World Bank Group Support to Public-Private Partnerships: Event Launch at IFC July 14th, 2014

World Bank Group Support to Public-Private Partnerships FY02-12Lessons from an IEG Evaluation of World Bank Group Experience

World Bank Group Launch July 14, 2014Stefan Apfalter Senior Evaluation Officer, IEG

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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

What works• More strategic country

approach

• Address political economy factors

• Shift IFC investments

• Better M&E

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More Strategic Country Approach

Advise Governments onIf and How

Comprehensive diagnostics

Readiness of sector

Public sector capacity

Fiscal implications

Integrated in NIPs

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PPP diagnostics

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Government committedSpace for PPPsCivil society engaged

Capital marketsContinent liabilitiesPipeline of bankable PPPs

2Sector regulationsPPP policyCapable institutions

Target the right countries

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• WB and IFC AS reaches nascent countries

• MIGA support nascent and emerging countries

• IFC IS too often in developed countries

SIGNIFICANT OVER WEIGHTING

OF NASCENT COUNTRIES

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WB in nascent countries

% = relative share of accumulated GDP

Addressing Political Economy Factors

Engaging with stakeholders

Sector reform is foundation of success, but 45 % of WB efforts fail

Government commitment requiredStart with low hanging fruit

Broad and early engagement

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Commitment for PPP structuring

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

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Shift IFC Investments

Overemphasizing mature countries

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OVER WEIGHTING OF DEVELOPED COUNTRIES

% = PPP market in these countries

Increasing development footprint

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• IFC can increase its additionality by investing more in less mature countries

• Development outcome ratings unchanged

• Set early demonstration effect

MIGA is more pioneering

EFFECTIVELY TARGETS

EMERGING AND NASCENT

COUNTRIES

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Better M&E

PPP’s effect on the poor unknown

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Data

NO Data

Moving Forward

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More strategic

advice

Improved stakeholder consultation

Shift IFC investments

Improve M&E and steer PPP

PPPCCSA

Thank you!