Below are some examples of the World Bank Group’s support to PPPs that increase access to infrastructure services, benefit the governments’ bottom lines, and accrue further development benefits.
Lighting Up Streets- Brazil
More than 5,000 municipalities in Brazil rely on outdated, inefficient, high-pressure sodium and mercury vapor lamps for lighting streets. When combined with “smart” management and control systems, LED technology for public street lighting can deliver energy savings of up to 80 percent. However, many municipalities struggle to access financing to upgrade their streetlights.
In partnership with the World Bank Group, the Global Infrastructure Facility (GIF) supported CAIXA, one of Brazil’s public banks, to structure and procure a set of public street lighting modernization PPPs in 10 Brazilian municipalities.
As of 2022, five municipalities had started using the LED technology. Ten upcoming pilot transactions will reduce emissions by about 21,563 tons of CO2 per year and provide a model for a future program of investments, expected to increase reductions up to an annual total of 565,556 tons. This will contribute to one-fifth of Brazil’s Paris Agreement target to improve energy efficiency in electricity by 10 percent by 2030.
Supporting West Africa’s first PPP Framework- ECOWAS
Governments in the Economic Community of West African States (ECOWAS) - Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Mali, Liberia, Niger, Nigeria, Senegal, Sierra Leone, and Togo - are looking for a regional solution to infrastructure development.
ECOWAS’ regional infrastructure masterplan comprises 201 projects in connectivity, digital development, energy (including renewable energy), and transport from 2020 to 2045 with an estimated investment requirement of $122 billion. With Public - Private Infrastructure Advisory Facility (PPIAF) support, ECOWAS successfully developed a comprehensive PPP framework. This is a critical step towards establishing a conducive and investor-friendly environment and closing a substantial regional infrastructure gap estimated to be between $20 billion and $36 billion annually.
The Parliament approved resolutions on regional PPPs and associated guidelines in December 2021. Once in place, the new regional framework will facilitate delivering regional infrastructure and public services in the ECOWAS region.
Improving Urban Mobility in Abidjan, Côte d’Ivoire
With the support of the World Bank and the Global Infrastructure Facility, the government of Côte d’Ivoire is building a Bus Rapid Transit (BRT) system aligned with the country’s 2016-2020 National Development Plan and Greater Abidjan Urban Master Plan.
The BRT is part of the World Bank’s broader $400 million Greater Abidjan Port City Integration project, one of the largest public transport PPPs in Côte d’Ivoire and among the first BRT systems in West Africa. It is expected to mobilize $130 million from the private sector.
The 20-kilometer BRT will transform the public transport system along the Yopougon-Bingerville corridor and its feeder lines in Abidjan. It will reduce travel time and increase access to jobs from low-income, outlying areas into the Abidjan city-center, with an estimated 600,000 additional jobs becoming more accessible. The BRT system will also encourage safe and equitable access and promote employment opportunities for women in its operations. Importantly, it will use climate-friendly technology.
Boosting PPPs - Pakistan
The World Bank is collaborating with Pakistan’s PPP Authority (P3A) to advance private sector investment. With PPIAF support, three projects have been selected by the P3A for accelerated development: training on PPP pipeline screening, fiscal commitment and contingency frameworks, and climate considerations to build the capacity of the P3A. A follow-up activity is being planned, in partnership with the Global Infrastructure Facility (GIF), to further develop the multi-window financing vehicle, expand the PPP pipeline to include social infrastructure projects, and provide additional capacity building support.
Last Updated: Sep 12, 2022