Impact Investing & People-first Public Private Partnerships

2019

The United Nations Sustainable Development Goals raise a new challenge to Public-Private Partnerships (PPPs), which have traditionally been designed as a “value for money” tool. Overall, it can be said that not all PPPs are “fit for purpose” for the Sustainable Development Goals. There has yet to be a model that is on the one hand transformative and on the other hand responds to the challenges of low and middle-income countries where arguably PPPs are needed the most but where they can also generate difficulties when not used in an informed and reasonable way.

Australasian Business, Accounting and Finance Journal, 2021

Impact Investing is a community of investors willing to create social and environmental impact along with financial returns by investing either directly with Base of Pyramid[1] (BoP) enterprises or indirectly through enterprises that help in creating impact by investing in BoP organizations. Adoption of SDGs[2] quantified the expectation paradigm of the global community for social, environmental and economic achievable and projected/targeted achievement of SDGs by 2030 made the governments, businesses, institutions daunted with the task in hand hence, it is imperative for investing community to contribute its share as well. With high social need and underserved population India has become a test bed for impact investing. However, with increasing impact investing, Impact Measurement and Management (IMM) gains significant importance as it allows investors to evaluate impact and channelize fund to most effective solutions. The present study conducted for year 2019 not only attempts to ...

2011

All rights reserved 1 2 3 4 14 13 12 11 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. xi ACK NOWLEDGMENT S This book was made possible by a grant from the Public-Private Infrastructure Advisory Facility (PPIAF). It builds on an earlier publication, Attracting Investors to African Public-Private Partnerships, and the authors would like to acknowledge the contributions of all those who commented on that work. The present book, How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets, goes beyond the earlier publication by expanding in scope and in depth on some of the key aspects to successful and sustainable public-private partnerships (PPPs), such as the various financing mechanisms for PPPs and the diversity of PPP contractual arrangements in countries with different legal traditions. This book broadens the discussion to other emerging PPP markets beyond Africa and discusses the nuances that emerge in the recommended paths when taking into account this diversity. It includes a wide range of case studies from several regions and sectors and illustrates the different activities involved in transforming a desirable project in a government's eyes to an attractive investment opportunity for a private partner, and ultimately into a PPP project that would benefit all parties involved. Many people have contributed valuable comments and feedback to make this book as complete as it is, yet accessible to those interested in understanding and undertaking PPPs. The authors are particularly grateful to colleagues inside and outside the World Bank Group who dedicated many hours to provide detailed and constructive comments on the individual chapters and whose contributions have resulted in a stronger and richer book. They include

2015

Public-private partnerships (PPPs) bring together the expertise of both the public and private sectors, allowing each sector to do what it does best in order to deliver projects and services in the most efficient manner. Within the context of the African Development Bank (AfDB, or the Bank), PPPs refer to a form of financing mechanism where the public and private sectors agree to jointly establish and/or operate a public investment project or activity. PPPs play an increasingly important role in the developing world. Provision of infrastructure now tops the agendas of most donors and multilateral development banks (MDBs), which have come to recognise the importance of these mechanisms in meeting future needs for infrastructure, particularly in this era of growing scarcity of public resources. PPPs are being employed in a range of infrastructure projects because of the benefits of bringing in private sector resources and expertise, and the associated potential benefits from increases in efficiency, and accountability, while linking payment streams to private contractors that deliver services. Appreciating value for money, MDBs are eager to get involved in PPP operations as lenders to private sector providers in the PPP arrangement.

Seen from the outside, Africa is often characterised as a continent of civil conflict, of refugee and displaced populations of economic crisis. Yet amid this gruesome picture, Africa is rising as the fastest growing continent in terms of aggregate economic indicators. One of the main outcomes of the Rio+20 Conference was the agreement by member States to launch a process to de¬velop a set of SDGs, which will build upon the MDGs and con¬verge with the post 2015 agenda. It was decided establish an inclusive and transparent inter-governmental process open to all stakeholders, with a view to developing global sustainable development goals to be agreed by the General Assembly. Africa has no choice but to meet the SDGs, using this opportunity. The paper discusses Public-Private Partnerships (PPP) as an investment partnership between the state and the private sector to share the benefit and the responsibility according to the level of his or her contribution where one party of the venture lacks something, and look for another partner to fulfil what it lacks. It also dwells on Illicit Financial Flows (IFFs) that siphon billion out Africa annually that more the aid the continent receives. PPP is a cooperative venture between the public and private sectors built on the expertise of each partner that best meets clearly defined public needs through the appropriate allocation of resources, risk and rewards, long-term con¬tractual cooperation, defines demanded performances: where the public partner is the one that defines the PPP. PPP are not about the privatisation of public assets. Under the PPP, the public partner retains a substantial role in project or service and retains ownership of the assets. PPP has been implemented for many years, but because of the major shift of thinking in public administration predominantly a ‘paradigm shift’ from the traditional public administration to the NPM since early 1980’s, PPP become a widely accepted instrument of pub¬lic service delivery and have advantages for both the public and private sector. Four projects are reviewed here in the annex. Available data suggest that develop¬ment aid has nearly multiplied by tenfold in less than a dec¬ade from around $3 billion in 2003 to $30 billion in 2012. Ultimately, sustainable development will require investments of all kinds: public and private, domestic and interna¬tional. It requires making the best possible use of each public dollar, beginning with the $135 billion in ODA. Amalgamated Finance is the strategic use of development finance and charity funds to mobilise private capital flows to emerg¬ing and frontier markets. It enhances the impact of aid resources by using those funds to tap into private capital in global markets, offering promising a latent solution to close the SDGs funding disparity. Key words: PPP, States, Private Sector, Amalgamated Capital, IFF

2015

Public-private partnerships (PPPs) are long-term contracts between a private party and a government agency that strive to provide a public asset or service in which the private party bears both some risk and some management responsibility. If implemented well, PPPs can help overcome inadequate infrastructure that constrains economic growth, particularly in developing countries. The use of PPPs has increased in the last two decades; they are now used in more than 134 developing countries, contributing about 15-20 percent of total infrastructure investment. The World Bank Group has expanded its support to PPPs through a wide range of instruments and services. During the last 10 years, its support has increased about threefold, to nearly $3 billion per year. The Independent Evaluation Group (IEG) assesses how effective the World Bank Group has been in helping countries use PPPs. In the evaluation, IEG examines the relevance of Bank Group support, how successful projects were, how the B...

2017

The purpose of this chapter is to analyse Public Private Partnerships (PPPs) in the developing and emerging economies as a multifaceted challenge from viewpoint of the 10 keys ‘for’ and ‘against’ PPPs: feasibility; planning; optimization; modernization and development; financing; project delivery; project operation; supervision; user satisfaction and accounting issues. The conceptual model and the reasons were formulated by the authors some 10 years ago, based on the literature and case-study reviews. Relevance of those reasons was verified in practice. The knowledge and critical perspective on the above-stated reasons are relevant for the implementation of PPP projects in any national economy developed, emerging or developing, but it is quintessential for the implementation of PPPs in the economies that are at the early stage of implementation of PPPs. Although for

2014

Public-private partnerships (PPPs) have seen a rise in the last two decades and are now used in more than 134 developing countries, contributing about 15–20 percent of total infrastructure investment. Nonetheless, most developing countries—and the World Bank Group itself in its latest strategy A Stronger, Connected Solutions World Bank Group—continue to see significant potential and need for expanded use of PPPs to help overcome inadequate infrastructure, which constrains economic growth. Designing, structuring, and implementing PPPs remains a challenging and complex endeavor. Their success depends on the enabling environment they are embedded in. The World Bank Group has supported countries to create an enabling environment for PPPs along with structuring advice and finance.

International Journal of Management and Sustainability

The Sustainable Development Goals (SDGs) are a set of goals designed to be a “blueprint to achieve a better and more sustainable future for all.” Despite being meticulous about achieving the SDGs, India’s overall SDG score is 61.9 out of 100. While multiple models and frameworks have been developed, a new concept that has gained currency is impact investing. Content analysis of academic journal articles was employed to analyze the terminology, definition, and similarities and differences in the use of the term impact investing. Impact investing helps to benefit society and the environment without the need to sacrifice financial returns. It attempts to address the global challenges of access to energy, potable water, basic hygiene, nutrition, health, and education by exploring innovative commercial solutions. The degree of sustainability achieved through impact investing depends upon the efficiency of the multidisciplinary team formed to conduct the due diligence to achieve the socia...