Domestic Private Sector Provider Initiative

Transcription

1 Domestic Private Sector Provider Initiative Peter Roberts Global Funds Department Department for International Development, UK Unlocking the Potential of the Domestic Private Sector in Water and Sanitation Services June 10-11, 2008

2 Domestic Private Sector Providers Initiative Recognising that the domestic private sector is a critical but neglected component in enhancing service delivery to the poor

3 DPSPI intended outputs Practice developed and tested for: Policy and regulatory reform Commercial finance facilitation Institutional capacity building appropriate Monitoring & Evaluation systems Interfacing and transition processes Small and medium private providers capacity building Accountability mechanisms promoted

4 Private Sector in Water and Sanitation Service Delivery Domestic Private Sector Providers Initiative - managed by WSP Water and Sanitation Urban Partnership putting PPP into practice Water Dialogues encouraging national stakeholder dialogue

5 Private Sector Infrastructure portfolio of facilities Private Infrastructure Development Group Public Private Infrastructure Advisory Facility Energy Services Delivery Urban Services and Housing Water and Sanitation Services Delivery

6 Private Sector Infrastructure portfolio of facilities DFID SECO DGIS Sida World Bank group ADA Irish Aid Governing Council of PIDG Members PIDG PMU PIDG Trust DevCo Trust GPOBA Trust EAIF GuarantCo InfraCo TAF DevCo GPOBA PIDG facilities Affiliated Programmes Public Private Infrastructure Advisory Facility Energy Services Delivery Urban Services and Housing Water and Sanitation Services Delivery

7 Private Infrastructure Development Group (PIDG) DFID SECO DGIS Sida World Bank group ADA Irish Aid Governing Council of PIDG Members PIDG PMU PIDG Trust DevCo Trust GPOBA Trust EAIF GuarantCo InfraCo TAF DevCo GPOBA PIDG facilities Affiliated Programmes

8 Constraints to Private Sector Investment in Infrastructure Lack of an appropriate enabling environment Shortage of long-term debt High up-front cost of project preparation Shortage of local currency investment Limited managerial and technical capacity Guarantees to spread coverage of risk (political and other)

9 How do we progress from here? Are there still Gaps in sector knowledge and capacity Links for optimising the contributions made by the private sector Constraints in financing

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11 Domestic Private Sector Providers Initiative Recognising that the domestic private sector is a critical but neglected component in enhancing service delivery to the poor The objective of the Domestic Private Sector Participation Initiative (DPSPI) of WSP is to support activities that help to increase sustained access to improved water and sanitation services for poor people

12 Expenditure on Infrastructure in Developing Countries 25% from private investment 5% from official aid Source: DFID Infrastructure Strategy Paper, April % from governments budgets

13 Addressing the Enabling Environment The Public Private Infrastructure Advisory Facility (PPIAF) A TC facility funded by a consortium of 14 donors Housed at the World Bank Annual budget of c.usd 15 million Services available to all developing countries, but with concentration on the poorest countries

14 Addressing Financing Constraints The Private Infrastructure Development Group (PIDG) A consortium of 7 donors (Austria, Ireland, Sweden, Switzerland, The Netherlands, UK and the World Bank) seeking to help overcome constraints to PSI in infrastructure Currently funding six facilities Annual budget of c.usd 200 million (and growing)

15 InfraCo Costs of developing projects and building capacity InfraCo Asia* DevCo Technical Assistance Facility Underdeveloped credit and capital markets (local / foreign currency loans and guarantees) Emerging Africa Infrastructure Fund GuarantCo InfraCo Asia* Currency InfraCo Sub-Saharan Liquidity Africa* Facility* Funding access to infrastructure services for the poor Global Partnership for Output Based Aid Technical Assistance Facility

16 capex opex total $ bn $ bn $ bn % ICT Irrigation Power Transport WatSan Total

17 Reflections DPSPI projects are generally of high quality and effective in relation to the agreed objectives. DFID s support can be seen as potentially laying the groundwork for future progress Some components of the program have made considerable progress particularly with regard to the program purpose and goal All projects demonstrate potential for some direct impact upon the poor.

18 Next Steps Are there any advantages to reducing the number of intervention sites? Would a tighter focus on particular locations for these types of activities/outputs produce a more effective, synergistic response, rather than a scattergun approach?