Public-private partnerships (PPPs) have seen a rise in the last two decades and are now used in more than 134 developing countries, contributing about 15-20% of total infrastructure investment. The Independent Evaluation Group (IEG) evaluated World Bank Group PPP projects from the past 10 years and share lessons learned.

1. World Bank Group
Support to Public-
Private Partnerships
FY02-12
Lessons from an IEG Evaluation
of World Bank Group Experience
World Bank Group Launch
July 14, 2014
Stefan Apfalter
Senior Evaluation Officer, IEG

2. 2

3. Title of Presentation 3
Can the WBG’s $1.9 billion really make a
difference?
IEG evaluated 134 countries
on 811 PPP interventions
through the entire PPP cycle
over the period FY02-12

4. What works
• More strategic country
approach
• Address political
economy factors
• Shift IFC investments
• Better M&E
4

5. More
Strategic
Country
Approach

6. Advise Governments on
If and How
Comprehensive diagnostics
 Readiness of sector
 Public sector capacity
 Fiscal implications
 Integrated in NIPs
6

7. PPP diagnostics
7
1
3
Government committed
Space for PPPs
Civil society engaged
Capital markets
Continent liabilities
Pipeline of bankable PPPs
2
Sector regulations
PPP policy
Capable institutions

8. Target the right countries
8
• WB and IFC AS reaches
nascent countries
• MIGA support nascent
and emerging countries
• IFC IS too often in
developed countries

9. SIGNIFICANT
OVER WEIGHTING
OF NASCENT
COUNTRIES
9
WB in nascent countries
% = relative share of accumulated GDP

10. Addressing
Political
Economy
Factors

11. Engaging with stakeholders
 Sector reform is foundation of success,
but 45 % of WB efforts fail
 Government commitment required
Start with low hanging fruit
Broad and early
engagement
11

12. Commitment for PPP structuring
• 50 % of IFC AS‘ PPP structuring mandates did not
materialize due to lack of government commitment
12

13. Shift IFC
Investments

14. Overemphasizing mature countries
14
OVER WEIGHTING OF
DEVELOPED
COUNTRIES
% = PPP market in these countries

15. Increasing development footprint
15
• IFC can increase its
additionality by investing
more in less mature
countries
• Development outcome
ratings unchanged
• Set early demonstration
effect

16. MIGA is more pioneering
EFFECTIVELY
TARGETS
EMERGING AND
NASCENT
COUNTRIES
16

17. Better M&E

18. PPP’s effect on the poor unknown
18
Data
NO Data

19. Moving Forward
19
More
strategic
advice
Improved
stakeholder
consultation
Shift IFC
investments
Improve M&E
and steer PPP
PPP
CCSA

20. Thank you!