BRIEF

Public-Private Partnerships (PPPs) – Tools

April 28, 2016

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Download a copy of our PPP Tools Handout here (PDF).

The World Bank Group is committed to helping governments make informed decisions about improving access and quality of infrastructure services, including, where appropriate using Public-Private Partnerships (PPPs) as one delivery option.  This approach is further enabled by working on: strengthening data, building capacity, developing and testing tools, promoting disclosure and encouraging engagement with all relevant stakeholders.  

The tools presented here showcase the World Bank Group's efforts in enabling better decisions around PPPs and empowering better decision making. In some cases, PPPs are the answer, while in other situations, they may not be the right approach to deliver infrastructure services. These tools enable stakeholders to get one step closer to making an informed decision.

As we develop these tools, we are committed to transparency and seeking input to further enhance them. Therefore, some tools will be made available on this platform in draft form and under consultation as we seek public feedback that we hope will inform the revision of the design of the tool before considering it final.

The goal and commitment is to ensure we develop the most helpful tools to our stakeholders, inspired and informed by the needs and feedback we get from ongoing consultations.

We welcome your feedback, please feel free to email us at wbginfra@worldbankgroup.org.

 

List of Tools on this Page

A Framework for Disclosure in Public-Private Partnership Projects

Public-Private Partnerships Fiscal Risk Assessment Model

Report on Recommended PPP Contractual Provisions, 2017 Edition

Infrastructure Prioritization Framework

PPP Certification Program

Country PPP Readiness Diagnostic Tool

Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects

 

A Framework for Disclosure in Public-Private Partnership Projects

For too long, there has been a dearth of literature and guidance on policy and practice in Public-Private Partnership (PPP) disclosure and a wide gap in understanding the mechanics of disclosure by practitioners within governments and the private sector.

At the request of the G20, the World Bank Group is working on a framework for public disclosure of information in PPP transactions, along with the preparation of a database on disclosure practices followed in various countries.

Based on a substantial body of knowledge created during the last few years through reviews, and experience gained through technical guidance, the World Bank Group prepared Framework for Disclosure in Public-Private Partnership Projects, a systematic structure for proactively disclosing information. This is accompanied by two additional documents, Jurisdictional Studies and Good Practice Cases, which provide relevant background and resources that complement the goals of the Framework.

Download:

 

Public-Private Partnerships Fiscal Risk Assessment Model

The Public-Private Partnerships Fiscal Risk Assessment Model (PFRAM) is an analytical tool to assist governments and country analysts in assessing potential fiscal costs and risks arising from a PPP project. PFRAM supports the dialogue of the IMF and the World Bank Group with their client countries on macroeconomic stability, debt sustainability, fiscal risk management, governance, public finance management and public investment management. PFRAM follows a five step decision-tree, automatically generating a set of outcomes: the expected cash flow for the private partner; the government’s income statement, balance sheet and cash statement; a series of charts comparing fiscal balance and DSA with/without the specific PPP project; a project risk matrix; and a sensitivity analysis of macro variables.

PFRAM requires project-specific data and country specific macroeconomic data, allowing the user to work under different assumptions. Thus, the fiscal outcomes are indicative and sensitive to these assumptions. PFRAM is still in a pilot stage.  As a work-in-progress, the PFRAM is expected to be improved and refined in the future based on comments and suggestions from user experience. We would welcome any feedback you may have on the model or the guidance document - please contact us here to provide this. 

Download:

 

Guidance on PPP Contractual Provisions, 2017 Edition  

The complexity of public-private partnership (PPP) transactions frequently means that considerable time and expense is involved in preparing and finalizing a PPP contract that is at the center of every PPP project. This has led many stakeholders to ask whether it is possible to make the contractual drafting process quicker and less expensive by standardizing the provisions in such contracts. Given the variety of PPP transactions, different legal systems and the need for ‘tailor-made’ provisions to deal with the characteristics of specific projects, it is recognized that the development of complete PPP contracts on an international basis is unrealistic. Nevertheless, there is merit in focusing on certain contractual provisions that are found in virtually every PPP contract.

Against this background, the World Bank Group (WBG)’s PPP Group had initially developed the Report on Recommended PPP Contractual Provisions, 2015 Edition (the 2015 Report), which sets out language for a selection of these typically encountered provisions. In response to the feedback received on the contents of the 2015 Report during internal and external consultations with all relevant stakeholders – including both governments and private sector parties, the WBG’s PPP Group has now produced an updated version, the Guidance on PPP Contractual Provisions, 2017 Edition.

Download:

 

Infrastructure Prioritization Framework

The Infrastructure Prioritization Framework (IPF) is a multi-criteria decision support tool that considers project outcomes along two dimensions – social-environmental and financial-economic. When large sets of small- to medium-sized projects are proposed, resources for implementation are limited, and basic project appraisal data (but not full social cost-benefit analysis) are available, IPF can be used to inform the selection of projects by combining selection criteria into social-environmental and financial-economic indices. These indices are used to plot projects on a Cartesian plane, and the sector budget is imposed to create a project map for comparison along each dimension.

IPF is structured to accommodate multiple policy objectives; attend to social and environmental factors; provide an intuitive platform for displaying results; and take advantage of available data whilst promoting capacity building and data collection for more sophisticated appraisal methods and selection frameworks. Decision criteria, weighting, and sensitivity analysis should be decided and made transparent in advance of selection, and analysis should be made publicly available and open to third-party review.

Download:

Infrastructure Prioritization Framework

 

PPP Certification Program

The APMG Public-Private Partnerships (PPP) Certification Program is now available—an unprecedented global resource aiming to foster a level of knowledge and understanding among PPP practitioners. Partly funded by PPIAF, the program is a joint innovation of the Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, Islamic Development Bank, Multilateral Investment Fund, and the World Bank Group.

Learn more about the PPP Certification Program

Download the PPP Certification Program Guide

 

Country PPP Readiness Diagnostic Tool

The Country PPP Readiness Diagnostic Tool assesses a country’s readiness to implement PPPs by reviewing the PPP environment and comparing it to global best practice standards to determine areas that require change or improvement. The areas under review include PPP experience; stakeholder support and ownership; legislative and regulatory framework; institutional framework; government support and managing fiscal risk; access to finance; and transparency and accountability.

Defining an approach to addressing the areas that require attention depends on country circumstances and the relative importance of each area.  There are three phases: (i) desktop preparation; (ii) on-site due diligence; and (iii) strategy definition. Each phase is structured around a set of key questions, known as due diligence checklists. This process culminates in the development of a customized PPP strategy for the country.

The Country PPP Readiness Diagnostic Tool is currently being piloted and based on this may be further refined.

Download:

Country PPP Readiness Diagnostic Tool

Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects

Public-private partnerships (PPP) for the private delivery of public services and infrastructure projects are traditionally publicly initiated. Unsolicited proposals (USPs) are an exception to the public initiation of infrastructure projects. Although international approaches to managing USPs differ, many USP projects have created challenges related to transparency, governance and lack of competition, particularly in developing countries. The Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects provides dedicated recommendations on how to address the challenges related to USPs and considerations for developing a USP Policy.

This initiative includes three documents: the Main Findings and Recommendations, which is considered as a summary; the Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects, which provides key policy decisions and considerations for the USP policy; and the Review of Experiences with USPs, an in-depth review of global best practices with USP policies and projects, the findings of which informed the development of considerations and recommendations in the Guidelines.  Governments are advised to use the documents in parallel, with the hope they will support the fair and competitive delivery of infrastructure projects that generate value for money and meet the public interest.

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Last Updated: Jun 27, 2017