Public-Private Infrastructure Advisory Facility2013-08-062013-08-0620040-8213-6205-4https://hdl.handle.net/10986/14837The report looks at Lesotho, a predominantly mountainous, land-locked, poor country with a small population, limited natural resources, and a very fragile ecology. It has low gross national income, and a significant poverty level. To ameliorate this condition, the government has embarked on a pro-poor, growth strategy that includes public, and private investment in infrastructure. It explores the level of private participation at this phase in the evolution of the reforms, which is considerable, given the country's small size, limited institutional capacity, and lack of public and private investment capital. Telecommunications has recorded the most significant reform of any of the infrastructure sectors. Other than telecommunications, reforms in other sectors have not advanced significantly. Not surprisingly, the report identifies specific lessons learned from the telecommunications sector, and examines their relevance to reform efforts under way in the other sectors. In summary, this report finds that private participation in infrastructure could offer Lesotho three key advantages: 1) augmenting budget resources in cases where the private sector undertakes to finance projects, or services that would not otherwise be funded, 2) improving the quality and efficiency of service delivery, and, 3) accelerating investments in infrastructure. By the same token, the report makes clear that private participation in infrastructure (PPI) carries significant down-side risks that, despite the best of intentions, could lead to negative fiscal impacts, lower than expected service quality, disruptions to service, or more dire consequences. The report presents an action plan with three primary elements: 1) the creation of a PPI Facilitation Unit to assist line ministries in implementing PPI projects; 2) specific priorities pertinent to each respective infrastructure sector; and, 3) cross-cutting reform measures addressing policy, regulatory, and legal actions needed to provide an enabling framework, and facilitating environment for PPI projects.en-USCC BY 3.0 IGOACCESS TO CAPITALACCESS TO INFORMATIONBASIC INFRASTRUCTUREBASIC SERVICESBOTBROAD STAKEHOLDERBUSINESS ENVIRONMENTCAPACITY BUILDINGCAPITAL EXPENDITURECENTRAL GOVERNMENTCOMMUNICATIONS SERVICESCOMMUNITY DEVELOPMENTCOMPETITIVE BIDDINGCOMPETITIVE BIDDING PROCESSCOMPETITIVE PRESSURECONNECTION CHARGECONNECTION FEECONTRACT PERIODCORPORATIONCOST RECOVERYCOST RECOVERY LEVELSCOSTS OF SERVICEDISPUTE RESOLUTIONDISTRIBUTION UTILITIESDIVERSIFICATIONECOLOGYECONOMIC DEVELOPMENTECONOMIC GROWTHEFFICIENCY OF SERVICEEFFICIENCY OF SERVICE DELIVERYEFFLUENTSELECTRICITYELECTRICITY DEMANDELECTRICITY SECTORELECTRICITY TARIFFEMPLOYMENTENVIRONMENTALENVIRONMENTAL ISSUESENVIRONMENTAL POLICYEXCLUSIVE LICENSEEXPANSIONEXPENDITURESFIXED COSTSFOREIGN DIRECT INVESTMENTFREIGHTGNPGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTHOUSEHOLDSHUMAN CAPITALIMPORTSINCOME DISTRIBUTIONINCOME LEVELSINDUSTRIAL WATERINFRASTRUCTURE INVESTMENTINFRASTRUCTURE PROJECTSINFRASTRUCTURE REFORMINFRASTRUCTURE SECTORSINFRASTRUCTURE SERVICESINVESTMENT CAPITALKEY INFRASTRUCTURELAND USELEASINGLEGAL STATUSLEGISLATIONLEVIESLICENSESLICENSINGLOCAL CONTRACTORSLOCAL GOVERNMENTSMACROECONOMIC CONDITIONSMARKET LIBERALIZATIONNATIONAL INCOMENATURAL RESOURCESOLIGOPOLYOPERATIONAL FUNCTIONSPERFORMANCE AGREEMENTPERFORMANCE CONTRACTSPERFORMANCE TARGETSPIT LATRINESPOLLUTIONPOTABLE WATERPRIVATE INFRASTRUCTUREPRIVATE INVESTMENTPRIVATE INVESTMENT IN INFRASTRUCTUREPRIVATE INVESTORSPRIVATE OPERATORSPRIVATE PARTICIPATIONPRIVATE PARTNERSHIPPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRIVATE SECTOR INVOLVEMENTPRIVATE SECTOR PARTICIPATIONPRIVATIZATIONPRIVATIZATION EFFORTSPRIVATIZATION PROGRAMPUBLICPUBLIC FINANCEPUBLIC RESOURCESPUBLIC SECTORPUBLIC SERVICESPUBLIC TRANSPORTATIONPUBLIC WORKSPURCHASING POWERRAW WATERRECLAMATIONREGULATORY AGENCYREGULATORY CAPACITYREGULATORY CHANGESREGULATORY COMMISSIONREGULATORY FRAMEWORKREGULATORY INDEPENDENCEREGULATORY PROCESSESREGULATORY REFORMREGULATORY REFORMSROAD SECTORROADSRURAL WATERRURAL WATER SUPPLYSANITATIONSANITATION AUTHORITYSANITATION SECTORSERVICE DELIVERYSERVICE PROVIDERSERVICE PROVIDERSSERVICE QUALITYSERVICE STANDARDSSOLID WASTESUPPLY CHAINSUPPLY SITUATIONTARIFF ADJUSTMENTSTARIFF REGULATIONTAXTECHNICAL ASSISTANCETELECOMMUNICATIONSTELECOMMUNICATIONS POLICYTELECOMMUNICATIONS SERVICESTOTAL COSTSTRAFFICTRANSPORT SECTORTRANSPORTATIONUNIVERSAL SERVICE FUNDURBAN AREASURBAN PLANNINGURBANIZATIONUTILITIESUTILITY MANAGEMENTUTILITY SERVICESVOIPWASTE MANAGEMENTWASTEWATER COLLECTIONWASTEWATER TARIFFSWASTEWATER TREATMENTWATERWATER ABSTRACTIONWATER COMPANYWATER CONSUMPTIONWATER DEPARTMENTWATER RESOURCEWATER REUSEWATER SANITATIONWATER SECTORWATER SECTOR REFORMWATER SUPPLYWILLINGNESS TO PAYWorld Bank10.1596/0-8213-6205-4