this meant at a minimum deploying 13 driving 33 percent of our resources to fragile coun-
percent of our geographically tagged resources in tries and 55 percent to LICs.
PPIAF DRIVES SUPPORT

TO FRAGILE, CONFLICT-
AFFECTED, AND LOW-
INCOME COUNTRIES
SUB-SAHARAN AFRICA
RECEIVES GREATEST
SHARE OF RESOURCES
Sub-Saharan Africa, our priority region, received the million. This represents 54 percent of grants
majority of new funds allocated in FY18 with $5.2 approved from all PPIAF funding.
ECA
3%
LAC
6%
TECHNICAL ASSISTANCE BY REGION
SAR
7%
EAP
12%
SSA
54%
MENA
18%
EAP: East Asia & Pacific
ECA: Europe & Central Asia
LAC: Latin America & the Caribbean
MENA: Middle East & North Africa
SAR: South Asia
SSA: Sub-Saharan Africa
Because of changing dynamics in PPIAF’s donor Fund (CCTF) in FY18 and continued to provide
group and administrative renewal issues limiting the support to water and sanitation projects in Sub-
use of one of PPIAF’s consistently used trust funds Saharan Africa through our USAID Water trust fund.
(SECO MIC), FY18 saw a return to funding support Due to these funding source changes, as well as our
provided from PPIAF’s MDTF II and SNTA funds. As a ever-present push to reach our target to deploy 50
result of our 2018–22 strategic commitment to help percent of our funds in SSA and 13 percent in FCV,
clients mitigate against climate change and build regions such as SSA and MENA received proportion-
resiliency in the face of adverse weather events, we ally more funding than in FY17, while EAP, LAC, and
increased funds deployed from our Climate Change ECA received less (see Table 1).

APPROVALS BY REGION AS A PROPORTION OF TOTAL APPROVALS (FY17 vs FY18)
Region FY17 FY18 Difference

SSA 42% 54% 12%
EAP 19% 12% -7%
ECA 6% 3% -3%
LAC 11% 6% -5%
MENA 13% 18% 5%
SAR 9% 7% -2%
TECHNICAL ASSISTANCE BY REGION AND TRUST FUND, FY18
6000000
CCTF
5000000 USAID Water
SNTA
4000000
MDTFII
3000000
$ millions
2000000
1000000
0
SSA EAP ECA MENA LAC SAR
LESS SUPPORT TO
MIDDLE EAST AND
NORTH AFRICA
SNTA BUILDS ON
EXISTING PROGRAMS,
LEVERAGES EQUAL
AMOUNTS OF
CO-FUNDING
PPIAF’s SNTA program funded 10 activities for $2.43 resilient infrastructure services. It works with local
million in FY18—while leveraging $2.12 million in authorities, including utilities, providing compre-
co-funding—to help sub-national entities develop hensive, hands-on, and long-term support. In FY18,
the capacity for accessing market-based financing SNTA approved grants under this program aiming to
to improve infrastructure services without sovereign help select municipalities in Morocco and Ethiopia
guarantees. strengthen governance and human resource capacity
One way the program achieves its objective is by to yield better financial management, planning, and
delivering assistance that helps sub-national entities project preparation—ultimately leading to market-
improve their creditworthiness and their investment based financing for infrastructure.
projects, as measured by credit ratings and/or actual Beyond delivering on its goals through global pro-
access to financing. In FY18, SNTA progressed this grams, SNTA provides demand-responsive support. In
aspect of its work through two global, technical as- FY18 this took the shape of support to help Senegal’s
sistance programs: Financing Universal Access to Wa- energy utility, SENELEC, in its efforts to improve cred-
ter Supply and Sanitation (WSS) and the City Cred- itworthiness and modernize corporate governance.
itworthiness Program. The former aims to develop The work will also help enhance the sector’s institu-
opportunities to scale up private sector investment in tional and financial arrangements for improved per-
WSS. It does so by engaging with clients on several formance and financial sustainability. Similarly, SNTA
fronts. It looks at the project level, examining projects approved a grant to help Angola’s water utility, EPAL,
from an economic and financial point of view. It also improve its operational and financial performance.
targets the broader investment climate surrounding In addition to this technical assistance, the SNTA
the sector, assessing capital market and regulatory program funded research on PPPs for Land Ad-
requirements as well as the investment appetite of ministration to develop analytical and operational
potential private investors and their considerations. frameworks to inform the decision of whether the
The other program, the City Creditworthiness Pro- development of PPP schemes could improve the pro-
gram seeks to help sub-national entities structure vision of land administration services in developing
viable investments that will deliver low-carbon and countries.

HOW SNTA SUPPORT LED
TO ACCESS TO FINANCE
IN 2018
SNTA began providing technical assistance support goal: help the company build its technical capacity
to Kenya Electricity Generating Company Limited such that it could better oversee its investments
(KenGen) back in 2016 to help it build its long-term and attract commercial financing. On the back of
planning capacity. SNTA advisory assessed Ken- this SNTA support, the World Bank approved a
Gen’s current financing strategy and debt profile. $180 million guarantee in April 2018 for KenGen,
A five-year Strategic Financing Plan was developed moving it closer to raising $300 million in new
that focused on refinancing KenGen’s more onerous commercial debt.
debts as a strategy for improving financial ratios. The

HIGHLIGHTS OF
SUPPORT TO THE REGIONS
SUB-SAHARAN AFRICA
FY17 FY18
FUNDS DEPLOYED
$6.5 million $5.2 million

CO-FUNDING LEVERAGED

NEW ACTIVITIES APPROVED
21 21
ACTIVITIES COMPLETED
16 19

Compared to other regions, Sub-Saharan Africa for solar and energy products in selected countries.
ranks at the bottom in all dimensions of infrastruc- This new knowledge product completes a series of
ture performance. This development, combined with grants provided by PPIAF over the past 10 years that
a decline in private infrastructure investment in the supported World Bank Group efforts to develop and
region over the past five years, could make economic promote modern off-grid energy solutions in Africa
growth targets difficult to achieve. Attracting suffi- with private sector investment.
cient investment will require big improvements in the In addition to boosting capacity in the most fragile
investment climate and infrastructure governance— spots and shifting the energy futures of countries to
for example, in project preparation, procurement, low-carbon options, our support put an emphasis on
and contract management. leveraging partner resources and expertise. PPIAF’s
PPIAF is playing an important part in this effort. In collaboration with the Global Infrastructure Facility
FY18, we approved 21 projects totaling $5.2 mil- (GIF) in Nigeria illustrates this approach perfectly.
lion—leveraging $2.5 million in co-funding from Together, we are working on a project to assess the
partners—to tackle governance and capacity con- private sector potential of three transport initiatives—
straints. Forty-one percent of all approved funding identified by the Lagos State Government’s trans-
went to SSA’s fragile countries. PPIAF support also port agencies and the Nigeria Ports Authority—that
helped SSA countries shift their energy sectors to are expected to improve connectivity in the Lagos
low-carbon pathways. In Côte D’Ivoire, for example, metropolitan area. PPIAF funds will help receiving
PPIAF joined forces with a larger World Bank climate institutions improve institutional, legal, and regulato-
project to help the government outline key policies, ry capacities while the GIF’s will focus on developing
market, and investment actions, and financial innova- potential transactions that are expected to lead to
tions needed to unlock private investment to achieve investments of around $1 billion.
its renewable energy target of 42 percent. At the See Annex I for a listing of all PPIAF activities sup-
regional level, PPIAF is supporting the development ported in the region.
of a “Pay as You Go” market attractiveness index
APPROVALS BY SECTOR IN SUB-SAHARAN AFRICA | FY18
TRANSPORT
10%
ICT
14%
ENERGY
37%
WATER
16%
MULTI-SECTOR
23%

FEATURE STORY: SSA
GUINEA
STIMULATING GROWTH BY
SHARING INFRASTRUCTURE
Guinea holds some of the largest deposits of baux- infrastructure. These were accepted by the govern-
ite and iron ore in the world, as well as significant ment and bolstered through workshops and other
potential for expanding the mining of gold, uranium, capacity-building initiatives.
and diamonds. Not surprisingly, Guinea’s mining sec-
As a result, the government and three mining com-
tor has drawn the interest of foreign investors. But
panies signed an agreement in 2015 that grants mul-
infrastructure—particularly railways and ports critical
tiple users access to port and rail infrastructure in the
for transporting and exporting Guinea’s mining prod-
Sangarédi-Boké-Kamsar transport corridor. The port
ucts—is undeveloped. On top of that, Guinea did not
and rail infrastructure—owned by the government
have strategic planning capacity that would allow it
but exclusively maintained and operated by Com-
to effectively manage rail and port investment pro-
pagnie des Bauxite de Guinee (CBG)—was opened
grams. Weak governance also emerged as an issue.
to two other mining companies, Guinea Alumina
In 2013, PPIAF began a program to help the gov- Corporation (GAC) and Compagnie de Bauxite et
ernment of Guinea develop an infrastructure master d’Alumine de Dian-Dian (COBAD). The World Bank
plan that would improve the enabling environment supported the process of negotiating the multi-user
for the mining sector. It included an exhaustive agreement through the provision of technical and
review of institutional, legal, and regulatory frame- financial advisors to the government. This enabled
works, and concrete recommendations for reform. CBG to launch a brownfield expansion project of
The master plan had an important impact—it en- $800 million that secured an IFC loan of $200 million
sured that railroad construction was well coordinat- in 2016. IFC and MIGA are also looking to support
ed with minimal social and environmental impacts, the $1.4 billion GAC greenfield project through an
and critically, included provisions for infrastructure IFC loan of $150 million and MIGA guarantees to
sharing—even for the transportation of non-mining cover a portion of the commercial debt.
goods.
Lessons-learned are being applied elsewhere—the
PPIAF followed up on this work by developing a Ministry of Finance has requested World Bank
regulatory and institutional framework based on support for infrastructure for a mining rail line in
international best practices that would allow the Conakry that is expected to facilitate the transport of
government to regulate multiple users on the same goods to a dry port.

FEATURE STORY: SSA
SOMALIA
DEVELOPING ICT AND
BROADBAND CONNECTIVITY
Rebuilding a country after 20 years of civil unrest Several key milestones have been reached as a result.
is no easy task. Somalia has been working to usher The government of Somalia adopted a medium-term
in stability and security since 2012, when hostilities strategy to develop the country’s ICT sector and
came to an end. In 2017 it saw a peaceful political improve broadband connectivity with private sector
transition, and now it is working with international support. In October 2017, the government approved
institutions to develop its infrastructure and the Communications Act, which was drafted with
economy. PPIAF support. This allowed for the establishment of
Digital technology offers a chance for the country to the National Communications Authority, a significant
transform itself into one with a vibrant private sector. step towards building a foundation for the ICT sector
To make this possible, the government is building in Somalia.
a regulatory and institutional environment that will PPIAF support also contributed to the National
attract both domestic and international private in- Development Plan, which identified the ICT Sector
vestment to the ICT (information and communication as a priority sector for infrastructure investment
technology) sector. This, it is hoped, will complement in the country. Other important sectors, such as
other developmental initiatives to provide greater op- mobile banking, have greater potential to develop
portunities for the country’s poor, half of whom live as a result.
below the international poverty line of $1.90 per day.
PPIAF and the World Bank played an important
role as the government’s ICT development efforts
unfolded. Beginning in 2014, PPIAF support encour-
aged private sector participation in a new fiber optic
backbone network through a combination of project
preparation and capacity building. This was fol-
lowed by initiatives to enable ICTs to penetrate other
sectors, such as education, agriculture and financial
services. Other international organizations supported
these initiatives. The World Bank team, for example,
worked closely with AfDB on an ICT needs assess-
ment that laid the groundwork for much of the
work to follow.

HIGHLIGHTS OF
EAST ASIA
AND THE PACIFIC
FY17 FY18
FUNDS DEPLOYED


7 6
3 7

Over the past five years, EAP has seen relatively Noteworthy activities included support to help
stable levels of private investment in infrastructure. Papua New Guinea—where only 22.9 percent have
Despite continued private sector interest, the region access to electricity—tap its significant hydropower
(excluding China) faces an infrastructure financ- resources to sustainably meet the energy needs of
ing gap of $52 billion by 2020. A lack of bankable its population. This work centers on building the en-
infrastructure projects remains a key constraint to abling environment to stimulate private investment in
getting investments to a desired level. Issues with the sector. PPIAF funds complement those of ESMAP
governance lie behind many of the problem areas. and the Korean Green Growth Trust Fund (KGGTF).
The African Development Bank (ADB), in its 2017 In Timor-Leste, PPIAF provided just-in-time support
report Meeting Asia’s Infrastructure Needs, identified to the Tibar Bay Port PPP project management unit.
governance “pain points,” including inadequate These efforts are already bearing fruit as the project
design, preparation, and due diligence of proj- reached financial close in August 2018. Vietnam, one
ects, poor regulatory and institutional frameworks, of PPIAF’s priority middle-income countries, also ben-
shallow domestic capital markets, and a lack of efitted from continued support to develop its inland
credit enhancement mechanisms. To address these water transport system. PPIAF helped Ho Chi Minh
obstacles, PPIAF’s efforts in the region during FY18 City carry out a financial management assessment,
focused on building the investment climate, develop- obtain a credit rating, and provided general support
ing sector and project strategies, and bolstering the to the country’s PPP program and fiscal risk manage-
capacity of institutions to increase private investment ment agenda.
in climate-friendly infrastructure. See Annex I for a listing of all PPIAF activities
supported in the region.
APPROVALS BY SECTOR IN EAST ASIA & THE PACIFIC | FY18
TRANSPORT
13%
ENERGY
MULTI-SECTOR 32%
55%

FEATURE STORY: EAP
LAO PDR
PREPARING INSTITUTIONS
FOR HIGHWAY PPPS
Strong economic growth and trade expansion have Performance-Based Road Contract (OPBRC), a 10-
been good news for the Lao People’s Democratic year initiative funded and implemented by the Nordic
Republic. Over the last decade, growth has averaged Development Fund (NDF) and the Asian Infrastructure
nearly 8 percent. But there is a downside—traffic Investment Bank (AIIB). This has already enabled PPP
volume has increased, putting a strain on the road transactions for several roads, including the express-
network. Although Laos has a low population density way from Vientiane to China and a toll road in Vien-
and limited public resources, its road network is tiane. Various ministries and agencies—particularly
relatively extensive; but much of it is in poor con- the Ministry of Public Works and Transport (MPWT)—
dition. Because the funds needed for improvement have benefitted from in-depth PPP training.
and maintenance of the system could potentially PPIAF has provided support to the World Bank team
consume a large portion of the national budget, the by scoping associated tasks and monitoring results.
government is looking to the private sector for a MPWT has incorporated many elements of PPIAF-
solution. funded knowledge in its own PPP guidelines.
To make that happen, two things need to take place. In addition, PPIAF brought in experts to support
First, the enabling environment must be right to MPWT officials in critical areas during the prep-
attract interest from the private sector. Second, aration of the OPBRC.
government capacity needs to be upgraded if it is The government has shown strong support for PPIAF
to effectively prepare road development and im- work. “Thanks to PPIAF support, MPWT has a
provement projects that adhere to best practices. better understanding of PPPs,” said Litta Khattiya,
A $40 million credit provided by the World Bank is Deputy Director of the Department of Roads.
supporting road improvement through a hybrid oper- “The PPP concept is now being used to prepare
ation that employs both PPPs and performance-based several road projects in the country. The National
operations. Additionally, IFC and ADB stepped in Road 13 Project provides a model for future PPP
to support the preparation of a PPP decree that will projects and may provide incentives to the private
facilitate private sector participation in the sector. sector for further investments in roads.”
It also supports the National Road 13 Output and

PAKISTAN
FEATURE STORY: SOUTH ASIA
ASSESSING KARACHI’S
CREDITWORTHINESS
Karachi, Pakistan’s largest city and the capital of the procured the services of the credit rating agency
province of Sindh, is one of the world’s megacities Standard & Poor’s to conduct a credit rating and
with a population of more than 22 million people. financial management assessment of Karachi.
It is also an economic powerhouse. The city contrib- The assessment showed that Karachi needs approxi-
utes about 28 percent of national GDP, 30 percent mately $10 billion in financing over a 10-year period
of manufacturing production, and over one-third of to meet its infrastructure and service-delivery needs
all national tax revenues. For Sindh Province, Kara- in urban transport, water supply and sanitation, and
chi generates 74 percent of the province’s industrial municipal solid waste. To achieve this, it will need
output and 40 percent of provincial revenues. to leverage significant public and private financing,
The municipal government has a clear vision for which will require significant reforms, improvements
development outlined in the Karachi Strategic De- in its urban governance, and greater institutional
velopment Plan 2020. However, better coordination capacity.
among existing layers of government—both across Credible information on the status of the city’s
municipal departments and at the local, provincial finances, based on in-depth qualitative and quantita-
and federal levels—could accelerate its implementa- tive analysis of a wide range of financial, economic,
tion and help address urban-related issues faced by and institutional factors, will facilitate debt financing
the Karachi metropolitan region. and allow the city to access new and independent
To move forward, the government needed infor- sources of finance such as bond issuances. The
mation on the city’s finances that would serve as a output also informed the World Bank Group’s report
baseline for measuring improvements under the plan. Transforming Karachi into a Livable and Competitive
PPIAF’s SNTA program, which supports credit ratings Megacity—A City Diagnostic and Transformation
across activities in its portfolio, was well-positioned Strategy, which includes concrete recommendations
to provide assistance. Through SNTA, the World Bank on actions necessary to improve the city’s finances.

HIGHLIGHTS OF
SOUTH ASIA
FY17 FY18
FUNDS DEPLOYED


4 3
6 4

Despite being the world’s fastest-growing region in pathway and shore up their climate resilience. India,
economic terms, South Asia harbors one-third of the the world’s second-most populous country and one
global poor. The World Bank estimates that it has a of the largest global carbon emitters, plays a prom-
significant infrastructure gap as high as $2.5 trillion. inent role in the fight against climate change. With
While the region saw an uptick in private investment its large-scale urbanization and rapid development,
in infrastructure in 2016–17—driven by a banner the path the country chooses to develop its ener-
year for Pakistan, which received investments of $5.9 gy and transport networks is relevant for all of us.
billion—investment inflows are nowhere near 2012 For this reason, PPIAF’s support in FY18 focused on
levels. Governance issues are partly to blame. While helping build governance and institutional capacity in
countries in the region have made progress on devel- India so that it can more effectively mitigate climate
oping PPP programs, many still struggle to develop change. Through a pioneering use of funds under
solid projects and put good contract management the PPIAF-CCTF and ESMAP partnership, the coun-
governance processes in place. These will be needed try benefits from three activities aimed at fostering
to provide security to potential investors and ensure renewable energy integration and promoting a clean
well-managed projects. transportation system.
Furthermore, the region grapples with increasing See Annex I for a listing of all PPIAF activities
threats from climate change. New infrastructure supported in the region.
must put South Asia’s countries on a low-carbon
APPROVALS BY SECTOR IN SOUTH ASIA | FY18
TRANSPORT
25%
ENERGY
75%

HIGHLIGHTS OF
LATIN AMERICA & THE
CARIBBEAN
FY17 FY15–17
FUNDS DEPLOYED


6 3
1 6

Although countries in the LAC region are mainly sanitation for all its citizens—a task that will involve
upper middle-income, many are experiencing grave holding individual utilities accountable for meeting
inequalities in access to public infrastructure services. goals on operational quality, financial sustainability,
Addressing this will require the region to attract and access. The global SNTA program, Financing
private investment and spend more efficiently on Universal Access to Water Supply and Sanitation, is
infrastructure. Although LAC has long topped EMDE helping the water utility of the Peruvian city of Areq-
charts for private investment in infrastructure, the uipa shape its commercial financing strategy.
$19.4 billion in inflows recorded in 2017 marked the In addition to helping sub-national entities improve
lowest level seen in 10 years. This dip in investment, their effectiveness, LAC countries have an opportuni-
driven by transparency challenges plaguing Brazil’s ty to further develop their already low-carbon energy
infrastructure sector, is exacerbated by deficiencies sectors through diversification beyond hydropower
in infrastructure governance in many of the region’s into sectors such as solar and wind. Nicaragua, a
countries. A World Bank report, Procuring Infrastruc- country with substantial renewable energy potential,
ture PPPs 2018, points out that identifying and pre- received support from the CCTF to review and revise
paring investible projects is one of the most glaring its regulatory framework to encourage private invest-
governance issues facing the region. ment in solar PPP projects. In Haiti, where most rural
Much can be done at the sub-national level to households and micro-enterprises lack electricity (and
address unequal access to infrastructure services, pay about $10-20 a month for inferior and harm-
for example, by helping utilities access commercial ful alternatives, such as kerosene), PPIAF’s CCTF is
financing and enabling them to expand their reach. supporting the country in developing, adopting, and
PPIAF’s SNTA program is providing the necessary sup- implementing a PPP approach for mini-grid scale-up.
port. One example is in Peru, where the government
is seeking to provide access to water supply and
APPROVALS BY SECTOR IN LATIN AMERICA & THE CARIBBEAN | FY18
WATER
17%
ENERGY
83%

FEATURE STORY: LAC
CENTRAL AMERICA
LAYING THE
GROUNDWORK FOR PPPs
Interest in PPPs for developing infrastructure and pro- Central American governments so they can more
viding services is on the rise in Central America. As in effectively manage PPP transactions and thereby
LAC as a whole, insufficient infrastructure is a major increase private sector participation in infrastructure.
bottleneck to competitiveness and economic growth. The program is structured in two phases. The first,
But in spite of their interest, Central American coun- which will conclude at the end of 2018, focuses on
tries have had a mixed PPP track record. PPP fails, improving the PPP framework of all six Central Amer-
exacerbated by limited knowledge of PPP design and ican countries. This included developing national
implementation, have turned public opinion against communications plans to keep the public informed,
them. Limited fiscal resources add to the challenge of preparing policy notes for each country, conducting
properly implementing PPPs. training workshops, and developing 16 pre-feasibility
Given this background, Central American countries studies to strengthen the PPP project pipelines of
requested World Bank Group support to implement each country. The second phase of the program will
sound PPP projects using best international prac- begin in 2019. It will focus on two selected countries
tices. In response, the World Bank, IFC, and MIGA to develop comprehensive pre-feasibility studies of
launched a four-year PPP program in partnership with projects that will later be taken to market.
MCC, the Inter-American Development Bank (IDB), The program design was based on a similar one in
the Central American Bank for Economic Integration the Caribbean that was successfully implemented
(CABEI), and IMF to strengthen PPP institutions in the by the PPIAF team in cooperation with the World
region and implement PPP transactions. These would Bank Group. PPIAF’s knowledge and experience in
focus on the transportation and clean energy sectors supporting PPPs through upstream work played an
and would include private sector participation. invaluable role and helped with the preparation of
PPIAF is supporting the program by strengthening workshops, the selection of projects for pre-feasibili-
the institutional, legal, and regulatory capacity of ty, and development of high-level business cases.

FEATURE STORY: MENA
PAN-ARAB REGION
BUILDING AN
ENERGY-TRADING PLATFORM
Countries in MENA are sitting on an incredible complemented by $3.6 million from the World Bank,
resource—gas reserves totaling 41 percent of the the Arab Coordination Group, the OPEC Fund for
world’s total. Natural gas could potentially provide International Development (OFID), and ESMAP. In
affordable, reliable, and clean electricity that would the first phase of the program, the project analyzed
benefit domestic consumers and businesses alike. regional gas pricing, market, and trade issues, and
Frequent, disruptive power outages could become a developed pricing models for regional gas transac-
thing of the past. tions. A regional investment master plan is now un-
But this has not yet happened. MENA countries only derway in the project’s second phase. The third and
account for 15 percent of global gas production, final phase of PPIAF support will focus on expanding
in large part because of market distortions caused trade opportunities, developing an action plan for a
by energy price subsidies and other policy consid- regional electricity market, and supporting regional
erations. Overcoming these barriers will require a institutions.
shared vision for regional trade that includes com- PPIAF’s engagement is supporting the transformation
mon objectives, incentives, and approaches that align of the region’s energy market. The project is also an
with national goals. important part of the MENA Climate Action Plan,
In response, the League of Arab States and the demonstrating a clear commitment at the corporate
International Energy Forum partnered with the World level that regional energy trade will play a major role
Bank Group to address the regulatory, governance, in climate change mitigation. Regional electricity and
and pricing issues that limit regional gas trade gas trade will facilitate reliable integration of large-
through the PA-RETP project. Its goal is to create scale renewable energy, enable higher supply-side
integrated competitive electricity and gas markets energy efficiency, and improve gas utilization.
supported by regional institutions to drive regional Cross-border energy market development and trade
energy trade. It also addresses infrastructure invest- has the potential to optimize energy resources across
ment needs. MENA and enable low-carbon energy development.
PPIAF is supporting this initiative through a three-

year, $1.4 million technical assistance program

HIGHLIGHTS OF
MIDDLE EAST AND
NORTH AFRICA
FY17 FY18
FUNDS DEPLOYED


5 6
4 4
In MENA, the private investment in infrastructure sto- Noteworthy activities that received support included
ry is beginning to look brighter as the region experi- the Pan-Arab Regional Trading Platform (PA-RETP)
ences relatively more peace, security and economic and continued support for building a governance
growth. The $5.9 billion in PPI raised in 2017 is triple ecosystem for Jordan’s PPP program. The activity in
the amount in 2016—largely driven by a large solar Jordan focuses on better prioritization, planning, and
park in Egypt and an oil shale-fired power plant in fiscal oversight of infrastructure projects. It builds
Jordan. Despite increased inflows—as compared to on prior PPIAF support that helped the country build
other EMDE regions—MENA lags in investments be- its institutional and legal capacity for PPPs with the
cause of a history of publicly-financed infrastructure establishment of a PPP unit and passage of a new
and relatively low capacity for developing, procuring, PPP law. Across Maghreb countries, PPIAF provided
and managing private sector infrastructure projects. support to encourage sector reforms, for example,
With infrastructure investment needs estimated at through the Maghreb Infrastructure Diagnostic,
$100 billion annually, coupled with declining oil which helps countries identify key reforms needed
revenues, MENA governments will increasingly have to mobilize private resources and modernize infra-
to look beyond their own budgets to finance infrastructure. PPIAF’s SNTA program, notably in Morocco,
structure, most urgently in the power generation and helped strengthen municipal finance and perfor-
transport sectors. mance management in local governments.
APPROVALS BY SECTOR IN MIDDLE EAST AND NORTH AFRICA | FY18
TRANSPORT
11%
WATER MULTI-SECTOR
26% 34%
ENERGY
29%

HIGHLIGHTS OF
EUROPE AND
CENTRAL ASIA
FY17 FY18
FUNDS DEPLOYED
$1 million $0.27 million


2 2
3 3
The ECA region stands at the crossroads of East activity built on recently closed work in the logistics
and West. Countries here have a broad perspec- sector. It will also benefit the country’s ongoing pilot
tive. Although many have achieved middle-income concessions at Olvia and Kherson Ports in southern
status, their infrastructure assets—many improperly Ukraine, which have benefitted from transactional
managed and of poor quality—require significant support from the GIF, IFC, and EBRD.
investments. Ensuring that future investments are In Georgia, PPIAF provided a small grant to help
both sustainable, and socially and environmentally the Roads Department of the Ministry of Regional
responsible, will require that countries improve their Development and Infrastructure develop perfor-
infrastructure governance processes, notably in se- mance-based roads contracts that are both cli-
lecting and preparing projects, managing contracts, mate-resilient and gender-sensitive. PPIAF seeks to
and encouraging competitive bidding. PPIAF’s FY18 glean lessons from this activity, particularly regarding
support to the region was limited; however, where operationalizing gender considerations in infrastruc-
we engaged, we built on a history of support along- ture, to apply in future programs.
side strong partner and client buy-in.
In Ukraine, PPIAF funds complemented those of KG-
GTF to help the country reform its port sector—spe-
cifically the sector’s institutional capacity and gover-
nance structure—to increase private investment as
part of its Sea Ports Development Strategy 2038. This
APPROVALS BY SECTOR IN EUROPE AND CENTRAL ASIA | FY18
TRANSPORT
100%

FEATURE STORY: ECA
UKRAINE
DEVELOPING A NATIONAL
SUSTAINABLE LOGISTICS STRATEGY
Ukraine has the potential to be a global trading hub The strategy and action plan also explored how dif-
given its location at the crossroads of Europe, Asia, ferent transportation modes could operate as a part
and the Middle East. It lies on the border of the Eu- of a larger system, and what areas offered the most
ropean Union, with which it has a trade agreement, promise for private sector investment through PPPs.
and is a major agricultural producer and exporter Ukrainian stakeholders, multilateral development
itself. Planned trade corridors with Asia may open banks, and donor partners—including Austria, Swit-
even greater opportunities. zerland, and the United States—had the opportunity
But substandard transport networks—including road, to provide input.
rail, inland waterways, and ports—have prevented As a result, Ukraine was able to identify concrete
Ukraine from achieving its potential for export and opportunities for public and private policy reform to
trade. The resulting inefficiencies impose higher costs increase competition in the transportation sector and
that ultimately hamper the development of the coun- improve connections to regional and global markets.
try’s agricultural sector. This has broader economic Some areas for significant impact include improve-
impacts on the economy, given the sector’s contribu- ments in containerized and bulk cargo handling,
tion to GDP and employment in the country. improving logistics and transit metrics, and facilitat-
The government is keenly aware of the problem ing border crossings, particularly with the European
and requested support from the World Bank Group. Union. Better connectivity among transportation
In response, PPIAF and the KGGTF provided over modes could also significantly reduce national
$600,000 in support to help it develop a sustainable logistic costs.
logistics strategy and action plan. This helped the Going forward, the government of Ukraine is taking
government identify approaches for revamping its steps to reform the transport sector and improve ef-
transport systems to promote more efficient trade. ficiencies. Another grant from PPIAF, with co-funding
The scope involved examining the logistics sector as from the KGGTF, aims to make ports more attractive
a whole to understand the time and cost efficiencies to private investors. The European Commission will
of different modes of transportation. The strategy provide up to €4 million in support in FY 2019 to
also factored in carbon emissions in the delivery of strengthen institutional capacity requirements that
logistics services. will help the government achieve these goals.

RESULTS FRAMEWORK
Monitoring and evaluating results is an important tion in infrastructure delivery. At the sub-
element of PPIAF’s work—it ensures that projects national level, we focus on supporting sub-national
are effective, efficient, relevant, and timely. PPIAF entities’ capacity to access market-based financ-
pursues the assessment of results and the monitoring without sovereign guarantees and improving
ing of progress with great seriousness because we their administrative, technical, and fiscal capacity
expect that the activities we fund enhance develop- to raise finance. The most direct changes in client
ing countries’ capacity to increase the availability of, governments resulting from PPIAF grants are seen
and access to, higher quality infrastructure services in intermediate outcomes, which bridge regulatory,
for their citizens, especially the poor. PPIAF has set in institutional, and technical gaps so that private sector
place a monitoring, evaluation, and learning system investment in infrastructure can be unlocked. Once
focused on each phase of the project life cycle—from activities have closed, we conduct outcome reali-
design to completion and post-completion phases. zation assessments—three years after their closing
PPIAF’s Results Framework focuses on developing date—to measure progress towards the anticipated
client countries’ capacity to identify, assess, and en- intermediate outcomes, learn from experiences pos-
able private sector participation opportunities, adopt itive and subpar, and close the feedback loop with
appropriate policies and regulations, and put institu- evidence-based design of our new grants.
tions in place that catalyze private sector participa-
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EXAMPLES OF INTERMEDIATE OUTCOME IMPACT

ACTIVITIES OUTCOME

HIGHLIGHTS OF
FY18 RESULTS
PPIAF conducts post-completion reviews of its activ- also been introduced as national policy for develop-
ities after three years to measure progress towards ment in areas near railway stations.
anticipated outcomes. In FY18, we reviewed 34 In Peru, a $156,550 grant to strengthen insti-
projects that closed in FY15 representing nearly $6.5 tutions and government capacity is helping
million in grant funding. These included technical integrate urban transportation policies in the
advisory projects implemented in 25 countries, four Lima-Callao region and support the develop-
Global Knowledge products, and four regional ac- ment of new metro lines. The initiative led to a
tivities in EAP, ECA and MENA. Of these, 62 percent Memorandum of Understanding that helped co-
were rated “satisfactory” or better. Some highlights ordinate national and municipal agencies as well
are described below: as other relevant stakeholders in the metropolitan
transport sector. In July 2017, the government of
INTERMEDIATE OUTCOME 1: Peru proposed a law to establish a central authority
PUBLIC INSTITUTIONS HAVE STRONG to facilitate metropolitan transportation, including a
TECHNICAL CAPACITY TO IDENTIFY provision to facilitate a 35-year, $5.7 billion conces-
AND PREPARE PPPs sion to design, finance, build, operate, maintain and
In 2014, a PPIAF $180,000 grant supported a transfer two metro lines totaling 35 kilometers in the
publication, entitled Guide to Value Capture capital city, Lima. The additional capacity and demon-
Finance Mechanisms for Urban Transit Projects. stration effects facilitated the procurement process
Using case studies from both developing and devel- for a third metro line as a PPP. Over 70 officials were
oped countries, the guide provides municipal officials trained under this initiative.
best-practice materials on the use and application of INTERMEDIATE OUTCOME 2:
transit-oriented development and land value capture
policies. The guide shows how land value capture
COUNTRIES HAVE POLICIES, REGULA-
can help cities develop sustainable transit systems TIONS AND INSTITUTIONS THAT CAT-
effectively, explains several land-based financing in- ALYZE PPPs
struments, and illustrates how they work through in- In Guinea, a $170,000 PPIAF grant helped
depth case studies. The guidebook was disseminated strengthen government capacity to identify
online and through several transport conferences. and implement PPPs by conducting a legal and
The guide is now being used as a key reference in institutional diagnostic, reviewing potential PPP
transit-oriented development by the World Bank in projects, and training officials on the PPP pro-
14 cities in EAP, LAC, MENA, and SSA to identify spe- cess. The government adopted recommendations to
cific strategies and design possibilities for land along establish a PPP unit within the Ministry of Economy
rapid transit corridors. In China, the guide is being and Finance and adopt a PPP law. The PPIAF-fund-
used to implement transit-oriented development ed activities contributed to a four-year, €11.6 mil-
through the GIF’s Sustainable Cities Integrated Ap- lion energy utility management contract awarded
proach pilot, which aims to improve the development to a consortium in June 2015. A follow-up study,
policies and governance in seven cities. Transit-ori- co-funded by PPIAF and IFC, was established to help
ented development land value capture concepts have operationalize the PPP unit, develop a pipeline of

bankable PPP projects, and further build capacity on the World Bank secured an additional $1.2 million in
the PPP process. technical assistance to develop business models from
In Iraq, a $425,000 PPIAF grant enabled the ESMAP through the City Energy Efficiency Transfor-
government to develop a roadmap for elec- mation Initiative (CEETI). These are expected to scale
tricity distribution sector reform that includes up investment in energy-efficient public street light-
a role for the private sector. A sector assessment ing and other sectors. The study also informed the
addressing institutional, regulatory, financial, and World Bank Brazil Energy Efficient Cities Program and
human resource issues, detailed the technical and contributed to the GIF’s work to develop a pipeline of
commercial operating conditions of the power sub-projects for the Financing Brazil Energy Efficient
distribution sector in the country. A reform roadmap Cities Project. PPIAF contributed nearly $70,000 for
laid out a policy reform agenda, including industry the studies.
restructuring, and institutional, legal, regulatory, and
INTERMEDIATE OUTCOME 4:
governance changes. Once enacted, these reforms
are expected to transform the electricity sector SPECIFIC PERFORMANCE
from a public-sector monopoly utility to an unbun- IMPROVEMENT/IMPROVED
dled, liberalized, commercially oriented industry. An CREDITWORTHINESS OF SUB-
improved enabling environment is expected to open NATIONAL ENTITIES AND THEIR
the doors to private sector participation in the power INVESTMENT PROJECTS
generation and distribution retail business—the A PPIAF study of institutional, governance, and
government has already made solid progress towards financial positions of municipal governments
the implementation of the reform agenda in keeping in Ethiopia in 2013–14 was essential for the
with PPIAF-funded recommendations. These include World Bank’s Second Urban Local Government
a tariff increase in January 2016, a loss-reduction Strengthening Program-for-Results (PforR) Pro-
policy directive issued in October 2016, an ongoing gram, which led to stronger fiscal performance
SMART metering project—which started with pilots in 44 urban local governments. The PPIAF-funded
in the Baghdad area—and a new electricity law is- analysis contributed to the technical design of the
sued in March 2017 that provides a legal framework program, for example, by determining roles and
for institutional reforms. . responsibilities of federal, regional, and local gov-
ernments (as part of the larger fiscal decentralization
INTERMEDIATE OUTCOME 3: effort) and developing an intergovernmental fiscal
SUB-NATIONAL ENTITIES ACCESS transfer framework. As of May 2017, 44 urban local
FINANCING WITHOUT SOVEREIGN governments had made significant progress towards
GUARANTEES establishing the necessary institutional structures
PPIAF-funded studies led to policy and insti- and strengthening their fiscal positions. All municipal
tutional recommendations to facilitate energy governments had approved three-year capital invest-
efficiency projects in the Brazilian cities of Rio ment plans that were aligned with annual budgets,
de Janeiro and Belo Horizonte, contributing up-to-date financial statements, action plans, and
to over $230 million in PPP transactions. These procurement plans. The majority also introduced
include a $161 million public street lighting PPP in citizen’s charters identifying key municipal services
Rio de Janeiro, now underway with IFC support, and and standards for service delivery. The total PPIAF
a $71 million energy efficiency concession contract in contribution was $480,000.
Belo Horizonte developed by the municipal govern-
ment with World Bank assistance. PPIAF’s studies also
drew interest from other Brazilian cities. The city of
São Paulo, for example, sought World Bank support
to prepare a tender for the modernization of the
city´s public street lighting service, leading to a $254
million transaction. Based on opportunities for city
energy efficiency identified under this PPIAF activity,

OUTCOME REALIZATION
ACHIEVEMENTS FY18
A breakdown of intermediate outcome results is presented below:
FY18
Intermediate outcome 1:
Public institutions have strong technical capacity to identify and prepare PPPs
Number of participants/government officials whose capacity is enhanced 155 (1,484)*
Number of times consensus built on PPP reforms 2
PPP pipeline developed 1
PPP knowledge/information developed 2
Countries have policies, regulations and institutions that catalyze PPPs
Institutions whose capacity is strengthened 8
Policies, laws, and regulations adopted 6
Plans/strategies developed 4
PPP transactions supported that materialized 2
Size of project (transaction) developed/materialized ($ million) 278.6
Sub-national entities access financing without sovereign guarantees
Financing project developed 3
Amount of financing leveraged without sovereign guarantee ($ million) 71
Specific performance improvement/improved creditworthiness of sub-national entities
and their investment projects
Sub-national entities whose capacity was strengthened/creditworthiness improved 66
Plans/strategies adopted by sub-national entities towards enhancing access to finance 2
* 155 is the total number of participants from the sample of projects that were reviewed. The total number of participants for all projects
closing in FY15 is 1,484.

PORTFOLIO
PERFORMANCE
PPIAF is results-oriented. Throughout the activity room for improving the quality at completion and
lifecycle, we closely monitor implementation to timeliness of the ongoing activities—roughly half
ensure the timeliness and quantity of our work. The of the ongoing portfolio produces the planned
balanced scorecard below showcases overall perfor- deliverables in accordance with the original schedule.
mance against our targets. This fiscal year, our activ- Finally, the post-completion stage fell short of the
ities were closely aligned to the strategic priorities as target mostly due to delays in follow-up actions or
shown by the on-target performance of the strategic reform implementation beyond the completion of
fitness score. In terms of implementation, there is still the PPIAF grant.
DESIGN
Baseline Performance Annual Target
Indicator
FY17 FY18 FY18
Approvals in low-income countries (LIC)* 41% 55%* 50%
Approvals in Sub-Saharan Africa 42% 54%* 50%
Activities with strategic fitness score rated standard or outstanding fit 99% 100% 100%
IMPLEMENTATION
Indicator
FY17 FY18 FY18
PPIAF Financial Utilization Score 4.8 6.4 6
Activities with quality rated satisfactory or above 95% 94% 95%
Activities “on track” 41% 54% 75%
COMPLETION
Indicator
FY17 FY18 FY18
Activities with quality rated as highly satisfactory 64% 40% 85%
Activities “on track” at closing 31% 37% 30%
POST-COMPLETION
Baseline Performance Target
Indicator
FY17 FY18 FY18
Outcome realization evaluations reporting outcome satisfactorily
75% 62% 80%
achieved
* Percentages based on the number of approved single-country grants. Excludes global knowledge products and cross-regional technical
assistance. PPIAF’s consolidated approval targets in FY18 for LIC and SSA were 50%; for MDTF only—60%. MDTF performance was
53% for LIC and 63% for SSA.

PROGRAM
FINANCES
PPIAF FUNDS:
SOURCES & USES
The table below presents the outgoing year’s finan- Disbursements at the level of PPIAF-funded activities
cial flows—that is, the differences in the accounts ($20.3 million) increased by 15 percent compared
from FY17 compared to FY18. The starting balance to FY17. In the meantime, PPIAF management unit
for FY18, as reported at the end of FY17 was $16.8 costs dropped from $3.4 million last year to below
million. At the end of the year, PPIAF had a total fund $3.1 million in FY18.
balance of $9.1 million.
PPIAF received $4.38 million in new contributions
from donors through FY18, historically one of the
lowest levels of contribution (see below).
BALANCE POSITION IN FY18 ($ thousands)

Balance position Changes in FY18
Opening balance 16,814
Inflows
Donor contributions 4,386
Investment income 670
Reflows 2,735
Total inflows 7,791
Disbursements
Administration fees (62)
Direct activity disbursements 20,343
PMU expenses 3,093
Total Disbursements 23,374
Provisions
Activity commitments (4,544)
Activity grants in process (6,654)
PMU commitments (63)
PMU expenses provisioning 4,898
Approved but not yet allocated (1,563)
Total provisions (7,925)
Total Uses 15,449
Ending balance 9,156

MEMBER CONTRIBUTION RECEIPTS ($ thousands)
Core MDTF II/ FY17 FY18 FY19 FY19 FY20
Parallel account to date expected projected
Australia 1,500 1,501 1,500
France 763 750
Germany 561 301 - 750 288
IFC 100 100 - - 100
MCC 500 500 - 500 500
Netherlands - - 3,200 - 2,700
Norway - - - - -
Switzerland - - - 2,000 500
UK-DFID 6,738 - - - -
USAID - - - - -
Sub-total 10,162 2,402 3,200 3,250 6,338
Non-Core TFs FY17 FY18 FY19 FY19 FY20

to date expected projected
Switzerland - MIC - 5,138 - 500
Switzerland - CCTF - - - -
Netherlands CC - - - - -
USAID Water in SSA 1,000 1,000 1,000 -
Norway-NORAD 984 1,959 - -
Sub-total 1,000 1,984 8,097 - 500
SNTA Donor
Contributions
UK-DFID 1,282 - - - -
Switzerland-SECO - - - 2,000 1,000
France-AFD 763 - - - -
Australia-DFAT - - - - -
IFC - - - - -
Italy - - - - -
Sub-total 2,045 - - 2,000 1,000
TOTAL 13,207 4,386 11,297 5,250 7,838

LIST OF ACTIVITIES
APPROVED IN FY18
AFRICA, SUB-SAHARAN
COUNTRY ACTIVITY AMOUNT TRUST
APPROVED FUND
Performance Improvement of EPAL (Empresa Publica de Aguas de
Angola $100,000 MDTFII
Luanda)
Burkina Faso Support to the Power Mining Integration to Extend Access to Electricity $352,000 MDTFII
Cote d’Ivoire Unlocking Private Investment to Achieve 42% Renewable Energy Target $220,000 CCTF
City Creditworthiness and Municipal Financing—Technical Assistance for
Ethiopia $400,000 MDTFII
5 Municipalities
Options Study for Private Participation in the State-Owned
Gambia $300,390 SNTA
Communications Infrastructure in Gambia
Non-Revenue Water (NRW) Reduction Assessment to Support the
Guinea Société des Eaux de Guinée (SEG) in Preparation for a Management $190,497 SNTA
Contract
Kenya Kenya PPP Support Program–Phase 2 $230,000 CCTF
Lesotho Country PPP Readiness Diagnostic $204,350 MDTFII
Revitalizing the Energy Sector through Enhanced Private Sector
Mali $375,000 MDTFII
Participation
Nigeria Private Sector Participation in an Integrated Transport System in Lagos $298,864 MDTFII
Nigeria Performance Assessment of Lagos Terminal Concessions $100,000 CCTF
Regional Lighting Africa, PAYGO Market Attractiveness Index $80,000 MDTFII
USAID
Regional Solar Energy Planning for the Alliance for the Sahel $350,000
Water
Strengthening Public Private Partnerships within the Urban Sanitation
Rwanda $300,000 MDTFII
Service Delivery Chain
Sao Tome Private Sector Participation Options to Foster Renewable Energy and
$100,000 SNTA
& Principe Achieve Nationally Determined Contributions Targets
Senegal SENELEC—A Path to Sustainable Creditworthiness $456,250 SNTA
Enhancing Efficiency and Private Sector Participation in Sierra Leone
Sierra Leone $150,000 SNTA
Road Transport Corporation
Sierra Leone Unlock the Potential for Grid Connected Solar PV through Private Sector $309,200 MDTFII
Supporting ICT Sector and Broadband Connectivity in Somalia using PPP
Somalia $406,790 MDTFII
(Phase 2)
Somaliland Component 1 of the Financing Universal Access to Water
Somalia $125,000 MDTFII
Supply and Sanitation
The National Water and Sewerage Corporation (NWSC) - Financial
Uganda $100,000 MDTFII
Viability Support
REGIONAL SUB-TOTAL $5,148,341

EAST ASIA & PACIFIC
APPROVED FUND
Kiribati Kiribati Water Sector Reform $150,000 MDTFII
Papua New Support to Private Sector Participation in Sustainable Hydropower
$371,007 MDTFII
Guinea Development
Timor Leste Support to Tibar Bay Port PPP Project Management Unit $90,000 SNTA
Sustainable Financing Solutions for Development: A Strategy for
Vietnam $150,000 MDTFII
Vietnam’s Inland Waterways Transport
Assistance to Carry Out a Financial Management Assessment and a
Vietnam $100,000 MDTFII
Credit Rating of Ho Chi Minh City
Vietnam Support to PPP Program and Fiscal Risk Management Agenda $300,000 MDTFII
EUROPE & CENTRAL ASIA

APPROVED FUND
Review of Georgia's Three Road Sector Performance Based Contracting
Georgia $70,000 MDTFII
Models and Integration of Gender and Climate Change Considerations
Ukraine Port Sector Reform for Attracting Private Sector Investment $200,000 MDTFII
REGIONAL SUB-TOTAL $270,000
GLOBAL
APPROVED FUND
Assessment of the Effectiveness of Public Financing Instruments in
Global $100,000 CCTF
Leveraging Private Sector Investment for Grid Connected Solar Project
Innovative Approaches to PPPs in Smart Grid Investments—Best Practice
Global Experiences from Government Collaboration with Privately-owned $150,000 CCTF
Utilities
Regional 3-Year CEFEB-WB Partnership for Municipal Finance Capacity Building $695,000 SNTA
Global Integrated Analytic Framework for Bus Transit Initiatives $110,500 MDTFII
Global Regional Roundtables on Infrastructure Governance $228,000 MDTFII
Global PPPIRC—Climate Resilience, Fragility and Mobilizing Finance $350,000 MDTFII
Global Innovation in Capacity Building—PPP Certification Training $200,000 MDTFII
Benchmarking Study of Trucking Sector Productivity, PPP Potential and
Carbon Sector Emissions
Assessing Direct and Indirect Public Investment in Infrastructure in Low-
Global $150,000 MDTFII
and Middle-income Countries
Global Strategic Partnership on Islamic Finance and Infrastructure PPPs $200,000 MDTFII
Private Financing of Loss Reduction and Efficiency Improvement of
Electricity T&D Enterprises in Developing Countries
Scaling Up Private Participation in Road Asset Management in Low-
Global $250,000 MDTFII
income Countries
Global PPPs for Land Administration $150,000 SNTA

LATIN AMERICA & THE CARIBBEAN
APPROVED FUND
Enabling Local Private Sector Participation in PPP-structured Renewable
Haiti $250,000 CCTF
Energy Municipal Grids, Including Regulation and Capacity Building
Nicaragua: Enabling Environment for Mainstreaming Private Investment
Nicaragua $235,000 CCTF
in Solar PV
Component 1 of the Financing Universal Access to Water Supply
Peru $100,000 SNTA
Sanitation
MIDDLE EAST & NORTH AFRICA

APPROVED FUND
Jordan Supporting the Development of Jordan's PPP Program-Phase II $460,000 MDTFII
Strengthening Municipal Finance in Morrocco through Improved
Morocco Creditworthiness, Better Performance Management and Tailored Urban $200,000 SNTA
Financing
Regional Maghreb Infrastructure Diagnostic (MID) $400,000 MDTFII
Regional Pan Arab Regional Energy Trade Platform $500,000 MDTFII
Assisting “Tunisie Autoroutes” in Exploring Management and Financing
Tunisia Options of Highway Infrastructures in Tunisia and Identifying a Pipeline $200,000 MDTFII
of Potential Public-Private Partnership Projects
SOUTH ASIA
APPROVED FUND
India Pre-feasibility Study for PPP in Power Distribution in Jharkhand $300,000 MDTFII
Development of Innovative Business Models for Implementation of
India Electric Vehicles and Charging Infrastructure for Public Transportation in $165,000 CCTF
Kolkata
Renewable Energy Grid Integration Support to POSOCO—Addressing
India $200,000 CCTF
Commercial and Market Development Issues
TOTAL GRANTS APPROVED $12,497,848

ABBREVIATIONS
ADB Asian Development Bank LAC Latin America and the Caribbean
AFD Agence française de développement LIC Low-Income Country
(French Development Agency) MCC Millennium Challenge Corporation
AfDB Africa Development Bank MENA Middle East & North Africa
AIIB Asian Infrastructure Investment Bank MFD Maximizing Finance for Development
CEETI City Energy Efficiency Transformation MIC Middle-Income Country
Initiative
MIGA Multilateral Investment Guarantee Agency
CEFEB The Center for Financial, Economic and
Banking Studies MPWT Ministry of Public Works and Transport
(Lao PDR)
CCTF Climate Change Trust Fund
NDF Nordic Development Fund
DFID Department for International Development
(United Kingdom) NRW Non-Revenue Water
OPBRC Output and Performance-Based Road
EAP East Asia and Pacific Contract (Lao PDR)
ECA Europe and Central Asia OFID OPEC Fund for International Development
EMDE Emerging Markets and Developing PA-RETP Pan-Arab Regional Trading Platform
Economies
ESMAP Energy Sector Management Assistance PforR Program for Results
FCV Fragility, Conflict, and Violence PMU Program Management Unit
FMA Financial Management Assessment PPIAF Public-Private Infrastructure Advisory
Facility
GDP Gross Domestic Product
PPP Public-Private Partnership
GFR Grant Funding Request
PPPLRC Public-Private Partnership Legal Resource
GPOBA Global Partnership on Output-Based Aid Center
ICT Information Communication Technologies PSP Private Sector Participation
IDA International Development Association SECO State Secretariat for Economic Affairs
IDB Inter-American Development Bank (Switzerland)
IFC International Finance Corporation SNTA Sub-National Technical Assistance
IMF International Monetary Fund SSA Sub-Saharan Africa
IPP Independent Power Project TIF Tax Increment Financing
ISDB Islamic Development Bank TTL Task Team Leader
KENGEN Kenya Electricity Generating USAID United States Agency for International
Company Limited Development
KGGTF Korean Green Growth Trust Fund WSS Water Supply and Sanitation
KSDP Karachi Strategic Development Plan

CREDITS
Cover @ kokouu/iStock. Used with permission. Pages 29 @ Bartosz Hadyniak/iStock. Used with permission.
Page ii @ Jeanine Delay. Used with permission. Pages 32 @ Basil Strahm/Flickr Creative Commons
Page 6 @ Augustine Fernandes/ Flickr Creative Commons Page 33 @ Wasif Malik/Flickr Creative Commons
Page 7 @ jaguarblanco/iStock. Used with permission. Page 38 @ David Puerta Carmona/Flickr Creative Commons
Page 8-9 @ fivepointsix/iStock. Used with permission. Page 39 @ typhoonski/iStock. Used with permission.
Page 10-11 @ MudFlapDC/Flickr Creative Commons Page 44 @ Fermion/Flickr Creative Commons.
Page 25 @ Rod Waddington/Flickr Creative Commons
Page 28 @ jbododane/Flickr Creative Commons Graphic design: Jeanine Delay

While PPIAF operates by giving grants, our value-added extends far
beyond the funds provided.
SETTING THE FOUNDATION. By building institutions, strengthening
the capacity of counterparties, and reducing policy, regulatory, and
institutional risks, PPIAF enables governments to generate a pipeline
of bankable projects.
BUILDING PARTNERSHIPS. PPIAF is a neutral and trusted partner.
This helps bring various stakeholders, such as governments and private
investors, to the same page when addressing complex issues related to
infrastructure development.
FOCUSING ON IMPACT. PPIAF’s strong development impact
assessment capacity ensures that projects with PPIAF involvement
are sound and have been thoroughly vetted.
CAPTURING AND SHARING KNOWLEDGE. PPIAF’s knowledge
system ensures lessons learned from one project are collected and
applied to future ones as well as shared through a multitude of
global platforms.
CONVENING POWER. As part of the World Bank Group, PPIAF
is integrated into the expertise, experience, and convening power
of the organization.

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60 | Public-Private Infrastructure Advisory Facility ppiaf.org

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PUBLIC-PRIVATE

Annual Report 2018 | i

While many initiatives focus on developing infrastructure projects

Turning hundreds of thousands in grant financing into hundreds of

ii | Public-Private Infrastructure Advisory Facility

PPIAF: HELPING TO SET THE

Annual Report 2018 | i

ii | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | v

PPIAF IS THE ONLY GLOBAL FACILITY EXAMPLES OF OUR WORK INCLUDE:

2 | Public-Private Infrastructure Advisory Facility

hh Strategy development hh Robust decision-making and operating

Annual Report 2018 | 3

4 | Public-Private Infrastructure Advisory Facility

SUPPORTING emissions is only one side of the coin. Countries’

NEXUS OF reality requires good governance through clear policy

GENDER & PPPs includes having the right incentive mechanisms to

6 | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | 7

8 | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | 9

Annual Report 2018 | 11

12 | Public-Private Infrastructure Advisory Facility

OPEN CONTRACTING DATA STANDARD FOR PPPs

PROVIDING ESSENTIAL INFRASTRUCTURE IN FRAGILITY, CONFLICT

Annual Report 2018 | 13

14 | Public-Private Infrastructure Advisory Facility

18 | Public-Private Infrastructure Advisory Facility

54% of funds to Sub-

Annual Report 2018 | 19

PPIAF TECHNICAL ASSISTANCE BY INCOME LEVEL

DAC 2 DAC= Development assistance committee

PPIAF DRIVES SUPPORT

22 | Public-Private Infrastructure Advisory Facility

Region FY17 FY18 Difference

TECHNICAL ASSISTANCE BY REGION AND TRUST FUND, FY18

5000000 USAID Water

24 | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | 25

$6.5 million $5.2 million

$3.6 million $2.5 million

26 | Public-Private Infrastructure Advisory Facility

APPROVALS BY SECTOR IN SUB-SAHARAN AFRICA | FY18

Annual Report 2018 | 27

28 | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | 29

$2.9 million $1.16 million

$0.3 million $1.18 million

30 | Public-Private Infrastructure Advisory Facility

APPROVALS BY SECTOR IN EAST ASIA & THE PACIFIC | FY18

Annual Report 2018 | 31

32 | Public-Private Infrastructure Advisory Facility

Annual Report 2018 | 33

$1.42 million $0.67 million

$1.96 million $0.67 million

34 | Public-Private Infrastructure Advisory Facility

APPROVALS BY SECTOR IN SOUTH ASIA | FY18

Annual Report 2018 | 35

$1.73 million $0.59 million