1 / 11

Gavin McGillivray Head Private Sector Department

International Private Sector Infrastructure C atalysing private investment in infrastructure in the poorest developing countries for: - Economic growth - Better services for the poor. Gavin McGillivray Head Private Sector Department UK Department for International Development (DFID)

rsharon
Download Presentation

Gavin McGillivray Head Private Sector Department

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Private Sector InfrastructureCatalysing private investment in infrastructure in the poorest developing countries for: - Economic growth - Better services for the poor Gavin McGillivray Head Private Sector Department UK Department for International Development (DFID) 4 May 2011

  2. Background In developing countries, especially the poorer ones; • Hundreds of millions of poor people lack access to decent basic services – electricity, water & sanitation, communications and transport • Inadequate infrastructure disadvantages private enterprise and puts a severe brake on economic growth • Governments have nowhere near sufficient resources to extend and upgrade infrastructure to meet the needs of their burgeoning populations • There are opportunities to catalyse private investment to help meet some of these needs

  3. What prevents private investment in infrastructure? • Outdated laws, regulations & policies • Weak government capacity to understand and engage with private investors • Lack of long-term lending, especially in local currency • Paucity of well-structured projects to invest in and, to ensure that privately financed services reach the poor • Need for clear targeting in design, and • Well-conceived subsidies

  4. Making infrastructure finance work for poor countries Financing

  5. Programme Management Unit (PMU) Other Trusts PIDG Trust Asia Africa TAF PSI Structure Private Infrastructure Development Group - PIDG Other PSI Facilities Affiliated Programmes PIDG Facilities

  6. Public-Private Infrastructure Advisory Facility (PPIAF) PPIAF support has resulted in: • the passing of over 51 laws and regulations • the establishment of over 146 sector reform strategies • the establishment or strengthening of over 74 institutions • Example: Telecommunications, Afghanistan • $468,800 in grant assistance to support the development of a regulatory framework • Rapid rollout of competitive services, with tariffs falling 95% since 2002 • The telecoms sector has attracted over $1.3 billion in private investment Electrical distribution network, Kabul

  7. Results and Impacts Bugoye Hydropower Plant, Uganda. Emerging Africa Infrastructure Fund Cotonou Port, Benin. DevCo

  8. Results and Impacts Antara Cold Storage, Vietnam. InfraCo Ackruti City Slum Development, India GuarantCo

  9. PIDG Inputs and Outputs • Total donor spend c.$500m • 46 projects completed • $9.4 billion of private investment committed • 12 million already receiving new or better services • Est. 30m people will receive new or better services from projects that have reached financial close • 29 further projects under development, plus more in pipeline.

  10. Distinctive Features of Approach • Capitalise on best ideas of group of like-minded agencies within flexible structure • Focus on sector-specific government and market failures that prevent private investment • Smart, catalytic use of donor capital to correct these failures – and help build financial markets that work for the poor • Use of professionally-managed, professionally-governed entrepreneurial facilities • Work within geographical and policy frameworks that focus energies on generating outputs that benefit the poor

  11. Opportunities • Scale up existing programmes • Extend programmes to cover related areas, eg • Climate-friendly infrastructure • Agriculture / agribusiness related infrastructure • Adopt similar approaches in other sectors, eg • Agriculture & agribusiness • Tourism • Education • Health

More Related