Gridlines
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Gridlines share emerging knowledge on public-private partnership and give an overview of a wide selection of projects from various regions of the world. Gridlines are a publication of PPIAF (Public-Private Infrastructure Advisory Facility), a multi-donor technical assistance facility. Through technical assistance and knowledge dissemination PPIAF supports the efforts of policy makers, nongovernmental organizations, research institutions, and others in designing and implementing strategies to tap the full potential of private involvement in infrastructure.
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Publication Internal Delegation Contracts for Water in Uganda : An Innovative Approach to Establishing a Successful Public Utility(World Bank, Washington, DC, 2010-06) Marin, Philippe; Muhairwe, William; Mugisha, Silver; Mugabi, JossesUganda's national water utility has become known for its successful turnaround under public management. Less well known is that this success owes much to the introduction of private-sector-like practices to motivate employees. Following a mixed experience with two short-term management contracts in Kampala, the utility's management introduced an innovative concept of internal delegation, inspired by public-private partnership contracts. Local managers establish private partnerships to operate systems under contract with the utility, with part of their pay depending on performance. The experience offers interesting lessons for those involved in reforming urban water utilities in developing countries.Publication Water Operators from Emerging Markets : New Players for Public-Private Partnerships(World Bank, Washington, DC, 2010-06) Marin, Philippe; Izaguirre, Ada Karina; Danilenko, AlexanderIn the 1990s a few multinationals dominated the market for public-private partnership (PPP) contracts in water. Yet in recent year's water operators from developing countries have won most of the new PPP contracts for the management of water utilities in countries as diverse as Brazil, Cameroon, Chile, China, Colombia, India, Malaysia, and the Russian Federation. While the size of the market served by large foreign operators has remained stagnant since 2001, the population served by private operators from developing countries grew from 15 million to more than 70 million, or 40 percent of the market, by 2008. This big shift opens new perspectives on using PPPs as a tool to reform water utilities in the developing world.Publication Private Sector Participation in Urban Rail : Getting the Structure Right(World Bank, Washington, DC, 2010-04) Menzies, Iain; Mandri-Perrott, CledanThere is growing interest in using rail transit, trams, metros, light rail, to solve urban transportation problems, particularly road congestion and air pollution. In developing urban rail projects, a range of major cities around the world have turned to public-private partnership models, to leverage both public and private resources and expertise. Dissecting the successes and failures of public-private urban rail schemes, this note examines how policy makers can best deal with the main risks involved in designing, procuring, and implementing such schemes. It also draws lessons on best practice in developing and managing contractual arrangements that can help ensure their success and sustainability.Publication Corporatizing a Water Utility : A Successful Case Using a Performance-Based Service Contract for ONEA in Burkina Faso(World Bank, Washington, DC, 2010-03) Marin, Philippe; Fall, Matar; Ouibiga, HarounaThanks to a corporatization process spanning two decades, Burkina Faso's national water and sanitation utility ranks among the few well-managed public water utilities in Sub-Saharan Africa. Key to its success has been the government's unceasing commitment to reform, which included the successful implementation of an innovative performance-based service contract with an international operator from 2001 to 2006. The experience shows that it is possible to establish a well-performing public water utility in a poor developing country- as long as the governance framework ensures the autonomy and accountability of the service provider and the government supports the sector's long-term financial viability through an appropriate tariff and investment policy.Publication Improving Water Services in a Post-Conflict Situation : The Case of the Management Contract in Kosovo(World Bank, Washington, DC, 2010-03) Marin, Philippe; Mugabi, Josses; Mariño, ManuelCountries emerging from a devastating conflict need to rapidly restore access to basic water and sanitation services for their population. While donors usually stand ready with generous reconstruction packages, the conflict may have left local institutions ill equipped to make good use of those resources. The traditional solution, involving technical assistance delivered by international consultants, has often proved disappointing. An alternative is to bring in a professional operator for a few years through a management contract. In postwar Kosovo the sizable improvements achieved under a three year management contract for water services in the Gjakove-Rahovec area suggest that it can be a promising approach for post-conflict situations.Publication PPI in Poor Countries : How to Increase Private Participation in Infrastructure Management and Investment(World Bank, Washington, DC, 2010-02) Leigland, JamesTo overcome huge shortfalls in access to infrastructure services, poor countries need much higher investment levels and more expertise to build, operate, and maintain infrastructure facilities. The private sector is one source for such resources, and projects involving private participation in infrastructure (PPI) have increasingly been used in developing countries. But PPI investment has been much lower in poor countries than in better-off developing countries-and has been more affected by the global financial crisis. How can PPI projects play a larger role in improving infrastructure service provision in these countries?Publication Partnering for Water in Cote d'Ivoire : Lessons from 50 Years of Successful Private Operation(World Bank, Washington, DC, 2009-08) Marin, Philippe; Ouayoro, Eustache; Fall, Matar; Verspyck, RichardThe public-private partnership (PPP) for the national water utility of Cote d'Ivoire is the oldest and largest water PPP in the developing world. In place since 1960 and today serving more than 7 million people, this PPP has provided quality service for decades and made remarkable progress in expanding access in the 1990s. It even proved resilient to civil strife and the de facto partition of the country in 2002. This African success story shows that a pragmatic partnership between a committed government and an efficient private operator can produce tangible and sustained benefits for the population.Publication Private Participation in Transport : Lessons from Recent Experience in Europe and Central Asia(World Bank, Washington, DC, 2009-06) Monsalve, CarolinaFacing fiscal constraints, many governments in Central and Eastern Europe and Southeastern Europe have pursued private finance for transport infrastructure more to move investments off budget than to improve efficiency and services. Results have been mixed and suggest a need to focus more on public-private partnerships (PPPs) that can achieve value for money. Today's economic environment will reduce the potential for PPP projects in the short term. Some PPP projects at an advanced stage of procurement may need additional public support, while ambitious projects may need to be phased to reduce their scale to what the market can absorb.Publication New Needs for Technical Assistance : Responding to the Effects of the Financial Crisis on Private Participation in Infrastructure(World Bank, Washington, DC, 2009-06) Leigland, James; Russell, HenryIn developing countries the global financial crisis is leading to serious difficulties for infrastructure projects with private participation. In some cases governments are responding by simplifying their project approval processes or by substituting public for private financing. Even if markets recover quickly, these responses could pose significant risks. Containing those risks and dealing with the effects of the financial crisis calls for specialized technical assistance in assessing contingent liabilities, maintaining existing assets, assisting projects in distress, and maintaining a project pipeline.Publication Another Lost Decade? Effects of the Financial Crisis on Project Finance for Infrastructure(World Bank, Washington, DC, 2009-06) Leigland, James; Russell, HenryRapid growth in project finance, driven by huge increases in liquidity, helped fuel the gains in private participation in infrastructure (PPI) in developing countries in the past decade. But when the financial crisis hit, the excess liquidity began to dry up as lenders backed away from practices that had helped generate it. The effects are already apparent in greater delays in financial closures, more cancellations, and higher financing costs for PPI projects. If full recovery of the project finance market takes much longer than expected, some of the measures that are now being adopted to avoid shutting down project pipelines might have unintended and very negative consequences.