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1. Usage of PPPs in Africa 2. Institutional environment for PPPs a) Are we rich enough to buy cheap ?. Jernej Pintar. Inspired yesterday by the way you are dressed - c elebration of life – hence I join you today in my national clothes. Growth of usage of DBFOs: 1984-2010.
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1. Usage of PPPs in Africa2. Institutional environment for PPPs a) Are werichenough to buycheap? Jernej Pintar
Inspired yesterday by the way you are dressed - celebration of life – hence I join you today in mynationalclothes
Growth of usage of DBFOs: 1984-2010 • 1984 – 91: First trials • 1991 – 97: First expansion • 1997 – 04: Stagnation • 2004 – 07: Second expansion • 2008 – 10: Decrease Research specifics
Situation in Africa? • between 200-250 PPP project up to 2012, worth 50 billion USD. • Average project was worth 250 million USD (smallest in myreserach: 1M, largest 3,5 Billion – Railroad in South Africa)
Usage of PPPs bySector (world) Inrastructure vs Sectors
Institutional environment for DBFOs • Segmentsofinstitutionalenvironmentlook at: • Legal environemtn • Politicalenvironment • Financialenvironment • Businessenvironment
Institutional environment forFrequentDBFOs • Institutional factors that increase the frequency of projects (No. of PPPs) (besidesDebt) • Government effectiveness and quality of public administration • Rule of Law & strong property rights • High economic freedom • Strong regulation of competition • High credit rating of a country • and ease of doing business. • Experienceswithprivatization • Please do not forget – this is onlyaboutinstitutions (not aboutpoliticalwill)
Graph: Zero PPPs vs Max Invest+No.PPPs List of countries
Final thoughts • Make good institutional support for PPP projects – then you will be able to use them not only for one or two opportunities, but as frequent mechanism. Don’t buy cheap, because it costs much more later on. • PPPs for going green: • Green projects • Development - indirectly green (upliftingthesocity / standard) • Eg. localprojects, withlocalpartners (localjobs, localbusiness, capacity-building).