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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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
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
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
The Changing Landscape of Infrastructure Finance in Africa : Nontraditional Sources Take on a Growing Role
(World Bank, Washington, DC, 2008-10) Foster, VivienAfrica has traditionally depended on official development assistance to meet its infrastructure needs. But a growing share of the region's infrastructure finance is now coming from nontraditional sources. Leading this trend is non-Organization for Economic Co-operation and Development (OECD) financiers, chiefly China, India, and Arab countries. While Arab funds have been operating in Africa for decades, China and India began to step up their involvement in the early 2000s. Flows from these non-OECD sources are now broadly comparable to traditional development assistance in dollars committed. The largest flows have gone to power especially hydropower and rail transport. -
Publication
China's Emerging Role in Africa : Part of the Changing Landscape of Infrastructure Finance
(World Bank, Washington, DC, 2008-10) Foster, Vivien ; Butterfield, William ; Chen, Chuan ; Pushak, NataliyaIn 2006, which China named the "Year of Africa," it quadrupled its investment commitments to infrastructure in Sub-Saharan Africa, to more than $7 billion. In 2007 China committed another $4.5 billion. Such funds could make a significant contribution toward meeting Africa's infrastructure investment needs. In the power sector, where Africa faces some of its largest gaps, China is investing $5.3 billion, including $3.3 billion in projects that, if completed, will increase the region's hydro generation capacity by 30 percent. China's growing role in Africa has generated much discussion. A new study seeks to add concrete numbers and solid analysis. -
Publication
Asking the Right Questions : Johannesburg Completes a Groundbreaking Municipal Bond Issue
(World Bank, Washington, DC, 2008-05) Ngobeni, JasonIn 2004 the city of Johannesburg sold two municipal bond issues, among the very few such issues in Africa. The bond issues marked the city's recovery from near bankruptcy in the mid-1990s. They have been followed by several more as well as an even more ambitious capital financing program. Preparing for a first-time bond issuance is complicated and time consuming. Johannesburg navigated its way with remarkable success by asking the right questions and insisting on credible answers. Its path offers guidance and insights to other local governments considering the use of municipal bonds to finance infrastructure. -
Publication
Helping a New Breed of Private Water Operators Access Infrastructure Finance : Microfinance for Community Water Schemes in Kenya
(World Bank, Washington, DC, 2007-05) Mehta, Meera ; Virjee, Kameel ; Njoroge, SerahSmall-scale providers of water services are no longer seen as merely temporary substitutes for formal utilities. In many developing countries governments and donors increasingly view them as long-term partners in the work to extend and improve water services, particularly as governments accelerate efforts to meet water targets associated with the Millennium Development Goals. But a host of problems complicate efforts to make small-scale providers productive partners, including their lack of access to finance. In Kenya, a collaborative program is bringing together community-based organizations and micro-lenders to provide better water services to poor people -- and generating lessons for similar initiatives. -
Publication
Port Reform in Nigeria : Upstream Policy Reforms Kick-Start One of the World's Largest Concession Programs
(World Bank, Washington, DC, 2007-03) Leigland, James ; Palsson, GylflOver a two-year period, beginning in late 2004, the Nigerian federal government implemented one of the most ambitious port concessioning programs ever attempted. The success of this program resulted from the government's vision and decisiveness, as well as the need to remedy massive shortcomings in the sector, which were sharply inhibiting economic development. But the program also benefited strongly from policy reform recommendations made by PPIAF-funded consultants in 2002. The role of these upstream policy and planning recommendations highlights the value of best practice steps for creating an enabling environment in which sustainable arrangements for the private participation in infrastructure can be concluded. -
Publication
Financing Infrastructure in Africa : How the Region Can Attract More Project Finance
(World Bank, Washington, DC, 2006-09) Sheppard, Robert ; von Klaudy, Stephan ; Kumar, GeetaSub-Saharan Africa receives only a small share of private investment in infrastructure. One reason for this is its difficulties in getting project finance - difficulties that stem from the low creditworthiness of most African countries, the limits of local financial markets, and the risk profiles typical of infrastructure projects. Whether the region can attract more private foreign currency funding for infrastructure will depend in part on the ability to reduce foreign exchange risks. But in some countries local currency sources, especially local capital markets, also offer good potential. -
Publication
Reaching Unserved Communities in Africa with Basic Services : Can Small-Scale Private Service Providers Save the Day?
(World Bank, Washington, DC, 2006-06) Kariuki, Mukami ; Schwartz, Jordan ; Schur, MichaelWith urban and especially periurban populations set to grow at unprecedented rates in Africa, and service coverage continuing to lag, governments and donors have begun to recognize that small-scale providers have an increasingly critical role to play. They have also begun to focus on the importance of creating an environment that enables these providers to supply good quality service. Most African countries face big deficits in infrastructure, and their efforts to scale up the services of small-scale service providers may be impeded by lack of capacity or resources or even by collusion and rent seeking by larger, formal service providers. Improving or extending the services of small scale service providers must therefore be part of-not a substitute for-reform of the infrastructure sector.