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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Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
(World Bank, Washington, DC, 2008-08) Leigland, James ; Mandri-Perrott, CledanIn 2001-03 the municipal bond market in Mexico was among the most active in the developing world. Government officials had found a way to dramatically enhance the creditworthiness of local government debt without using sovereign guarantees. The technique, adapted in part from private sector 'future flow' financing deals, enabled a state or local government to earn significantly higher credit ratings for bond issues than for its normal balance sheet debt. Many other developing countries have turned to Mexico as a source of innovation that may have application in their own markets. -
Publication
Managing Municipal Solid Waste in Latin America and the Caribbean : Integrating the Private Sector, Harnessing Incentives
(World Bank, Washington, DC, 2007-10) Hoornweg, Daniel ; Giannelli, NatalieThis note states that Latin America's urban population has grown, and its solid waste has increased at an even faster pace. Today the region's urban areas generate about 369,000 tons a day of solid waste. Ensuring that the waste is collected and disposed of properly will require strengthening the strategic role of municipalities. The private sector already plays a big part in waste collection. But private providers could do more in waste disposal and management, helping to improve service in close coordination with local authorities. Given the methane gas currently released from landfills, carbon finance is another potential driver of management improvements. -
Publication
What it Takes to Lower Regulatory Risk in Infrastructure Industries : An Assessment and Benchmarking of Brazilian Regulators
(World Bank, Washington, DC, 2007-09) Correa, PauloThis article points out that regulatory governance-how regulators manage concession contracts, or other public-private contractual arrangements and sector laws-can affect the private sector's perception of regulatory risk and thus the availability of private capital for infrastructure projects. Four key elements of the regulatory governance structure can reduce the risk of regulatory failure: political and financial autonomy, decision-making structures that reduce regulatory discretion, access to effective enforcement and other regulatory tools, and efficient rules of accountability. This note presents an analytical framework based on those four elements and applies it in assessing regulatory governance in Brazil. -
Publication
Relying on Expert Panels to Help Settle Regulatory Disputes : Lessons from Chilean Experience
(World Bank, Washington, DC, 2007-05) Jadresic, Alejandro ; Bertolini, LorenzoStarting in the 1980s Chile initiated wide-ranging economic reforms, paving the way for private sector involvement in major infrastructure sectors. With these reforms came new regulatory rules, institutions, and processes to manage the interests and expectations of such diverse stakeholders as the government, consumers, and service providers. One innovative feature is the use of expert panels -- specialized, independent, ad hoc entities affiliated with neither the government nor the sector regulator -- to resolve disputes arising from regulatory decisions. The Chilean experience with these panels offers useful lessons for policymakers. -
Publication
Expanding the Frontiers of Telecom Markets Through PPP in Peru
(World Bank, Washington, DC, 2006-05) Stephens, Robert ; Bossio, Jorge ; Ngo, Jean-ChristopheTo help bring telephone service closer to Peru's poorest and most isolated areas, where people still had to travel some 56 kilometers on average to reach a pay phone, a pioneering fund offered subsidies to attract investment by private operators. Initial efforts led to impressive achievements, though slow implementation left room for improvement. A Public-Private Infrastructure Advisory Facility (PPIAF)-funded assessment of the first projects helped design the next generation of initiatives-and pointed to lessons for other developing countries. This paper list the following lessons: Governments should set measurable and achievable goals for a time frame of two to four years for their universal access programs, periodically updating the goals as they are met and as markets and technology evolve; universal access funds can be most effective and sustainable if they create incentives for private provision of services on a commercial basis.; imposing a 1-2 percent assessment on operators' revenues is an effective and transparent mechanism for financing universal access funds; making the universal access program part of the sector regulator, rather than a stand-alone agency or a line ministry, reduces political interference in the use of funds and makes it easier to introduce critical regulatory changes to support the program; sound regulatory measures can support universal access; output-based aid (OBA) subsidies are an effective use of universal access funds because they attract significant additional private investment; and governments should find ways to ensure that universal access funds are used in a timely way.