Public Private Infrastructure Advisory Facility (PPIAF)
PPIAF provides grants to help governments create a sound enabling environment for private participation in infrastructure through different types of activities, such as:
- Framing infrastructure development strategies;
- Designing and implementing policy, regulatory, and institutional reforms;
- Organizing stakeholder consultation workshops;
- Building government institutional capacity; and
- Designing and implementing pioneering projects.
PPIAF also produces and disseminates knowledge and best practices on private participation in infrastructure.
Negotiation Support General
PPIAF is a global technical assistance fund covering all regions of the world with a particular focus on low-income countries and fragile states, with the majority of activity in Sub-Saharan Africa.
Eligible countries include recipients of official development assistance as defined by the Development Assistance Committee of the OECD (for a list of countries visit the OECD website). Two-thirds of PPIAF’s support goes to low-income countries and half of PPIAF support goes to Africa. Requests from low-income countries will receive special consideration.
Eligible sectors include water and sanitation, solid waste management, telecommunications, transport, energy, and irrigation. Priority is given to activities that support strategies designed to expand access to infrastructure for poor people at affordable prices.
Approval criteria for PPIAF funds can be found in the Program Charter, section D.
In 2014 PPIAF finalized a new strategy and business plan for fiscal year 2015 to 2017. The new strategy is underpinned by the Theory of Change: http://www.ppiaf.org/sites/ppiaf.org/files/documents/PPIAF_3yrBusinessPl...
PPIAF focuses on the water, energy and transport sectors.
Collaboration with partners:
PPIAF works in partnership with a number of international finance institutions (IFI) and the larger donor community. PPIAF works with various partners to address the problem of the infrastructure gap in the developing world.
Types of expertise:
PPIAF provides three types of technical assistance for governments of low- and middle-income countries:
- Enabling legal environments: PPIAF assists governments to develop enabling environments that facilitate private investment in infrastructure by: preparing and reviewing policy frameworks; developing and implementing legal and regulatory frameworks; designing and strengthening new institutions to support private participation in infrastructure; and translating the enabling laws, regulations and policies into specific infrastructure transactions.
- PPIAF’s project cycle-related assistance addresses a lack of capacity to develop and transact “bankable” projects that can attract private sector investment. Examples of project cycle support provided by PPIAF includes the preparation of financial models, contracts and bidding documents, and providing advisory support after transactions reach financial closure.
- Capacity and awareness building activities help developing countries by sharing knowledge of key issues related to private infrastructure development. PPIAF identifies and disseminates knowledge by publishing best practices studied, developing toolkits, and conducting workshops and seminars.
Number of in-house experts:
Fifteen (15). For the bios of PPIAF staff see here.
PPIAF is a commissioning trust fund that hires outside consultants to deliver the outputs requested by its clients. PPIAF' s Project Management Unit (PMU) supervises the work of the consultants to assure quality and results in the implementation of grants. Depending on the nature of the activity, PPIAF may hire international council to advise its clients on upstream PPP institutional, regulatory and legal framework for example. For more information, see section 33 of the Program Charter.
Length of involvement:
2 to 3 years on average per project, although PPIAF is working to shorten the implementation period by emphasizing closer supervision and monitoring.
Fee/non-fee based support:
Generally non-fee based. PPIAF is a commissioning trust fund that hires outside consultants to deliver the outputs requested by its clients.
Speed of response:
Depending on the size of the grant requested it could take 2 weeks to 2 months to approve a grant request.
Types of negotiation support
Setting the Legal & Policy Framework Stage:
PPIAF provides technical and institutional support for client countries to develop their PPP policies and strategies.
PPIAF also provides international best practices to support reform of legislative and regulatory frameworks; however the actual drafting of laws is not within PPIAF's mandate
Generally no, although PPF does (1) provide assistance with preparing model contracts on a best practice basis, and (2) PPIAF provides grants to develop PPP financing options.
Contract Negotiation Stage:
No - PPIAF does not provide negotiation support. PPIAF's focus is on the PPP enabling environment.
Implementation & Monitoring Stage:
No, although PPIAF does provide support to develop institutional capacity for contract monitoring.
Advancing Knowledge-Sharing and Management:
Yes – Capacity Building and knowledge dissemination are at the core of PPIAF mandate.
PPIAF's knowledge center is a valuable source of up-to-date information on infrastructure and public-private partnerships (PPPs), with materials and resources that explore current trends and encourage discussion, written by experts in the field:
- PPIAF's Library includes PPIAF publications, PPIAF-funded reports, books, short notes, and other resources.
- The PPP Training Resources section includes online courses and videos on various PPP-related topics, including the Body of Knowledge on Infrastructure Regulation and the PPP in Infrastructure Resource Center (PPPIRC) for Contracts, Laws, and Regulation, which includes sample documents, clauses, and legislation from the power, water and sanitation, telecom, and transport sectors to provide practical guidance and good practice on the planning, development, and legal structuring of infrastructure projects, especially those involving the private sector.
- PPIAF-funded Toolkits consist of self-taught training courses that are either available online or on CD-ROM.
- The Private Participation in Infrastructure Database is the leading source on private participation in infrastructure trends in the developing world, and has data on more than 3,800 projects in transport, energy, telecommunications, and water and sewerage in 150 low- and middle-income countries around the world.
- The regulatory reforms section provides information and resources on PPP-related regulation, and includes a list of several PPIAF-supported regional regulation groups.