How project preparation funds can help governments and partners implement public private partnership (PPP) projects that are critical to meeting connectivity infrastructure demand in developing countries was examined during the second virtual workshop in the Multilateral Cooperation Center for Development Finance (MCDF) PPP “hot topics” series on 6 August.

Co-organized with the Egyptian Ministry of Finance, African Development Bank, Asian Development Bank, Public-Private Infrastructure Advisory Facility, World Bank, and World Association of PPP Units and Professionals, the workshop featured a presentation on a new World Bank report which reviews PPP project preparation funds globally and identifies good practices.

A panel of experts presented PPP preparation fund experiences from Egypt, Bangladesh, Zambia, Kenya, and African subregions. They highlighted the need for early planning and targeting of diverse funding sources as well as the importance of a champion in government with a clear vision for a large-scale PPP program and willingness to mobilize funding needed for PPP preparation.

The experts also noted how clear operating rules are essential for ensuring project preparation funds are provided on a timely basis, supporting a strong PPP project pipeline, and achieving successful outcomes commensurate with the financial resources committed to a project preparation fund.

“A common challenge faced by developing countries when using PPPs for connectivity infrastructure is how to allocate financial resources to prepare complex PPP documents in a predictable and cost-effective manner,” said Ede Ijjasz, MCDF Senior Advisor to the CEO and a moderator of the workshop.

“High-quality documents are indispensable for attracting the best private partners who will deliver cost-effective infrastructure services to users,” Ijjasz continued. “The preparation of PPP transactions is generally costly and funding for the preparation of a solid pipeline of projects requires a clear funding strategy and mechanisms.”

Targeting ministry officials, PPP practitioners, financers, and stakeholders from Africa, Asia, and beyond, the PPP hot topics workshop series will continue on 27 August with a session on PPPs for new technologies. The final session on 5 September will examine new sources of public financing for PPPs.

Click here for more information and to register for the upcoming workshop series sessions.