2 012 A N N U AL R E P O RT 73868 Helping to eliminate poverty and achieve sustainable development through public-private partnerships in infrastructure TAB L E OF CON TEN TS 2 Message from the Program Manager 6 Section 1: Work Program 2011–2013 7 Strategic Themes: Looking Ahead 8 Fragile States 14 Work Program in Action: Fiscal 2012 18 Section 2: PPIAF and SNTA Country and Regional Activities 19 PPIAF Portfolio 19 Fiscal 2012 Performance 20 Distribution of PPIAF Activities in Fiscal 2012 22 Sub-National Technical Assistance (SNTA) Program 23 Fiscal 2012 Performance 23 Distribution of SNTA Activities in Fiscal 2012 24 Regional Overviews 24 Sub-Saharan Africa 28 East Asia and the Pacific 30 Eastern Europe and Central Asia 32 Latin America and the Caribbean 34 Middle East and North Africa 36 South Asia 39 Global Knowledge Portfolio 40 Section 3: Results and Program Finances 41 Results 41 Monitoring and Evaluation Methodology 45 Results 47 Program Council 49 TAP Report 50 Program Finances 50 Contributions 52 Disbursements 52 Single Audit Process 53 Annex: Activities Approved in Fiscal 2012 2 Message from the Program Manager June 30, 2012 Dear friends, PPIAF is now 13 years old. We are pleased to present to you the fiscal 2012 Public- Private Infrastructure Advisory Facility (PPIAF) annual report. Although it works upstream, In this report you will find a summary of the initiatives we undertook in fiscal 2012 and the numerous results achieved by the program. You will also find descriptions of the activities many activities supported by approved in fiscal 2012, summarizing the work PPIAF has been doing in Sub-Saharan Africa, East Asia and the Pacific, Eastern the program since 1999 have Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, and South Asia, with examples produced visible results on of activities that have produced visible outcomes and impacts. Reporting on the 2010 Strategy for Resource Allocation the ground. After two years of implementing the 2010 PPIAF and Sub- National Technical Assistance (SNTA) Strategy for Resource Allocation, we are pleased to see the results of this Strategy, with smaller, more focused activities. We continue to sequence activities to ensure the beneficiary government accepts the results of the technical assistance provided before proceeding to the next phase: upon the completion of an activity, if the beneficiary government decides to move further, we analyze requests for follow-up technical assistance until a private sector project materializes. This has proven to be an effective process to ensure ownership of the results from the beneficiaries. We have also been proactively and systematically developing activities for PPIAF and SNTA support, according to donor priorities. This includes: i) attending one-on-one meetings with government officials in many developing countries around the world; ii) engaging daily with our colleagues from the World Bank Group and several of our donor representatives in various countries; iii) expanding the Help Desk for the benefit of the Ghana Public-Private Partnership Unit; iv) developing dedicated PPIAF 2012 ANNUAL REPORT 3 calls for proposals, based on our assessment of the needs information and updates from PPIAF once or twice a month. in various countries and the importance to provide a rapid To accomplish this, we have restructured the PPIAF website response; and v) providing Rapid Response expert consultancy and focused on increased communication with our donors, services to governments who wish to receive fast-track partners, and beneficiary governments. feedback on their plans to develop and implement various In October 2011 PPIAF launched a better organized and more public-private partnership projects, identifying the feasibility substantive website. We spent several months re-designing of their projects, their readiness, and the steps required to the website and preparing new content with more detailed structure those projects. information on PPIAF’s work in a particular infrastructure We continue to emphasize the relevance of our operations sector or theme (e.g., fragile states). Our main objectives are to our beneficiaries and donors through increased to convey more clearly what PPIAF is and what it has been communications and dissemination efforts: doing since its founding in 1999, as well as to disseminate in an organized manner the knowledge that has been Communication: PPIAF is now 13 years old. Although it supported by our donors for many years to make it accessible works upstream, many activities supported by the program to client governments and the wider public. since 1999 have produced visible results on the ground. To highlight the visible, lasting impacts PPIAF has achieved, we In particular, PPIAF’s Knowledge Center is a valuable source of continue to prepare and disseminate our series of Impact up-to-date information on infrastructure and public-private Stories that give examples of results of PPIAF’s interventions partnerships, with materials and resources that explore in a particular country, country write-ups that summarize current trends and encourage discussion, written by experts the results of the technical assistance PPIAF has given, in the field. PPIAF’s Library includes PPIAF publications, PPIAF- and Regional Updates that provide a wider view of the funded reports, books, short notes, case studies, lessons work PPIAF has been supporting in a particular region. We learned, and other resources. continue to write Feature Stories that highlight and comment We continue to disseminate the various global knowledge on current happenings relevant to PPIAF, including selected products developed by PPIAF to public-private partnership events and articles that are published on PPIAF’s website. units in developing countries, universities, academia, and We got very good feedback from many stakeholders who other interested people. Our team has attended several benefitted from the readily available information. conferences, seminars, and other events in Africa and Asia Dissemination: In fiscal 2012, we have been more strategic to further disseminate our knowledge products and share regarding the communication and dissemination of public- our experience on public-private partnerships. We have also private partnership best practices. We have a contact list participated as speakers at conferences sponsored by PPIAF of over 1,000 people—mostly government officials in and at others organized by third parties or other partners. developing countries working on matters related to private participation in infrastructure—who receive valuable 4 PPIAF Washington, DC office: Front row left to right: Bini George, Matt Bull, Adriana de Aguinaga, Joshua Gallo and Nozomi Tokiwa, back row (from left to right) Theodora Rodman, Bailo Diallo, Edouard Perard, Lauren Nicole Wilson, Anita Correa and Amsale Bumbaugh. PPIAF 2012 ANNUAL REPORT 5 Work Program 2011–2013 Strengthening Partnerships To better target PPIAF’s technical assistance, we developed Throughout the year we continued developing partnerships a Work Program in 2010 to be implemented over the with regional development banks, government development 2011–2013 period, structured around three strategic pillars agencies, and other institutions to invite them to join and (universal access, climate change, and urbanization) and increase collaboration with PPIAF. We are working closely with four cross-cutting themes (sub-national technical assistance, the Agence Française de Développement, Millennium Challenge fragile states, regional integration, and capacity building). Corporation, and Asian Development Bank to develop new PPIAF and SNTA activities. We also continue working with The strategic pillars group several key development priorities key players within the World Bank and International Finance identified by PPIAF’s donors, reflect the “special themes” Corporation (IFC) such as the Global Partnership for Output- identified during the International Development Association Based Aid, the Water and Sanitation Program, the Energy (IDA)’s sixteenth round of replenishment, and organize by Sector Management Assistance Program, IFC InfraVentures, and themes the technical assistance that has been provided by IFC’s Conflict-Affected States in Africa initiative to innovate on PPIAF to date and its priorities for future work. In this annual new and more effective ways of providing technical assistance. report you will find a table containing the various activities These relationships will help us be more strategic and focused, approved by PPIAF during fiscal 2012, classified according to as well as ensure that our interventions are sequenced and the strategic pillars and cross-cutting themes. achieve results. Monitoring and Evaluation (M&E) With respect to new donor contributions, in fiscal 2012 In fiscal 2012 we continued the work begun in fiscal 2011 to Austria’s Ministry of Finance joined as a new member of capture the results of PPIAF’s work in our internal database, PPIAF’s Program Council in September 2011, the U.S. Agency based on PPIAF’s new refined system of methodically for International Development (USAID) made contributions measuring results. In particular, we continue to prepare for water and sanitation activities in Sub-Saharan Africa, the country write-ups summarizing PPIAF assistance in each Netherlands joined the climate change non-core trust fund, and country where PPIAF has provided support. This is real AusAID became a contributor to the SNTA program. “detective work” as we do a “deep dive” to research and analyze the results of PPIAF’s activities. We have researched The Next Year: Looking Ahead and written about many outcomes and impacts of PPIAF- As requested by the donors during the Program Council funded work, including transactions facilitated, legislations Meeting in Kampala in June 2012, in fiscal 2013 we will passed, infrastructure reform strategies adopted, and continue to provide support to fragile states, to strengthen institutions created or strengthened. In many cases this has partnerships with existing and new partners, and to increase led to additional private investment in various infrastructure our local presence. sectors, with the corresponding increased access to infrastructure services for people, improved level of services, This much-needed funding will enable us to continue providing increased employment opportunities, and fiscal benefits for technical assistance to developing countries. We thank our governments (in terms of reduced subsidies or increased donors for their support! taxes and fees). From a total of 24 countries researched as Best regards, of June 2011, we have now completed the research for 83 countries. These country write-ups are all available on the Adriana de Aguinaga PPIAF website. Program Manager PPIAF thanks the donors for their support, which contributes to economic growth and poverty reduction in developing countries. SECTION 1: Work Program 2011–2013 PPIAF 2012 ANNUAL REPORT 7 Strategic Themes: Looking Ahead Fragile and conflict-affected states are a strategic priority for PPIAF, given their urgent need to deliver basic infrastructure services to spur economic development and growth. INTRODUCTION Since inception PPIAF has provided upstream technical assistance to a range of countries at different development stages and with different needs to remove barriers to private investment and help mobilize private financial resources. PPIAF continues to provide this type of support, but in order to better target its technical assistance and to raise new funds, PPIAF developed a work program to be implemented over the 2011–2013 period, structured around three strategic pillars and four cross-cutting themes. These strategic pillars logically group several key development priorities identified by PPIAF’s donors, reflect the “special themes” identified during IDA’s sixteenth round of replenishment, and organize by theme the technical assistance PPIAF has provided to date and its priorities for future work. The strategic pillars are outlined below: Universal access: assisting governments in developing countries expand access to basic infrastructure services. Technical assistance will use innovative approaches to scale up access to services for underserved populations and contribute to poverty reduction. Climate change: facilitating private financing and public-private partnership arrangements that contribute to infrastructure-related climate change mitigation and adaptation efforts. PPIAF’s expertise can help structure arrangements for private support in basic infrastructure sectors. Urbanization: helping municipal governments and utilities respond to rapid urbanization by developing their capacity to access private expertise and financing in order to extend and improve urban services. Financing might be accessed directly via banks or bond markets, or indirectly via public-private partnership arrangements along with private sector expertise.. A number of themes cut across these strategic pillars and will continue to be areas of focus for PPIAF attention and support. These themes include the following: Sub-national technical finance: helping sub-national entities improve their creditworthiness to access market-based financing without sovereign guarantees, with the proceeds used to fund improved and increased infrastructure services in all sectors. Fragile states: strengthening assistance to fragile states, where weak institutions and risks of conflict constrain national poverty reduction efforts and service delivery. Public-private partnerships may not be easily feasible in many fragile states, but legal, regulatory, and policy reforms are often possible and can represent important first steps toward improved infrastructure service provision through private participation. Regional integration: enabling developing countries, particularly those in Africa, to pursue regional integration by way of joint development projects of sufficient scale to attract private sector interest. Integration also has strong positive regional impacts in terms of trade facilitation and economic development. Capacity building: providing capacity building for decision makers and technical staff in developing countries. This assistance is critical to help them understand the benefits of increased private sector participation for improved service provision and develop sustainable infrastructure projects. 8 Fragile States Fragile and conflict-affected states suffer from low eco- nomic growth and development, and citizens of these states lack access to basic infrastructure services. More than 1.5 billion people live in countries affected by fra- gility, violence, and conflict. No low-income fragile state has achieved a single Millennium Development Goal, and poverty reduction in countries affected by violence is on average nearly a percentage point lower per year than in countries not affected by violence. Thus fragile and conflict-affected states are a strategic priority for PPIAF, given their urgent need to deliver basic infrastructure services to spur economic development and growth. However, characterized by the negative impacts of conflict, infrastructure service provision in these states is often left underfunded and, in many cases, damaged or destroyed. In addition, fragile and conflict-affected states often have inadequate public revenues and insufficient government capacity to provide these services. Opportunities exist to leverage the private sector in the financing and operation of vital infrastructure assets and mobilizing private sector financing and expertise can break the cycle of low investment, low productivity, and resurgent conflict. Nevertheless, challenges remain in attracting private investors with the risk appetite inherent in working in fragile and conflict-affected states: Higher political and economic risks Weak investment climate/enabling environment Lack of counterpart agents Greater investment needs Lower payment capacities on the part of consumers Experience has shown that establishing an early track record of attracting private investment and demonstrating good contractual faith can have a positive demonstration effect on other potential private investors. In addition, creating a solid enabling environment and investment climate through legal, Section 1 PPIAF 2012 ANNUAL REPORT 9 regulatory, and policy reforms can represent the first steps on the road to improved infrastructure service provision through Figure 1: PPIAF AND SNTA COUNTRY- AND REGION-SPECIFIC FUNDING private participation. TO FRAGILE AND CONFLICT-AFFECTED STATES, FISCAL 2012 In post-conflict states, mobile telephony has successfully attracted rapid private sector interest due to the sector’s short n Fragile cost recovery period. Investments in other sectors such as n Non-Fragile $2,591,129 power generation and ports have also taken place relatively 25% soon following the end of conflict. Choosing first projects with the highest chance of success can create a signaling effect, with the possibility to sequence further activities in $7,914,368 other sectors based on the success of initial projects. 75% Working in fragile and conflict-affected states is a cross- cutting theme of PPIAF’s 2011–2013 Work Program. PPIAF assistance is being provided to help governments develop an appropriate enabling environment for private sector participation, and assist in the selection, design, and The strategic focus placed on increasing PPIAF support has implementation of first-mover public-private partnerships. led to impressive results in fiscal 2012. During fiscal 2012 funding towards country-specific activities in fragile and Ongoing work conflict-affected states across PPIAF and SNTA totaled $2.6 In June 2010 the IFC’s Public-Private Partnership Transaction million, accounting for 25 percent of total funding. This Advisory Services (C3P) department provided $2 million to was an 86 percent increase in funding compared to fiscal PPIAF’s core multi-donor trust fund, with the funds intended 2011, when funding towards fragile and conflict-affected to catalyze private sector participation in IDA-eligible states totaled $1.4 million, or 18 percent of country-specific fragile and conflict-affected states, with a focus on Sub- funding. The majority of the funding towards fragile and Saharan Africa. This funding was seen as a pilot program to conflict-affected states has been provided using IFC C3P demonstrate the effectiveness of PPIAF funding to fragile and funds, but additional activities have also been approved using conflict-affected states. core and non-core funds. Table 1: Regional breakdown of country-specific PPIAF and SNTA activities approved in fragile and conflict-affected states Region Fragile Non-Fragile Percentage Fragile Funding (US$) Funding (US$) by Funding Sub-Saharan Africa 2,104,854 3,448,292 38 Middle East and North Africa 361,275 1,192,515 23 Latin America and the Caribbean 75,000 1,204,555 6 South Asia 50,000 514,400 9 East Asia and the Pacific 0 781,506 0 Eastern Europe and Central Asia 0 773,100 0 Total 2,591,129 7,914,368 25 Section 1 PPIAF 2012 ANNUAL REPORT 11 PPIAF has used these funds to attempt to address the strengthen the mandate’s implementation and chance development issues that plague fragile and conflict-affected of success states by supporting an enabling environment for long- • One existing mandate used PPIAF-IFC funds to provide term private sector investments in infrastructure and by a post-transaction communications plan funding activities in sectors with the highest likelihood of yielding immediate impact, given the importance of early, Support has also been provided for World Bank projects, for demonstrable success in developing an effective public- example: private partnership program. • In Chad the government is launching a bidding In managing the funds provided by IFC C3P, PPIAF and IFC process to select a private operator for the water C3P teams have worked together to screen activities and sector under a three-year service contract, supported provide funding to those activities that have the greatest by PPIAF funds potential for long-term success. Thus far, this collaboration has yielded impressive results: • In Liberia PPIAF support has catalyzed government commitment to launch a public-private partnership • IFC C3P has signed eight mandates directly following program, and projects are currently being identified support from PPIAF-IFC funds for further pre-feasibility analysis. • One existing mandate used PPIAF-IFC funds to The table below lists IFC C3P signed mandates that have benefitted from PPIAF support using IFC C3P funds. Table 2: IFC C3P signed mandates that have benefitted from PPIAF support PPIAF-Funded Activity Related C3P Mandate Results Guinea-Bissau: Public-Private Partnership Training Guinea-Bissau: Support to Mandate signed 8/4/2011 Workshop Electricidade e Águas de Guinea-Bissau Guinea-Bissau: Preparation of the Strategy for Private Sector Participation in the Water and Electricity Sector Lesotho: Public-Private Partnership Policy Lesotho: Health Centers ICT Mandates signed 2/9/2012 Lesotho: Medical Waste Lesotho: Wind Maldives: Solid Waste Management Maldives: Solid Waste Mandate successfully closed Communication Program Rwanda: Kigali Bulk Water Supply Project— Rwanda: Kigali Bulk Water Mandate signed 10/14/2010 Technical Assistance and Capacity Training South Asia: Leveraging Public-Private Partnerships Bhutan: Urban Transport Mandate signed 4/27/2011 for Development—Workshops on Building Awareness and Strengthening Capacity for Public- Private Partnerships Timor-Leste: Implementation of Public-Private Timor-Leste: Dili Airport Mandates signed 05/31/2012 Partnership Program Timor-Leste: Tibar Bay Port West Bank and Gaza: Southern West Bank Solid West Bank and Gaza: West Bank Solid Waste Mandate signed 12/19/2011 Waste Management Project Management 12 Section 1 PPIAF 2012 ANNUAL REPORT 13 Box 1: Implementation of Public-Private Partnership Program in Timor-Leste PPIAF funding: $74,750 complemented the initial screening of 22 infrastructure projects as potential public-private partnerships, undertaken jointly by IFC’s C3P and Investment Climate business lines in cooperation with the Asian Development Bank. PPIAF’s Contribution: PPIAF provided support for preliminary business cases for the four most likely public-private partnership projects, and discussed with the client and other stakeholders. The intent of the business cases was to quickly assess the financial viability of the candidate projects as public-private partnerships, including recommendations on sequencing and required actions to strengthen the enabling environment in order to implement the projects. Results: Following the completion of the business case analyses, the results of the feasibility assessments were presented to the Government of Timor-Leste for consideration Timor-Leste is a low-income post conflict country. Much and a decision on whether to proceed to the transaction of the country’s infrastructure was destroyed during the stage. On May 31, 2012, the Government of Timor-Leste conflict which began post-independence in 1999. Due to signed two mandates with the joint IFC C3P and Investment the scale and urgency of the needs, the Government of Climate teams to structure public-private partnership Timor-Leste was interested in developing key infrastructure transactions for the Tibar Bay Port and Dili Airport, both of through public-private partnerships. In 2011 PPIAF provided which were analysed under the PPIAF activity. These are the support to the Government of Timor-Leste to define and first public-private partnership transactions to be undertaken launch its public-private partnership program, including by Timor-Leste and PPIAF is currently in discussion to provide the development and implementation of initial public- follow-up support for the transaction advisory phase of both private partnership pilot transactions. The PPIAF activity projects. Looking forward Looking forward, PPIAF proposes to scale up the pilot project • Preparation of a pre-feasibility or feasibility study for and increase its support to fragile and conflict-affected states. a specific project Proposed PPIAF technical assistance would include, but not be limited to, support for the following activities: • Payment for legal counsel • Developing of sector strategies and policies related to It is envisaged that PPIAF will provide significant in-depth private participation in infrastructure upstream support to assist governments of fragile and conflict-affected states to place a sharper focus on identifying • Capacity building support to strengthen knowledge infrastructure projects that could be realized under a public- and technical capacity on private sector participation private partnership mode, and unblock any impediments strategies towards implementation by providing enabling environment and capacity building support. • Quick screening of potential projects with private sector investment 14 Work Program in Action: Fiscal 2012 The table below contains the activities approved during fiscal and four cross-cutting themes of PPIAF’s 2011–2013 Work 2012, classified in accordance with the three strategic pillars Program. Table 3: Work Program in action: fiscal 2011 Sectors Power Transport Water • Burundi Pipeline Screening and • Albania Advisory Support for Private • Armenia Supporting an Enhanced Feasibility Assessment of PPPs in the Sector Involvement in Operation of Management Contract for Water and Energy Sector Regional Bus Stations Sanitation Services • Djibouti Energy Sector Assessment • Guinea Mining Ancillary • Cameroon Support to Water Sector • Lighting Africa Expansion Infrastructure • Haiti Transaction Support for • Mozambique Preparation of a Gas • Laos Transport Sector Enabling InfraVentures Investment in DIoHaiti Sector Master Plan Environment Assessment and • Lebanon Improving Water Utility • Niger Evaluation of Rural Energy Pipeline Screening Performance Projects with Private Sector • Latin America and Caribbean • Liberia Developing Cost Recovery Participation (PSP) Infrastructure PPP Road Map Mechanisms in Private Sector • Nigeria Support for PSP in the • South Africa Pre-feasibility Study for Provision of Solid Waste Management Power Sector Johannesburg Cycling Program • Maldives Contract Management Pillar I • Tanzania Support to Biomass Power • Uruguay Financing Options for Road Support for Solid Waste Management Universal Access through Development of Sustainable PPPs PPP Forestry Practices • Vietnam Strengthening • Morocco Contract Management • South Sudan Power Distribution Performance-Based Contracts for Support in the Solid Waste Sector System Diagnostic Road Maintenance • Mozambique Pilot Private Sector Fecal Sludge Management in Maputo • Nigeria Workshop on Water Utility Reform • Panama Preparation of a Performance-Based Efficiency Improvement Contract for IDAAN’s Colón Business Unit • West Bank and Gaza Solid Waste Management Project • Albania Technical Assessments of Bistrica 1, Bistrica 2, Ulza, and Shkopeti Hydropower Plants • Brazil Improving the Sustainable Forestry Concession Model in the Amazon • Djibouti Feasibility Assessment for Pillar II Solar Rural Electrification Climate Change • Kenya Assessment of Geothermal Development Company for Enhanced Access to Finance • Kenya Lake Turkana Wind Due Diligence Project • Mali Capacity Building and Legal Advisory Support to the Scatec and Kenie Solar Projects • Ghana Institutional Options for Pillar III Improving Urban Water Supply Urbanization Section 1 PPIAF 2012 ANNUAL REPORT 15 Sectors Irrigation Telecom Multi-sector • Peru PPP Options for Irrigation • Albania ICT Universal Access and • Bhutan Pre-feasibility Assessment of Infrastructure Service Policy Framework PPP Projects • Philippines Options to Expand PSP • Bhutan Telecom Sector Policy • India Assistance in the Finalization in the Irrigation Sector Roadmap of a PPP Policy • Cameroon Digital Switch Over • Malawi Project Pipeline Screening Guide to Bring Converging Services and Initial Assessment of Potential to All PPPs • Comoros Supporting the • Mali Supporting an Enabling Liberalization of the Telecom Sector Environment for PSP in the Electricity • Comoros Telecom and Options and Water Sectors Evaluation and Strategic Roadmap • Nepal Screening and Initial Feasibility • Djibouti Options for Telecoms Sector Assessment of Potential PPP Projects Pillar I • Ethiopia Expanding Rural ICT Access • Sri Lanka Pre-feasibility Assessment Universal • Lesotho Legal Advisory Support to of PPPs Access ICT and Facilities Management PPP • Tajikistan Drafting a New • Moldova Feasibility Study for Cloud- Investment Law Based Shared Infrastructure PPP • South Sudan Regulatory and Strategic Support for the Telecoms Sector • Thailand Leveraging Broadband Access for Accelerated Rural Development Phase 2 • Vietnam Feasibility Study and PPP Options for a Nationwide e-ID System for the Delivery of Public Services • Colombia Private Financing for Low- Income Housing Projects • Sri Lanka PPP for the Environmental and Economic Valorization of Beira Lake Pillar III • The Governance of Basic Local Urbanization Public Services – 3rd Global Report on Decentralization and Local Democracy • Sri Lanka Identifying PPP Opportunities for Local Governments Section 1 PPIAF 2012 ANNUAL REPORT 17 Table 3: Work Program in action: fiscal 2012 (continued) Cross-Cutting Themes • Africa Regional Capacity Building Workshop on Revenue Management Sub- National • Belize Improve Municipal Creditworthiness for Municipalities Technical • Botswana Support to Innovation Hub Development Assistance • Burkina Faso Strengthening Fiscal Revenues for the Municipality of Ouagadougou • Colombia Feasibility Study for Tradable Air Rights Instruments for Bus Rapid Transit Corridor • Ghana Increasing Access to Market-Based Financing for Municipalities in the Greater Accra Area • Indonesia Jakarta Credit Rating • Kenya Assessment of Geothermal Development Company for Enhanced Access to Finance • Kenya Enhancing Municipal Revenue in Nairobi • Lebanon Facilitating Sub-National Government Access to Commercial Credit and Capital Markets • Mauritania Public Expenditure and Financial Accountability Study for the Communauté Urbaine de Nouakchott • Mexico Strengthening Lending Market for Small Municipalities • Philippines Assisting Tanauan City in Enhancing the City’s Creditworthiness • Sierra Leone Financial Management Assessments for the Districts of Tonkolili, Koinadugu, and Bombali • West Bank and Gaza Improving Municipal Revenue Generation Policies and Framework • Burundi Pipeline Screening and Feasibility Assessment of PPPs in the Energy Sector Fragile • Comoros Options Evaluation and Strategic Roadmap for the Telecoms Sector and Supporting the Liberalization of States* the Sector • Côte d’Ivoire Improving Users’ Awareness on Cost Recovery for Sustainable Infrastructure Development • Côte d’Ivoire PPP Pipeline and Enabling Environment Support • Guinea-Bissau PPP Training Workshop • Guinea Mining Ancillary Infrastructure • Guinea PPP Training Workshop • Haiti Transaction Support for InfraVentures Investment in DIoHaiti • Liberia Developing Cost Recovery Mechanisms in Private Sector Provision of Solid Waste Management • Nepal Screening and Initial Feasibility Assessment of Potential PPP Projects • Sierra Leone Financial Management Assessments for the Districts of Tonkolili, Koinadugu, and Bombali • South Sudan Power Distribution System Diagnostic • South Sudan Regulatory and Strategic Support for the Telecoms Sector • West Bank and Gaza Solid Waste Management Project • Zimbabwe Assessment of Enabling Environment and PPP Pipeline • Africa Legal Services in Support of the West African Power Pool’s Inter-connector Project for Côte d’Ivoire, Liberia, Sierra Regional Leone, and Guinea Integration • Middle East and North Africa Developing Alternative Broadband Networks • Africa Energy Ministers’ Conference Capacity • Africa Regional Conference on PPPs in Water and Sanitation Building • Gabon PPP Program • The Governance of Basic Local Public Services – 3rd Global Report on Decentralization and Local Democracy • Leaders in Urban Transport Program • Middle East and North Africa Training Course on PPPs in the Water Sector • Private Participation in Infrastructure Database Funding for Fiscal Years 2012 and 2013 • Rwanda Capacity Training for Kigali Bulk Water Supply Project • Showcasing PPPs in Emerging Markets • South Asia Regional PPP Conference • Sri Lanka Identifying PPP Opportunities for Local Governments *Several of the activities listed in the cross-cutting themes also appear among the three strategic pillars SECTION 2: PPIAF and SNTA Country and Regional Activities PPIAF 2012 ANNUAL REPORT 19 PPIAF Portfolio PPIAF approved $10.9 million in funding for 74 activities in fiscal 2012. This represents a 40 percent increase in funding as compared to fiscal 2011, and a 21 percent rise in the number of activities approved. Throughout fiscal 2012, PPIAF has continued to support developing country governments in their efforts to attract and sustain private sector investment and participation in the delivery of key infrastructure. Over the course of the year, the infrastructure needs of developing countries have continued to grow in line with the need to increase and sustain nascent global economic growth. There is unprecedented pressure on existing infrastructure provision in many developing countries, which is increasing due to global trends such as urbanization. Meanwhile, government budgets remain under pressure as the residual impacts of the financial crisis and global economic downturn have increasingly resulted in unsustainable government deficits. Consequently, governments must use the limited public resources that are available to help leverage private capital to help share in meeting this growing infrastructure need. To this end, PPIAF has provided invaluable technical assistance to governments throughout another challenging year. The predominate focus of this PPIAF support has continued to be in helping to generate a suitable enabling environment that will allow governments to attract private sector investment and participation in the delivery of infrastructure. This has mostly focused on strengthening the legal, institutional, and regulatory frameworks of countries so that potential infrastructure projects can be realized with sufficient private sector interest and appetite. Throughout fiscal 2012 PPIAF has also provided early-stage project preparation and transaction assistance to pioneering infrastructure projects in various developing countries. Over the past year, PPIAF has responded to increased demand from the Sub-Saharan Africa region as needs continue to increase and become ever more acute. In addition, PPIAF has continued to show its commitment to providing its technical assistance to the fragile and conflict-affected states. In these countries, the fundamental conditions for private sector investment are typically missing, and yet it is here where need is at its highest and where PPIAF support is most required. PPIAF also remains committed to the very different, yet no less important, needs of our middle-income country constituents who are looking to move from a project-by-project approach to private sector infrastructure investment to a more systematic and programmatic approach to investment. Fiscal 2012 Performance PPIAF approved $10.9 million in funding for 74 activities in fiscal 2012. This represents a 40 percent increase in funding as compared to fiscal 2011, and a 21 percent rise in the number of activities approved. This sharp increase in PPIAF support carried on the momentum from fiscal 2011, when fourth quarter funding represented over 56 percent of total fiscal 2011 funding. Much of the fiscal 2012 increase can be attributed to a significant effort from the PPIAF team to enhance support to activities in Sub-Saharan Africa, where $5.3 million was committed in fiscal 2012, a 195 percent increase on fiscal 2011’s Sub-Saharan Africa portfolio. The fiscal 2012 results are illustrative of PPIAF’s 2011–2013 Work Program, which focuses on increased engagement with clients and collaboration with colleagues across the World Bank Group to support sequenced, results-focused activities that support PPIAF’s objective of increasing access to infrastructure services and poverty alleviation through private sector participation. 20 Sub-Saharan Africa, where infrastructure needs are greatest among developing country regions, was again the largest recipient of PPIAF support in fiscal 2012. The 74 activities approved in fiscal 2012 were funded with PPIAF monitors the distribution of funding commitments donor contributions from both the Multi-Donor Trust Fund by country income status in order to ensure a continued II and Non-Core Funds. The breakdown of the Trust Funds emphasis on funding pro-poor activities in low-income is included within the Program Finances report found in countries (Figure 3). In fiscal 2012 PPIAF directed 62 percent Section 3 of this report, and a full list of approved activities is of country-specific funding to low-income countries. This presented in Annex 1. focus on low-income countries was attained despite the graduation of eight countries from low-income to middle- Distribution of PPIAF Activities in Fiscal 2012 income status. Combined funding to these eight countries Sub-Saharan Africa, where infrastructure needs are greatest represented over ten percent of approved country-specific among developing country regions, was again the largest funding. recipient of PPIAF support in fiscal 2012. Support to Sub- Energy activities accounted for 26 percent of PPIAF Saharan Africa accounted for 53 percent of approved commitments in fiscal 2012 (Figure 4), marginally less than country- and region-specific activities in fiscal 2012. This is in previous years, although the $2.8 million committed to significantly higher than the figure reported in fiscal 2011, the 15 approved activities represented a 34 percent increase in which Sub-Saharan Africa accounted for approximately in funding compared with fiscal 2011. As part of PPIAF’s one-third of PPIAF funding. In Sub-Saharan Africa 84 percent universal access pillar, energy is a key strategic sector because of funding for country-specific activities was focused on of electricity’s impact on economic growth. Huge gaps in low-income countries, defined as those in columns one and access to electricity services, especially in Sub-Saharan Africa two on the Organization for Economic Cooperation and where frequent power cuts occur, severely impede economic Development’s Development Assistance Committee list of activity and private investment. Energy is also critical for official development assistance recipients. PPIAF’s focus on climate change adaptation and mitigation. Demand for PPIAF services grew strongly in Middle East and For example, in Djibouti PPIAF is funding an activity to North Africa despite the political upheaval caused by the analyze the technical, economic, and financial feasibility Arab Spring, where $1.4 million of funding, a 49 percent rise of solar rural electrification options to determine the most on fiscal 2011 funding, accounted for 15 percent of PPIAF’s viable and sustainable roll-out option available to electrify 25 fiscal 2012 country- and regional-specific portfolio. Support villages. PPIAF also provided support to a gas sector master was focused particularly in IDA countries such as Djibouti and plan in Mozambique, and is assisting the development of two West Bank and Gaza. In Latin America and the Caribbean, bio-mass power plants in Tanzania. PPIAF support was also highly solicited, and $1.2 million of Multi-sector activities typically provide broad-based support funding was committed, a 264 percent rise on funding in to the public-private partnership enabling environment fiscal 2011. Figure 2: PPIAF COUNTRY- AND REGION-SPECIFIC FUNDING BY REGION, Figure 3: PPIAF COUNTRY-SPECIFIC FUNDING BY COUNTRY INCOME FISCAL 2012 STATUS, FISCAL 2012 $589,405 Region Income Status $631,506 $1,608,171 6% n DAC 1 n Sub-Saharan Africa $773,100 6% n DAC 2 18% n Middle East and 8% n DAC 3 North Africa n Latin America and n DAC 4 12% 53% 52% the Caribbean 21% n Eastern Europe $1,199,775 $1,941,004 and Central Asia n East Asia and the 15% 9% Pacific n South Asia $1,442,000 $5,294,351 $866,500 $4,704,147 Section 2 PPIAF 2012 ANNUAL REPORT 21 across infrastructure sectors. They remain a particularly support to a bulk water project in Rwanda, a potable strong priority for governments focused on capacity building water project in Haiti, management contracts for water initiatives and institutional reforms such as the creation distribution in Armenia and Cameroon, a sanitation project of public-private partnership units, policy and strategy in Mozambique, solid waste projects in Liberia, the Maldives, frameworks, or infrastructure development funds. In fiscal and Morocco, and irrigation activities in Peru and the 2012 multi-sector activities totaled $2.8 million, representing Philippines. 25 percent of the PPIAF portfolio, a slight drop from fiscal In fiscal 2012 PPIAF approved seven transport activities 2011. Several multi-sector activities were also approved for total funding of over $1.1 million, a slight increase further downstream, such as in Bhutan, Côte d’Ivoire, on the fiscal 2011 figures. Activities across the transport Malawi, Nepal, and Zimbabwe, where PPIAF is supporting the sub-sectors were approved, including a strategy to support development and appraisal of a public-private partnership mining ancillary infrastructure in Guinea, a pre-feasibility project pipeline. study for a cycling project in South Africa, and assistance to Telecommunications has traditionally received the smallest strengthen the use of performance-based contracts for road share of PPIAF funding as much of the market’s needs are maintenance in Vietnam. already met by the private sector on a purely commercial PPIAF also tracks the specific types of activities approved, basis. In fiscal 2012 PPIAF provided support for activities based on the Program Management Unit’s judgment as to targeting specific gaps in the market, especially involving the primary focus of each activity. service to rural populations. In Ethiopia PPIAF is assisting the government to design and execute a rural information Infrastructure development strategies are PPIAF’s most widely and communication technology access program under used activity types as governments seek advice, expertise, a public-private partnership model through a study to and funding to develop the requisite enabling environment determine the feasibility of scaling-up the establishment of to facilitate public-private partnerships. In fiscal 2012 telecenters within existing postal premises. In Lesotho PPIAF infrastructure development strategies accounted for 46 is supporting legal consultants in support of an IFC advisory percent of PPIAF funding, for close to $5 million of funding. mandate to implement an information and communication technology and facilities management public-private Pioneering transactions, support to which has grown as partnership transaction to connect over 165 rural health client governments increasingly request support further centers throughout Lesotho, upgraded with funds from the downstream, increased in fiscal 2012, accounting for 27 Millennium Challenge Corporation. percent of the portfolio. Support to policy, regulatory, and institutional reforms totaled $1.2 million, 11 percent of the Funding for activities in the water and sanitation sector portfolio. increased from $1.1 million in fiscal 2011 to $1.8 million in fiscal 2012, accounting for 17 percent of the fiscal 2012 Capacity building, consensus building, and emerging best portfolio. Although the water and sanitation sector has practices accounted for the smallest share of PPIAF grant traditionally been the hardest sector in which to encourage assistance in fiscal 2012, representing a combined 16 percent private sector participation, PPIAF is providing transaction of the portfolio. Figure 4: PPIAF FUNDING BY SECTOR, Figure 5: PPIAF FUNDING BY ACTIVITY TYPE, FISCAL 2012 FISCAL 2011 $1,054,820 2% $240,000 Sector Activity Type $782,950 $2,802,415 n Energy 10% n Instrastructure $812,781 7% $1,815,381 development strategies n Multi-sector 7% n Telecommunications n Pioneering 17% 26% $1,166,891 n Water and sanitation transactions 11% n Transport n Policy, regulatory & 46% institutional reforms 22% 25% n Capacity building 27% n Emerging best practice $2,465,932 n Consensus building $2,764,589 $4,956,805 $2,943,710 22 Sub-National Technical Assistance Program Results from PPIAF’s Sub-National Technical Assistance (SNTA) program were thoroughly assessed between fiscal 2011 and 2012. At the request of the donors, an independent evaluation was carried out in January 2012 and documented SNTA’s strong performance in terms of efficacy, relevance, and cost-effectiveness. In addition to an impressive set of outputs and outcomes, the evaluation reported over $900 million of financing raised and around 6 million people receiving improved infrastructure services as a result of SNTA assistance. SNTA provides technical assistance grants to help sub-national entities improve their creditworthiness in order to access market-based financing without sovereign guarantees. In doing so, the program increases the funds available for improved and increased infrastructure services such as water and electricity provision, treatment of wastewater, and efficient transport systems. Over the course of fiscal 2012, a clear focus has been placed on low-income countries, where significant constraints in supply for sub-national financing persist. After five years of operation, the program is now committed to transferring more of its successes and best-practices to lower-income regions. To meet this challenge, SNTA has widened the nature of its support so that low-income countries’ sub- national entities can receive technical assistance that is reflective of where they are on the journey towards accessing Figure 6: SNTA PROGRAM FUNDING BY COUNTRY INCOME STATUS, FISCAL 2012 Income Status $297,995 n DAC 1 n DAC 2 21% n DAC 3 $404,780 29% n DAC 4 9% $121,600 41% $561,300 Section 2 PPIAF 2012 ANNUAL REPORT 23 sub-sovereign finance. This new approach was developed in The SNTA portfolio shifted significantly in terms of the fiscal 2012 and has already been applied in countries such nature of activity supported. In fiscal 2012 activities focused as Sierra Leone. Activities under the new strategy focus on on specific performance improvements accounted for 52 increased upstream assistance (e.g., revenue management percent of total funding, totaling $0.76 million, while improvements) and are more flexible regarding concessional activities categorized as supporting financings represented finance as a first step to commercial finance. Such an 26 percent of the portfolio. In comparison, in fiscal 2011 approach, limited to contexts where capital markets are the SNTA portfolio was more heavily oriented towards severely under-developed and sub-national entities are far downstream activities, with 53 percent of activities helping below investment grade, is intended to support the creation to prepare the financing of transactions. This shift in support and development of more mature capital markets. towards specific performance improvements that enhance creditworthiness reflects SNTA’s new orientation towards Fiscal 2012 Performance lower-income countries. Fifteen SNTA activities were approved in fiscal 2012, for a total of $1.5 million in funding—a slight decrease from the $1.9 million committed in fiscal 2011. During the year, the Figure 7: SNTA PROGRAM FUNDING BY REGION, team increased its efforts to re-orient the SNTA program FISCAL 2012 towards supporting activities in low-income countries, where the approach has focused on supporting smaller step-by-step $150,000 $744,595 activities that help sub-national entities improve their financial management and creditworthiness over time, rather than Region $236,300 10% targeting commercial bank financings or bond issuances, n Sub-Saharan Africa as experience indicates that sub-national entities in low- 16% n Latin America and income countries for various reasons are not willing or able the Caribbean 51% to borrow on commercial terms, but rather are in need of n Middle East and creditworthiness improvements. More information on these North Africa 23% activities can be found in the regional overview sections that n East Asia and the follow. Pacific $329,780 Distribution of SNTA Activities in Fiscal 2012 The strategic reorientation of the SNTA portfolio has led to increased support to low-income countries. In fiscal 2012 31 percent of SNTA funding was approved in low-income Figure 8: SNTA PROGRAM FUNDING BY ACTIVITY TYPE, countries. This was an increase on fiscal 2011, when 27 FISCAL 2012 percent of SNTA funding was directed towards low-income countries. Activities in low-income countries were typically $75,000 smaller in funding amount, reflective of the trend to try to $254,780 5% sequence and approve smaller activities in these countries. Activity Type In terms of number of activities, 36 percent of activities were approved in low-income countries. n Specific performance 17% improvement Sub-Saharan Africa attracted the highest regional share in n Financing 52% fiscal 2012, attracting 51 percent of total funding as the n Other 26% portfolio shifted focus to low-income countries, compared n Credit ratings with 22 percent in fiscal 2011. Demand for SNTA services $371,750 remained strong in Latin America and the Caribbean, and two $759,145 activities were approved in the Middle East and North Africa, the first time that SNTA funding was provided to this region. 24 Sub-Saharan Africa Requests for PPIAF assistance in the region continue to be high, as governments seek support to help develop the appropriate enabling environment for private sector participation. Overview be high, as governments seek support to help develop the appropriate enabling environment for private sector Sub-Saharan Africa’s economies have improved markedly over participation, as well as the knowledge and expertise to the past decade. The continent’s real GDP grew by roughly 5 develop and implement bankable public-private partnership percent per year from 2000 to 2008, reaching $1.56 trillion projects. In fiscal 2012 the PPIAF Africa portfolio grew to $5.3 in 2008 prior to the financial crisis. Although the financial million, a 195 percent increase on fiscal 2011, representing crisis slowed the economic boom, Sub-Saharan Africa has 49 percent of PPIAF’s total portfolio. showed significant resilience, and economic growth climbed back to 5 percent in 2011. This growth story has been built The infrastructure gap is most acute in the power sector, on sound macro-economic principles that have reduced where chronic power shortages in many of the region’s inflation from the highs of the 1990s, brought about tax countries significantly impact economic activity and growth. reforms and the privatization of state assets, and energized Although the sector is already the second largest recipient of the market through private-sector friendly policies and sector private sector investment across the continent, it is estimated strategies. that Sub-Saharan Africa spends only around one quarter of the amount needed to fulfill demand. The private sector will Nevertheless, many Sub-Saharan Africa countries continue play a significant role in building Africa’s power generation to face serious infrastructure deficits that negatively impact potential. economic growth across the continent. As a result, many of the region’s governments are recognizing that mobilizing In fiscal 2012 PPIAF provided support to several projects the required investment to support the development of in the region with this goal in mind. In Nigeria PPIAF infrastructure will be a major challenge. To address this, approved an activity that will support the government in governments are looking to engage the private sector reaching its Vision 2020 goal of increasing the country’s through public-private partnership arrangements to close generation capacity from 3,000 MW to 40,000 MW by 2020 the gaps in investment capital, technology, and know-how by facilitating private sector investment in Independent needed to improve the efficiency and delivery of public Power Plants. PPIAF is supporting the due diligence of the infrastructure services. PPIAF continues to provide significant proposed Independent Power Producers to ensure that assistance to the region to support these efforts. the projects meet internationally established benchmarks for proposed technology and cost efficiency. It is hoped Areas of PPIAF assistance that the Independent Power Plants that will be examined Requests for PPIAF assistance in the region continue to as part of the activity will provide additional generation capacity of more than 2,500 MW. Similarly, in Rwanda PPIAF Section 2 PPIAF 2012 ANNUAL REPORT 25 Box 2: Evaluation of the Public Finance Management PPIAF team members in East and Southern Africa Office (Nairobi, System of the Municipality of Cotonou, Benin Kenya) Serah Njoroge and Njeri Gicheru. SNTA funding: $146,005 Background: Local authorities in Sub-Saharan Africa face growing populations and increased demand for has provided support to the government to help it better infrastructure services with scarce public resources. understand where the private sector can contribute to Municipalities such as Cotonou are often unable to access increased electricity access. PPIAF funded an independent loans without sovereign guarantees due to a lack of diagnostic report of Rwanda’s electricity sector that reviews creditworthiness. and lists the priority power generation projects. PPIAF PPIAF’s contribution: PPIAF supported an analysis of follow-up support will focus on the potential projects in the Cotonou’s system of public finance management, using hydropower sector with high development potential. the Public Expenditure and Financial Accountability (PEFA) methodology developed for local municipalities. The Several countries in Africa are rich in natural resources and analysis measured the city’s public finance management as these countries attempt to embark on a sustainable performance and developed a baseline for measuring the development path, a key question arises as to how to evolution of this performance. A validation workshop in integrate the infrastructure assets (e.g., roads and power) Cotonou was organized on February 13, 2012. created to serve mining companies into the policies and Results: The study will help Contonou access resources plans that aim to improve the provision of infrastructure on financial markets and other sources without sovereign nation-wide. In recognizing the increasing importance of guaranties. One of the city’s supporter’s, the Agence this question for African countries, PPIAF is supporting Française de Développement, is considering granting the city a loan (€6 to €8 million) to finance an investment program, the Government of Guinea in its efforts to integrate its including the construction of facilities and infrastructure to mining ancillary infrastructure into the relevant national support urban mobility. development plans. Across infrastructure sectors, private investors in Sub- Saharan Africa are looking to implement public-private partnership projects that provide suitable returns for the risks is providing support to screen and examine infrastructure undertaken. These investors have sometimes complained of projects for their suitability to be structured as public- the lack of bankable deals in the region, which has made it private partnerships. In doing so, PPIAF is helping these difficult to invest funds appropriately. In fiscal 2012 PPIAF governments prioritize first-mover projects and signal to has approved multiple projects that seek to respond to this potential investors their commitment to developing a multi- challenge by promoting the identification and prioritization project public-private partnership program. It is hoped that of potential public-private partnership projects. In Burundi, PPIAF can provide second-phase support to the projects Côte d’Ivoire, Gabon, Niger, Uganda, and Zimbabwe, PPIAF identified for more in-depth pre-feasibility studies and 26 project appraisal. In addition, many of these projects also include a component that assesses the enabling environment for public-private partnerships in general, and for the identified projects in particular. In doing so, the activities are designed to quickly flag legislative and regulatory impediments that need to be addressed before a project can be launched. Strengthening assistance to fragile states, where weak institutions and risks of conflict constrain national poverty reduction efforts and service delivery, continues to be a priority for PPIAF. In fiscal 2012 PPIAF supported initiatives in various fragile states, including first time support to Burundi. In South Sudan PPIAF is supporting the government in setting up transitional governance arrangements for the telecommunications sector, including the development and implementation of the legal and regulatory framework needed to govern the sector. This will also include a feasibility study for the implementation of an open-access long-haul fiber-optic backbone network connecting South Sudan to the neighboring countries and the international communications infrastructure. In fiscal 2012 the SNTA program approved activities in Ghana, Burkina Faso, and Mauritania to improve the financial performance of municipalities in those countries. SNTA also supported an Africa-wide capacity building workshop on revenue management, which was co-financed by the Agence Française de Développement’s Center for Financial, Economic, and Banking Studies. In addition, SNTA approved an activity in Kenya that supports an assessment of the Geothermal Development Company to enhance its access to finance. Looking forward Looking forward, the region still faces a large unmet demand for infrastructure services. The challenge is particularly acute in the provision of power, water, and transport services. PPIAF will continue to support the strengthening of policymakers’ capacity to devise clear sector development strategies and engage with the private sector to implement these strategies successfully. PPIAF will also provide support for training and assist with the development and strengthening of public-private partnership units. In addition, PPIAF will continue to support follow-up work from the ongoing screening of project pipelines. Section 2 PPIAF 2012 ANNUAL REPORT 27 28 East Asia and the Pacific The growth of economies in East Asia and the Pacific remains strong but constrained mostly due to weakened external demand, Eurozone uncertainties, and the impact of natural disasters on the production supply chain. Overview to address the enabling environment for public-private partnerships and build its capacity to implement its public- The growth of economies in East Asia and the Pacific remains private partnership program. PPIAF is currently providing strong but constrained mostly due to weakened external assistance to identify policy, regulatory, and institutional demand, Eurozone uncertainties, and the impact of natural constraints in the sector. In addition, PPIAF has helped the disasters (such as the tsunami in Japan and flooding in department develop a pipeline of bankable projects. several countries) on the production supply chain. The slow global growth, however, presents an opportunity to enhance In Vietnam, PPIAF is providing support to determine medium- to long-term growth by increasing both the options for the design and execution of a public-private investment in infrastructure (particularly in those sectors that partnership e-ID system, which will help increase efficiency support production) and the quality and efficiency of these and transparency of public service delivery to citizens. The investments. The private sector can play a role in financing private sector can play a critical role in deploying this e-ID and improving the delivery of productive infrastructure. PPIAF infrastructure, potentially ensuring the financial viability and assistance in the region continues to be centered on building sustainability of the project. a robust pipeline of public-private partnership projects and improving enabling environments for private sector financing. In Vietnam, where the public-private partnership model has gained significant political support, the Ministry of Areas of PPIAF assistance Transport—through the Directorate of Roads—is taking the lead in setting a strategic vision for the national road Recent PPIAF assistance in the region focused on developing system, which will include the use of performance-based a pipeline of public-private partnerships particularly in the contracts in road maintenance. PPIAF is helping to undertake roads, irrigation, and telecommunications sectors. PPIAF a review of the current approach to performance-based will help the Government of Lao PDR develop the country’s road maintenance contracting in Vietnam and providing potential public-private partnership pipeline in the transport recommendations to improve its implementation. sector, which will serve as an input to the Lao National Strategy for the sector. PPIAF has recently approved two SNTA activities that will help local governments access market-based financing in order to The Philippines’ agricultural sector lacks experience in support priority projects. The financed projects will enable implementing public-private partnerships. Thus, the the local governments to cope with the challenges of rapid country’s Department of Agriculture requested PPIAF support urbanization and climate change. The first activity is providing Section 2 PPIAF 2012 ANNUAL REPORT 29 Box 3: Support for Financial and Credit Rating Assessment for Sub-National Governments in Indonesia PPIAF funding: $330,000 Background: About a decade ago, Indonesia implemented a sweeping decentralization reform, which made empowering local governments critical. To help increase a credit rating and financial management assessment of the the level and quality of local spending for public services Province of Jakarta. It also supports the strengthening of and infrastructure, Indonesia embarked on developing a framework for sub-national borrowing, in particular on its newly established Debt Management Unit in assessing issuing municipal bonds. In this context, the Ministry of and monitoring debt. The Province of Jakarta plans to issue Finance sought guidance from the World Bank on setting a bond, potentially the first municipal bond issuance in up a system for financial assessment and credit ratings, and Indonesia. The other SNTA activity is helping the City of assisting sub-national governments in attaining credit ratings Tanauan in the Philippines improve its capacity for fiscal and and issuing of bonds. financial management as it considers a local currency loan PPIAF’s contribution: As part of the overall work to from the IFC to finance its capital expenditure program for support the Ministry of Finance in developing a framework essential infrastructure. The planned transaction differs from for sub-national borrowing, PPIAF’s SNTA program supported earlier borrowing by the city, as it will not involve traditional financial management assessments and credit ratings for inter-governmental transfers (block grants from the national four cities: Surabaya, Makassar, Bandung, and Balikpapan. government to local governments) as security. Outcomes: In 2011 the financial management assessments and credit ratings were completed for the four cities. The Looking forward assessments for Surabaya and Bandung were done by Standard & Poor’s, while those for Makassar and Balikpapan PPIAF assistance in East Asia and the Pacific will continue in were done by PEFINDO, a local rating agency. A workshop the region’s larger economies, though focusing on the least was conducted on November 21, 2011, in Jakarta to present developed economies remains a strategic priority. To date, the results of the assessments and credit rating reports, potential activities in the energy sector in Papua New Guinea discuss the legal background of sub-national borrowing, and telecommunications sector in Myanmar are being share international experiences with sub-national borrowing, explored. Developing a pipeline for PPIAF’s SNTA window and share the experience of the city DKI Jakarta in preparing for the issuance of Indonesia’s first municipal bond. The will also be a priority starting with follow-up support to local results of the financial management assessments and credit governments that benefitted from initial activities under the ratings for the participating cities were very encouraging, SNTA assistance (see box 3). and the cities also found the inputs from these reports to be beneficial to improve their fiscal management practices. Follow-up support to Makassar and Surabaya to help them move towards accessing market-based financing is currently being explored. 30 Eastern Europe and Central Asia PPIAF support to Eastern Europe and Central Asia has shifted its focus from the Balkan states to a broader pool of countries, including Tajikistan. Overview capacity to successfully close selected public-private partnership schemes. The financial crisis has had an adverse impact on private sector funding flows in Eastern Europe and Central Asia: In recent months, PPIAF has approved several activities in investment levels have since decreased significantly lower Albania and Armenia. One activity in Albania is providing than in previous years, and have decreased at a much higher technical, environmental, and social impact assessments for rate than in other developing regions. However, in 2011 the three hydropower transactions in the context of shaping region saw a 34% increase in investment in infrastructure the Government of Albania’s energy sector privatization projects with private participation compared to 2010 levels. strategy; another activity in Albania is aiming to improve the universal access and service policy framework in the There have been sectoral and regional pockets of appetite for telecommunications sector. In Armenia PPIAF is supporting public-private partnerships in Eastern Europe and Central Asia private sector involvement in the operation of regional as the global financial crisis lessens in intensity, including in bus stations through the development of performance renewable energy. Largely thanks to effective policy support, standards for bus station operations and an assessment of 2011 saw significant growth in public-private partnerships the operator’s financial condition and revenue generation in renewable energy projects: Bulgaria and Romania public- capabilities In addition, PPIAF is assisting the Armenia Water private partnership deals closed in this sector with values of and Sewerage Company with the design of an enhanced $370 million and $1.3 billion, respectively. management contract for 2011–2013, which will ensure the Areas of PPIAF assistance contract’s compliance with the overall long term economic and financial goals of the sector. PPIAF support to Eastern Europe and Central Asia has shifted its focus from the Balkan states to a broader pool of Looking forward countries, including Tajikistan. With respect to the scope of PPIAF intends to continue to engage with countries in the PPIAF-funded activities, the focus has shifted from regional region, and an increased effort to strengthen pro-poor initiatives to single-country activities, often supporting activities will remain a priority as the region continues to specific public-private partnership transactions. While PPIAF deal with the aftermath of the financial crisis. Pre-transaction continues to support the development of a wholesale support to facilitate market access across countries in Eastern electricity market in Southeastern Europe in order to achieve Europe and Central Asia and increase regional integration will greater economies of scale, the large majority of new be also encouraged. activities provide interventions strengthening client countries’ Section 2 PPIAF 2012 ANNUAL REPORT 31 Box 4: Technical Assistance for Albania’s Transport Sector PPIAF funding: $245,000 Background: In 2005 Albania’s road infrastructure was inadequate, as about 63 percent of the national road network was in poor condition, and the sector was in need of major investment. However, given the huge investment needs, the government realized that it could not achieve the targets laid out in its National Transport Plan using only government and/or donor funds. The government was therefore interested in exploring private participation options to support its road infrastructure development goals. In 2005 the government requested PPIAF support to provide a strategy for private participation in the road sector, by identifying obstacles to public- private partnerships and recommendations to increase private sector interest. PPIAF’s contribution: The PPIAF-funded framework report was compiled within the context of huge investment needs in the roads sector in Albania. In assessing available public-private partnership structures, the report assessed build-operate-transfer, rehabilitate-operate- transfer, and maintain-operate-transfer as the best available options to maximize private participation for high priority investments in the sector. The report noted that with low traffic volumes, weak local financial markets, and inexperience with tolling, the government’s objective of large-scale private sector investment in roads would be a longer-term objective. A one-day training session on public-private partnerships in the roads sector was held, and the report’s recommendations were presented at a two-day workshop in May 2007. Consensus was achieved on moving forward with the design of performance-based road maintenance contracts for Albanian roads. Outcomes: Following the recommendations of the PPIAF activity, a World Bank project was launched to support the piloting of four performance-based maintenance contracts in the Tirana and Kukës regions. The three-year contracts were subsequently awarded in October 2009. The total cost of these contracts was $10 million, with the first two years paid by the World Bank, and the third year financed by the Government of Albania. Since the beginning of the contracts, the contractors have improved their overall performance and built their capacity in the performance-based maintenance approach. As a result, it is likely that the approach will be scaled-up in other regions within Albania. In addition, enabling legislation was passed in October 2009 to transform the General Roads Directorate into the Albanian Road Authority, which is responsible for national and regional roads. The Albanian Road Authority Board was appointed in September 2010, and the authority will benefit from autonomy and greater responsibility for overseeing the roads sector in Albania, as recommended in the PPIAF- funded report. Finally, the Government of Albania recently decided to introduce a tolling system on the Durres–Kukës highway. It will be the first highway to charge tolls to cover maintenance costs, and the government intends to introduce tolls to other highways currently under construction. The Durres–Kukës highway was constructed in 2007–2010 to connect Kosovo with the Albanian seaport of Durres. As of July 2012, five international consortia have prequalified and are taking part in the tender to upgrade, operate, and maintain the new Durres–Kukës highway. The bid submission deadline is scheduled for October 2012. The lead financial advisor on the project is the IFC C3P team. 32 Latin America and the Caribbean PPIAF is expected to spearhead private participation in infrastructure activities in the region by piloting cutting-edge interventions and consolidating know-how that will benefit initiatives worldwide. Overview the Mexican Congress approved the Public-Private Partnership Act, a piece of legislation that aims to promote public-private The Latin America and Caribbean region has consistently led partnerships by providing an official framework for public the way in terms of private participation in infrastructure. and private entities to enter into such agreements. At the beginning of the 1990s, all developing countries in the region suffered from large infrastructure deficits, Areas of PPIAF assistance dismal service standards, tight fiscal constraints, and deep problems with the traditional mode of public infrastructure PPIAF is expected to spearhead private participation in service delivery. There were weak incentives for efficiency infrastructure activities in the region by piloting cutting-edge and infrastructure delivery was often embedded within interventions and consolidating know-how that will benefit patronage-drive political systems. In most of these countries, initiatives worldwide. A good example of this is a recent the decline of public finance available for infrastructure activity with the Brazilian Forestry Service, which is in charge investment was larger than the increase of private sector of awarding concessions for forest management of federal investment in infrastructure. The exception was Colombia, public forests in Brazil. Forest concessions on publicly-owned where the decline was slight and, on average, public land can play a crucial role in the promotion of sustainable investment levels remained roughly unchanged (albeit with forest management and the reduction of illegal logging or major fluctuations) throughout the period. forest conversion. The Brazilian federal government’s Forest Concession Program intends to create a new paradigm In recent years, privatization has slowed dramatically in for forestry production in the Amazon, ensuring social the region. Disparities in Latin America and the Caribbean control over this activity, fighting illegal land occupation, are also reflected by the different maturity levels of private and inducing operators in the logging sector to adopt a participation in infrastructure markets across the region. sustainable and business oriented approach. Numerous countries in the region are moving towards a second phase of programs for private participation in The track record of urban development projects (e.g., rapid infrastructure—mostly through public-private partnership transit systems), coupled with the financial viability of some schemes—while other countries are just beginning the sub-national governments in Latin America, has led to the process. As of 2012, several countries in the region— need for innovative financial tools to incorporate future including Brazil, Chile, Costa Rica, and Peru—have created gains in land value resulting from the realization of major government departments to foster investment through infrastructure projects. One such financial instrument is public-private partnerships. Most recently, in December 2011 tradable development rights originally developed in Brazil. Section 2 PPIAF 2012 ANNUAL REPORT 33 Box 5: Support for Non-Revenue Water Performance- Based Contracting in Honduras PPIAF funding: $75,000 Background: Access to water and sanitation services improved in Honduras in the 1990s, in both rural and urban An SNTA project in Colombia is helping Bogotá tap private areas. However, the sector’s weak institutional framework and sources of financing by auctioning additional building rights competition between national, state, and municipal actors led to private investors beyond what was initially permitted by to a lack of planning, inadequate regulation of operators, and the city’s zoning legislation. The resulting certificates are poorly-defined policies. In 2003 the government of Honduras freely tradable instruments in the local stock exchange. The passed the Drinking Water and Sanitation Sector Framework development of innovative financial tools allows the public Law, which created a central policy-making council and an independent regulatory agency. The law also decentralized sector to mobilize private financing for such infrastructure water and sanitation services, shifting the responsibility for investments and frees up much-needed fiscal space to target operations from the national water and sewerage agency other pressing social and economic concerns. (SANAA) to municipalities. PPIAF’s contribution: PPIAF assistance was requested in Looking forward 2008 to support a non-revenue water performance-based PPIAF continued to support Latin America and the Caribbean management contract for SANAA’s operations in Honduras’ in 2012, with over $1.5 million in public-private partnership capital city, Tegucigalpa Metropolitan District. The contract and SNTA projects. Going forward, PPIAF will continue to was piloted by a World Bank project to demonstrate how the private sector can be used as an efficient means to leverage its resources to initiate sustainable public-private achieve significant improvements in operational and financial partnerships and sub-national financing mechanisms while performance. PPIAF funded several elements to ensure the staying focused on crucial regional issues, such as inequality, contract design reflected international best practice in non- climate change, and inclusive infrastructure development revenue water management, including training for SANAA that benefits all citizens. staff on management and non-revenue water contracts and a report on the lessons learned from the design and bidding process. Outcomes: The $6.5 million non-revenue water contract went into effect July 1, 2011, and was awarded to a consortium made up of ACC Ingenieria SAS, Radian Colombia SAS, and Veritec Consulting Inc. The consortium’s obligations under the contract include: assessing the current conditions of the water supply; implementing minimum cost interventions to improve service reliability and hours of service; and reducing both physical and commercial losses to improve the utility’s income. 34 Middle East and North Africa PPIAF’s portfolio in low-income and fragile states in the Middle East and North Africa region has grown in fiscal 2012. Overview crisis, governments in the region are increasingly looking to leverage private sector management expertise and/or Political turmoil has swept the Middle East and North Africa financing to expand and improve infrastructure services. region since the Arab Spring. The upheaval has had political and economic consequences across the region. Economic PPIAF’s portfolio in low-income and fragile states in the growth rates in the region have fallen, unemployment Middle East and North Africa region has grown in fiscal 2012. has risen, and fiscal deficits and government debt levels In Djibouti, PPIAF approved three activities in the energy and in the Middle East and North Africa region have grown as telecommunications sectors. The first activity is assisting the governments responded to the unrest by increasing spending government of Djibouti to assess the cost of refurbishing its on subsidy programs and cutting tax rates. The quality existing generation plant and identify least cost infrastructure and quantity of infrastructure provision in the region lags investments that can be effectively financed and managed behind others, and it also suffers from the lowest private through a public-private partnership. This analysis will help participation in infrastructure by financing volume. Given the the government to define a sector strategy that suits its region’s infrastructure needs, PPIAF support has been highly energy and investments needs, and is cognizant of the solicited in fiscal 2012 to help governments identify, design, potential for geothermal energy, which is currently being and implement public-private partnerships. explored. A second energy activity is analyzing the technical, economic, and financial feasibility of rural electrification Areas of PPIAF assistance options to determine the most viable and sustainable roll- As regional governments work towards economic out option available to electrify 25 villages in rural Djibouti development and growth, the provision of adequate using solar energy. In the telecommunications sector, PPIAF infrastructure services has grown in importance. Middle East is assessing liberalization options to help the government and North Africa countries have a critical need to upgrade transform the sector into an engine of economic growth and their infrastructure stock to address past underinvestment employment. and new demand, and a link was drawn between the Arab Two activities were approved in fiscal 2012 in the West Spring and lack of access towards adequate infrastructure Bank and Gaza. PPIAF is providing funding for legal advisory services. However, with state budgets stretched thin, transaction support for the Southern West Bank Solid Waste regional governments face a serious challenge of increasing Management Project, potentially the first public-private the quality and quantity of infrastructure services in partnership to be awarded in the West Bank and Gaza. The Middle East and North Africa. Since the global financial project is being structured by the IFC to attract private sector Section 2 PPIAF 2012 ANNUAL REPORT 35 Box 6: Public-Private Partnership Unit in Morocco PPIAF funding: $245,700 Background: The World Bank Group’s Country Partnership Strategy 2010–2013 for Morocco underlines the challenges related to underinvestment in infrastructure and the need to improve the quality and sustainability of infrastructure provision in Morocco. The Government of Morocco, aware of these challenges, sought PPIAF support for assistance in PPIAF team member in Middle East and North Africa (Dubai, UAE), Andrew Jones. launching its public-private partnership program, designed to scale up infrastructure investments in sectors including energy, transport, water, health, and education. The government’s participation for the operation and maintenance of the new commitment to exploring the public-private partnership Al-Minya Landfill that will provide improved solid waste modality also related to the country’s current economic context, where fiscal constraints and the impact of the global management services to approximately 780,000 inhabitants. financial crisis have limited the ability of the government to The landfill is expected to open in early 2013 and will process finance critical infrastructure investments. approximately 34 percent of the solid waste in the West Bank. The second activity is also innovative as it is one of PPIAF’s contribution: PPIAF provided support to assist the Government of Morocco in launching its public-private the first examples of support to the Middle East and North partnership program through the design of a dedicated Africa region through PPIAF’s SNTA program. The activity will public-private partnership unit within the Directorate for State work with municipalities across the West Bank and Gaza to Enterprises and Privatization, a specialized department within improve and expand municipal revenue generation in order to the Moroccan Ministry of Finance. The second component improve municipalities’ creditworthiness. In the medium-term of the activity assisted in the identification and screening it is hoped that some of the best performing municipalities of pilot public-private partnership transactions. The activity may be able to gain a credit rating, which will enable them also strengthened the Directorate for State Enterprises and Privatization’s public-private partnership expertise via the to access market-based financing to fund infrastructure organization of seminars. The medium-term goal of the development. activity was to identify public-private partnership transactions that could be implemented within the framework of Looking forward transaction advisory mandates to be led by the IFC’s C3P department. Following the Arab Spring, political upheaval has ushered in a wave of new governments focused on responding to citizens’ Outcomes: In May 2011, with assistance from PPIAF demands. Ensuring access to adequate infrastructure services and the IFC, a central public-private partnership unit was will be crucial to spurring economic development and growth established within the Directorate for State Enterprises and Privatization. The public-private partnership unit is in the region, and providing jobs for an ever-growing labor responsible for promoting public-private partnerships in force. Demand for PPIAF technical assistance is expected to Morocco through coordination with sector ministries, and grow as governments face the challenge of balancing fiscal assisting in the development and implementation of public- constraints with the need to provide significant investment to private partnership projects. The public-private partnership meet the infrastructure needs of the region. identification exercise launched under the PPIAF activity is also showing signs of success. Despite decision-making delays caused by the November 2011 parliamentary elections, several potential projects are being analyzed in the transport, health, and education sectors. 36 South Asia In fiscal 2012, PPIAF has successfully focused its South Asia portfolio to support the development of public- private partnerships in the region’s lowest income countries. Overview South Asia—home to 1.5 billion people with over one billion living on less than $2 per day—has the largest global concentration of poor people. In fiscal 2012, PPIAF has successfully focused its South Asia portfolio to support the development of public-private partnerships in the region’s lowest income countries. PPIAF focused on rebalancing its assistance across the region and committed $589,405 to nine projects in fiscal 2012. Areas of PPIAF assistance PPIAF has continued to support the development of strong public-private partnership policies, programs, and pipelines across South Asia. In Bhutan, PPIAF approved an activity with the Ministry of Information and Communications to develop a strategic policy roadmap to guide the development of Bhutan’s telecommunications sector on the introduction of competition, divestment by the existing operators, and government transformation agenda to use the sector for cost-effective service delivery. In the Maldives, PPIAF provided management contract support to Malé City Council to structure and implement a viable tariff structure for waste Section 2 PPIAF 2012 ANNUAL REPORT 37 38 management services, develop a mechanism for tariff collection, develop an information system to maintain user data, and monitor the performance of the concessionaire. In India, PPIAF is providing assistance to the Department of Economic Affairs in the Ministry of Finance with the preparation of a national public-private partnership policy statement, to serve as guidance to the states as well as to central ministries as they pursue public-private partnerships in the provision of infrastructure. In Sri Lanka, PPIAF approved an activity to develop the capacity of the Ministry of Economic Development and selected provincial and local governments through a series of local workshops. This Box 7: Supporting Private Sector Participation in the activity will contribute to identify a list of potential local Solid Waste Sector in Maldives infrastructure projects that could be implemented under a PPIAF funding: $145,000 public-private partnership model in the future. PPIAF also Background: The Maldives, a country of 192 inhabited approved another activity in Sri Lanka to advise the Urban islands with a population of 395,000, is known for its white- Development Authority and the Colombo Municipal Council sand beaches and pristine environment. But its poor waste on a public-private partnership pilot model for the urban land management practices were threatening its tourism industry, development of the Beira Lake. This activity will also assist Maldives’ largest economic activity. Waste was collected in an ad-hoc manner and dumped at the shore, disposed of in the authority and municipality to develop the instruments the ocean, or transported to Thilafushi Island, where it was and processes to implement the public-private partnership. burnt openly. This combination of dumping and open burning destroyed the marine environment, polluted the air, and put PPIAF has also supported a number of screening activities the health of the country’s population at risk. and initial feasibility assessments of potential public-private partnership infrastructure projects in Bhutan, Nepal, and Sri PPIAF’s contribution: To address this problem, the Lanka. In Bhutan, the PPIAF-funded public-private partnership Government of Maldives turned to PPIAF in 2009 to review options to introduce best practices in solid waste management feasibility assessment focuses on a dry port facility in Toribari through private sector participation in conjunction with the and a new inter/intra-city bus terminal in Thimphu. In Nepal, IFC’s mandate as lead transaction advisor to implement a PPIAF is helping to identify potential urban and transport waste management public-private partnership project. projects that are suitable for financing under a public-private PPIAF technical assistance recommended an institutional partnership arrangement. In Sri Lanka, PPIAF assistance is and regulatory framework to promote public-private focusing more specifically on three potential public-private partnerships; an optimal collection, segregation, treatment, partnerships: the redevelopment of railway stations in and disposal technology; measures to enhance the project’s Colombo, a bulk water supply and transmission project in financial viability; and public-private partnership options Bandarawela, and a solar park and wind farm in Mannar. for the management of the solid waste services. The due diligence work also included drafting technical sections Looking forward and performance obligations for the bidding process, pre- qualification, and evaluation of the award of the waste PPIAF will continue to engage countries throughout the management contract. South Asia region while strengthening its results-oriented Outcomes: In May 2011, the government successfully focus on new activities. In India PPIAF is exploring projects implemented a solid waste management public-private in the transport sector to advise city authorities on selecting partnership following PPIAF’s recommendations and with the right options for mass transport system. In Pakistan, PPIAF is help of IFC as lead transaction advisor. In September 2011, looking to support provincial public-private partnership units PPIAF approved a follow-up activity to help the Malé City by assessing their needs and building capacity. In Bhutan Council structure and implement a viable tariff structure for PPIAF will continue supporting institutional reforms for the waste management services provided under the management operationalization of the public-private partnership policy. contract. Impacts: The solid waste management public-private partnership mobilized $50 million in private investment that will improve waste collection, transportation, and disposal; reduce marine and air pollution; and generate power through a 2.7 MW waste-to-energy plant. The project will benefit 120,000 people, process up to 70 percent of the country’s solid waste, and reduce annual greenhouse gas emissions by 16,000 tons. Section 2 PPIAF 2012 ANNUAL REPORT 39 Global Knowledge Portfolio As a global platform for the generation and dissemination of knowledge on private sector participation in infrastructure, PPIAF can help developing countries leverage emerging best practices to improve and expand the provision of infrastructure services through efficient public-private partnerships. PPIAF funded four new global knowledge activities worth $973,000 in fiscal 2012, mostly related to multi-sector topics and transport projects. Overview PPIAF supports a robust global knowledge agenda that complements its grant-funded technical assistance within studies in public-private partnerships available to a wide countries. The program supports the development of new audience, which would otherwise not have access to such knowledge through research and helps make existing information. The Private Participation in Infrastructure knowledge more accessible to policy makers and other Database, which provides data on private sector investment stakeholders. Research findings are disseminated through in infrastructure projects in low- and middle-income books, user guides, notes, toolkits, workshops, videos, and countries, is one such website. The database is the leading specialized websites. source for trends in private participation in infrastructure and covers projects in the energy, telecommunications, PPIAF’s knowledge products and training resources transportation, and water and sanitation sectors. In fiscal contribute to developing countries’ efforts to create an 2012 with contributions from the World Bank Group, PPIAF enabling environment for efficient and sustainable public- supported the maintenance and consolidation of the website, private partnerships in infrastructure and strengthen including the development of a methodology to collect and local capacity to undertake sound sector reforms. They analyze government support and funding to public-private cover multi-sector as well as sector-specific issues in gas, partnership projects. transport, electricity, telecommunications, and water and sanitation. They also focus on key themes that together In addition, PPIAF-sponsored workshops foster and encourage constitute a reference framework for achieving significant capacity building dialogues and knowledge dissemination on and sustainable improvement in the delivery of infrastructure best practices on private sector participation in infrastructure. services. In fiscal 2012 PPIAF provided additional support to the Leaders in Urban Transport program for the translation Areas of PPIAF assistance of self-study materials and case studies into French. The translation permitted the program to target low- to middle- PPIAF’s global knowledge portfolio sponsors research and income French-speaking countries, particularly in West Africa, knowledge development to support governments and local in addition to the workshops that have been delivered in authorities to create an enabling environment for private English. Workshops have been conducted in Singapore, investment in infrastructure. In fiscal 2012 PPIAF provided Marseilles, and India, with additional sessions planned for the support to the Third Global Report on Local Democracy and upcoming fiscal year. Decentralization, which focuses on the local delivery of basic services. The report will identify the needs of local authorities Looking forward to meet their responsibilities towards their citizens and map the role of different stakeholders, including the private In fiscal 2013 PPIAF will continue its efforts to disseminate sector. existing PPIAF knowledge products in client countries and provide capacity building through seminars and training Toolkits and interactive websites from PPIAF’s global events for senior government officials and technical staff in knowledge portfolio make the latest knowledge and case charge of implementing infrastructure reform agendas. SECTION 3: Results and Program Finances PPIAF 2012 ANNUAL REPORT 41 Results Many outcomes have been obtained in each country as a result of PPIAF’s technical assistance: specific laws passed, regulations adopted, institutions created or strengthened, and in some cases, infrastructure projects structured as public- private partnerships. In fiscal 2011, to more accurately and thoroughly reflect the nature of the technical assistance it provides, PPIAF refined its system for methodically capturing and measuring results. PPIAF has since been researching the results of its closed activities and preparing comprehensive summaries of the technical assistance PPIAF has provided since inception. These summaries contain the results that have arisen as a result of PPIAF’s technical assistance, in terms of actual outcomes obtained, and can be found on PPIAF’s website (www.ppiaf.org). As seen in these summaries, many outcomes have been obtained in each country as a result of PPIAF’s technical assistance: specific laws passed, regulations adopted, institutions created or strengthened, and in some cases, infrastructure projects structured as public-private partnerships. All of these outcomes are evidence that PPIAF is achieving its mission and objective to help developing country governments improve the quality of their infrastructure through private sector involvement. PPIAF is thus contributing to removing obstacles to private sector investment and establishing the foundations necessary to give confidence to private investors to invest in a specific country. Monitoring and Evaluation Methodology Upstream nature of PPIAF’s work The distinctive nature of PPIAF’s work—advisory work in the early stages of, or actually preceding, the project cycle— can make it difficult to track outcomes and impacts. The work is “upstream” from actual transactions and typically involves developing enabling environments, providing project cycle related assistance, and capacity and awareness building. Many of these activities do not immediately lead to visible outcomes, let alone impacts. Attributing the associated results of a particular infrastructure project directly and exclusively to PPIAF’s intervention is also difficult, because other causal factors are usually involved. Additionally, as PPIAF’s interventions normally occur early in the project cycle, it is often many years before any physical infrastructure services are finally available and the “impact” of PPIAF’s intervention in this sense is realized. 42 Updated standardized output assistance PPIAF can provide makes it easier to track PPIAF’s and outcome categories work in each area. The indicators for impacts have not changed. In 2011 PPIAF revised its output and outcome categories and indicators and developed a standardized way of defining them New internal system to track outputs, outcomes, for both PPIAF and SNTA activities, to more accurately track and impacts their results and thoroughly document the causal chain from outputs to outcomes to impacts. In fiscal 2010 PPIAF application forms, along with other internal documents (e.g., semi-annual portfolio review and Although the categories and indicators of outputs, outcomes, close-out sheet), were revised to focus more sharply on and impacts have been revised, their respective definitions expected outputs, outcomes, and impacts as well as the remain the same: risks of obtaining these results. In fiscal 2011 these PPIAF • Outputs are the direct deliverable(s) as mandated in documents were again revised to reflect the refined output the terms of reference for the activity being funded by and outcome categories, to better capture the expected and PPIAF. actual results from activity implementation to completion, as well as to streamline and integrate them more efficiently into • Outcomes are the action taken as a direct result of PPIAF’s activity database. the outputs. These outcomes can usually be expected to occur within two to three years of completion of In addition, PPIAF developed an improved customized internal the outputs. web-based database, which includes a section dedicated solely to M&E, to enable PPIAF to better monitor its activities • Impacts are the changes at the government and/or and keep the outcomes and impacts up-to-date. With this direct beneficiary level resulting from implementation new database, PPIAF can also prepare customizable summary of the outcomes. Impacts usually take much longer to reports to better aggregate and view the results by region, materialize, particularly in PPIAF’s case, and usually country, sector, fiscal year, etc. In particular, these reports are the result of several interventions. enable PPIAF to list each individual output, outcome, and The new output and outcome categories group the indicators impact, and view them in detail. by type of advisory assistance PPIAF can provide: enabling With over 1,000 PPIAF-funded activities, 850 of which are environment reform, project cycle-related assistance, and closed, this database is a valuable source of information on capacity and awareness building. These are indicators public-private partnerships in developing countries, and will common to advisory work, which is the nature of the be easier to maintain and disseminate. PPIAF’s new web-based technical assistance PPIAF provides. Investment projects have database, once complete, will be linked to PPIAF’s website, other indicators as their objective is to develop specific assets; which in turn will enable PPIAF to disseminate its findings to a investment projects have direct impacts on beneficiaries, broader audience. associated with the direct investment in the asset and the delivery of a service. Since fiscal 2011, PPIAF staff has been populating the M&E portion of the database, reviewing all outputs obtained, and By more clearly distinguishing between the different types researching the corresponding outcomes and impacts. The of results, this new methodology ensures that every output, team is thus able to include details such as the exact name of outcome, and impact is accounted for, and makes the results the legislation that was passed as a result of a PPIAF activity, of PPIAF and SNTA activities consistent between programs and as well as the actual credit rating given to a utility and funded thus easier to aggregate and thus report. by SNTA, when available. New output and outcome categories Starting with the donor priority countries, which we identified through online research, PPIAF staff is going Table 4 contains the revised output and outcome categories. activity by activity, country by country, to thoroughly research These new categories clarify the link between outputs and and organize the results of the activities according to the outcomes, and make them consistent for both PPIAF and updated output, outcome, and impact categories. At present, SNTA activities. Furthermore, grouping them by the type of Section 3 PPIAF 2012 ANNUAL REPORT 43 Table 4: Categories and indicators of outputs, outcomes, and impacts Outputs Outcomes Analysis/assessment prepared Institution created or strengthened PPIAF:  e.g., PPP Option Study, PPP structuring PPIAF:  e.g., PPP unit able to appraise projects, recommendations regulatory commission, rural electrification SNTA:  e.g., credit rating preparation advice, credit agency Enabling environment reform rating or FMA, legal/regulatory assessment, SNTA: e.g., creditworthiness enhanced transaction structuring recommendations Policy prepared or legal or regulatory changes Policy adopted, legislation passed/amended, or recommended regulation issued/revised PPIAF: e.g., PPP or sector policy or law, PPP unit deal PPIAF: e.g., PPP or sector policy law adopted, PPP approval steps, tariff reform procurement regulations adopted, revised PPP SNTA: e.g., sub-national debt management policy, law procurement regulations authorizing sub-national borrowing, revisions SNTA: e.g., sub-national debt management policy, to sub-national debt limits revised sub-national debt limits Plan/strategy prepared Plan/strategy adopted PPIAF:  e.g., sector PPP strategy, country strategy, PPP PPIAF: e.g., PPP sector strategy project action plan SNTA: e.g., borrowing pan SNTA:  e.g., capital investment plan, borrowing plan, creditworthiness improvement plan, credit rating action plan Transaction support Transaction facilitated assistance PPIAF:  e.g., feasibility studies, bidding documents, PPIAF: e.g., PPP transaction related Project cyce- model contracts, transaction structuring, advice SNTA:  e.g., sub-national borrowing, capital raised (i.e. during PPP contract negotiation loan amounts) SNTA:  e.g., advice during negotiations with lenders, transaction legal advice Workshops/seminars Technical capacity enhanced Capacity and PPIAF: e.g., PPP project appraisal training PPIAF:  e.g., government (PPP unit or ministry) staff awareness building SNTA: e.g., credit rating trainings with improved capacity Pillar #1 Pillar SNTA: e.g., utility staff with #2 improved capacity Knowledge product disseminated Consensus achieved Sectors Universal Access PPIAF: e.g., PPP toolkits PPIAF and SNTA:  Climate e.g., Change popular support for targeted SNTA: e.g., guide to credit ratings transaction or reform IMPACTS Additional private investment in the sector (US$) Increased number of people with infrastructure services This includes both expanded access for new customers and improved service for existing customers. Improved level of services (% change; include unit) Will this activity utlimately lead to improved infrastructure services (e.g., % reduction in losses for water)? Increased employment oppportunities Please specify short-term (e.g., construction period) or long-term (e.g., operation and maintenance) Fiscal impact on government (US$) (Will this activity lead to investments that would reduce government subsidies in the sector (i.e., subsidies avoided) and/ or result in new income to the government through fees, taxes, or other economic activity? 44 Figure 9: Countries Researched as of June 30, 2012* * Countries in dark purple have been researched by PPIAF staff and have a complete country write-up. Countries in light purple remain to be researched; these are countries to which PPIAF has provided technical assistance. 83 countries with 406 completed activities have been database. We are finding many outcomes of PPIAF-funded researched. work, which have in many cases led to measurable impacts. This M&E exercise is the most comprehensive and thorough In addition to populating the database, the PPIAF team is look at PPIAF’s work and results since PPIAF was created in preparing country write-ups that consolidate the results of all 1999. closed PPIAF and SNTA activities in a particular country in one comprehensive summary. The country write-ups (available at In addition to thoroughly researching the results of its www.ppiaf.org) are powerful tools that describe the outputs, activities, PPIAF works hard to validate them, either by: 1) outcomes, and impacts achieved so far by PPIAF over the contacting the World Bank Group (including the IFC) staff past 13 years. They can be used to draw lessons from involved in a particular activity; 2) looking at other World what has worked and what hasn’t, which can be a tool for Bank Group organizations’ websites and available materials; governments and the international development community 3) searching the web for outcomes, including legislation to use in designing future technical assistance activities. or regulations passed; or 4) by contacting or meeting with Furthermore, the write-ups will help PPIAF internally when people in each country, including government officials. making decisions regarding selecting activities to support. External independent review of PPIAF M&E system As can be seen in the country write-ups, many outcomes have been obtained in each country as a result of PPIAF’s In fiscal 2012, the Public-Private Partnership in Infrastructure technical assistance: specific laws, regulations, institutions, Resource Center (PPPIRC) team was asked to review PPIAF’s and in some cases, infrastructure projects. All of these recently developed online database of PPIAF-funded activities. outcomes are evidence that PPIAF is achieving its mission and The review’s primary objective was to determine whether objective to help developing country governments improve any legal precedents, contracts, laws, regulations, or the quality of their infrastructure through private sector documentation related to the establishment of public-private involvement. PPIAF is thus contributing to removing obstacles partnership units could be further disseminated through the to private sector investment and establishing the foundations PPPIRC. After a thorough review of the database, a total of necessary to give confidence to private investors to invest in a 25 projects were found to have legally relevant documents, specific country. which the PPPIRC team made available in their online library, either by publishing the approved law, summarizing selected This is real “detective work” as the entire PPIAF team does legal analyses, or annotating sample agreements. In addition a “deep dive” to analyze, on a portfolio basis, the results to extracting useful legal materials, the review by PPPIRC of PPIAF’s past work and enter it into the new web-based confirmed some outcomes already obtained by PPIAF. Section 3 PPIAF 2012 ANNUAL REPORT 45 In fiscal 2012 PPIAF hired consultants to perform an satisfy the requirement to be SMART—specific, measurable, external review to validate its M&E indicators and system. accurate, realistic, and timely). In terms of the sustainability The consultants found that overall the data PPIAF has of PPIAF’s M&E system, the consultants found that it is been collecting is “high quality” (i.e., valid, precise, and indeed sustainable and reliable. “The M&E system is deeply timely), and that PPIAF’s “data gathering system is reliable imbedded in PPIAF systems and processes.” It has also “been and has integrity.” They also found that PPIAF’s results- formalized and is consistently used throughout PPIAF’s measurement “indicators are useful” (i.e., they broadly operations.” Results PPIAF program As of June 30, 2012, out of the 83 countries and 406 activities researched so far, PPIAF has provided funding for the following outputs: Table 5: PPIAF outputs captured as of June 30, 2012 Enabling environment reform 379 analyses/assessments prepared 101 policies prepared or legal or regulatory changes recommended 129 plans/strategies prepared Project cycle-related assistance Advice given related to 96 transactions, including model legal documents related to transaction support prepared Capacity and awareness building 328 workshops/seminars with 7,646 participants 19 knowledge products disseminated As a result, the following outcomes have been achieved and captured in PPIAF’s internal database so far: Table 6: PPIAF outcomes captured as of June 30, 2012 Enabling environment reform 108 institutions created or strengthened 82 policies adopted, legislation passed/amended, or regulation issued/revised 81 plans/strategies adopted Project cycle-related assistance 86 transactions facilitated worth a total of $7,278,246,588 Capacity and awareness building 157 activities with technical capacity enhanced reported to PPIAF, with a total of 1,134 participants 91 activities leading to consensus achieved 46 SNTA program As of June 30, 2012, PPIAF’s SNTA program has facilitated the following outputs: Table 7: SNTA outputs captured as of June 30, 2012 % of total outcomes Enabling environment reform 121 analyses/assessments prepared, including 68 credit ratings 3 policies prepared or legal or regulatory changes recommended 30 plans/strategies prepared Project cycle-related assistance Advice given related to 14 transactions, including model legal documents related to transaction support prepared Capacity and awareness building 37 workshops/seminars with 577 participants As a result, the following outcomes have been achieved and captured in PPIAF’s internal database so far: Table 8: SNTA outcomes captured as of June 30, 2012 Enabling environment reform 84 institutions strengthened 4 policies adopted, legislation passed/amended, or regulation issued/revised 29 plans/strategies adopted Project cycle-related assistance 17 transactions facilitated that raised $1,098,981,676 in loans from non-sovereign sources Capacity and awareness building 4 activities with technical capacity enhanced reported to PPIAF, with a total of 85 participants 4 activities leading to consensus achieved PPIAF can contribute to producing impacts when the private technical assistance to governments to create or strengthen sector invests in specific infrastructure projects, either by the corresponding enabling environment, build capacity, supporting the more downstream development of such etc. While it is difficult to attribute impacts directly to PPIAF, projects (i.e., through feasibility or prefeasibility studies, PPIAF’s work certainly contributed to them, as indicated by supporting either legal or financial transaction advisors, above. Many activities supported by PPIAF to date have or by preparing the corresponding bidding documents or generated impacts. information memorandum); or by providing more upstream Section 3 PPIAF 2012 ANNUAL REPORT 47 Program Council “Strengthening Support to Clients through Collaboration” and included discussions of the four programs, addresses PPIAF’s 13th Program Council Meeting was held on June 6, by the Ministers of Finance, Planning and Economic 2012 in Kampala, Uganda, following joint workshops with Development and Lands, Housing, and Urban Development, Cities Alliance, the Global Partnership on Output-Based and a panel discussion with stakeholders on private Aid, and the Private Infrastructure Development Group on participation in infrastructure financing, the delivery of June 4–5, 2012. The theme of the June 4 workshop was services, and other urban topics. The June 5 forum on 48 Section 3 PPIAF 2012 ANNUAL REPORT 49 managing a secondary city was held in Jinja, Uganda, and included a panel discussion with mayors of secondary cities, a site visit to the National Water and Sewerage Corporation for a presentation on PPIAF’s past support to the company, and site visits to recipients of a Cities Alliance grant. TAP Report The 2012 Technical Advisory Panel (TAP) review of PPIAF Activities report is the TAP’s annual independent evaluation of PPIAF and its portfolio, and includes detailed reviews of a sample of individual activities. As part of its regular responsibility for independent evaluations, the panel conducted an ex post review of completed and ongoing activities, and presented their findings at the PPIAF Program Council Meeting in Kampala, Uganda on June 6, 2012. For the most part, this year’s report maintained last year’s focus on Africa in recognition of the priority attached to the region by the Program Council. Two TAP members, Robin Simpson and Aboubacar Fall, worked together on reviewing the PPIAF-funded Africa Infrastructure Country Diagnostic (AICD), a PPIAF activity in Guinea, and Chinese investment in Africa. The appointment of John Cooney in spring 2011 also made possible the review of six PPIAF activities in Asia. preferences) was consistent with this quality of objectivity. To conduct the AICD review, the team carried a mixture of It was notable that in one case, Vietnam, the government direct face-to-face and telephone interviews with PPIAF and decided against the preferred option, but as the reviewer project staff based in Washington, DC and elsewhere. The points out, the information gathered remained valid whatever review of the Guinea activity involved a field visit to Conakry. the precise option chosen. The Asian reviews were mainly based on desk studies of Finally, despite the high quality of reports and advice available documentation, supplemented where possible by delivered as a result of PPIAF-funded activities, limits exist communications with World Bank staff and government to their influence over government actions. A tendency officials who had been involved with the projects and, where emerged from those reports reviewed—the six national relevant, with the operations that developed from them. reports for Asia and the single African national report In the TAP report, several themes emerged that reveal (Guinea). Only two of the seven—Mongolia and Indonesia— the utility and effectiveness of PPIAF’s upstream technical could be said to have been succeeded by government action assistance and structure, as well as some constraints. as recommended by PPIAF. This suggests that a portfolio of project-specific activities could be studied in more detail, from First, PPIAF’s speed at responding to requests for funding the perspective of whether or not the PPIAF grants resulted in is greatly appreciated by clients, and is a “keystone” when a follow-on operation and, if not, why not. The objectives of putting together a complex consortium of funders. This such a study could include defining a medium-term results- proved to be valuable particularly in the context of PPIAF’s based assessment for future PPIAF activities, also outlining timely response for the AICD. an approach for PPIAF to provide transition support between study and subsequent investment. Secondly, PPIAF was seen as objective in not pushing particular models of private sector participation, and relatively Regardless, the TAP felt that many of the papers reviewed free of bias towards particular types of contract. Once again contribute and provide value to the global debate, even the fact that several projects presented options (even with when highly region-specific like the AICD. 50 Program Finances PPIAF derives its resources from donor contributions, which are channeled through trust funds administered by the World Bank Group. The World Bank Group recovers an administrative fee for costs associated with this task. Contributions In fiscal 2012, PPIAF received cash contributions from its donors totaling $18.31 million. Of this, the contribution for PPIAF Core activities received through its Multi-Donor Trust Fund II amounted to $9.04 million. Non-Core trust funds for 1) Integrating the Climate Change Agenda with a Public-Private Partnerships Program, 2) Middle-Income Countries, 3) Water and Sanitation in Sub-Saharan Africa, and 4) the Sub-National Technical Assistance Program received $9.26 million during the fiscal year (Table 9). Member contributions receipts, fiscal 2010, Table 9:  Fiscal 2012 Fiscal 2011 Fiscal 2010 2011, and 2012 (US$) (US$) (US$) PPIAF Core fund Australia 4,622,450 1,491,280 460,700 Austria 2,739,600 n.a. n.a. France 656,650 n.a. n.a. Germany 335,825 317,750 361,975 International Finance Corporation 162,000 488,000 2,250,000 Italy n.a. 281,700 n.a. Millennium Challenge Corporation 250,000 250,000 250,000 Netherlands n.a. 1,500,000 n.a. Sweden 279,099 317,682 1,661,051 United Kingdom n.a. 4,855,004 11,123,900 World Bank n.a. 600,000 250,000 Sub-total 9,045,624 10,101,416 16,357,626 Non-Core funds Netherlands: Climate Change 2,000,000 n.a. n.a. Norway: Climate Change n.a. 161,142 951,590 Switzerland: for Middle-Income Countries 2,864,344 2,604,166 2,353,827 Switzerland: for Global Financial Crisis n.a. n.a. 2,809,778 United Kingdom: for Global Financial Crisis n.a. 4,698,140 n.a. USAID: Water for Sub-Saharan Africa 245,450 n.a. n.a. Sub-total 5,109,794 7,463,448 6,115,195 SNTA program Australia 983,500 n.a. n.a. France 672,100 n.a. 429,240 Switzerland 2,499,573 n.a. 1,878,463 United Kingdom n.a. 4,869,600 3,520,125 World Bank n.a. n.a. 1,850,000 Sub-total 4,155,173 4,869,600 7,677,828 Total contribution receipts 18,310,591 22,434,464 30,150,650 Net investment income 369,233 392,673 609,899 Total funding 18,679,824 22,827,137 30,760,549 Section 3 PPIAF 2012 ANNUAL REPORT 51 Contributions received in fiscal 2012 brought cumulative donor contributions received since PPIAF’s inception to $261.86 million ($229.99 million for PPIAF and $31.86 million for SNTA) as indicated in Table 10. Table 10: Member contributions received, inception to June 30, 2012 Fiscal 2000–2012 (US$) PPIAF Core fund Asian Development Bank 1,750,000 Australia 9,447,130 Austria 2,739,600 Canada 2,134,000 European Bank for Reconstruction and Development In kind European Commission* 1,254,610 France 3,424,851 Germany 3,421,480 International Finance Corporation 3,650,000 Italy 1,178,840 Japan 10,435,000 Millennium Challenge Corporation 750,000 Netherlands 5,249,970 Norway* 2,849,975 Sweden 4,807,406 Switzerland 9,554,431 United Kingdom 90,479,709 US Agency for International Development 1,000,000 World Bank 18,723,235 Sub-total 172,850,237 Non-Core funds Japan 5,608,000 Netherlands 2, 000,000 Norway 2, 028,006 Sweden 9,178,182 Switzerland 13,714,118 United Kingdom 24,374,000 US Agency for International Development 245,450 Sub-total 57,147,756 Total 229,997,993 Norway and the European Commission are no longer contributors to the Multi-Donor Trust Fund II effective 2007 and 2009, * respectively. SNTA program Australia 983,500 France 1,101,340 International Finance Corporation 4,100,000 Italy 647,140 Switzerland 6,144,596 United Kingdom 13,039,125 World Bank 5,850,000 Total 31,865,701 Grand Total 261,863,694 52 Disbursements In fiscal 2012 $11.04 million was disbursed for PPIAF activities. Disbursements were made for activities approved in fiscal year 2012 as well as for activities approved in prior years, which are implemented over multiple years. In accordance with the administration agreements entered by the World Bank and PPIAF donors, $0.3 million was collected as an administration fee. In fiscal 2012 the Program Management Unit incurred a total of $2.31 million in administrative costs as indicated in Table 11. This included $1.41 million in expenses of the Program Management Unit in Washington, DC such as staff salaries, benefits, overhead, travel, office space, administration, evaluation of proposals, and governance and coordination of donor relations. Regional coordination offices incurred expenses amounting to $0.12 million, which included regional office staff salaries, benefits, overhead, office space, administration, and portfolio monitoring. Other expenditures amounted to $0.77 million and included expenses for the Technical Advisory Panel, annual meetings, communication, IT, and monitoring and evaluation. Table 11: Disbursements for fiscal years 2011 and 2012 Fiscal 2012 Fiscal 2011 (US$) (US$) Disbursements Activity disbursements 11,045,888 10,787,159 Administration fee 368,674 509,234 Program Management Unit expenses: 1) Program Management Unit headquarters 1,410,968 1,479,588 2) Regional coordination offices 129,133 357,093 3) Other expenditures 774,285 510,105 Total Program Management Unit expenses 2,314,386 2,346,786 Total Disbursements 13,728,948 11, 045,888 Single Audit Process The World Bank Group has instituted an annual “single audit” exercise for all trust funds. As part of this exercise the PPIAF Program Manager signs a trust fund representation letter attesting to the correctness and completeness of the financial process for all PPIAF trust funds. The task manager for each approved activity is required to confirm that due diligence has been exercised with respect to the administration, management, and monitoring of the funds awarded for the activity; and has ensured that all expenses and disbursements are made in accordance with World Bank procurement and administrative guidelines. ANNEX PPIAF 2012 ANNUAL REPORT 53 Annex: Activities Approved in Fiscal 2012 Table A.1: Summary of PPIAF activities approved in fiscal 2012, by region and sector Region Number of Funding Share of Share of Activities (US$) Activities (%) Funding (%) Sub-Saharan Africa 35 5,294,351 47 49 Middle East and North Africa 8 1,442,000 11 13 Latin America and the Caribbean 7 1,199,775 10 11 Global 4 973,000 5 9 Eastern Europe and Central Asia 6 773,100 8 7 East Asia and the Pacific 5 631,506 7 6 South Asia 9 589,405 12 5 Total 74 10,903,137 100 100 Sector Energy 15 2,802,415 20 26 Multi-sector 22 2,764,589 30 25 Telecommunications 13 2,465,932 18 22 Water and sanitation 17 1,815,381 22 17 Transport 7 1,054,820 10 10 Total 74 10,903,137 100 100 Table A.2: Summary of SNTA program activities approved in fiscal 2012, by region and nature of activity Region Number of Funding Share of Share of Activities (US$) Activities (%) Funding (%) Sub-Saharan Africa 8 744,595 54 51 Latin America and the Caribbean 3 329,780 20 23 Middle East and North Africa 2 236,300 13 16 East Asia and the Pacific 2 150,000 13 10 Total 15 1,460,675 100 100 Nature of Activity Financing 4 371,750 27 26 Specific performance improvements 8 759,145 53 52 Credit ratings 1 75,000 7 5 Other 2 254,780 13 17 Total 15 1,460,675 100 100 54 Activities Approved in Fiscal 2012 Activities approved from PPIAF non-core funds or for a specific donor objective have been shaded using the key below; all other activities were approved from PPIAF’s core fund. Activities funded by the SNTA program are indicated separately under each region. n Austria Climate Change n Norway-Netherlands Integrating Climate Change n IFC Fragile Sates/IDA countries Agenda with Public-Private Partnerships n Sweden Sub-Saharan Africa n SECO/DFID: Response to the Global Financial Crisis n Japan Trust Fund for East and South East Asia n SECO: Middle-Income Countries n USAID for Water, Sanitation, and Hygiene in Sub-Saharan Africa Table A.3: PPIAF and SNTA program activities in Sub-Saharan Africa approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity PPIAF Burundi Project Pipeline Providing advisory support to improve energy sector $74,500 Infrastructure Screening and Initial investment planning and provide pipeline screening development Feasibility Assessment of potential PPPs. strategies of Potential Infrastructure PPPs in the Energy Sector Cameroon Digital Dividend: Supporting the realization of a digital dividend on $199,676 Infrastructure A Digital Switch a technology and service neutral basis, taking into development Over Guide to bring account the potential benefits of a coordinated strategies converging Services Central African approach as well as individual To All national situations, with the aim of promoting competition and innovation in the provision of wireless services to citizens and consumers. Cameroon Support to the Water Helping the government identify and propose $40,000 Infrastructure Sector solutions towards more effective cooperation development between the government, Camwater, and strategies Camerounaise des Eaux that will improve the implementation of the water PPP and restore the financial equilibrium of the sector. Comoros Supporting the Supporting the technical and communications $400,000 Pioneering Liberalization of the consultant for the liberalization of the Comoros transactions Telecoms Sector telecoms sector. This activity is supporting an IFC program to assist the government in finding a suitable investor that will purchase the shares of Comoros Telecom, and invest in and operate the company. This would assist with the liberalization of the telecoms sector in Comoros, increase telephony and Internet coverage, and connect Comoros to regional communications infrastructure, with positive impacts in terms of economic development and growth. ANNEX PPIAF 2012 ANNUAL REPORT 55 Table A.3: PPIAF and SNTA program activities in Sub-Saharan Africa approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Comoros Options Evaluation and Analyzing the options to facilitate competition in $75,000 Infrastructure Strategic Roadmap for the telecoms sector, identifying the necessary steps development the Telecoms Sector of to develop robust competition in the sector, and strategies the Union of Comoros preparing a sector roadmap for the government. The proposed activity and sector roadmap will provide critical inputs to the preparation of an investment project. The investment project will enable Comoros to join a regional connectivity adaptable program loan program for Eastern and Southern Africa. Côte d'Ivoire PPP Pipeline and Strengthening the enabling environment in Côte $74,640 Policy, Enabling Environment d'Ivoire through targeted policy recommendations regulatory, and Support and identifying a pipeline of PPPs that could be institutional prepared now and brought on the market in the reforms immediate future. Côte d'Ivoire Improving Users- Supporting the government’s efforts to raise $67,438 Infrastructure Awareness on awareness, build a users’ coalition, and development Cost Recovery demonstrate concrete improvements in the lives of strategies for Sustainable its citizens, a critical step for sustaining social and Infrastructure political stability in the country. This activity will Development— educate infrastructure users on the urgent need Additional Funding for their participation in funding the development of the country's infrastructure to improve its sustainability. Ethiopia Expanding Rural ICT Assisting the government of Ethiopia to design $199,690 Pioneering Access in Ethiopia and execute a rural ICT program under a PPP transactions model. This activity has two main components: i) a feasibility study to determine the feasibility of scaling-up the network of telecenters; and ii) capacity building activities to help strengthen the government's project management skills. Gabon PPP Program Enabling the government to advance its PPP $74,640 Policy, agenda from both a transaction and enabling regulatory, and environment standpoint. This activity will include institutional an enabling environment assessment, PPP pipeline reforms diagnostic, and options for creating institutional capacity on PPPs. Ghana Institutional Options Conducting a detailed options analysis for $68,431 Policy, for Improving Urban institutional reform of the urban water sector in regulatory, and Water Supply in Ghana Ghana, in an attempt to improve the performance institutional (Phase 2) and financial sustainability of the sector. It is hoped reforms that such reform will lead to the commercialization of the sector and increased private sector investment. 56 Table A.3: PPIAF and SNTA program activities in Sub-Saharan Africa approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Guinea Mining Ancillary Supporting the government in creating an enabling $490,000 Infrastructure Infrastructure environment for the realization of PPPs in mining development ancillary infrastructure development. strategies Guinea PPP Training Workshop Supporting a two-day PPP training workshop $57,763 Capacity that will be a learning platform for approximately building fifty key stakeholders to share best practices and emerging lessons regarding the design, implementation, and monitoring of PPPs, focused on sectors that are directly relevant to Guinea. Guinea-Bissau PPP Training Workshop Supporting a three-day PPP training workshop to $49,963 Capacity build the capacity of stakeholders involved in PPP building project development and increase awareness of PPPs. Kenya Lake Turkana Wind Providing technical, commercial, legal, and financial $294,900 Pioneering Due Diligence Project expertise to the Kenya Power Company to support transactions the development of the Lake Turkana Wind Project. This activity includes a review of project documents, providing strategic inputs, and supporting the Kenya Power Company in Power Purchase Agreement negotiations. Lesotho Legal Advisory Support Providing legal consultant to support the IFC’s work $301,160 Pioneering to ICT and Facilities in the development and implementation of an ICT transactions Management PPP and Facilities Management PPP transaction. Liberia Developing Cost Assisting the government in developing cost $368,950 Infrastructure Recovery Mechanisms recovery mechanisms in the delivery of solid waste development in Private Sector services in Monrovia and sustain the use of PPPs in strategies Provision of Solid the sector. Waste Management Malawi Project Pipeline Supporting the government in developing a $50,000 Infrastructure Screening and Initial pipeline of priority projects to be implemented development Assessment of through PPPs. strategies Potential Infrastructure PPPs Mali Capacity Building Providing transaction support to the government $49,890 Pioneering Support to the Scatec to review and negotiate the Scatec solar and Kenie transactions and Kenie Projects hydropower projects as PPPs. Mali Legal Advisory to the Assisting the government in reviewing and $49,950 Capacity Government of Mali negotiating the legal documentation for the Scatec building for the Scatec Solar Solar PPP project. Project ANNEX PPIAF 2012 ANNUAL REPORT 57 Table A.3: PPIAF and SNTA program activities in Sub-Saharan Africa approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Mali Improving Governance Assisting the government to restructure the energy $74,890 Policy, and Accountability and water sectors by reviewing existing regulatory regulatory, and to Foster an Enabling framework and practices, including the role of key institutional Environment for Private stakeholders, evaluating existing and envisaged reforms Sector Participation PPP arrangements, and formulating guidance on in the Electricity and avoiding and/or managing potential risks. Water Sectors Mozambique Pilot Private Sector Developing and piloting a model for provision $173,000 Policy, Fecal Sludge of domestic fecal sludge management services regulatory, and Management in by small-scale private firms in periurban institutional Peri-Urban Maputo, neighborhoods as part of the municipal sanitation reforms Mozambique system. Mozambique Preparation of a Gas Supporting the development of a gas sector $250,000 Infrastructure Sector Master Plan roadmap in Mozambique with an emphasis on development stimulating private sector participation. This activity strategies will develop a gas master plan, identify sector reforms necessary to attract private investment, and prepare policy decisions to help the government of Mozambique meet its petroleum objectives. Niger Evaluation of Supporting the government in the preliminary $60,000 Infrastructure Projects with Private assessment of potential infrastructure projects to development Participation for develop a pipeline of feasible projects with private strategies Production and Supply sector participation. The result of the assessment of Electricity in Rural will serve to inform future government decisions on Areas which projects to prioritize for further development as Independent Power Plants or PPPs. Nigeria Support for Private Supporting the creation of an investment $402,500 Pioneering Development of the environment conducive for private sector transactions Power Sector generating companies to sell power to the bulk trader, and building capacity among local stakeholders in developing, financing, and contracting for Independent Power Producers. Nigeria Workshop on Water Supporting a workshop to examine the core issues $32,450 Capacity Utility Reform that confront management of underperforming building utilities in Nigeria on a daily basis. Rwanda Kigali Bulk Water Assisting the Energy, Water, and Sanitation $207,700 Capacity Supply Project- Authority to identify the best organizational building Technical Assistance structure, develop a long-term master plan, and and Capacity Training strengthen its monitoring and management capacity. South Africa Pre-feasibility Study Supporting a pre-feasibility study to determine $74,820 Pioneering for a Cycling Program the steps and projects that would make up a transactions in the City of comprehensive, sustainable, and integrated cycling Johannesburg program in the city of Johannesburg. 58 Table A.3: PPIAF and SNTA program activities in Sub-Saharan Africa approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Sudan South Sudan Strengthening telecoms regulation and developing $243,600 Policy, Regulatory and a medium-term strategy for the sector. This activity regulatory, and Strategic Support for will carry out a preliminary assessment of legal and institutional the Telecoms Sector regulatory issues involved in developing a fiber- reforms optic backbone network to connect South Sudan to neighboring countries. Sudan South Sudan - Conducting a diagnostic study to determine the $75,000 Infrastructure Diagnostic of Power investment and energy requirements to upgrade/ development Distribution System rehabilitate the power distribution system in Juba, strategies South Sudan. Tanzania Support to Bio-mass Promoting the sustainable development of forest $250,000 Pioneering Power through the resources in order to support over 40 MW of transactions Development of sustainable and renewable bio-mass based power Sustainable Forestry in the vicinity of Sao Hill Forest Plantation and Practices for Sao Hill the development of a bankable Power Purchase Forest Plantation Agreement. Zimbabwe Assessment of PPP Supporting the government in developing and $53,000 Infrastructure Enabling Environment implementing its PPP program in the transport, development and PPP Pipeline electricity, telecoms, and water sectors. strategies Regional Legal Services in Assisting the task team to further develop and $70,800 Pioneering Support of the West finalize the various legal agreements involved transactions African Power Pool’s in establishing the Special Purpose Companies Power Inter-connector and providing the appropriate framework for Project for Côte commercial and private sector transactions on the d’Ivoire, Liberia, Sierra line. This work complements other studies that are Leone, and Guinea underway to prepare an institutional business plan and the legal framework for the inter-connector project. Regional Conference on Public- Explaining what the private sector has to offer in $50,000 Emerging best Private Partnerships in the delivery of water and sanitation services in Sub- practices Water and Sanitation Saharan Africa. The conference was held in Dakar, in Sub-Saharan Africa. Senegal on June 5–8, 2012. Regional Lighting Africa Increasing access to off-grid lighting and micro- $250,000 Infrastructure Expansion energy systems for the poor in eight African development countries by replicating the successful market- strategies development pilots implemented previously in Kenya and Ghana with PPIAF support. This activity is co-financed with AFREA, Norwegian Trust Fund, ESMAP, GPOBA and CDKN. Regional African Energy Promoting the dissemination of knowledge on $40,000 Capacity Ministers' Conference technical and financial solutions for expanded building access to low-carbon sources of energy. This activity will facilitate the formation of consensus on priorities for supporting Africa’s low carbon, climate resilient energy development agenda, including in the context of climate change negotiations. ANNEX PPIAF 2012 ANNUAL REPORT 59 Table A.3: PPIAF and SNTA program activities in Sub-Saharan Africa approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity SNTA Program Botswana Support to Innovation Identifying feasible options (including the capital $75,000 Specific Hub Development market) to finance the construction and operation performance of the Botswana Innovation Hub’s facilities, with a improvement view to achieving long-term financial sustainability. Burkina Faso Strengthening of Supporting the analysis of how to optimize $75,000 Financing Fiscal Revenues for fiscal and non fiscal resources for the city of the Municipality of Ouagadougou. The realization of this analysis Ouagadougou is part of a series of initiatives that follow the recommendations of the Public Expenditure Financial Accountability assessment, prepared for that city with PPIAF and Agence Française de Développement support, on how to strengthen the financial health of the city. Ghana Increasing Access Preparing a diagnostic of the structure of the $175,000 Financing to Market-Based market for financial tools for the local governments Financing for and municipal/state-owned enterprises in charge of Municipalities in the public infrastructure to develop urban infrastructure Greater Accra Area in Ghana. The main objective of this activity is to increase local governments and municipal/state- owned enterprises' access to private credit to finance public infrastructure. Kenya Enhancing Municipal Enhancing municipal revenue in Nairobi to increase $74,850 Specific Revenue in Nairobi the ability of the Council to deliver services, and performance to explore opportunities for the upcoming county improvement government to generate additional revenues in line with the new constitution. Kenya Assessment of Conducting a quick diagnosis of the financial $46,750 Financing Geothermal situation and administration of the Geothermal Development Company Development Company to identify critical success for Enhanced Access to factors, key performance areas, weaknesses, and Finance the risks. The review will also include a systemic review of the financial management arrangements looking at the budgeting, accounting, financial reporting, internal audit, and internal control. Mauritania Public Expenditure Conducting a financial management assessment $147,995 Specific Financial Accountability of the Communauté Urbaine de Noukchott performance Study for the to strengthen the municipality's financial improvement Communauté Urbaine performance. de Nouakchott Sierra Leone Financial Assessments Conducting financial assessments of three $75,000 Financing for the Districts of municipalities in Sierra Leone to make them eligible Tonkolili, Koinadugu, for concessional financing using Cash-for-Work and Bombali and Food-for-Work schemes for small infrastructure (e.g., communications center with internet and cell phone charging stations; rehabilitation of farm- to-market access trails; market stalls; small scale swampland agriculture support; agribusiness units; farmer field schools; etc.). 60 Table A.4: PPIAF cross-regional activities approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity SNTA Program Regional Regional Capacity Enhancing the ability of cities to effectively collect $75,000 Specific Building Workshop their revenues and generate additional resources. performance with Agence Française Through the improvement of their financial health improvement de Développement on and performance, the cities will increase their Revenue Management ability to raise funds and invest in infrastructure related to service delivery. Table A.5 PPIAF activities in East Asia and the Pacific approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity PPIAF Laos Transport Sector Supporting the government of Lao PDR to conduct $50,000 Infrastructure Enabling Environment the preliminary assessment of the potential for PPPs development Assessment and in Lao PDR as an input to the Lao National Strategy strategies Pipeline Screening for Transport Sector. Philippines Options to Expand Supporting the Department of Agriculture to $100,000 Infrastructure Private Sector identify and address policy, regulatory, and development Participation in the institutional constraints that limit the recourse to strategies Development of the PPPs; develop the capacity to identify viable and Irrigation Sector bankable projects and to plan and manage the development of the irrigation sector; and identify a pipeline of bankable projects, some of which could be supported during a follow-up phase. Thailand Leveraging Broadband Developing practical designs for new or upgraded $210,886 Infrastructure Access for Accelerated Ministry of Information and Communication development Rural Development— Technology initiatives to leverage broadband access strategies Phase II in rural areas in order to contribute to tangible improvements in well-being in Thailand’s rural areas. This will include identifying international best practices from other countries, such as India, Chile, Kenya, Korea, Brazil, Indonesia, and Malaysia. Vietnam Feasibility Study and Assisting the government of Vietnam to formulate $230,620 Infrastructure PPP Options for the a sound infrastructure development strategy and development Implementation of build capacity in the design and execution of a strategies a Nation-Wide e-ID PPP e-ID system. The activity consists of three System for the Delivery major components: a PPP options study and of Public Services recommendations; a series of capacity building activities; and knowledge dissemination. Vietnam Strengthening of the Analyzing the current approach to performance- $40,000 Infrastructure Use of Performance- based contracts for road maintenance in Vietnam development Based Contracts for and developing a road map to strengthen these strategies Road Maintenance in contracts. Vietnam ANNEX PPIAF 2012 ANNUAL REPORT 61 Table A.5 PPIAF activities in East Asia and the Pacific approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity SNTA Program Indonesia Jakarta Credit Rating Supporting the updated credit rating and financial $75,000 Credit rating management assessment of DKI Jakarta, and strengthening of Jakarta’s newly established Debt Management Unit in assessing and monitoring debt. Philippines Assisting Tanuan City Supporting the city of Tanuan in enhancing its $75,000 Specific in Enhancing the City’s capacity for fiscal and financial management to performance Creditworthiness improve its bankability and creditworthiness. improvement Table A.6: PPIAF activities in Eastern Europe and Central Asia approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity PPIAF Albania Universal Access Assisting the Authority of Electronic and Postal $148,100 Infrastructure and Service Policy Communications to develop a comprehensive policy development Framework in the ICT for its Universal Access and Service Program. strategies Sector Albania Technical Assessments Helping the government prepare a privatization $75,000 Pioneering of Bistrica 1, Bistrica strategy for hydropower plants through technical, transactions 2, Ulza, and Shkopeti environmental, and social impact assessments. Hydropower Plants Armenia Support to the Supporting the State Committee on Water $75,000 Pioneering Armenia Water and Economy to prepare and process an enhanced transactions Sewerage Company management contract with the incumbent operator with the design for the Armenia Water and Sewerage Company of the enhanced service area for 2011–2013. This activity will ensure Management Contract the contract's compliance with the overall long- for 2011–2013 term economic and financial goals of the sector. Armenia Advisory Support Developing a plan for the improvement of the $75,000 Infrastructure for Private Sector performance of bus stations operations through development Involvement in private sector involvement. This activity will develop strategies Operation of Regional performance standards for bus station operations, Bus Stations assess the operator's financial condition, and identify possible sources for additional revenue. Moldova Feasibility Study for Funding the completion of an M-Cloud feasibility $200,000 Infrastructure Cloud-Based Shared study that will describe various options for development Infrastructure PPP developing and managing an M-Cloud PPP, detail strategies relative advantages and disadvantages of each, identify risks, and suggest risks allocation and mitigation strategies. 62 Table A.6: PPIAF activities in Eastern Europe and Central Asia approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Tajikistan Drafting a New Providing technical assistance to draft a new $200,000 Policy, Investment Law in investment law and conduct an independent regulatory, and Tajikistan valuation of two silver deposits in Tajikistan. institutional reforms Table A.7: PPIAF global activities approved in fiscal 2012 PPIAF Global Showcasing PPPs in Identifying innovative PPP projects and creating $40,000 Consensus Emerging Markets a report that highlights the impact of these building projects in emerging markets. The final report will showcase the top 40 submissions to demonstrate the transformational effects that PPP models can have in providing infrastructure for developing countries. The projects will be selected on the basis of innovation, development vision, and replicability. Global Leaders in Urban Responding to a high demand for the Leaders in $75,000 Capacity Transport Program— Urban Transport Program by translating all the building Translation and course material in French and by delivering two Workshop Delivery workshops for an audience of policymakers from low- to middle-income French speaking developing countries. Global The Governance of Supporting United Cities and Local Governments $200,000 Consensus Basic Local Public to produce the 3rd Global Report, which will building Services—3rd identify the role of local authorities in providing Global Report on basic services. The report will focus on better Decentralization and understanding this role, the possibilities of Local Democracy partnering with other stakeholders, and identifying (GOLD III) which future developments should be promoted to improve access to basic services. Global Private Participation Supporting the PPI Database to provide critical data $658,000 Emerging best in Infrastructure (PPI) and analysis in an objective manner to government practices Database Funding for policymakers, academia, the donor community, and Fiscal 2012 and Fiscal other stakeholders. The PPI Database disseminates 2013 information on trends in the private provision of infrastructure services, provides detailed project- level data, and identifies emerging trends and changing market conditions. ANNEX PPIAF 2012 ANNUAL REPORT 63 Table A.8: PPIAF and SNTA program activities in Latin America and the Caribbean approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity PPIAF Brazil Improving the Developing a forestry concession model and $400,000 Pioneering Sustainable Forestry advising the concession process of the National transactions Concession Model in Forests (“Flonas”) of Itaituba I & II, located in the the Amazon Brazilian State of Pará. The total area of these two Flonas is 641,105 hectares. The concession comprises a natural production forest with a project area of 416,718 hectares, including 333,000 hectares of net productive area, and is one of the first concessions of the second round of sustainable forestry management concessions carried out by the Brazilian Forest Service. Colombia Private Financing Supporting the government in structuring and $74,800 Infrastructure Window for Low- developing a “window” to evaluate and screen development Income Housing private Second Generation Macroproyectos. strategies Projects This activity will provide important support to the government to successfully harness private sector interest in developing the approximately 7,000 hectares of land identified under the Macroproyectos program. Haiti Transaction Support Providing technical assistance to develop a pilot $75,000 Pioneering for InfraVentures project for urban water kiosks in Haiti. This activity transactions Investment in DloHaiti will include a market survey and selection of the locations for the pilot kiosks. Panama Preparation of a Supporting the design and preparation of bidding $74,975 Pioneering Performance-Based documents for a performance-based contract with transactions Efficiency Improvement a private operator; preparing bidding documents Contract for IDAAN’s for the supervision contract for the company in Colón Business Unit charge of monitoring the operator’s performance targets and the execution of the contract’s activities; and dissemination of the contract and bidding process documentation. Peru PPP Options for Advising the government on how to improve $75,000 Infrastructure Irrigation Infrastructure the prospects for PPP in irrigation in the country development in general and, more specifically, to provide strategies recommendations on how to improve the Chavimochic PPP model in order to achieve a successful deal. Uruguay Development of Providing transaction assistance to the government $250,000 Infrastructure Financing Options for to review existing road projects, assess their overall development PPPs in Roads Sector bankability, and identify and develop financial strategies instruments for the PPP structure. This activity will provide guidance on how best to set up an appropriate and sustainable financial scheme for PPP agreements, including commercial and legal aspects. 64 Table A.8: PPIAF and SNTA program activities in Latin America and the Caribbean approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Regional Caribbean Identifying potential PPP projects, obstacles to $250,000 Infrastructure Infrastructure PPP Road those PPP projects, and possible strategies for development Map overcoming bottlenecks and implementing PPP strategies schemes that can further close the infrastructure delivery gap. SNTA Program Belize Improve Municipal Assisting town and city councils implement the $75,000 Specific Creditworthiness for recommendations of the Municipal Finance performance Belize Municipalities and Revenue Enhancement Report. Using this improvement diagnostic tool, and working with the Local Government Officer based in the Ministry of Local Government and Rural Development, this activity will support each of the councils to implement recommendations to improve their financial management systems, enhance their creditworthiness by increasing their revenue collection, and improve the efficiency of their expenditure. Colombia Feasibility Study to Analyzing the feasibility of developing and $179,780 Other Develop Tradable Air implementing a tradable air rights instrument to Rights Instruments increase functional densities in zones adjacent to to Mobilize Private Bogotá’s Carrera 7 “Green Corridor,” and mobilize Financing for Bogotá’s private sources of financing to the project. The Carrera 7 Bus Rapid specific objectives of this technical assistance Transit Corridor are to: i) carry out a market study to explore the developers market’s interest, potential demand and willingness to pay for additional building rights in the context of Bogota’s Carrera 7 “Green Corridor” project; ii) establish a clear methodology for setting the face value (initial auctioning price) of additional building rights taking into account current commercial property values; and iii) assess the legal framework to understand what is needed to take to market such an instrument. Mexico Strengthening Lending Assessing the development methodology of a credit $75,000 Other Market for Small risk model created by a Mexican non-bank financial Mexican Municipalities institution for portfolio level analysis of a loan book. This activity will review the model's ability to predict ratings and map the model's outputs to a measure of probability of default and/or expected loss. ANNEX PPIAF 2012 ANNUAL REPORT 65 Table A.9: PPIAF and SNTA program activities in the Middle East and North Africa approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity PPIAF Djibouti Options for Telecoms Helping the government develop a strategy to $107,690 Policy, Sector Liberalization in transform the telecoms sector into an engine of regulatory, and Djibouti economic growth and employment. institutional reforms Djibouti Energy Sector Assisting the government of Djibouti to refine $459,275 Infrastructure Assessment its energy sector master plan, assessing the cost development of refurbishing existing generation plants, and strategies identifying least cost infrastructure investments that can be effectively financed and managed through a PPP. Djibouti Feasibility Assessment Analyzing the technical, economic, and financial $400,600 Infrastructure for Solar Rural feasibility of rural electrification options to development Electrification determine the most viable and sustainable roll-out strategies option available to electrify each of 25 villages in Djibouti. Lebanon Improving the Strengthening the Beka'a Region Water Authority's $75,000 Capacity Performance of the engagement with the private sector and examining building Beka’a Regional Water its current PPP to ensure the private operator is able Authority to respond to the utility's needs in an efficient and cost-effective manner. Morocco Contract Management Providing a diagnostic and recommendations on $74,950 Emerging best Support in the Solid how to resolve disputes about the management practices Waste Sector and execution of solid waste management contracts by municipal implementing agencies. Regional Developing Alternative Assessing the potential of activating installed $74,510 Infrastructure Broadband Networks unused fiber optic capacity in the region to form a development regional backbone network. strategies Regional Training Course on Conducting a training seminar to introduce PPPs $50,000 Capacity PPPs in the Water to water sector professionals in the West Bank building Sector and Gaza, Iraq, and Jordan. This workshop will raise general awareness of the PPP process, its advantages and challenges, as well as financing modalities available for PPP development. West Bank and Southern West Providing legal support for the development of a $199,975 Pioneering Gaza Bank Solid Waste solid waste management PPP in the West Bank and transactions Management Project Gaza. 66 Table A.9: PPIAF and SNTA program activities in the Middle East and North Africa approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity SNTA Program Lebanon Facilitating Sub- Conducting a quick diagnosis of the financial and $75,000 Specific National Government administrative performance of the Al-Fayhaa Union performance Access to Commercial of Municipalities, and the municipalities of Tripoli, improvement Credit and Capital Mina, and Beddawi. Key reforms to improve the Markets municipalities' financial administration and increase access to capital markets will be identified. West Bank Improving Municipal Formulating and implementing evidence-based $161,300 Specific and Gaza Revenue Generation policies and programs on municipal finance, with performance Policies and Framework an emphasis on municipal revenue generation. improvement Regional Regional PPP Supporting a forum that will assess the PPP $25,005 Capacity Conference market and needs in the Middle East and North building Africa region following the global financial crisis and the Arab Spring, and build an understanding and capacity of regional governments and policymakers, as well as other key stakeholders, to better understand the fundamentals and key ingredients of PPPs. Table A.10: PPIAF activities in South Asia approved in fiscal 2012 Country Activity Description Funding Type of (US$) activity PPIAF Bhutan Pre-feasibility Supporting the government in the preliminary $64,450 Infrastructure Assessment of assessment of potential infrastructure projects to Development Infrastructure Projects develop a pipeline of feasible PPP transactions, Strategies Under a PPP Model including preparing a preliminary assessment of the feasibility of several infrastructure projects by providing assistance for pre-feasibility studies. Bhutan Telecom Sector Policy Developing a strategic policy roadmap to guide $75,000 Policy, Roadmap the development of Bhutan's telecom sector on regulatory, and introduction of competition, divestment by the institutional existing operators, and government transformation reforms agenda to use the telecom sector for cost-effective service delivery. India Assistance in Developing a PPP policy framework to clarify $75,000 Policy, Finalization of a PPP existing guidelines and create new policies on Regulatory, and Policy developing, contracting, and managing PPPs. Institutional Reforms ANNEX PPIAF 2012 ANNUAL REPORT 67 Table A.10: PPIAF activities in South Asia approved in fiscal 2012 (continued) Country Activity Description Funding Type of (US$) activity PPIAF Maldives Contract Management Providing management contract support to Malé $74,950 Capacity Support for Solid City Council to structure and implement a viable building Waste Management tariff structure for waste management services, PPP develop a mechanism for tariff collection, develop an information system to maintain user data, and monitor the performance of the concessionaire. Nepal Screening and Initial Identifying potential projects in the urban and $50,000 Infrastructure Feasibility Assessment transport sector that are suitable for financing development of Potential Private- under the PPP. This activity will assist the strategies Public Infrastructure government in deciding modalities for future Projects investments in these sectors. Sri Lanka PPP for the Advising the Sri Lanka Urban Development $75,000 Infrastructure Environmental, Authority and the Colombo Municipal Council development Recreational and on a PPP pilot model that will best valorize the strategies Economic Valorization environmental, recreational and urban development of Beira Lake in potential of the Beira Lake. This activity will Colombo also assist the authority and municipality to development the instruments and processes to implement the PPP. Sri Lanka Identifying PPP Developing the capacity of the Ministry of $75,000 Capacity Opportunities for Local Economic Development and selected Provincial building Governments and Local Governments in Sri Lanka to identify the potential for private participation in infrastructure development. This activity will also develop a prioritized list of possible projects that could then be translated into PPP transactions with further support in the future. Sri Lanka Pre-feasibility Supporting the government in the preliminary $75,000 Infrastructure Assessment of assessment of potential infrastructure projects to development Infrastructure Projects develop a pipeline of feasible PPP transactions. strategies under a PPP Model Photo Credits 1. IFC photos (cover page photo, pages 18, 28, 38) 2. PPIAF PMU photos (pages 6, 8, 12, 16, 24, 29 (people on motorcycle), 32, 34, 39, 47, and 49) 3. Lakshman Nadaraja/World Bank (pages 10 and 37) 4. Alex Baluyut/World Bank (page 13) 5. Yosef Hadar/World Bank (page 22) 6. Arne Hoel/World Bank (page 25, box 2 and page 48) 7. Jonathan Ernst/World Bank (pages 26-27) 8. Nugroho Nurdikiawan Sunjoyo/World Bank (page 29, box 3) 9. Armine Grigoryan/World Bank (page 30) 10. Yuri Mechitov/World Bank (page 31) 11. Edwin G. Huffman/ World Bank (page 33, little boy with buckets of water) 12. Simone D. McCourtie/World Bank (page 33, box 5) 13. Girl Harvesting (Stock photo) www.ppiaf.org