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Multi-donor funding mechanisms: the example of Public-Private Infrastructure Advisory Facility (PPIAF). Outline: 1. Why focusing on PPIAF? 2. Criticism of PPIAF - main aspects 3. What to do? About the campaign against PPIAF and its strategic goals.
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Multi-donor funding mechanisms: the example of Public-Private Infrastructure Advisory Facility (PPIAF) Outline: 1. Why focusing on PPIAF? 2. Criticism of PPIAF - main aspects 3. What to do? About the campaign against PPIAF and its strategic goals
Introduction: a need for a PPIAF Analysis and campaign. - PPIAF is a central institution in the continuing donor push to privatise water supply and sanitation in developing countries - A need to A) get PPIAF more strongly into our anti-water privatisation campaign, B) Get better known by campaign audience and media. C) Set out demands for the donors!
Part 1: Why focusing on PPIAF? - PPIAF – part of the new agenda to promote water privatisation - The water privatisation strategy was a case of failed promises - The answer in 2003: was not to reconsider the strategy – but using public aid money to finance new tools to facilitate more privatisations and investments.
The new privatisation tool relevant for PPIAF is: - Using aid money to fund the work of private consultancy companies: PPIAF activities is about: funding consultants providing advice only on water privatisation – as a way to facilitate more privatisations and private investments. - In every full year since 2003: there have been eight countries in which water privatisation consultancy contracts have been awarded.
Overview of Multi and bi lateral donors to PPIAF: Donor: % of PPIAF’s funding United Kingdom 53.8% World Bank 13.6% Japan 11.0% Switzerland 5.7% Norway 1.9% Netherlands 1.8% Canada 1.8% Sweden 1.3% Germany 1.3% France 0.9% Asian Development Bank 0.7% United States 0.7% Italy 0.2%
Part 2: Criticism of PPIAF - main aspects: • “Built in” privatisation conditionality into the program money only available for the implementation of water privatisation reform. • Additional pressure is exercised when there are no equivalent institutions to advice on water sector reform within the public sector • B) The PPIAF privatisation conditionality pressure is furthermore strengthened by additional loan conditionalities on the country level, often by the World Bank.
C) The PPIAF activity called "consensus building" is: 1) ideologically one-sided promotion of privatisation, 2) in a way which suffers from a democratic deficit. PPIAF exemplifies: “PPIAF has supported consensus building activities ranging from workshops and seminars to study tours and public awareness campaigns." = All together the consequence is: the elimination of public sector options
Part 3: What to do? About the campaign against PPIAF and its strategic goals - The main recommendation: Donors must withdraw funding from PPIAF - Relocate PPIAF money: for constructive public sector solution like Public Public Partnerships or Public Utility Partnerships. - Strategically: Form an international coalition to put a joint pressure on PPIAF donors for withdrawing their support
PPIAF donors list:United KingdomJapanWorld BankSwitzerlandNorwayNetherlandsCanadaSwedenGermanyFranceUnited StatesItalyWorld BankAsian Development Bank Announcing a meeting on forming an informal coalition against PPIAF: We appeal that NGOs working with these donors take part – the intention of the meeting is to form an informal coalition and discuss how to take a PPIAF campaign forward! Place: The Peace Station Time: After this workshop For questions regarding the campaign or the meting: Vicky Chann, World Development Movement Mail: Vicky@wdm.org.uk • Jørgen Magdahl, The organisation for International water studies - Mail: jorgenmagdahl@gmail.com