ANNUAL REPORT PUBLIC-PRIVATE INFRASTRUCTURE ADVISORY FACILITY 2020 PPIAF is the only global facility dedicated to strengthening the policy, regulatory, and institutional underpinnings of private sector investment in infrastructure in emerging markets and developing countries, and enabling finance for subnational entities. We call this the critical upstream. While many initiatives focus on developing infrastruc- ture projects with private sector participation, PPIAF sets the stage to make this possible by building institutions, strengthening the capacity of counterparties, and reducing policy, regulatory, and institutional risks. Turning hundreds of thousands in grant financing into hundreds of millions in infrastructure investment—this is the role of PPIAF. ANNUAL REPORT PUBLIC-PRIVATE INFRASTRUCTURE ADVISORY FACILITY 2020 PPIAF Donor Partners Wichtiger HINWEIS ! Innerhalb der Schutzzone (hellblauer Rahmen) darf kein anderes Element platziert werden! Ebenso darf der Abstand zu Format- resp. Papierrand die Schutzzone nicht verletzen! Hellblauen Rahmen der Schutzzone nie drucken! Siehe auch Handbuch „Corporate Design der Schweizerischen Bundesverwaltung“ Kapitel „Grundlagen“, 1.5 / Schutzzone www. cdbund.admin.ch THE WORLD BANK IDRB • IDA Contents Foreword...................................................................................iv MCC & PPIAF........................................................................ vi Indonesia & PPIAF.......................................................... viii Overview.....................................................................................1 Review of FY20.......................................................................17 Regional Highlights...........................................................29 FY20 Achievements............................................................57 Program Finances..............................................................67 Annex.........................................................................................73 iv Foreword By the PPIAF Program Manager The PPIAF FY 2020 Work Plan was cautiously opti- Then, COVID-19 struck. All the work PPIAF has mistic that the world was finally turning the corner been supporting on identifying sustainable in- on the 2008 global financial crisis, but recognized vestments; on improving the regulation of markets that for emerging markets and developing econo- to build investor confidence and competition; on mies, the crisis would likely result in lower accumu- reinforcing the creditworthiness of subnational lation of productivity-enhancing capital that could entities and the capacity of governments to man- last into the next decade. Our plan was to double age their private participation in infrastructure down on supporting countries to develop good (PPI) investment programs; suddenly become a governance of public-private partnerships (PPPs) safety net that will serve client countries through and private financing to accelerate infrastructure the times ahead. investments. And, thanks to the extraordinary ad- ditional contributions from PPIAF donors, we were An example of this is our work in Vietnam, which, able to program 20 percent more than planned in with a growing economy and reaching the limits just these kinds of activities, particularly in Africa. of its fiscal ceiling, needed a way to better opti- mize the use of public resources by combining them with private investments. Vietnam needed to modernize its PPP legal framework in order to direct private investments in crucial sectors such as transport, energy, water, and digital infrastruc- ture. PPIAF supported the Ministry of Planning and Investment by preparing a PPP roadmap with long-term strategies, policies, and actions for stim- ulating Vietnam’s PPP program. We then helped draft a PPP law that was fit for purpose. In June 2020, the national assembly passed the new PPP Investment Act. In Somalia, we were already working with the government to bring regulatory order to the tele- communications market through the funding of a national backbone investment strategy and supporting the establishment of the regulator. We went into this initiative primarily to capture op- portunities presented by record low interest rates post-financial crisis and to support post-conflict development in the country. Fast forward to today: PPIAF v “I am very pleased and honored to be chair- ing the PPIAF Program Council. Serving in Ministerial positions in Jordan, a country with a challenging geopolitical location, I have firsthand experience of the transfor- mational role played by PPIAF in supporting institutions that afford a country to develop a PPP program that is fiscally sustainable and importantly, delivers critical infrastructure.” —I. Fakhoury little did we realize how important and timely this work would become during the pandemic, when New Program the continuing availability of digital services be- comes even more critical. Council Chair: On first instance, I considered it fortuitous that Imad Fakhoury work had already started in these countries—and in many more that you will read about in this annual This year, PPIAF welcomed Imad Fakhoury, Global report—to strengthen institutions to allow them Director of the World Bank’s Infrastructure to navigate difficult circumstances ahead and with Finance, PPPs & Guarantees Global Practice, as the more options to finance their needed investments. new Chair of the PPIAF Program Council, which governs PPIAF and is made up of our donors in- On second thought, I was reminded of the moral of cluding bilateral and multilateral development a fable that I was brought up to value: the Tortoise agencies and international financial institutions. and the Hare. While sprinting Hare mocks Tortoise The Council meets annually to review the strategic and sleeps at the races, slow and steady Tortoise direction of PPIAF’s technical assistance program, wins the race. Institutional change is long and re- its achievements, and its financing requirements. quires tenacity; preparedness is always cheaper and Imad also serves as co-chair of the Governance probably more effective than crisis response. Council of the Global Infrastructure Facility (GIF). PPIAF is a leading partner for many countries to Prior to joining the World Bank, Imad was develop this tenacity, this shield against the pan- Senior Adviser for Private Sector Solutions at demic’s challenges—working with donors to build IFC where he worked to strengthen efforts to the foundations for overcoming crisis and winning mobilize finance for development through le- the race. veraging private sector solutions, creating mar- kets, and reducing public debt. Imad served in successive Jordanian governments as Minister of Planning and International Cooperation, Minister of Public Sector Development, and Minister of State for Mega-Projects. Jemima “Jema” Sy Annual Report 2020 vi MCC & PPIAF Partners since 2009 PPIAF vii A message from one of our donors, Millennium Challenge Corporation The Millennium Challenge Corporation (MCC) val- from PPIAF-funded technical assistance for our ues PPIAF as a crucially important development partner countries that has facilitated MCC’s op- partner. Over its 21 years, PPIAF has achieved erations. Our collaboration with PPIAF under the impressive impact and been recognized as an Central America PPP program helped build capac- international thought leader, including by the ity in local PPP institutions and bring transactions G20 Infrastructure Working Group, in helping to to market. We’re grateful for PPIAF’s assistance in maximize financing for development and promote Malawi to provide the power utility ESCOM with a infrastructure as an asset class through its knowl- credit rating. With the support from the MCC com- edge products. pact and other donors, ESCOM received a national scale investment-grade rating of BBB. PPIAF’s work will become even more important with COVID-19’s major impacts on infrastruc- Partnering with the private sector is an important ture—both with greenfield projects trying to tool to enable and unlock MCC’s full potential to reach financial closing and brownfield projects reduce poverty through economic growth in low- in operation. For both, the pandemic will affect and lower-middle-income countries. This includes project economics, cash flows, and valuations as bringing well-structured PPPs to market to achieve demand has been greatly affected, particularly development objectives. Leveraging PPIAF’s work in transportation. With less fiscal space, govern- and knowledge products, we seek to strengthen our ments and sponsors will need increased support partner countries’ enabling environments and their from donors and blended finance solutions to help capacity to develop and manage well-governed, af- de-risk projects through instruments such as via- fordable PPPs that generate value for money. We do bility gap funding, guarantees, first-loss structures, this by deploying MCC’s blended finance solutions and tenor extensions. PPIAF’s technical assistance across the PPP cycle, from legal/regulatory frame- will be vital in this more challenging environment, works to institutional capacity building to assisting for example, through its COVID-19 rapid response with project preparation and deal facilitation—in- program, as well as helping governments generate cluding support for transaction advisors, viability liquidity through asset recycling schemes, such as gap funding, and guarantees. PPIAF’s support for limited concession schemes in Indonesia. It’s important that PPPs be designed to achieve quality infrastructure standards and climate re- MCC’s partnership with PPIAF began in 2009 and silience, to address poverty and gender concerns, has generated significant operational benefits and to ensure that governments can manage any for us. We’ve made good use of PPIAF-funded direct and contingent liabilities. PPIAF can assist materials such as the PPP Knowledge Lab, PPP in all these dimensions, and MCC looks forward to Reference Guide, PPP Certification Program, continuing our partnership with PPIAF. Private Participation in Infrastructure (PPI) Database, and reports covering topics such as Anthony Welcher is the Vice President of the gender and PPPs, institutional investors, and man- Department of Compact Operations at the aging unsolicited proposals. We’ve also benefited Millennium Challenge Corporation Annual Report 2020 viii Indonesia & PPIAF Partners since 2005 PPIAF ix A message from one of our clients, the Government of Indonesia As the biggest archipelago country with the the “middle-income trap” in the medium and long fourth largest population in the world, increased term. The G20 Forum agrees that infrastructure in- infrastructure is urgently required in Indonesia. vestment can help developing countries cope with Since 2005, the Indonesian government has been the health and economic impacts of the pandemic. setting targets to harness private sector financ- ing to develop infrastructure and launched the We have made impressive progress developing PPPs Public-Private Partnership (PPP) Framework. in Indonesia: 21 PPP contracts have been signed PPIAF has been our main partner supporting this with a total investment value of about $11.8 billion agenda with their continuous assistance in terms (173.42 trillion Indonesian rupiah). Of these, seven of knowledge and financing. projects are in operation, 10 projects are in the con- struction phase, and the remainder are in the pro- After establishing a guarantee fund and starting cess of getting to financial close. The contribution to develop the project development facility, it was from respective donors such as PPIAF is one of the clear the Ministry of Finance should develop a key factors that helped us attain this achievement. dedicated unit responsible for managing the gov- ernment support and facilities needed for PPP Indonesia still has a lot of work to do to encourage projects. In 2015, with the help of World Bank and private investment in infrastructure by creating a PPIAF, we created a PPP Unit within the Ministry better environment through policies and regulation, of Finance called the Directorate of Government and the government is keen to finding more creative Support and Infrastructure Financing. and innovative infrastructure financing solutions through blended public and private finance. One of In the medium term, the government has es- the financing arrangements currently supported by tablished our top five priorities in the national the government is leveraging public assets through development plan, which include infrastructure an asset recycling scheme. The Ministry of Finance development. To meet our needs, we cannot is also developing a fund to promote sustainable rely simply on traditional methods of financing development and green growth. through our government budget or state-owned enterprises—we need breakthroughs and innova- We understand that addressing the infrastructure tion. Between 2020–2024, we aim to receive over needs of a large country like Indonesia cannot be $183 billion (2,700 trillion Indonesian rupiah) or solved with a one-way solution and that it’s neces- 42 percent of our total infrastructure investment sary to collaborate with key stakeholders including needs from private investors. the private sector. The support we receive from PPIAF is critical to helping us reach this goal. Although the current situation is discouraging due to the COVID- 19 pandemic, we believe infra- Brahmantio Isdijoso is Director of structure can help us solve two of our main prob- Government Support and Infrastructure lems: it could jump start our economic recovery Financing Management at the Ministry of post-pandemic; and it could be a vehicle to avoiding Finance, Government of Indonesia Annual Report 2020 1 Overview 2 PPPs that Help Navigate Today’s Infrastructure Challenges for a Better Future The COVID-19 pandemic is raging across the globe, complexities. In doing so, we adhere to several putting lives and livelihoods at risk. Every country principles that form the foundation of our work. is vulnerable. However, emerging economies have For example, good governance is essential for far fewer resources and less capacity for managing ensuring that resources are used wisely and in- the pandemic, which has added significant bur- clusively, especially for countries that struggle dens to already-existing development challenges, with debt sustainability—noting that economic including high debt burdens and weak governance. shocks often lead to further fragility. With reliable governance mechanisms in place, governments How does this relate to PPIAF’s role in infrastruc- are better placed to select and prioritize projects ture development? For over 20 years, PPIAF and its with the most impact and develop them. Good partners, particularly governments, donors, and in- governance also gives the private sector greater ternational development institutions, have worked confidence when considering investments, partic- to build the capacity, regulatory, and institutional ularly when infrastructure projects are financed framework necessary to stimulate private sector through PPPs. participation (PSP) in infrastructure. PPIAF’s work helps its clients work with the private sector to Much of PPIAF’s work involves addressing climate continue providing financing and operating infra- change, a slow-moving crisis that is building up to structure services when systems and economies disastrous effect. The climate crisis will continue are under unprecedented strain. to threaten people and economies alike, but here, there is also opportunities to change course, such The pandemic is not the only challenge facing emerg- as by accelerating investment and innovation in ing markets. The same institutions need to be pre- resilient infrastructure. PPIAF is working in areas pared for slower onset challenges that do not appear that mitigate climate change, such as renewable as pressing, but are equally critical, such as climate energy development and smarter urban mobil- change and state-building in fragile, conflict-affected ity, and in protecting people and environments economies. Ensuring that good governance, robust through climate adaptive infrastructure. institutions, and smart public and private invest- ment strategies are in place will make a difference Fragile and conflict-affected countries are also an in meeting and overcoming these challenges. important focus of PPIAF’s work. Countries at war or emerging from conflict are poorly positioned to This report lays out PPIAF’s contributions to a address the pandemic, climate issues, or immedi- socially, economically, and environmentally sus- ate economic challenges. PPIAF is helping bring tainable future in the context of these global the private sector into the discussion. Rebuilding PPIAF 3 institutions and economies is difficult; fragile ventions more relevant now than ever before. The countries stand to benefit from partnerships with solution to today’s development challenges includes the private sector. In Somalia, for example, PPIAF private sector participation, robust regulatory support put regulations in place to create a better frameworks, strong markets and institutions, and environment for mobile operators. This approach preparedness. Our collaboration with governments, is helping mobilize the private sector as a player in donors, development institutions, the private sector, state-building in an economically sustainable way. and communities will help client countries develop sustainable infrastructure, contribute to meeting The unprecedented challenges facing us today, in the SDGs, and lay the groundwork for economic the shadow of the pandemic, make PPIAF’s inter- development in the years to come. Annual Report 2020 4 Subnational Technical Assistance PPIAF 5 Strengthening Governance and Building Municipal Capacity to Attract Financing Subnational entities generally lack the experience and The activity is strengthening urban governance the credit capacity necessary to access financing to de- and finance systems in the cities of Amritsar and velop and build infrastructure. PPIAF’s Subnational Ludhiana, which will stimulate private sector partic- Technical Assistance (SNTA) program provides vital ipation in the sector and improved service delivery technical assistance funding to address this gap. It outcomes in the water supply. helps municipalities and state-owned utilities attract finance for sustainable infrastructure solutions by de- SNTA has also assisted Vietnam’s National Power veloping bankable projects, strengthening financial Transmission (NPT), a wholly-owned subsidiary of systems, and building creditworthiness. Since it was Vietnam’s electricity company EVN, to obtain a pos- established 13 years ago, PPIAF’s SNTA program has itive credit rating (see the East Asia and the Pacific supported a total of 175 activities with over $43 mil- regional section for more detail) through PPIAF sup- lion in funding. Of these, eight were funded in FY20 port in partnership with GIF—a partnership of gov- with over $1.3 million, including support to Colombia ernments, multilateral development banks, private and the city of Medellin to calibrate the land value investors, and financiers that helps governments in capture (LVC) framework for longer-term borrowing emerging markets prepare bankable infrastructure for certain municipalities so as to allow for the use of projects. Other activities funded under the program instruments like Tax Increment Financing (TIF). included support to help the government of Lebanon assess the need and viability for a credit enhance- The SNTA program initially trained municipal financial ment facility, which could help facilitate further flows managers to improve their municipalities’ creditwor- of financing to support the growing demand for ur- thiness and access private financing. The program ex- ban infrastructure. panded, building the capacity of city administrations, which helped municipalities borrow on commercial SNTA also serves as the anchor point for City Cred terms to finance sustainable urban infrastructure. 2.0, which builds on the initial success of the City Creditworthiness Program that was conceived as a For example, in Ethiopia, the SNTA program funded joint effort between the World Bank’s Social, Urban, a study to assess five city administrations’ fiscal po- Rural and Resilience Global Practice and PPIAF. SNTA sition, governance, and institutional context. The concluded a major activity in Turkey that helped four study also identified bottlenecks for own-source municipalities prepare climate-smart CIPs, better revenue collection. This support led to the drafting manage own-source revenues, and improve sus- of the subnational PPP proclamation, now under tainable debt management practices. As part of the review by the government, and the development Financing Universal Access to Water global program, of climate resilient capital investment plans (CIPs). SNTA assisted Uganda’s National Water and Sewerage In Burundi, SNTA support is strengthening the fi- Corporation in its efforts to review financing options nancial viability of REGIDESO, the national water and attract market-based finance. SNTA also sup- and electricity utility. These efforts are expected to ported the establishment of credit rating systems for attract more private investment to these sectors. In three cities in Ukraine, which is expected to improve India, SNTA is helping cities in the state of Punjab the bankability of infrastructure projects in the con- access private sector financing in the water sector. text of the country’s modernization reform efforts. Annual Report 2020 Colombia Financing infrastructure for urban redevelopment Attracting private financing in urban infrastruc- The government conducted a comprehensive review ture is a challenge. One solution is to “unlock” ur- of the LVC legal framework, which to date only a few ban land values—such as by selling public lands to cities have taken advantage of. For instance, results capture the gains in value created by investment from a study conducted by the Ministry of Housing, in infrastructure. As such, the government of Cities and Territory showed that in 2014, only nine Colombia wants to foster the use of LVC instru- out of the 72 largest municipalities reported to have ments, including innovations such as TIF that captured some of the increments in land and prop- would leverage private finance for public infra- erty values utilizing the existing LVC framework. structure and urban redevelopment projects. Bogota, which leads the implementation of LVC in- struments, reported to have captured increments Under PPIAF’s SNTA program, technical assistance in property values from close to 3,000 properties in was provided to assess the feasibility of a TIF op- the 2004–2012 period. eration for urban redevelopment in Colombia. The study shed light on real estate dynamics, possible This SNTA-supported activity is expected to bring structuring and going-to-market options, as well as in private sector financing and expertise in the legislative and regulatory gaps in the country for structuring of a 400-block innovation district de- the successful implementation of a TIF instrument. velopment. If successful, this would be the first ever TIF operation conducted outside the United At a legislative level, the national government States and the objective is to replicate this work in needed to assess the gaps to the current LVC frame- at least one additional municipality in Colombia, work and recommendations on needed reforms placing SNTA as a frontrunner in promoting the that wouldn’t hinder municipal efforts to secure sustainable use of innovative financial instru- future revenues beyond the medium term and cur- ments to spur development. rent debt ceiling for sub-sovereigns, and without the need for authorization from the Ministry of In a fiscally constrained global context where in- Finance. In parallel, the project would evaluate the vestors are cautious about infrastructure invest- best financing structure of a potential TIF district ments, and with decreasing sources of revenues, combining alternative instruments such as pay-as- this activity played a timely and important role you-go financing, developer financing, or a mix of in helping cities leverage their existing assets, the two with the municipal financing framework infrastructure plans, and innovative sources of that was currently in place. financing to meet their goals. 8 PPIAF 9 Country Assessments Since 2016, PPIAF has conducted annual impact as- indicators that measure the current state of pri- sessments in countries where it has invested a cu- vate sector participation in a given market. These mulative amount of at least $2 million. Additional indicators draw from best-practice benchmarks in criteria for country selection include PPIAF’s stra- other countries. The assessments aim to: tegic priorities, the type of activities completed in the country, the maturity of the country market, – Examine how the upstream support provided and the knowledge value to be generated by the by PPIAF helped countries attract private par- selection—for example, informing future engage- ticipation in infrastructure. ment in the country. – Review the country’s ongoing engagement in The assessments examine the relevance, execution, a PPP, for example, by establishing the quality and effectiveness of individual PPIAF-supported of service delivery, determining the potential activities. They also examine the overall impact extent of the service, and reviewing PPP con- and sustainability of PPIAF support to the gov- tract management. ernment’s private sector participation initiative to deliver new or rehabilitated infrastructure. – Provide strategic recommendations to the Assessments are based on document review and country on the institutional and sectoral pol- interviews with a wide range of representatives icy, PPP contract management, and the sus- from the World Bank, IFC, other multilaterals, tainability of the country’s PPP program. government officials, NGOs, and the private sector. Based on these criteria, in FY20 PPIAF carried out Country impact assessments are conducted by a long-term impact assessment of completed tech- PPIAF’s Technical Advisory Panel (TAP) based on nical assistance activities in Uganda. Annual Report 2020 10 Uganda 21 activities $2.9 million $1.1 million Client since Enabling framework, Subnational technical 1999 energy, water, transport assistance (five activities) Due to COVID-19, the TAP/PPIAF mission to that the complete lack of PPPs outside the energy Uganda in FY20 was conducted virtually resulting sector reflects the lack of internal capacity, proj- in several limitations, such as the inability to meet ect preparation, and government commitment to with some state-owned enterprise (SOE) or private the PPP initiative (and not any major weaknesses sector representatives. in the institutional framework). The indicators of PPP Markers of Progress strongly suggest that the TAP assessed the impact of PPIAF’s work in Uganda PPP initiative is at the Enabled Stage: with Uganda for relevance, execution, and effective- a best practice pipeline methodology and enabling ness. It also examined the overall impact of PPIAF framework in place, but with significant weakness sup­port to the government’s private sector par- in implementation capacity, government commit- ticipation initiative to deliver new infrastructure, ment, and domestic private sector participation, as assessed by a methodology using Markers of including financial capacity. Progress.1 Overall, TAP found that PPIAF support in Uganda has been aligned with the government’s In the water sector, PPIAF supported an assess- infrastructure priorities as stated in their National ment of the capacity and ability of private water Development Plans I and II, which remained con- system operators to access local financing within sistent throughout the 2000–2019 assessment pe- a pilot program of private sector participation riod. PPIAF support focused on core projects and projects in five towns in Eastern Uganda in 2009, complemented World Bank, IFC, and other multi- one of which secured a term loan from a Ugandan lateral development bank initiatives. commercial bank as a result of this capacity build- ing support by IFC and PPIAF. At the multi-sector level, PPIAF’s review and gen- eral recommendations were fundamental in estab- In energy, TAP recommends that PPIAF consider lishing the key institutional aspects of the current encouraging an activity designed to assess alterna- PPP enabling framework in Uganda. TAP observed tives for expanding energy sector-type expertise, experience, and methodology to other sectors, and 1 Method developed by TAP. For SNTA’s activities, TAP used to subnational governments, possibly using the the indica­ tors specifically relevant to those objectives. PPP Unit as a resource. PPIAF The full impact assessment is available on the donor portal. In transport, TAP concluded that close coordi- nation and dovetailing of PPIAF interventions with those of other donors, especially the World Bank, has provided appropriate incentives to beneficiaries in the form of donor loans/support in addition to PPIAF’s technical assistance. The assessment recommends that PPIAF: – Accelerate several pilot priority projects in Uganda, but only if Uganda indicates in- creased commitment to further initiatives. – Consider an intervention to assist the govern- ment to determine a transparent accounting methodology for PPP commitments, either by direct consolidation of commitments, or by establishing a cap on the present value of commitments, with full disclosure. – Consider an assessment of initiatives to increase the participation of local commer- cial banks and institutional sources of cap- ital in Uganda private sector participation projects in order to access long-term debt financing in local currency. It could include the potential role for development institu- tions in supporting the market for private sector participation. 12 New Publications Highlights of publications from FY20 #5801 #5802 Through its knowledge portfolio, Reference Guide: PPIAF has continued to support Islamic Finance for Infrastructure PPP governments in building more resil- Projects ient and sustainable infrastructure With these practical tools in-hand, investors and and service delivery. From provid- PPP units can build even more capacity to enter shari’ah-compliant infrastructure PPPs and share ing insights towards stable regula- in Islamic finance’s vast potential. The reference tions in FCV contexts to innovative guide builds on the 2017 report Mobilizing Islamic finance for Infrastructure PPPs that established ideas on how to create more robust the what of Islamic finance and infrastructure and bankable PPPs in the water and PPPs and built capacity and awareness among infrastructure development practitioners and transport sector, this year’s publica- developing countries on tapping into Islamic fi- tions will help governments think nance as an additional source of financing. This guide delves deeper on the how of Islamic finance more holistically about their infra- and infrastructure PPPs and takes steps towards structure pipelines and their direct operationalizing Islamic finance for infrastructure PPPs through case studies. The appendices provide and indirect impact throughout the legal templates developed for the main agreements implementation of projects. for the structures used in the guide. PPIAF 13 Documents are available on the PPIAF website and can be searched by their unique ID which is indicated on the bottom right of the image. #6011 #6006 Governing Infrastructure Regulators in Public-Private Partnerships in Fragile Environments: Principles and Land Administration: Analytical and Implementation Manual Operational Frameworks Countries exiting conflict and fragility face many Despite the importance of land administration to urgent priorities and almost invariably suffer from economic growth and sustainable development, substantial infrastructure deficits. There is typically traditional public sector procurement has gener- very little infrastructure investment during periods ally been weak and takes longer to implement than of fragility and conflict, and existing installations are planned. PPPs have generated significant interest as often damaged or destroyed. This manual aims to a way of modernizing land administration systems contribute to improvements in the quality of infra- while avoiding some of the pitfalls of traditional structure regulation by identifying key principles for procurement methods and supporting the ultimate the governance of infrastructure regulators and by goal of improving land administration systems and suggesting how these principles can be introduced services. This report—with its analytical assess- successfully and maintained over time. It also covers ments and operational tools—was developed to ad- the process of implementing regulatory governance dress knowledge gaps, advance the thinking on how reforms in fragile contexts. These improvements PPPs can be implemented in land administration support better and accountable regulatory decision with appropriate risk mitigation, and explore how making, as well as increased investment and eco- the World Bank and other development partners nomic development. Case studies complement the may engage in financing and building capacity in discussion on principles. land administration. Annual Report 2020 14 Scaling Up Private Sector Participation in Road Asset Management in Sub- Saharan Africa Private sector financing in Sub-Saharan Africa (SSA) has been mostly limited to a mix of green- and brownfield road projects, mainly in urban areas. The #5843 scale of these projects has been limited: it is esti- mated that private financing for the upgrade and maintenance of road networks accounts for less From Waste to Resource: than 10 percent of global road financing needs in Shifting Paradigms for Smarter emerging markets and even less in SSA. This lack of Wastewater Interventions in private funding has left local governments with the Latin America and the Caribbean task of mobilizing enough money to carry out road networks preservation and expansion. This report Resource recovery from wastewater facilities in explores how intermediary public payment agents the form of energy, reusable water, biosolids, and known as Road Funds (RFs) could be reformed to other resources such as nutrients can transform substantially increase the amount of public and pri- sanitation from a costly service to one that is vate funds flowing towards the maintenance and/or self-sustaining and adds value to the economy. upgrade of the core road networks of SSA countries. If financial returns can cover operation and maintenance costs partially or fully, improved wastewater management offers a double value proposition. This report summarizes the work of the World Bank’s initiative “Wastewater: From Waste to Resource,” in raising awareness among decision makers regarding the potential of waste- water as a resource. It highlights the findings and conclusions from technical background reports, #5896 an in-depth analysis of several case studies, and feedback received from key stakeholders. PPIAF 15 Documents are available on the PPIAF website and can be searched by their unique ID indi- cated on the bottom right corner of the image. Property Tax Diagnostic Manual Annual property tax has tremendous potential for mobilizing revenues, primarily for local govern- ments. Although it may account for only about 1–2 percent of total government taxes, it contributes #6013 between 15–40 percent of total local taxes across all countries—suggesting that along with improve- ments in equity and efficiency, property tax reve- Technical Guidance Note on Assessing nues could be significantly increased in low- and the Welfare and Distributional Impacts middle-income countries. This manual provides of Private Sector Participation in guidance on how to analyze and assess immov- Infrastructure Interventions able property tax systems, diagnose the strengths and weaknesses of those systems, and develop a This guidance note—produced by the World Bank’s property tax intervention strategy where needed. Poverty and Infrastructure Finance, PPPs and Its higher objective is to support increasingly fair Guarantees Global Practices—explains the im- and stable tax systems in low- and middle-income portance of assessing welfare and distributional countries, with significant potential for sustainable impacts of infrastructure projects and introduces improvements in achieving key revenue, equity, project teams and other decision makers to eval- and efficiency objectives. uation approaches and methods to support them on what, when, and how to assess or evaluate. Evaluating the types of impact is crucial to ensure a project meets the objective to improve people’s well-being, particularly that of the poorest and most vulnerable. Designing and implementing infrastructure projects that are financed by the private sector must pay attention to ensure the in- terventions address key development constraints #6010 and achieve maximum social benefits. Annual Report 2020 2 Review of FY20 18 Highlights Since its inception, PPIAF has funded 1,561 activities in 130 countries. Europe & Central Asia (ECA) 120 Country Activities 20 Regional Activities Global, Regional & Middle East & North Cross Regional Africa (MENA) 88 Country Activities 247 Activities 16 Regional Activities South Asia (SAR) 139 Country Activities 19 Regional Activities Latin America & the Caribbean (LAC) East Asia & the Pacific (EAP) 140 Country Activities 191 Country Activities 31 Regional Activities Sub-Saharan Africa (SSA) 18 Regional Activities 419 Country Activities 113 Regional Activities 1-9 10-19 20-29 30-39 40-49 50+ PPIAF 19 F Y19 In FY20, PPIAF ha n in approved 14 et or 14 m more activities than in FY19.... NEW ACTIVITIES FY19 an th re mo ion ....with a total $4.2 mill value of $14.8 million, an $ MILLION increase of $4.2 million in programming Annual Report 2020 20 In FY20, PPIAF exceeded its target achievements 54% 45% 57% 27% 79% Climate co-benefits (35% target) Programmatic/COVID-19 (40% target)1 Sub-Saharan Africa (50% target) Fragile countries (15% target)2 Impact countries (50% target) 1 Engagements that are multi-year, multi-country, with a comprehensive scope, including a strong knowledge dimen- sion and involve a strategic partnership(s), inside or outside the World Bank, that will bring in their own resources and expertise. 2 According to PPIAF Technical Advisory Panel recommendations, fragile countries include those on the Harmonized List of Fragile Countries in the last five years. Source: PPIAF Work Plan FY20 PPIAF 21 Approvals in Impact Countries Kenya was the impact country that received the most funds in FY20, with an approved amount of $915,000 for three activities. Furthermore, 43% of the impact countries that received funds in FY20 were in Sub-Saharan Africa. IMPACT COUNTRY TOTAL APPROVED NUMBER OF ACTIVITIES Afghanistan $50,000 1 Burkina Faso $40,000 1 Cameroon $100,000 1 Colombia $350,000 2 Djibouti $150,000 1 Ethiopia $500,000 1 Haiti $250,000 1 India $550,000 2 Indonesia $350,000 1 Kenya $915,000 3 Lao PDR $250,000 1 Madagascar $300,000 1 Malawi $265,000 2 Morocco $220,000 1 Myanmar $300,000 1 Peru $450,000 3 Philippines $300,000 1 Senegal $300,000 1 Somalia $310,000 1 South Africa $300,000 1 Uganda $100,000 1 Ukraine $150,000 2 Vietnam $450,000 2 Total Impact Country TA $6,950,000 32 Total Country-Facing TA $8,795,670 40 Annual Report 2020 22 PPIAF Technical Assistance Support Channeled through Global Programs PROGRAM NAME KEY PARTNERS (TRUST FUND) THEME Building Stronger Institutions to Deliver Better Fragility and Low World Bank’s IPG Group (MDTFII) Public-Private Partnerships Capacity Countries World Bank’s Urban Global Practice, Rockefeller City Creditworthiness Subnational Foundation, KGGTF, C40 Network (SNTA) Financing Universal Access to Water World Bank’s Water Global Practice (SNTA) Subnational Sustainable ESMAP Partnership ESMAP (CCTF) Infrastructure NDC Partnership NDC-SF Climate Change World Bank’s Transport and Digital Development Sustainable Urban Mobility Program Global Practice (MDTFII) Infrastructure Good Performance-Based Contract Practices for World Bank’s Water Global Practice, International Sustainable Non-Revenue Water Program (NRW) Water Association, IDB (SNTA) Infrastructure PPIAF 23 DESCRIPTION FUNDING Guided by an overarching framework of levels of market maturity, this program helps countries make $2,753,200 progress on its path to developing and implementing successful PPP programs. Supports subnational governments to set a path towards creditworthiness and provide them with $270,000 options for long-term financing that provide the capital. Aims to promote access of water supply and sanitation utilities to commercial financing. $100,000 Aims to address and alleviate upstream regulatory, policy, and institutional barriers to the deployment $2,085,000 of renewable energy and energy efficiency solutions with private sector participation. Program co-financing with the NDC Support Facility to support private investment in countries’ $100,000 Nationally Determined Contributions, i.e., pledges made by countries under the Paris Agreement in 2015. Jointly implemented with the World Bank’s transport group, helps cities improve their institutional, financial, and regulatory frameworks to create conditions more favorable to PPPs in urban mobility— $540,000 like bus rapid transit projects or metro projects. Catalyzes better practices in the market of performance-based contracts for non-revenue water. $750,670 TOTAL $ 6,598,870 Annual Report 2020 24 PPIAF Funding Allocation in FY20 Funding Allocation by Program Almost half (45%) of PPIAF support in FY20 was channeled through global programs. Nearly 20% of all PPIAF activities were channeled through “Building Stronger Institutions to Deliver Better Public Private Partnerships,” which focuses on fragile, conflict, and violence-affected (FCV) economies. 100% Building Stronger Non-Programmatic Activities ESMAP Institutions to Deliver 55% Partnership Better PPPs 14% 19% 0 20 40 60 Non-Revenue 80 Water Program 5% 100 Urban Mobility Program 4% City Creditworthiness 2% NDC Partnership 1% Financing Universal Access to Water 1% Global Knowledge by Sector Although the majority of the global knowledge product funds approved by PPIAF in FY20 went towards multisector studies, it should be noted that almost one-fourth (23%), went towards energy sector studies. 100% Multi-Sector Energy Transport Water 63% 23% 9% 5% 20 40 60 80 100 PPIAF 25 Technical Assistance by Region FY20 saw a 3% increase in allocation of funds to the countries in Sub-Saharan Africa compared to FY19. This year, 54% of funding went to SSA, matching the proportion of funding in FY18. 100% SSA EAP SAR LAC MENA ECA 54% 12% 10% 10% 8% 6% Technical Assistance by Sector Among all FY20 projects, 58% were in the energy (30%) and transport sectors (28%). Telecommunications, on the other hand, received 4% of the funding/support (one regional project in West Africa: Benin, Burkina Faso, CÔte d’Ivoire, and Mali). 100% Energy Transport Multi-Sector Water 30% 28% 26% 12% Telecommunications 4% Technical Assistance Approved in FCV Countries1 In FY20, 27% of funds in country-facing projects were allocated towards FCV economies, above the target of 15%. This represents a decrease of 6% compared to FY19 and can be explained by the fact that several PPIAF countries have graduated from the list of fragile countries and are no longer considered FCVs. 100% FCV countries Non-FCV countries 27% 73% 1 Excludes regional and cross-regional TAs. Annual Report 2020 26 Technical Assistance by Region and Sector 31% 20% 7% 29% 13% SSA 29% 50% 21% EAP SAR 25% 54% 21% LAC 25% 17% 38% 21% MENA 76% 24% 36% 50% 14% ECA 0 100% Energy Multi-Sector Telecom Transport Water A breakdown by region and sector (see graph above) shows that allocation of funds to different infra- structure sectors has varied among PPIAF regions in FY20. Projects in water and sanitation were ap- proved in three of the six regions (SSA, EAP, LAC). Activities related to the energy sector were approved in all but one region (EAP), and similarly, transport projects were also approved in all but one of the regions (MENA). In ECA, transport projects only constituted 14% of the funds approved, whereas in EAP, transport projects constituted 50% of the approvals. Technical Assistance by Region (as Proportion of Total TA, FY19 vs FY20) REGION FY19 FY20 DIFFERENCE Sub-Saharan Africa (SSA) 51% 54% 3% East Asia and the Pacific (EAP) 9% 12% 2% South Asia (SAR) 12% 10% -2% Latin America and the Caribbean (LAC) 10% 10% 1% Middle East and North Africa (MENA) 11% 8% -3% Europe and Central Asia (ECA) 7% 6% -1% PPIAF 27 Technical Assistance by Trust Fund and Region SSA 65% 10% 13% 12% EAP 46% 21% 7% 25% ECA 7% 93% LAC 33% 8% 17% 42% MENA 76% 24% SAR 71% 29% 0 100% MDTFII SNTA Norway/Netherlands/SECO Climate Change SECO MIC USAID Water Most of the technical assistance in FY20 went towards SSA. Sixty-five percent (65%) of funds going towards SSA came from MDTFII. Furthermore, the amount going towards SSA from MDTFII is more than the total amount (from all funds) going to any other single region. MDTFII SNTA Norway/ Netherlands/ SECO Climate Change ECA MENA SECO MIC LAC SAR EAP USAID Water SSA Million 1 2 3 4 5 6 7 8 Annual Report 2020 3 Regional Highlights 30 “To attract finance other than through the traditional sources, you need to show that you are a creditworthy water utility; you need to show that there is effective governance; and you need to show that you can be able to prepare bankable projects—and especially project development. This is the particular expertise of PPIAF.” — Robert Gakubia, CEO, Water Services Regulatory Board of Kenya (WASREB) PPIAF 31 Sub-Saharan Africa FY19 FY20 FUNDS DEPLOYED $4.7 million $6.4 million CO-FUNDING LEVERAGED $3.96 million $2.98 million NEW ACTIVITIES APPROVED 21 25 ACTIVITIES COMPLETED 21 18 100% Energy Transport Multi-Sector Water 31% 29% 20% 13% 20 40 60 Telecommunications 80 7% 100 FY20 support in SSA was directed towards multiple sectors, but the two sectors that were predominantly focused on were energy and transport. Annual Report 2020 32 Burkina Faso Extending electricity access through mining power integration The electrification rate in Burkina Faso remains to identify the best supply option to serve the mine low by regional standards, at 19 percent overall electricity demand and the development of a via- with 66 percent in urban areas and just 3 percent in ble and replicable PPP business case that would rural areas. The electricity supply is just enough to ensure reliability of least-cost supply without ag- precariously meet the increasing annual demand, gravating the country capacity deficit. which increases by 10 percent per year. The govern- ment’s strategy to increase supply while reducing Following the positive outcome of this analysis, a the cost of service is to gradually shift the genera- second PPIAF grant helped conduct the pre-feasi- tion mix towards renewable energy and affordable bility study, which specified the technical design electricity imports. The sector investment plan (solar PV 20MWp coupled with 15MW/30MWh bat- aims to reduce dependency on imported fuels and tery storage) for mutually beneficial arrangements ramp up renewable energy sources, notably solar, between the government, SONABEL, the IPP, and to reach 25 percent of installed capacity by 2025 (in- the Banfora mining company. Despite the COVID cluding 170 MWp of solar photovoltaic (PV) plants). crises, the pre-feasibility study was completed on time in June 2020 through a virtual stakeholder In 2018, the World Bank began working with the workshop with all stakeholders, who agreed on Ministry of Energy and the state-owned utility, the proposed PPP approach. Supported by GIF, SONABEL, on an innovative power sourcing ar- the transaction support is under implementation. rangement to use mines as anchor customers to develop least-cost generation while supporting the The unique Solar PV plus storage project—which government’s electrification targets and producing will be fully financed through $44 million in private economies of scale to extend access to unserved investments—also marks the first of a complex in- populations. To support the Bank’s effort to lever- stitutional structuring used in the country. This ac- age Burkina Faso’s mining potential to develop sus- tivity will have a demonstrative effect and will be tainable and affordable power generation, PPIAF replicated in mining projects under development, approved a first grant to help conduct an analysis both national and regional. PPIAF 33 Kenya Financing universal access to water supply and sanitation Providing access to safe water and sanitation for of the concessionary and domestic debt levels in the all is a high priority for Kenya and is outlined in WSS sector following the realization that the utility their national development plan (Vision 2030), had hit its debt ceiling as well as facing governance called for in Sustainable Development Goal 6, and challenges at the utility level. Kenya’s National Water Strategy partly aims to support private sector participation and commer- The study proposed changes to enable the govern- cialization to finance and manage the provision of ment to improve its institutional and financing water supply and sanitation (WSS). frameworks to address the current debt levels and improve the creditworthiness of water utilities in To help achieve this goal, Kenya adopted a policy Kenya. It informs efforts aimed at enhancing the to encourage both PPPs and commercial lending to enabling environment for commercial financing, supplement the resources available from the gov- and facilitated knowledge sharing in order to in- ernment and its development partners. However, crease awareness on the levels of debt in the water before developing a long-term strategic plan for and sanitation sector in Kenya. the WSS sector, it was important to determine the sector’s debt situation. As a result, the study established the current debt level and reconciled it with other records, includ- The activity was implemented under PPIAF’s global ing those at the Debt Management Office at the program on financing universal access to water sup- National Treasury. It also reviewed the current ply and sanitation program and is targeted at devel- financial statements of the water supply compa- oping opportunities for private sector investments nies that are likely to be able to access commercial in water and sanitation. PPIAF’s support specifically finance from different sources including commer- targeted helping Kenyan water utilities identify cial and concessional sources. and cultivate opportunities to attract commer- cial financing. Its initial scope was to support the PPIAF’s activity supported programs with the Nairobi Water and Sanitation Company to review World Bank’s Water Global Practice and is closely and consolidate its debts to facilitate additional linked to the practice’s output-based aid program lending from commercial banks. This was later implemented by the Global Program for Results- amended to include a sector-wide debt assessment Based Approaches (GPRBA). Annual Report 2020 34 Somalia Supporting digital development and broadband connectivity using PPPs For the citizens of Somalia emerging from a 25-year These efforts led to expanding the connectivity of conflict, effectively regulated telecommunications Somali citizens to regional and international gate- are essential for fostering employment and entre- ways and information. In particular, the domain (dot. preneurship, post-conflict reconstruction of tele- so) and the +252 international country code that were communications infrastructure, and wider use of previously under the personal control of a former digital technologies in a variety of sectors, includ- minister have been returned to the federal govern- ing education, agriculture and financial services. ment. Restoring the stewardship of the domain and the country code to Somalia through more transpar- Working alongside the World Bank’s Information ent governance arrangements has also enhanced and Communications Technology (ICT) Sector Somalia’s sovereign identity building. PPIAF’s grant Support Program in Somalia—a recipient exe- supported the government during a critical phase of cuted grant from the Somalia Multi-Partner Fund its transition from a completely unregulated telecom worth $16 million over two phases (2014–June market to one that is regulated with a light touch, 2020)—PPIAF helped create the enabling envi- and in which private sector companies contribute to ronment to increase the penetration of afford- the national treasury through license fees, spectrum able, high-performance digital development by fees and spectrum. At the start of the grant in 2014, supporting the development and passage of the telecoms companies made no formal contribution Communications Act. PPIAF also established the to the national budget. It is forecast the sector will National Communications Authority that set out contribute about $5.9 million in sales tax and $12.6 the regulatory framework for the digital develop- million in spectrum taxes to the FY20 budget. ment market and expanded access to areas not previously reached by operators. PPIAF also contributed to the preparation of the 2019-approved Somalia Capacity Advancement, Additionally, PPIAF developed a medium-term Livelihoods and Entrepreneurship through Digital strategy for digital development, a compre- Uplift Project—a $31 million follow-on project co-fi- hensive PPP options study for supporting the nanced by IDA and the Somalia Multi-Partner Fund. sector, and supported the Ministry of Posts, Helping Somalia achieve universal broadband pene- Telecommunications and Technology in establish- tration by 2030 falls within the World Bank’s Digital ing a sector regulator. Efforts also contributed to Economy for Africa Initiative (DE4A), which recog- framing Somalia’s national broadband backbone nizes that the digital economy can help achieve the development plan. SDGs and reduce poverty faster. PPIAF 35 Annual Report 2020 36 PPIAF 37 East Asia & the Pacific FY19 FY20 FUNDS DEPLOYED $0.86 million $1.4 million CO-FUNDING LEVERAGED $0.31 million $0.38 million NEW ACTIVITIES APPROVED 5 5 ACTIVITIES COMPLETED 10 4 100% Transport Multi-Sector Water 50% 29% 21% FY20 support in EAP was primarily directed towards the transport sector, followed by the water sector. Annual Report 2020 38 Vietnam Strengthening the PPP legal and regulatory framework Vietnam’s Ministry of Planning and Investment government with improving its PPP legal and reg- estimates that over the next five years $68 billion ulatory framework, including drafting a PPP law is needed in infrastructure investment—a large and preparing enabling implementation decrees portion of which will need to come from private and fostering dialogue among the Ministry of investment given the current fiscal constraints. Planning and Investment, the Ministry of Finance Sustained investment in, and effective management and the National Assembly. Being part of PPIAF’s of, infrastructure assets are important priorities programmatic approach to building PPP institu- to prevent growth being constrained by emerg- tions, this activity has also benefited from global ing infrastructure bottlenecks. Ensuring reliable best practice. electricity supply, efficient logistics and transpor- tation, and access to cost effective and reliable In July 2020, the draft PPP law was passed by telecommunication services are especially critical the National Assembly. The law and subsequent for developing the manufacturing and service sec- implementation decrees are expected to foster tors. Meanwhile, Vietnamese cities are growing fast private sector participation in infrastructure and a key challenge for municipal governments is and by strengthening the regulatory processes to rapidly put in place the necessary infrastructure for relevant parties to fulfill their obligations in to support economic activities, ease urban mobility, PPP contracts. It focuses on essential sectors: and provide water, sanitation and other municipal transport; power grid and plants; irrigation, clean services to the growing urban population. Priority water supply, water drainage, and wastewater and infrastructure in rural areas include investments to waste treatment; healthcare and education; and expand access to water and sanitation, especially in information technology infrastructure. remote and poor communities. This outcome is an important step in the right To mobilize the needed private sector infrastruc- direction and indicates the government’s legal ture investment, the government wanted to estab- commitment to domestic and foreign investors lish a PPP law. The PPIAF activity sought to ensure and ongoing support for PPPs. The World Bank that the various stakeholders in government will continue to support the Ministries of Finance were aware of the key issues that needed to be and Planning and Investment in socializing and addressed in a PPP law for it to be fit for purpose. implementing the new law, with a view to achieve PPIAF initially supported the Ministry of Planning substantial private capital mobilization outcome and Investment with preparing a PPP roadmap in the medium term. This activity is fully aligned aimed at indicating the long-term strategies, poli- with the World Bank’s objective to foster private cies, and further actions for stimulating Vietnam’s sector participation in infrastructure and overall PPP program. PPIAF has then been supporting the IBRD commitment to mobilize private capital. PPIAF 40 PPIAF 41 South Asia FY19 FY20 FUNDS DEPLOYED $1.13 million $1.2 million CO-FUNDING LEVERAGED $0.98 million $2.53 million NEW ACTIVITIES APPROVED 5 5 ACTIVITIES COMPLETED 1 1 100% Multi-Sector Water Transport 54% 25% 21% The bulk of the funding in SAR went towards multisector activities, with the remaining (46%) distributed across the energy and transport sectors, with a project each. Annual Report 2020 42 Pakistan Exploring options for water resources in Karachi Karachi, Pakistan’s largest city, is experiencing a and Asian Infrastructure Investment Bank (AIIB) water and sanitation crisis stemming largely from co-financed investment program, the Karachi poor governance. Financing for this sector is typ- Water and Sewerage Services Improvement ically ad-hoc and aimed at addressing immediate Project (KWSSIP). It allowed key findings—such needs, rather than long-term goals. Only 55 percent as the required NRW programs to improve utility of water requirements are met daily and non-rev- efficiency and recommended changes in the utility enue water (NRW) can be as high as 60 percent. management structure—to be integrated into the Many households rely on private vendors who investment program. sell water from tankers at high prices. The Karachi Water & Sewerage Board (KWSB) is responsible for Based on assessing demand, supply, timing, costs water, sanitation, and hygiene services. Its service and affordability, the study recommended the gaps stem from operational challenges, chronic un- following options in this sequence: exploit exist- der-investment, and a weak enabling environment. ing surface water from the Indus River; maintain KWSB has not had significant capital investment water quality through wastewater treatment in- for over a decade, even though a 2008 masterplan vestments with recycling; and control non-revenue estimated investment needs of over $2.5 billion water. More detailed work at the downstream level to achieve universal access to safe and affordable is needed to prepare an adequate private sector drinking water by 2030. participation solution and to support the prepa- ration of transactions. Following KWSB undergoing structural reforms —with hopes to embark into PPPs and private sec- The study contains clear areas for follow-up, nota- tor participation for wastewater reuse and NRW bly setting up a PPP-node in KWSB and designing reduction—PPIAF supported a Water Resources policies for incentivizing private sector participa- Options Study to help KWSB better understand tion, including wastewater viability gap support. different options to augment raw water supply, Developing these institutional and legal precondi- cost implications, readiness for private partici- tions for a successful PPP in the water sector in the pation in water production development, and to province of Sindh would constitute a natural focus inform its capital investment program. The PPIAF area for follow-up by PPIAF, in close cooperation study was undertaken simultaneously with the with technical assistance undertaken under the preparation and approval of a major World Bank ongoing KWSSIP Bank project. PPIAF 43 Annual Report 2020 44 PPIAF 45 Latin America & the Caribbean FY19 FY20 FUNDS DEPLOYED $0.89 million $1.2 million CO-FUNDING LEVERAGED $0.5 million $1.8 million NEW ACTIVITIES APPROVED 7 8 ACTIVITIES COMPLETED 6 4 100% Transport Energy Water Multi-Sector 38% 25% 21% 17% In FY20, eight activities worth $1.2 million were approved for LAC—38% of which was approved for the transport sector, followed by 25% towards energy. Annual Report 2020 Haiti Scaling up renewable energy and off-grid energy access Haiti is the only fragile, conflict, and violence-af- The proposed PPP model will help bring in much fected country in the Caribbean. Its energy sector needed private sector investment and expertise is characterized by low access to electricity, inten- in mini grid regulation, which otherwise is de- sive biomass use, and increasing reliance on costly terred by Haiti’s lack of a regulatory framework imported fossil fuels. Haiti’s national electricity for mini grids. Because the government lacked utility, EDH (Electricité d’Haïti), generates 81 percent information and capacity on how to structure of their power from oil, mostly provided by inde- and operationalize PPP approaches in the mini pendent power producers, with the remainder from grid sector, PPIAF brought in expertise and best hydropower. While EDH’s available generation ca- practices through workshops, consultations, and pacity has been stagnant in the past decade (today training and knowledge exchanges, carried out in still at 176 MW), the aggregated capacity of stand- a gender-sensitive manner, which led to a success- alone diesel engines, used for self-generation and ful first round of development. back-up power, has been growing steadily, currently reaching an estimated 500MW. The first concession agreements mobilizing $9.3 mil- lion in commercial finance for seven sites—which There is no electrification plan in place because EDH PPIAF helped design—are in late-stage negotiations is not able to expand its network due to significant with the regulator and in final-stage negotiations capacity, operational, and financial deficits. A new with the financier. The second round was launched plan for improving utility performance is under in early September as part of the newly established development by the government, but it is assumed national “PHARES” program for mini grid develop- the utility will not undertake rural electrification ment, this time as a bottom-up approach. in the coming five years due to a backlog of invest- ments to serve their existing, predominantly urban This will allow Haiti to leapfrog to a cleaner and customers. Under these circumstances, mini grids more user-centric power system, based on decen- present an important electrification opportunity. tralized renewable energy technologies. Haitians will benefit from increased access to electricity— PPIAF is assisting the government to design and alleviating poverty through lower-cost sources of implement an innovative PPP approach for scaling power for households, job creation, and new eco- up mini grids—setting a path for Haiti to become nomic opportunities, particularly in rural areas. an emerging economy by 2030 and providing uni- Women are expected to benefit, both as consumers versal electricity access. PPIAF’s activity also sup- and by participating in mini-grid operations. ports Haiti’s National Roadmap (2014), highlighting the need to invest in renewable energy and off-grid Connectivity especially in the time of pandemic energy access, and the country’s intended nation- becomes even more crucial as microenterprises ally determined contribution commitment to ex- and women entrepreneurs struggle to connect pand renewable energy generation to 47 percent to clients or provide the government feedback on of the generation mix by 2030. their needs. 48 PPIAF 49 Middle East & North Africa FY19 FY20 FUNDS DEPLOYED $1.02 million $0.93 million CO-FUNDING LEVERAGED $1.1 million $0.71 million NEW ACTIVITIES APPROVED 5 4 ACTIVITIES COMPLETED 4 6 100% Energy Multi-Sector 76% 24% In FY20, three of the four activities in MENA, constituting 76% of all funds approved, were in the energy sector. The other activity that was approved was a multisector project in Morocco, which aims to support development of urban financing policy reforms by testing urban partnerships. Annual Report 2020 50 Morocco Expanding cities by strengthening municipal finance and management Over the past several decades, Morocco has experi- administration of local taxes and a roadmap/policy enced a sustained urbanization trend— currently, note on options to develop tools for land value cap- 65 percent of the country’s population lives in urban ture in the Moroccan context. A benchmark of local areas and by 2050 seven out of 10 Moroccans will governance performance assessment system was live in cities. Cities generate positive spillovers for also conducted as part of the technical assistance both their surrounding metropolitan areas and the along with a study tour to Tunisia. country at large: 60 percent of total employment stem from urban areas, they contribute 75 percent In the next 2–3 years, local tax reforms will take to GDP, and make up 80 percent of tax receipts. place informed by PPIAF’s work, which aim to achieve four outcomes: operationalizing the Although the new constitution (adopted in 2011) system for administering local taxes based on provided a framework for improved local gover- the strategic approach recommended in PPIAF’s nance of public affairs through increased decen- policy note; enabling the government to proceed tralization, Moroccan cities still face challenges with municipal finance reform; having a pilot city delivering the infrastructure needed to accom- develop a performance assessment system based modate the continued increase in urbanization. on good international practice; and piloting a first The investment required for urban infrastructure, municipal land value capture exercise. equipment, and services in Moroccan cities is es- timated at $33.6 billion between 2017–2027 with 69 Co-funded by the World Bank, PPIAF recently percent ($2.33 billion per year) to be financed by approved a second phase to help operationalize urban municipalities themselves. In addition to some of these recommendations including setting limiting the investment capacity allowed by the up Partnership Development Areas in selected generation of operating surpluses, cities’ untapped pilot sites—including updating urban planning fiscal potential limits their capacity to attract com- regulations to provide an enabling regulatory en- mercial financing to address the municipal infra- vironment to implement them; developing policy structure gap. reforms and change in practices; and land admin- istration and regulatory reforms needed to imple- In line with several World Bank projects and other ment land pooling. donor engagements, PPIAF provided technical as- sistance through its SNTA program—requested by “The technical assistance to finance urbanization the Ministry of Urban Development—to strengthen in Morocco—developed with remarkable consensus municipal finance in Morocco through improving through extensive consultations with a wide range local revenue, better performance management, of stakeholders—is supporting local and national and developing tools for financing urban develop- actors to develop a new model of urban develop- ment. The activity helped develop two policy notes ment to put Moroccan cities on a more efficient and including one describing the best suited strategic sustainable growth trajectory.” —Augustin Maria, approach to develop an information system for the World Bank Senior Urban Specialist PPIAF 51 Annual Report 2020 52 PPIAF 53 Europe & Central Asia FY19 FY20 FUNDS DEPLOYED $0.62 million $0.7 million CO-FUNDING LEVERAGED $0.42 million $0.87 million NEW ACTIVITIES APPROVED 2 4 ACTIVITIES COMPLETED -- 1 100% Multi-Sector Energy Transport 50% 36% 14% In ECA economies, half of the support was targeted at multisector activities, with the next largest amount (36%) going towards the energy sector. Annual Report 2020 54 Ukraine Paving the way for better transport and trade through private sector investment in the road network Ukraine is the second largest country in Europe pilot transactions to be structured under the pro- and road transport plays a critical role support- gram’s framework. In collaboration with GIF, the ing domestic and international trade. Between scope of PPIAF’s activity is looking at elements of 2012 and 2016, the value of international trade the wider enabling environment necessary to suc- dependent on road transport increased from 30 cessfully implement a sustainable road fund pro- to 37 percent. This increase coincided with a shift gram and develop a road asset management model in international trading patterns, away from the that potentially charges users. The best practices Russian Federation and towards the European to be implemented for the governance, regulatory, Union. A World Bank study showed that roads in and legislative framework for the road funds is an poor condition increased from 5 to 17 percent be- exercise that can be replicated in other sectors that tween 2011 and 2016, contributing to the country’s are looking to these types of reform. traffic fatality rate being more than double that of the EU. The World Bank assessment estimated The GIF-PPIAF co-funded activity has also strate- that $500 million per year—as opposed to about gically identified initial first-mover projects that $200 million spent by the country in 2017—would will help develop and increase trade with EU coun- be needed to maintain and repair regional and tries. The roads and pipeline chosen will greatly national roads to avoid further deterioration. In leverage economic activity to ease the economic Ukraine, roads are not tolled and no direct user recovery the country will need post-pandemic and charges are in place. Some of the reasons behind help create a more sustainable economic partner this are: many of Ukraine’s main routes are not that will be good for the stability of the country heavily trafficked compared to busy tolled motor- and the region. ways internationally and growth projections are modest; average income levels limit the affordabil- The activity supports the ongoing World Bank ity of tolls and the value their time savings brings transport and IFC PPP Transaction Advisory agen- to users; and there is a legal requirement that tolls das to carry forward reforms that incentivize much- can only be levied where there is an alternative needed private sector investment in the country’s ‘free’ route available. infrastructure. Projects to be structured under the roads fund led by GIF and IFC will help bring in pri- The government requested World Bank support to vate sector participation in the roads sector. One explore options to develop a program to upgrade of Ukraine’s ongoing initiatives to increase private and then maintain the country’s 8,500+ km of stra- participation in the transport sector is the “Drive tegic and international road network and conduct Ukraine 2030” strategy that envisions investments the selection and prefeasibility level analysis of of $60 billion in the next decade. PPIAF 55 Annual Report 2020 4 FY20 Achievements 58 Portfolio Performance Each activity funded by PPIAF is monitored from The table on the next page illustrates the aggre- its inception until 24–36 months after its comple- gate performance of PPIAF’s portfolio in FY20 in tion to confirm the relevance and achievement of comparison to previous fiscal years. In the far right objectives and outcomes effective and efficient column are the annual targets for each indicator implementation, timely dissemination (for knowl- set out in the FY20 Work Plan. PPIAF allocated edge products), and extraction of lessons learned a smaller share of its funds to low-income coun- from the outcomes realization process. tries this year. At the same time, the number of activities with climate co-benefits significantly In FY20, the monitoring process allowed PPIAF to increased from 42 percent in FY18 and 51 percent detect the disruptions to implementation of several in FY19, to 57 percent in FY20, which is far above the activities due to the COVID-19 pandemic. PPIAF was annual target of 30 percent. For the ongoing and then able to give constructive advice to the teams on completed activities, 100 percent of the delivered how to address issues such as shifted government reports were assessed to be of “satisfactory” and priorities, unresponsive clients and contractors, as “highly satisfactory” quality, compared to the lower well as newly imposed travel restrictions. rates in previous years. PPIAF 59 Portfolio Performance FY17-FY20 SUMMARY OF BALANCE SCORE CARDS AS OF JUNE 30 OF EACH FISCAL YEAR BASELINE PERFORMANCE TARGET APPROVED ACTIVITIES FY17 FY18 FY19 FY20 FY20 Approvals in impact countries NA 58% 57% 79% 50% Approvals in fragile, conflict, and violence affected N/A 33% 33% 27% 15% states Approvals in Sub-Saharan Africa 42% 54% 51% 54% 50% Activities with strategic fitness score rated 99% 100% 94% 83%1 98% standard or outstanding fit Programmatic activities N/A 25% 52% 45% 40% Activities with climate co-benefits N/A 42% 51% 57% 35% ONGOING ACTIVITIES BASELINE PERFORMANCE TARGET (AS OF JUNE 30 OF EACH FISCAL YEAR) FY17 FY18 FY19 FY20 FY20 Percentage of portfolio with slow utilization N/A N/A 12% 6% 20% Activities with quality of deliverables rated 95% 94% 97% 100% 95% “satisfactory” or above Activities “on track” 41% 54% 87% 92% 75% BASELINE PERFORMANCE TARGET COMPLETED ACTIVITIES FY17 FY18 FY19 FY20 FY20 Activities with quality of deliverables rated as 64% 40% 98% 100% 95% “satisfactory” or above Activities “on track” at closing 31% 37% 92% 88% 40% ACTIVITIES REVIEWED AT BASELINE PERFORMANCE TARGET POST-COMPLETION FY17 FY18 FY19 FY20 FY20 Outcome realization evaluations reporting 75% 62% 68% 74% 80% outcome satisfactorily achieved 1 Activities approved under PPP Institutions Building program tended to have lower strategic fitness scores bringing the overfall number down in FY20. Annual Report 2020 60 Results Framework PPIAF also monitors aggregate performance enable private sector participation opportunities, against overall objectives through its Results adopt appropriate policies and regulations, and Framework, first introduced in the FY18–FY22 put institutions in place that catalyze private sec- PPIAF Strategic Plan. tor participation infrastructure delivery. At the subnational level, we focus on supporting subna- The framework illustrates the logical chain of tional entities’ capacity to access market-based PPIAF’s results at Impact, Outcome, Intermediate financing without sovereign guarantees and im- Outcome, and Output levels. The Theory of Change proving their administrative, technical, and fiscal (ToC) underlying the results framework is that capacity to raise finance. The most direct changes access to improved infrastructure services can in client governments resulting from PPIAF grants accelerate with private sector participation and are seen in intermediate outcomes, which bridge improve lives. Sustainable private participation in regulatory, institutional, and technical gaps so that infrastructure, however, is achieved where the en- private sector investment in infrastructure can be abling environment allows for it and governments unlocked. We conduct outcome realization assess- and public counterparts have sufficient capacity to ments 24–36 months after an activity’s completion engage in this process. to measure progress towards the anticipated inter- mediate outcomes, learn from experiences positive PPIAF’s Results Framework focuses on developing and subpar, and close the feedback loop using ev- client countries’ capacity to identify, assess, and idence-based design for new grants. PPIAF 61 Examples  1 2 3 4 The Electricity Supply Company of A Rapid Needs Malawi improved Assessment allowed The government of The municipality of efficiency of the government of Uganda adopted Beira, Morocco, fol- its tax reporting Djibouti to create a the recommended lows PPIAF’s action operations, signifi- pipeline of projects tolling strategy for plan to improve its cantly reducing to be implemented as a pilot PPP road financial account- penalties and other PPPs project ability mechanisms large liabilities Interim Outcomes  1 2 3 4 Countries adopt Public institutions policies, regulations, Subnational entities are better able to and institutions are able to access Subnational entities identify, assess, that catalyze private increased financing improve their admin- and enable private sector participation in infrastructure istrative, technical, sector participation in infrastructure without sovereign and fiscal capacity to opportunities service delivery guarantees raise finance Outcome  Governments in PPIAF impact countries are systematically able to, and are adopting policies, regulations, and programs that improve the investment climate for private participation PPPs and subnational financing Impact  Increase in available infrastructure in PPIAF Impact Countries through private sector participation Annual Report 2020 62 Outcome Realizations FY20 Review: Highlights PPIAF/SNTA INTERMEDIATE OUTCOME KEY RESULTS SUPPORT PPIAF’s Rapid Needs Assessment of Djibouti’s readiness to implement PPPs identified a need to develop a more robust PPP framework and prioritized projects that could be implemented. First, the technical experts helped to review the current legal and institutional frameworks and to develop a PPP strategy. The new PPP strategy incorporated both good international practices and Djibouti’s development 1. Public institutions in PPIAF Djibouti: priorities. As a result, a PPP Policy Letter, PPP Law, and implementing decrees were client countries are better able PPP Program adopted. to identify, assess, and enable Support, Second, the assessment of the current institutional framework culminated in a PSP opportunities $500,000 recommendation on the establishment and operationalization of a PPP unit. As a result, the PPP unit was created and the head of the PPP unit was appointed. Trainings and workshops were conducted to strengthen the capacity of the government to identify and implement PPP projects. Lastly, infrastructure PPP projects were screened and two viable projects in urban transport and rural electrification were further analyzed to identify most viable PPP models. The PPIAF activity in Somalia helped create the enabling environment to increase the penetration of affordable, high-performance ICT. PPIAF developed a medium-term strategy for ICT and supported capacity of the Ministry of 2. PPIAF client countries Somalia: Post and Telecommunications to establish a regulator. With PPIAF’s support, adopt policies, regulations, Supporting the Communications Act was approved by the Parliament in October 2017. and institutions that catalyze ICT Sector and The National Communications Authority (NCA), an agency which sets out the PSP in infrastructure service Broadband regulatory framework for the ICT market, was established in January 2018. delivery Connectivity, This led to expanding telecom services access to areas not currently reached by $338,800 operators whose incentives were to focus on more lucrative urban centers. Somalia transitioned from an unregulated telecom market to one regulated with a light touch, where private sector companies contribute to the National Treasury through license and spectrum fees. 3. Subnational entities are able to access increased NA No activities reviewed in FY20 fall under the 3rd Interim Outcome pillar. financing in infrastructure without sovereign guarantees Zambia: This activity was part of a three-year SNTA-funded technical assistance program Program to aiming to (1) improve the commercial viability of the Lusaka Water and Sewerage Improve the Company and (2) strengthen institutional capacity to attract investment in Commercial water supply and sanitation (WSS) infrastructure in Zambia. The program 4. Subnational entities Viability of comprised two components: Component A focused on improving the commercial improve their administrative, LWSC and to viability of Lusaka Water and Sewerage Company (LWSC), and Component B technical, and fiscal capacity Strengthen focused on strengthening institutional capacity to facilitate investments in WSS and increase capability to raise Institutional infrastructure. The activity was carried out in partnership with AfDB and GIZ. It finance Capacity included capacity building for training providers/institutes under the Ministry of to Attract Local Government National Capacity Building and Training Program. As a result, Investment the performance agreement was signed by both LWSC and the government of in WSS Zambia. LWSC has since been implementing recommendations from the technical Infrastructure, audit to improve their performance against the indicators established in the $371,600 performance agreement with the government. PPIAF 63 PPIAF’s support translates into institutional and PPIAF reviewed 27 projects completed in FY17 policy reforms leading to long-term results for its representing over $8.5 million in grant funding. client countries. As part of the monitoring process, Of these, 74 percent were rated “satisfactory” or PPIAF conducts post-completion reviews three better, indicating that the intended outcomes were years after an activity’s completion to measure achieved within 24–36 months from an activity’s progress towards anticipated outcomes. In FY20, completion.1 Some highlights are illustrated below. FY20 Review: Full Report2 The FY20 Outcomes Realizations review revealed supplemented by the open source data and media that three-fourths of activities closed in FY17 articles, the monitoring and evaluation team discov- achieved their expected outcomes and were rated ered that over 1,000 government officials received as “satisfactory” and “highly satisfactory.” PPIAF’s PPIAF-funded training, 12 knowledge products Outcomes Realization review this year covered 75 were developed, 16 institutions strengthened their percent of PPIAF activities completed in FY17 (27 out capacity, and 16 PPP strategies were adopted as a of 33). The sample was selected randomly and most result of PPIAF support in FY17. In addition, three of the activity objectives under review fell under credit ratings were produced and three subnational the Interim Outcomes Pillar 1 (capacity building entities strengthened their capacity through sub- and knowledge) and Pillar 2 (institutional and le- national technical assistance funded by PPIAF. Full gal framework strengthening), while no activities results sorted by four Interim Outcome Pillars are corresponded to Interim Outcome 3 (subnational listed in the table below. Furthermore, the table on entities access to finance). Through follow-up inter- the next page shows PPIAF results measured over views with the task teams and government officials, three fiscal years: FY18, FY19, and FY20. 1 PPIAF does not have a benchmark against which to assess its success rate as PPIAF is the only global technical facility for PPP upstream support worldwide. It is worth mentioning that IFC projects show equivalent rates of outcome achievement: 58 percent in FY19 and 74 percent in FY20. (IFC FY20 Annual Report, page 91). 2 Based on an outcomes realization review of 27 out of 33 activities closed in FY17. Annual Report 2020 64 FY20 OUTCOMES REALIZATIONS REVIEW 27 activities closed in FY17 with a total value of $8.56 million Activities All Activities (77% of all closed in FY17) Reviewed in FY20 Since Inception INTERMEDIATE OUTCOME 1: Public institutions in PPIAF client countries are better able to identify, assess, and enable PSP opportunities # of participants/government officials whose capacity is enhanced 1,0383 21,507 # of times consensus built on PPPs 2 154 # of PPP pipelines developed4 6 n/a # of PPP knowledge/information products developed 12 183 INTERMEDIATE OUTCOME 2: PPIAF client countries adopt policies, regulations, and institutions that catalyze PSP in infrastructure service delivery # of institutions whose capacity is strengthened 16 317 # of policies, laws, and regulations adopted 8 168 # of plans/strategies developed 16 202 # of projects (transactions) developed/materialized 1 175 Size of project (transaction) developed/materialized ($ amount) $36,000,000 $17.5 billion INTERMEDIATE OUTCOME 3: Subnational entities are able to access increased financing in infrastructure without sovereign guarantees # of projects (transactions) developed – other than financed n/a 39 Amount ($) of financing leveraged n/a $1.5 billion INTERMEDIATE OUTCOME 4: Subnational entities improve their administrative, technical and fiscal capacity and increased capability to raise finance # of subnational entities whose capacity was strengthened 3 306 # of plans/strategies adopted towards enhancing access to finance 3 n/a # of credit ratings produced (shadow and public) 3 92 Despite PPIAF’s small size, its impact looms large institutions and adoption of 10 new PPP policies in the client countries where PPIAF’s continu- every year. In three years, PPIAF strengthened the ous support has led to steady improvements in capacity of 93 subnational entities, facilitating 14 the enabling environment for PSP. The table on financings without sovereign guarantees with a the next page shows the results PPIAF reported value exceeding $100 million. It also produced and to have achieved in FY18, FY19, and FY20. On av- disseminated over 22 knowledge products and con- erage, PPIAF trained over 1,200 government offi- tributed to the realization of 20 PPP transactions cials, and enabled creation or strengthening of 13 in the amount of $432.6 million. 3 Based upon a review of all activities closed in FY17. 4 New indicator. Collected since FY18 and onwards. PPIAF 65 FY18 –FY20 RESULTS AND FY17 BASELINE Results Baseline: Difference to Date as PPIAF Achievements Inception FY18 FY19 FY20 from the of FY20 to FY17 Baseline (Total) Enabling Environment Reform # of institutions created/strengthened 276 5 20 16 317 41 # of policies adopted, legislation passed/ 138 6 16 8 168 30 amended, or regulations issued/revised # of plans/strategies adopted or 182 3 1 16 202 20 implemented Capacity and Awareness Building # of activities with subnational entities’ 213 66 24 3 306 93 capacity strengthened # of activities leading to consensus achieved on PPP reforms reported to 147 1 4 2 154 7 PPIAF # of government officials trained 17,674 1,484 1,311 1,038 21,507 3,833 # of knowledge products produced or 161 2 8 12 183 22 disseminated Project Cycle-Related Assistance # of transactions facilitated 155 2 17 1 175 20 # of financings facilitated (SNTA only) 25 3 11 n/a 39 14 Total size of all contracts (PPIAF only), 17,110 279 118 36 17,543 432.6 $ millions Financing raised from non-sovereign sources (SNTA only), 1,390 71 35 n/a 1,496 105.3 $ millions Annual Report 2020 5 Program Finances 68 PPIAF 69 Balance Position in FY20 INFLOWS (US$ millions) Beginning Cash Balance FY20 15.87 Donor Receipts in FY20 15.89 Investment Income 0.68 Reflows 1.19 Balances Brought Forward (Past Transfers) 13.35 Total Inflows 46.98 OUTFLOWS (US$ millions) Activity Disbursements 8.30 PMU Expenses, including indirects 2 .29 Total Disbursements 10.59 Activity Commitments 5.11 Activity Available Balance 12.45 PMU Commitments 0.52 PMU Available Balance 0.56 Total Remaining Transfers Out 18.65 Total Outflows 29.24 CALLS ON BALANCE (US$ millions) Grants Approved—Not Yet Transferred 0.61 Activities Pending GFR 4.13 Total Calls on Balance 4.74 Annual Report 2020 70 Projections for Remainder of Strategy Period DESCRIPTION (US$ millions) FY 2021 FY 2022 Opening Balance 17.74 16.00 Reflow and Investment Income 1.30 1.30 Expected Contributions Donors 13.26 8.45 Total Resources 32.30 25.75 Programming Costs 13.00 13.00 PMU Costs 2.80 2.80 Indirect Cost Recovery 0.50 0.50 Total Uses 16.30 16.30 Closing Fund Balance 16 9.45 Share of PMU Costs/Total Funding 20% 20% Member Contribution Receipts Total (US$ ‘000) SNTA DONOR CONTRIBUTIONS FY19 FY20 since FY07 Australia (DFAT) - - 2,032 France (AFD) - - 1,864 IFC - - 4,100 Italy - - 647 Switzerland (SECO) 2,000 1,000 13,545 United Kingdom (DFID) - - 16,751 Grand Total 2,000 1,000 38,938 Active Inactive (most recent three years) Exited PPIAF 71 Active Inactive (most recent three years) Exited TOTAL (US$ ‘000) CORE MDTF II/DONOR CONTRIBUTIONS FY19 FY20 SINCE FY00 Australia (DFAT) 1,999 - 26,604 Austria - - 2,740 Canada - - 2,130 European Commission - - 1,255 France (AFD) - - 4,188 Germany 738 3,353 10,217 IFC 100 - 4,200 Italy - - 1,179 MCC 500 250 3,750 Netherlands 3,200 3,650 12,101 Norway (NORAD) - 959 5,200 Sweden (SIDA) - 3,138 17,127 Switzerland (SECO) 2,000 500 17,079 United Kingdom (DFID) - - 91,043 United States (USAID) - - 1,000 Grand Total 8,537 11,850 199,811 TOTAL (US$ ‘000) NON-CORE DONOR CONTRIBUTIONS FY19 FY20 SINCE FY99 ADB - - 2,188 Japan - - 17,380 Netherlands - - 4,286 Norway Climate Change 1,959 1,904 6,875 Switzerland (SECO MIC)* 5,138* 500 23,870 United States (USAID) Water 1,000 685 7,343 United Kingdom (DFID) - - 4,698 Grand Total 8,097 3,089 66,640 * This amount is not a new contribution but is a transfer of funds from the reconstitution of the SECO MIC fund from a multi-donor fund into a single-donor fund. Annual Report 2020 6 Annex 74 Annex: Activities Approved in FY20 AFRICA, SUB-SAHARAN AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Regional West Africa: Regional Digital Infrastructure Market Development $450,920 MDTF II Cameroon Support to Cameroon Railway Project $100,000 MDTF II Ethiopia: Supporting Improved Service Delivery for Universal Ethiopia $500,000 Climate Electrification Madagascar Madagascar: Improving Urban Transport in Greater Antananarivo $300,000 MDTF II Regional Ecowas Region PPP Framework Review and Harmonization $393,200 MDTF II SADC Region PPP Feasibility Study for a Block Train Service on the North- Regional $450,000 MDTF II South Corridor Tanzania: Building Capacity for Reducing Non-Revenue Water through Tanzania $97,000 USAID Performance-Based Contract in Dodoma Comoros Comoros: Inter-Island Connectivity Project $150,000 MDTF II West and Central Africa: Developing and Exchanging Best Practices for Preparing, Negotiating, and Supervising PPAs, TSAs and Interconnection Regional Rules and Procedures for the Gambia River Basin Development $100,000 MDTF II Organization (OMVG), and Other Related Topics Such as Public Auctions for Electricity Regional Scaling Up Private Sector Participation in Road Asset–Phase II $65,000 MDTF II Liberia Developing Framework for Reducing Non-Revenue Water through Liberia Performance-Based Contract in Liberia Water and Sewer Corporation $298,670 USAID (LWSC) in Monrovia South Africa Durban – Performance-Based Contract for NRW Reduction $300,000 USAID Senegal PPP Program Support: Phase I Legal Framework and Strategic Senegal $300,000 MDTF II Direction Cross- Open Skies Africa: Assessing the Barriers Towards a Single Air Market $260,000 MDTF II Regional Malawi Malawi: Lilongwe PPP for Non-Revenue Water Management $55,000 USAID Uganda: Technical and Financial Review of the National Water and Uganda $100,000 SNTA Sewerage Corporation (NWSC) Burkina Faso: Assessment of Private Sector Participation Potential for the Burkina Faso $40,000 MDTF II Provision of Public Transport Services in Ouagadougou PPIAF 75 AFRICA, SUB-SAHARAN AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Kenya Kenya: Leaders in Urban Transport Planning Workshop for Kenya $250,000 MDTF II Kenya Kenya - Energy Sector Support to GDC, Kengen and Ketraco $230,000 SNTA Strengthening Sudan’s Capacity to Attract Private Sector Investment in Sudan $300,000 Climate Renewable Energy Kenya Kenya: Support to Solar Energy Development $435,000 Climate Burundi Burundi: REGIDESCO Financial Recovery Plan $300,000 SNTA Malawi: Public-Private Partnership (PPP) Viability Assessment Study for Malawi $210,000 MDTF II Six Selected Airports Somalia: Establishing PPP Legal and Institutional Framework for Private Somalia $310,000 MDTF II Sector Participation Cross-Regional: Africa: Developing a Regulatory Framework for Pay-as- Regional $400,000 Climate You-Go Off-Grid Solar SUB-TOTAL $6,394,790 EAST ASIA & THE PACIFIC AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Myanmar-Strengthening of PPP Enabling Environment and Preparation of Myanmar $300,000 MDTF II OBCs Vietnam: Performance Based Contracts for Waterways’ Operations and Vietnam $350,000 SECO MIC Maintenance Vietnam Vietnam: Strengthening the PPP Legal and Regulatory Framework $100,000 SECO MIC Cambodia Cambodia: Fostering Private Sector Participation in the Road Sector $350,000 MDTF II Philippines: Support PSP in Local Government Unit (LGU)'S Water Supply Philippines $300,000 SNTA and Sanitation System in Key Tourism Destinations SUB-TOTAL $1,400,000 Annual Report 2020 76 EUROPE & CENTRAL ASIA AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Ukraine Assistance to Carry Out a Credit Rating of the City of Mariupol $50,000 SNTA Ukraine Support for the Ukraine Roads Program $100,000 SECO MIC Uzbekistan: Support the Establishment of the PPP Framework in the Uzbekistan $300,000 SECO MIC Republic of Uzbekistan Western Balkans: Market-Based Mechanisms for the Promotion of Regional $250,000 SECO MIC Renewables, Phase II SUB-TOTAL $700,000 GLOBAL KNOWLEDGE AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Global Conference: Regulating Infrastructure in a Digital Age $50,000 MDTF II Global Digital Innovation to Support Public Transport and Sector Growth $25,000 SNTA Global Water Innovations Platforms $150,000 USAID Global Building Stronger Institutions to Deliver Better Public-Private Partnerships $400,000 MDTF II Ecowas Planning Support and Capacity Building for Battery Storage for Global $300,000 Climate PPIAF’s Consideration Global Flagship Report: Digitalization of Transport $150,000 MDTF II Digital Transformation of Energy Sector Infrastructure: Frontier Analysis Global $125,000 MDTF II and Enabling Frameworks Global Global: Covid-19 PPP Rapid Response Umbrella Program $523,200 MDTF II Global Improving Water Utility Efficiency through Technological Innovation $150,000 MDTF II Global Global: Transport Regulation at Times of Technological Change $80,000 MDTF II Global: Augmenting Multiple Facets of Data on Public Participation in Global $250,000 MDTF II Infrastructure in EMDEs Global: Solar Energy, Private Sector and Electricity for All: How the Off-Grid Global $125,000 MDTF II Solar Industry Can Close the Universal Electricity Access Gap PPIAF 77 GLOBAL KNOWLEDGE AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Global: Automating Private Commitment in Infrastructure Data Update Global $275,000 MDTF II Using Open Source Search Global USPs – Case Studies/Deepening the Review $100,000 MDTF II Global Global: Guidance on PPP Legal Frameworks $150,000 MDTF II Global Global: Emerging Issues in Contract Management $140,000 MDTF II SUB-TOTAL $2,993,200 LATIN AMERICA & THE CARIBBEAN AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Enhancing Climate Resilience of the Energy Sector in the Eastern Regional $100,000 MDTF II Caribbean Colombia Support for Bogota's Metro Line 1 Transit-Oriented Development $100,000 SNTA Colombia: Institutional, Governance, and Regulatory Reform of Colombia's Colombia $250,000 SECO MIC Transport Sector in Support of Multimodal Transport & Logistics Panama Support to the Establishment of the PPP Unit in Panama $50,000 MDTF II Lima Urban Cable Car System – Institutional and PPP Business Model Peru $100,000 SECO MIC Development Support Haiti: Enabling Local Private Sector Participation in Water and Sanitation Haiti $250,000 MDTF II Service Delivery in Rural Areas and Small Towns of Haiti Technical Support to ProInversion for Structuring of Competitive Selection Peru $150,000 SECO MIC and Contracting of PPPs in Peru Peru Advisory Support for the Power Sector Modernization Reform in Peru $200,000 Climate SUB-TOTAL $1,200,000 Annual Report 2020 78 MIDDLE EAST & NORTH AFRICA AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Regional Cross-Regional: Pan-Arab Regional Energy Trade Conference $55,000 MDTF II Morocco: Unlocking Urban Development in Morocco through the Testing Morocco of Partnership Development Areas and Support for the Development of $220,000 SNTA Policy Reforms and Changes in Practices (Financing Urbanization Phase II) Cross-Regional: Pan-Arab Regional Energy Trading Platform (PARETP) Regional $500,000 MDTF II Phase III Establishment of a Multisector Regulator in Djibouti and Associated ICT Djibouti $150,000 MDTF II and Energy Sector Reform SUB-TOTAL $925,000 SOUTH ASIA AMOUNT TRUST COUNTRY ACTIVITY APPROVED FUND Afghanistan Afghanistan: Improving Transparency and Accountability of PPPs $50,000 MDTF II India Enabling Private Sector Participation in the Electricity Distribution Sector $300,000 MDTF II Lao PDR Lao PDR: PPP Framework Support $250,000 MDTF II Support to the Monetization of Public Land for the Development of India $250,000 MDTF II Infrastructure Indonesia Indonesia: Establishing a National Framework for SOE Asset Recycling $350,000 SECO MIC SUB-TOTAL $1,200,000 Total $14,812,990 PPIAF 79 Abbreviations ADB Asian Development Bank IPP Independent Power Project AFD Agence française de développement KGGTF Korean Green Growth Trust Fund (French Development Agency) LAC Latin America and the Caribbean AfDB African Development Bank LVC Land Value Capture AIIB Asian Infrastructure Investment Bank MCC Millennium Challenge Corporation CCTF Climate Change Trust Fund MDTFII Multi-Donor Trust Fund II CIP Capital Investment Plan MENA Middle East & North Africa COVID-19 Coronavirus Disease 2019 MIC Middle-Income Country DFAT Department of Foreign Affairs and Trade MW Megawatt (Australia) MWP Megawatt peak DFID Department for International NDC Nationally Determined Contributions Development (United Kingdom) NORAD Norwegian Agency for Development EAP East Asia and the Pacific Cooperation ECA Europe and Central Asia NRW Non-Revenue Water EMDE Emerging Markets and Developing PMU Program Management Unit Economies PPA Power Purchase Agreement ESMAP Energy Sector Management Assistance PPI Private Participation in Infrastructure Program PPIAF Public-Private Infrastructure Advisory FCV Fragility, Conflict, and Violence Facility GDP Gross Domestic Product PPP Public-Private Partnership GFR Grant Funding Request PSP Private Sector Participation GIF Global Infrastructure Facility SAR South Asia Region GIZ German Agency for International SDG Sustainable Development Goal Cooperation SECO State Secretariat for Economic Affairs GPRBA Global Partnership for Results-Based (Switzerland) Approaches SIDA Swedish International Development IBRD International Bank for Reconstruction Cooperation Agency and Development (World Bank) SNTA Subnational Technical Assistance ICT Information and Communication SOE State-Owned Enterprise Technologies SSA Sub-Saharan Africa IDA International Development Association TAP Technical Advisory Panel (World Bank) TIF Tax Increment Financing IDB Inter-American Development Bank USAID United States Agency for International Development IFC International Finance Corporation WSS Water Supply and Sanitation Annual Report 2020 80 Credits Cover Patrick Cashin/Metropolitan Transit Authority (CC by 2.0) 3 ADB (CC by 2.0) 4 Dimitry Anikin/Unsplash 7 Delaney Turner/Unsplash 8 Antoine Plüss/Unsplash 10 Icons from Rohith M S and Chameleon Design from The Noun Project 11 PPIAF 14 Rod Waddington/Flickr (CC by SA 2.0) 15 John Heil/Flickr (CC by NC ND 2.0) 30 PPIAF 35 Internews Europe/Flickr (CC by NC ND 2.0) 36 Hung Nguyen Viet/Unsplash 39 UN Photo/Kibae Park (CC by NC ND 2.0) 40 Department for International Development/Russell Watkins (CC 2.0) 43 CCAFS/2014/Prashanth Vishwanathan/Flickr (CC by NC ND 2.0) 44 Federico Ettlin/Flickr (CC by 2.0) 47 Dominic Chavez/World Bank 48 Philippe Roos (CC by SA 2.0) 51 Safia Osman/Flickr (CC by NC ND 2.0) 52 Maksym Tymchyk/Unsplash 55 Anna Hunko/Unsplash 58 PPIAF 60 PPIAF 68 s*t*e*v*i*e/Flickr (CC by SA 2.0) PPIAF iv While PPIAF operates by giving grants, our value-added ex- tends far beyond the funds provided. SETTING THE FOUNDATION By building institutions, strengthening the capacity of counterparties, and reducing policy, regulatory, and institu- tional risks, PPIAF enables governments to generate a pipe- line of bankable projects. BUILDING PARTNERSHIPS PPIAF is a neutral and trusted partner. This helps bring various stakeholders, such as governments and private investors, to the same page when addressing complex issues related to infrastructure development. FOCUSING ON IMPACT PPIAF’s strong development impact assessment capacity ensures that projects with PPIAF involvement are sound and have been thoroughly vetted. CAPTURING AND SHARING KNOWLEDGE PPIAF’s knowledge system ensures lessons learned from one project are collected and applied to future ones as well as shared through a multitude of global platforms. CONVENING POWER As part of the World Bank Group, PPIAF is integrated into the expertise, experience, and convening power of the organization. Annual Report 2020