Presentation on theme: "1. Usage of PPPs in Africa 2. Institutional environment for PPPs a) Are we rich enough to buy cheap? Jernej Pintar."— Presentation transcript:
1. Usage of PPPs in Africa 2. Institutional environment for PPPs a) Are we rich enough to buy cheap? Jernej Pintar
Inspired yesterday by the way you are dressed - celebration of life – hence I join you today in my national clothes
Growth of usage of DBFOs: 1984-2010 1984 – 91: First trials 1991 – 97: First expansion 1997 – 04: Stagnation 2004 – 07: Second expansion 2008 – 10: Decrease Research specifics
Situation in Africa? Sector% of PPPs % of investment Invest Average investment Electricity37,14%33,07%181,5 Ports23,33%12,62%103,1 Railroads8,10%10,60%352,9 Natural Gas7,62%25,15%856,4 Telecom6,19%4,59%217,8 Wastewater6,19%4,76%104,8 Airports5,71%3,17%153,5 Roads4,29%5,90%269,3 Water1,43%0,16%39 between 200-250 PPP project up to 2012, worth 50 billion USD. Average project was worth 250 million USD (smallest in my reserach: 1M, largest 3,5 Billion – Railroad in South Africa)
Usage of PPPs by Sector (world) Inrastructure vs Sectors
Institutional environment for DBFOs Segments of institutional environment look at: -Legal environemtn -Political environment -Financial environment -Business environment
Institutional environment for Frequent DBFOs Institutional factors that increase the frequency of projects (No. of PPPs) (besides Debt ) Government effectiveness and quality of public administration Rule of Law & strong property rights High economic freedom Strong regulation of competition High credit rating of a country and ease of doing business. Experiences with privatization Please do not forget – this is only about institutions (not about political will)
Graph: Zero PPPs vs Max Invest+No.PPPs List of countries
Final thoughts Make good institutional support for PPP projects – then you will be able to use them not only for one or two opportunities, but as frequent mechanism. Don’t buy cheap, because it costs much more later on. PPPs for going green: - Green projects -Development - indirectly green (uplifting the socity / standard) -Eg. local projects, with local partners (local jobs, local business, capacity-building).
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