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
Water Operators from Emerging Markets : New Players for Public-Private Partnerships
(World Bank, Washington, DC, 2010-06)In 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
Internal Delegation Contracts for Water in Uganda : An Innovative Approach to Establishing a Successful Public Utility
(World Bank, Washington, DC, 2010-06)Uganda'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
Private Sector Participation in Urban Rail : Getting the Structure Right
(World Bank, Washington, DC, 2010-04)There 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)Thanks 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)Countries 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)To 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)The 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
What Drives Private Sector Exit from Infrastructure? Economic Crises and Other Factors in the Cancellation of Private Infrastructure Projects in Developing Countries
(World Bank, Washington, DC, 2009-03)The private sector exits only a fraction of private infrastructure projects before the contract ends. Yet such cancellations can have a sustained impact on a country's program of public-private partnerships, reducing the private sector's confidence in the government's commitment as well as the government's confidence in the robustness and "value for money" of these arrangements. Econometric analysis shows that macroeconomic shocks nearly double the cancellation rate. As today's global financial crisis greatly increases the cost, and reduces the availability, of project financing, the number of cancellations could grow. That would have implications for the role public-private partnerships can play in meeting the infrastructure needs of developing countries. -
Publication
The Role of Developing Country Firms in Infrastructure : New Data Confirm the Emergence of a New Class of Investors
(World Bank, Washington, DC, 2008-06)Developing country investors have emerged as a major source of investment finance for infrastructure projects with private participation. This update of the article in 2006, shows that, indeed, during 1998-2006 these investors accounted for more of this finance in South Asia and East Asia and Pacific, and for more in transport across developing regions than did investors from developed countries. Even though the policy implications are not yet fully clear for policy makers, this development suggests a need to rethink the criteria used in selecting investors in schemes for private participation, which have been biased toward large international operators. -
Publication
Does the Private Sector Deliver on its Promises? Evidence from a Global Study in Water and Electricity
(World Bank, Washington, DC, 2008-05)Is private operation better than public when it comes to utilities; a recent global study funded by the World Bank and Public-Private Infrastructure Advisory Facility (PPIAF) examines the effect of private sector participation in electricity distribution and water and sanitation services. Using a data set of more than 1,200 utilities in 71 developing and transition economies, the study finds that privately operated utilities convincingly outperform state-run ones in operational performance and labor productivity.