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East African Community/US Workshop on Sustainable Transport Systems August 26-27, 2009. Public Private Infrastructure Advisory Facility. Multi-donor facility Established 1999 16 Donors including USAID, MCC and AfDB Managed by World Bank Annual budget $30 million, Portfolio: $170 million
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East African Community/US Workshop on Sustainable Transport Systems August 26-27, 2009
Public Private Infrastructure Advisory Facility • Multi-donor facility • Established 1999 • 16 Donors including USAID, MCC and AfDB • Managed by World Bank • Annual budget $30 million, Portfolio: $170 million • Average grant size of $225k, half less than $75k • Half resources utilized in Africa • Upstream policy and regulatory systems • PPPs, management contracts, and debt issuances
Public Private Infrastructure Advisory Facility • Demand-driven model • Approvals in 4 to 6 weeks • Governance & Management Structure • Application, approval and monitoring • Focus on infrastructure, but includes utility/municipal financing • Activities not tied to specific financiers or financing options
Ongoing Transport Activities in East Africa • Rwanda: Debt Financing for Kigali Bus Terminal ($260,000) • Tanzania: Dar es Salaam Bust Rapid Transit System ($75,000) • Tanzania: Prefeasibility Study for PPP options for Kisarawe Freight Station ($330,000) • Uganda: Bus Rapid Transit Conceptual Design ($280,000) • Kenya: Debt Financing Options for Kenya Airport Authority ($275,000) • Regional: Mtwara Cooridor PPP Development ($685,000) • Regional: Core Strategic Transport and PPP Options for East/Southern Africa ($600,000)
Completed PPIAF Transport Studies in East Africa • Ethiopia: PSP in Urban Transport through private operators ($250,000) • Uganda: Multi Sector Transport Regulator Agency ($340,000) • Kenya : PPP Strategy for Kenya Airports ($325,000) • Kenya : Road Concessions ($543,000) • Kenya: Institutional Framework for privatization of Railways Corporation ($393,000) • Tanzania : Implementation of PPPs in the road sector ($160,000) • Tanzania: Improving Airport Management through private sector Participation ($230,000)
Financing the Infrastructure Backlog Source AICD
Types of Partnerships • Debt instruments raising capital from private local or international markets • Management contracts delegating service(s) to private partners • Public Private Partnerships whereby public ownership is maintained but service delivery is contracted to private sector
PPPs : Spectrum of Options Operation & Maintenance contract Design Build Operate Buy Build Operate Build Operate Transfer/ Concession Fully Private Fully Public Design Build Lease Develop Operate Build Transfer Operate Build Own Operate Low High Roles, Skill Requirements, and Risks of Private Sector
Opportunities and Partnerships • Operating Expertise • Enhanced Efficiencies • Private Sector Capital (as appropriate) • Long Term Financing (as appropriate) • Capex Contribution (as appropriate) • Reduce/Eliminate Forex Risk • Definitive Public Sector Role
Challenges and Partnerships • Clear Definition of Need and Scope • Time • Regulatory Environment • Technical Capacity and Human Resources • Capital Market • Political and Economic Market • Tenor • Risk Allocation\Leveraging Private Resources
Partnerships and the Fiscal Crisis • Flight to Quality • Debt Markets Tightening (Interest Rates and Tenor) • More Reliance on DFIs • Increased Role of Local Private Operators and Investors • Smaller is Better • Strong, Transparent Regulatory Environments
PPIAF Contact Details East and Southern Africa Office: • Nairobi, Kenya • www.ppiaf.org • Telephone: +254-20-271-4095 • Contact: jkolker@worldbank.org Africa Infrastructure Country Diagnostic • http://infrastructureafrica.org