Conference Highlights Role of Public-Private Partnerships

World Bank officials addressing a global conference on public private partnerships in infrastructure in Washington, D.C., underlined the importance of protecting infrastructure stocks and services from further deterioration during the global financial crisis. Addressing public sector professionals mandated to pursue public private partnerships in infrastructure, Kathy Sierra, World Bank Vice-President for Sustainable Development, cited multiple infrastructure finance initiatives launched by the World Bank Group, including an Infrastructure Crisis Facility created by the International Finance Corporation (IFC) to provide rollover financing and to recapitalize distressed Public-Private Partnership (PPP) projects. She also highlighted Energy for the Poor, an initiative designed to alleviate the impact of this crisis on the poorest segments of the population in developing countries.

Kathy Sierra, World Bank Vice President for Sustainable Development

“This coordinated effort is intended to prevent the deterioration of infrastructure stocks and services during this period of crisis and avoid cuts and delays in investments in infrastructure,” Sierra told Ministers, senior officials and private sector representatives who gathered at this four-day event hosted by the World Bank Institute, Public-Private Partnerships in Infrastructure (PPPI) Days 2008.

Other speakers at the conference noted the stresses to financing PPP projects from all market segments, including equity, debt financing, and guarantees. Speaking on trends in the Asia-Pacific region, Asian Development Bank Director Michael Barrow told the conference ” We are already seeing major challenges ahead in closing deals, with indications that 2009 may be more difficult. None of this however, undercuts the strong interest in well designed bankable projects.”  Acknowledging these challenges in the global market, Arvind Mayaram, a delegate with the Government of India, nonetheless emphasized the continued importance of PPPI as an instrument for financing and service delivery.

Mayaram, who played a key role in developing India’s policy and regulatory framework for PPPI, noted that India has about 300 existing PPPI projects at central and state levels, of all sizes and covering the spectrum from airports, metro rail networks, among others, along with 400 more projects in the existing pipeline.

WBI Vice President Sanjay Pradhan addresses delegates from 65 countries at PPPI conference.

In his opening remarks on the first day of the conference, Sanjay Pradhan, Vice-President of the World Bank Institute, noted the presence of Ministers among the 160 participants from over 65 countries attending the conference.

“The seniority of the audience at this conference is an indication that this PPPI touches important issues of governance, including stakeholder consultations, value-driven approaches to procurement and proper management of budget commitments, and environmental sustainability,” Pradhan said.

Sanjay Pradhan, Vice President, WBI

He also welcomed the emphasis placed, at this third annual PPPI Days conference, on wide participation and inputs from private sector lenders, investors, advisors, or private operators. This has allowed public policy and private sector perspectives to complement each other, an intrinsic feature of PPPI itself.

The four-day conference is co-organized by the World Bank Institute and the Asian Development Bank Institute. On Thursday, December 18th, a global panel of private sector representatives covering market segments ranging from equity, debt financing, rating, advisory services, and PPP operators, will discuss the future of PPPI finance. The panel discussion will be webcast live within the World Bank.

Related links:

Press Release

PPPI Days 2008 Website