Mandri-Perrott, Cledan

Infrastructure Finance and Public-Private Partnerships
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Public-Private Partnerships, Project Finance, Capital Markets, Asset Management
Infrastructure Finance and Public-Private Partnerships
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Last updated: January 31, 2023
Cledan Mandri-Perrott is the Head of Infrastructure Finance and PPP, Singapore. He has been involved over the past 20 years in numerous infrastructure projects and has particularly experience in developing and implementing project finance transactions. Cledan combines an engineering, financial and legal background with sound commercial and legal expertise. Prior to joining the World Bank, he acted as transaction adviser to a number of infrastructure projects advising both Governments and Private clients. He has strong regulatory background and has designed and implemented regulatory policy frameworks. He has practical operational experience having managed a utility in Trinidad and Tobago. Furthermore, he has assisted a number of utilities in evaluating the potential benefits of privatization. He has gained a reputation as a pragmatic problem solver helping determine regulatory disputes and PPP contracts in distress through the development of innovative dispute resolution and mediation techniques between regulators and operators. He has authored operating and service agreements for the provision of basic infrastructure services. He has written extensively on issues of PPP and infrastructure and is a regular presenter and trainer on PPP related topics. A graduate in Civil Engineering, he also holds an MSc in Finance, an LLM in commercial and transaction law from the University of Dundee, and a PhD in Project Finance from the University of Groningen.

Publication Search Results

Now showing 1 - 10 of 14
  • Publication
    Do Countries Learn from Experience in Infrastructure PPP?: PPP Practice and Contract Cancellation
    (World Bank, Washington, DC, 2017-05) Marcelo, Darwin; House, Schuyler; Mandri-Perrott, Cledan; Schwartz, Jordan
    Learning from experience to improve future infrastructure public-private partnerships is a focal issue for policy makers, financiers, implementers, and private sector stakeholders. An extensive body of case studies and "lessons learned" aims to improve the likelihood of success and attempts to avoid future contract failures across sectors and geographies. This paper examines whether countries do, indeed, learn from experience to improve the probability of success of public-private partnerships at the national level. The purview of the paper is not to diagnose learning across all aspects of public-private partnerships globally, but rather to focus on whether experience has an effect on the most extreme cases of public-private partnership contract failure, premature contract cancellation. The analysis utilizes mixed-effects probit regression combined with spline models to test empirically whether general public-private partnership experience has an impact on reducing the chances of contract cancellation for future projects. The results confirm what the market intuitively knows, that is, that public-private partnership experience reduces the likelihood of contract cancellation. But the results also provide a perhaps less intuitive finding: the benefits of learning are typically concentrated in the first few public-private partnership deals. Moreover, the results show that the probability of cancellation varies across sectors and suggests the relative complexity of water public-private partnerships compared with energy and transport projects. An estimated $1.5 billion per year could have been saved with interventions and support to reduce cancellations in less experienced countries (those with fewer than 23 prior public-private partnerships).
  • Publication
    Prioritizing Infrastructure Investment: A Framework for Government Decision Making
    (World Bank, Washington, DC, 2016-05) Marcelo, Darwin; Mandri-Perrott, Cledan; House, Schuyler; Schwartz, Jordan
    Governments must decide how to allocate limited resources for infrastructure development, particularly since financing gaps have been projected for the coming decades. Social cost-benefit analysis provides sound project appraisal and, when systematically applied, a basis for prioritization. In some instances, however, capacity and resource limitations make extensive economic analyses across all projects unfeasible in the immediate term. This paper responds to a need for expanding the available set of tools for project selection by proposing an alternative prioritization approach that is systematic and feasible within the current resource means of government. The Infrastructure Prioritization Framework is a multi-criteria decision support tool that considers project outcomes along two dimensions, social-environmental and financial-economic. When large sets of small- to medium-sized projects are proposed, resources are limited, and basic project appraisal data (but not full social cost-benefit analysis) are available, the Infrastructure Prioritization Framework can inform project selection by combining selection criteria into social-environmental and financial-economic indexes. These indexes are used to plot projects on a Cartesian plane, and the sector budget is imposed to create a project map for comparison along each dimension. The Infrastructure Prioritization Framework is structured to accommodate multiple policy objectives, attend to social and environmental factors, provide an intuitive platform for displaying results, and take advantage of available data while promoting capacity building and data collection for more sophisticated appraisal methods and selection frameworks. Decision criteria, weighting, and sensitivity analysis should be decided and made transparent in advance of selection, and analysis should be made publicly available and open to third-party review.
  • Publication
    Prioritizing Infrastructure Investments in Panama: Pilot Application of the World Bank Infrastructure Prioritization Framework
    (World Bank, Washington, DC, 2016-04) Marcelo, Darwin; Mandri-Perrott, Cledan; House, Schuyler
    Infrastructure services are significant determinants of economic development, social welfare, trade, and public health. As such, they typically feature strongly in national development plans. While governments may receive many infrastructure project proposals, however, resources are often insufficient to finance the full set of proposals in the short term. Leading up to 2020, an estimated US$836 billion - 1 trillion will be required each year to meet growth targets worldwide (Ruiz-Nunez and Wei, 2014; World Bank). Global estimates of infrastructure investments required to support economic growth and human development lie in the range of US$65-70 trillion by 2030 (OECD, 2006), while the estimated pool of available funds is limited to approximately US$45 trillion (B20, 2014). The past twenty years have also seen a shift towards decentralized infrastructure planning. Many subnational governments, regional entities, and sector agencies have been delegated responsibility for infrastructure planning promote local responsiveness, but responsibility for allocating funds often remains with a centralized finance agency (CFA). While constituencies may propose numerous projects, governments often have insufficient financial resources to implement the full suite of proposals. This report presents the IPF methodology and results of the pilot application to a select set of transport and water and sanitation projects in Panama. The report first gives background information on infrastructure prioritization in Panama, then follows with a description of the IPF in technical and implementation terms. Next, we present the results of the pilot and close with recommendations for implementing IPF to a wider set of projects.
  • Publication
    How to Develop Sustainable Irrigation Projects with Private Sector Participation
    (World Bank, Washington, DC, 2016-02-01) Mandri-Perrott, Cledan
    This is a handbook designed to guide governments, public authorities and other interested stakeholders in the process of designing and tendering sustainable Public-Private Partnership (PPP) arrangements in the irrigation sector. It takes a practical, step-by-step approach in describing what a government needs to do in preparing and implementing a PPP irrigation scheme from inception. The handbook takes account of the various stages of the irrigation value chain and how to handle private sector participation in irrigation schemes of different sizes and types. It assumes that governments have already made the underlying policy decision to embark on a PPP in irrigation, and therefore does not dwell on the rationale for undertaking a PPP. The handbook’s practical aspects are contained in four, stand-alone chapters that follow an over-arching Executive Summary and an Introduction. The chapters are deliberately numbered to coincide with the four steps that a government should take in establishing an irrigation PPP: Preparation, Structuring, Procurement Management, and Implementation. In addition, each chapter concludes with a practical Checklist to help executives keep track of the necessary tasks in each step on the way to establishing a sustainable PPP operation. The chapters are designed to be read as stand-alone guides, out of an understanding that institutions using the book may already have completed prior steps. Nevertheless, it would be prudent for users to acquaint themselves with the entire handbook so as to develop a holistic view of the requirements for a full PPP project. Chapter One: Preparation is divided into two parts, A and B (each with its own concluding Checklist). Part A reviews the scope for introducing PPPs into the irrigation sector, identifying the issues that policymakers should consider from the outset in order to make the private sector’s involvement feasible with a specific irrigation project.Part B discusses the irrigation as a business. It contains a variety of case studies—the first time such studies have been documented—with discussion of lessons learned, PPP types, transfer of investment functions in developing countries, competitive bidding, and third party involvement among the subjects covered. Chapter Two: Structuring a PPP sets out the various tasks that must be completed to structure a sustainable PPP contract. Chapter Three: Managing Procurement examines how to select a private contractor, which involves such factors as the fiscal commitments to the PPP, to what extent the process should be competitive and how that might be conducted and managed, and what issues are peculiar to PPPs in irrigation.Chapter Four: Implementation highlights management of the contract and establishment of those management structures, monitoring, penalties and grantor’s rights, use of performance bonds, enforcement of customer payments, dealing with changes to the contract, and contract expiry and asset handover. The overall structure of the handbook is illustrated below. The handbook is supported by three annexes: Annex 1 explains how to use the Excel Options Assessment Tool, , and Annex 2 provides case studies of 29 existing or emerging irrigation PPPs.
  • Publication
    Public-Private Partnerships in Europe and Central Asia : Designing Crisis-Resilient Strategies and Bankable Projects
    (World Bank, 2011-02-24) Cuttaree, Vickram; Mandri-Perrott, Cledan
    This study aims to help governments design sustainable Public-Private Partnership (PPP) strategies and projects in the context of the changed circumstances brought on by the global financial and economic crisis that began in the fall of 2008. The study analyses the impact and implication of the crisis on PPP infrastructure projects across the Europe and Central Asia (ECA) region. In the research undertaken for this study, it appears that most crisis-specific issues are cross-sectoral, therefore requiring cross-sectoral responses. The intended audience for this report includes national government stakeholders involved in infrastructure financing, including Ministries in charge of infrastructure, especially transport, energy, and water; state-owned enterprises with operational responsibilities, such as road directorates; and Ministries of Finance and development banks involved in PPP. This report reviewed the region's experience in PPPs in infrastructure before and during the financial crisis period (from late 2006 to 2010). Since not all ECA countries have had successful or ongoing PPP projects during this time, the report draws on lessons from Brazil, India, Spain, and the United Kingdom, countries with established PPP project pipelines to draw on cross-sectoral lessons. The findings can be used by countries wishing to start or re-start their PPP program following the impact of the recent crisis. However, beyond the crisis and its effects, the report can also guide future development of sustainable and crisis-resilient PPP programs. Most of the analysis supporting the report recommendations was undertaken for the highway sector and was financed through from a grant from the transport research support program. Initially, the highway sector was the focus of this study but the scope was later widened to include all infrastructure sectors because most issues facing highway PPP projects are common to other sectors requiring a cross-sectoral approach to PPP. Sector-specific strategies for highways have been documented in a recent World Bank study.
  • Publication
    Strengthening Fiscal Transfers in Indonesia Using an Output-Based Approach
    (World Bank, Washington, DC, 2011-01) Ellis, Peter; Mandri-Perrott, Cledan
    In 2010 the World Bank approved a US$220 million loan for a Local Government and Decentralization project in Indonesia. The project aims to improve the accountability and reporting of the central government's Specific Purpose Grants (DAK). Piloted in four infrastructure sub-sectors-irrigation, roads, sanitation, and water the project is the World Bank's first to apply innovative Output-Based Aid (OBA) design principles on a large scale to target improvements in inter-governmental fiscal transfers. Under the project, the DAK grants will work in a similar way to OBA subsidies, which reimburse service providers for independently verified, pre-agreed physical outputs. Up to 81 local governments in five provinces are eligible to take part in this project. This note presents an overview of the project objectives and design.
  • Publication
    Private Sector Participation in Urban Rail : Getting the Structure Right
    (World Bank, Washington, DC, 2010-04) Menzies, Iain; Mandri-Perrott, Cledan
    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
    Connecting Colombia's Poor to Natural Gas Services : Lessons Learned from a Completed Output-Based Aid Project
    (World Bank, Washington, DC, 2010-01) Mandri-Perrott, Cledan
    The Global Partnership on Output-Based Aid (GPOBA) has recently completed a project that made 35,000 new natural gas connections to poor households in Colombia's Caribbean coastal region. This partnership between GPOBA and Fundacion Promigas (a charitable foundation established by Colombian gas distribution holding company, Promigas) has resulted in substantial benefits to Colombia's poor population. Because in-home natural gas connections provide a safer, more environmentally friendly, and less expensive substitute to previously used fuels, poor families are enjoying the long-term advantages from this program's one-time subsidies. This note explores the results of this program and draws lessons for future projects.
  • Publication
    Private Sector Participation in Light Rail-Light Metro Transit Initiatives
    (World Bank, 2010) Mandri-Perrott, Cledan
    This book aims to help governments and public authorities to establish effective light rail-light metro transit (LRMT) systems, and focuses on use of Public-Private Participation (PPP) arrangements. Rather than identify a single approach, authors present options and discuss practical issues related to preparing and implementing new LRMT PPP schemes. The approach is focused on providing information that can be used to make informed decisions, adapted to local policy and objectives. The material presented is intended as a practical guide to developing LRMT PPPs in both developed and developing countries. This work endeavors to provide answers to readers' questions regarding how to successfully incorporate private sector participation in LRMT with a lesser emphasis on why LRMT and the private sector may be beneficial. The primary focus of this text is guiding the reader from design through to project implementation. It starts from the premise that underlying transport policy decisions will have already been made and that LRMT has already been identified as the appropriate transport solution. The authors have included some limited discussion of policy and technical issues where these directly impact the LRMT PPP approach. The approach is presented in nine sections, and in preparing it the author drew on current international LRMT PPP experience, through a series of interviews and case studies. The sections covered are: 1) urban transport and LRMT: an overview of urban transport policy, the characteristics of LRMT schemes and the influences on LRMT policies; 2) technical issues: a brief review of some key technical issues inherent in LRMT schemes and their potential impact on PPP design and implementation; 3) incorporating private sector participation in LRMT initiatives: what PPP has to offer, and an overview of the issues and stages public authorities follow to establish successful LRMT PPP arrangements; 4) understanding and managing risk: analyzing and allocating risks and responsibilities among stakeholders in the LRMT scheme and practical ways of designing risk allocation rules; 5) PPP, design, specifications and performance management: setting service standards and specifications and establishing associated costs; developing of performance and payment indicators and managing compliance; 6) funding and finance: large LRMT capital and system maintenance requirements require strong financing arrangements. The practical use of public and private financing mechanisms under PPP arrangement is reviewed; 7) developing a PPP agreement: looking at the main types of PPP agreements, an outline framework for developing the contractual arrangement is developed through re-view of key issues; 8) procurement: reviewing the approaches that the public authority can use to select the private partner; and 9) conclusions.
  • Publication
    Output-Based Aid in Honduras : An OBA Facility for the Water and Sanitation Sector
    (World Bank, Washington, DC, 2009-09) Mandri-Perrott, Cledan; Silvia, Ana Aguilera
    Honduras has achieved a reasonable level of access to water supply and sanitation, but gaps in coverage remain, especially in rural and peri-urban areas, and service quality for those with access is often poor. To help the Government of Honduras achieve universal coverage and improve service quality, the Global Partnership on Output-Based Aid (GPOBA) is funding a project to test the viability of an innovative output-based aid mechanism for financing water and sanitation services. Housed within the Honduran Social Investment Fund, this 'OBA Facility' the first such facility funded by GPOBA aims to improve access to water and sanitation services for about 15,000 low-income households, and to increase efficiency and transparency in sector investment funding. To be eligible for funding from the OBA Facility, projects must meet specific criteria and payments are made against verifiable results.