1. East African Community/US Workshop on Sustainable Transport Systems August 26-27, 2009

2. Public Private Infrastructure Advisory Facility Multi-donor facility Established 1999 16 Donors including USAID, MCC and AfDB Managed by World Bank Annual budget $30 million, Portfolio: $170 million Average grant size of $225k, half less than $75k Half resources utilized in Africa Upstream policy and regulatory systems PPPs, management contracts, and debt issuances

3. Public Private Infrastructure Advisory Facility Demand-driven model Approvals in 4 to 6 weeks Governance & Management Structure Application, approval and monitoring Focus on infrastructure, but includes utility/municipal financing Activities not tied to specific financiers or financing options

4. Ongoing Transport Activities in East Africa Rwanda: Debt Financing for Kigali Bus Terminal ($260,000) Tanzania: Dar es Salaam Bust Rapid Transit System ($75,000) Tanzania: Prefeasibility Study for PPP options for Kisarawe Freight Station ($330,000) Uganda: Bus Rapid Transit Conceptual Design ($280,000) Kenya: Debt Financing Options for Kenya Airport Authority ($275,000) Regional: Mtwara Cooridor PPP Development ($685,000) Regional: Core Strategic Transport and PPP Options for East/Southern Africa ($600,000)

5. Completed PPIAF Transport Studies in East Africa Ethiopia: PSP in Urban Transport through private operators ($250,000) Uganda: Multi Sector Transport Regulator Agency ($340,000) Kenya : PPP Strategy for Kenya Airports ($325,000) Kenya : Road Concessions ($543,000) Kenya: Institutional Framework for privatization of Railways Corporation ($393,000) Tanzania : Implementation of PPPs in the road sector ($160,000) Tanzania : Improving Airport Management through private sector Participation ($230,000)

6. Financing the Infrastructure Backlog US$bn. pa over 10 years Capital Expenditure Operating expenditure Total ICT0.81.11.9 Irrigation4.10.84.9 Power23.219.442.6 Transport10.79.620.3 WSS2.77.310.0 Total41.538.279.7 Source AICD

7. Types of Partnerships Debt instruments raising capital from private local or international markets Management contracts delegating service(s) to private partners Public Private Partnerships whereby public ownership is maintained but service delivery is contracted to private sector

8. Operation & Maintenance contract Design Build Design Build Operate Lease Develop Operate Buy Build Operate Build Transfer Operate Build Operate Transfer/ Concession Build Own Operate Roles, Skill Requirements, and Risks of Private Sector Low FullyPublic FullyPrivate High PPPs : Spectrum of Options

9. Opportunities and Partnerships Operating Expertise Enhanced Efficiencies Private Sector Capital (as appropriate) Long Term Financing (as appropriate) Capex Contribution (as appropriate) Reduce/Eliminate Forex Risk Definitive Public Sector Role

10. Challenges and Partnerships Clear Definition of Need and Scope Time Regulatory Environment Technical Capacity and Human Resources Capital Market Political and Economic Market Tenor Risk Allocation\Leveraging Private Resources

11. Partnerships and the Fiscal Crisis Flight to Quality Debt Markets Tightening (Interest Rates and Tenor) More Reliance on DFIs Increased Role of Local Private Operators and Investors Smaller is Better Strong, Transparent Regulatory Environments

12. PPIAF Contact Details East and Southern Africa Office: Nairobi, Kenya www.ppiaf.org Telephone: +254-20-271-4095 Contact: jkolker@worldbank.orgjkolker@worldbank.org Africa Infrastructure Country Diagnostic http://infrastructureafrica.org