African Public-Private Partnership Network (AP3N) – a new network partner of PPPHealth4All.

thePPPHealth4All and Africa Public Private Partnerships (PPP) Network (AP3N)  have signed  a MoU that establishes a collaborative relationship between PPPHealth4All and AP3N to establish an exchange of information, mutual access to networks and best practices.

On behalve of AP3 Network, the MoU was signed by Beatrice Florah Ikilai, Co-President of the Africa PPP Network (AP3N), Vice Chair Bureau of the United Nations Economic Commission for Europe Working Party on PPPs and Africa Coordinator of the World Association of Public Private Partnerships (WAPPP) Units and Professionals and Chidi Izuwah (Snr) , Co-President of the Africa PPP Network (AP3N) and the Director General of the Infrastructure Regulatory Concession Commission of Nigeria Office of the Presidency and the member of PPPHealth4All Advisory Board. On behalf of the PPPHealth4All, Eng. Natalia Korchakova-Heeb, Founder of PPPHealth4All, Managing Director of SDG.17 Consulting GmbH, PPP Speaker of  the German Health Alliance.

The Parties agree to promote principles of transparency and sustainability for PPP healthcare projects that should also clearly demonstrate societal, economic and environmental benefits for the communities.
 

Africa Public Private Partnerships (PPP) Network (AP3N) is a network of PPP Units and practitioners across the continent established out of a greater realization and consensus for the need for collaboration between the Africa PPP Units and Practitioners for the realization of Africa’s infrastructure development.

We are pleased to extend our network to the African continent and looking forward to further cooperation.

Eng. Natalia Korchakova-Heeb
Beatrice Florah Ikilai
Chidi Izuwah (Snr)

PPPHealth4All Persona – Jacek Liput, Head of Public Procurement and PPP at Gawroński & Partners Law Firm

Dear Jacek, could you please introduce yourself?

My name is Jacek Liput and I am Head of Public Procurement and PPP at Gawroński & Partners law firm (Poland). I have many years of experience in government contracting, including public procurement regulations and PPPs. I have been involved in a number of PPP projects, including private partner selection procedures, particularly in the infrastructure, the healthcare sector and the education sector.

What is the current situation with PPP projects in the healthcare sector in Poland?

Data published by the Ministry of Development Funds and Regional Policy suggest that PPP projects in the Polish healthcare sector are still not very popular. Only 4 healthcare-related PPP contracts were concluded between 2009 and 2019, the total value of which is PLN 207 million (approx. EUR 46 million). These numbers are relatively low comparing to other sectors, such as transport, infrastructure, energy efficiency, sports and tourism and – only recently – waste management. Despite the above, I think that there is great potential for PPPs in the Polish healthcare sector. PPPs are increasingly seen to improve the healthcare system, in particular in terms of its performance, efficiency and quality. PPPs may also contribute to bringing new, advanced medical technologies into use. In my opinion a properly structured PPP project in the healthcare sector can be attractive for both the public party and the private partner.

What obstacles in your view blocks the implementation of PPP model in healthcare sector in Poland?

There are various legal and practical challenges for a successful PPP project and these equally apply to the healthcare sector. They relate, for instance, to appropriate allocation of risks between the public authority and the private partner, as well as ensuring stable and long-term financing for the project.

In terms of the Polish healthcare PPPs it is particularly important to take into account the existing legal framework for the financing of the healthcare services from public funds. As a rule, contracts with the Polish National Health Fund regarding such financing cannot be concluded for indefinite periods of time. Standard periods of the financing contracts are relatively short, while PPP contracts are normally concluded for longer periods, even as long as e.g. 30 years. This may cause risks for the private partner and these risks must be properly addressed at the selection phase.

Another challenge is that starting from the year 2021 we will have entirely new public procurement law in Poland. Polish public procurement law has recently been entirely redrafted to focus on efficiency of public-private cooperation rather than formalities. However, both contracting authorities and private partners will have to adapt to the new reality. A significant number of private partners are selected in public procurement procedures, so I am pretty sure that this change will have significant impact for the PPP market.

What is the best-known example of healthcare PPP projects in Poland?

A landmark example of the Polish PPPs and actually the first large-scale multimillion PPP in the sector is the Hospital in Żywiec project. The contract award procedure in this project ended in 2011 with the selection of InterHealth Canada as the private partner. The private partner was mandated to build an entirely new hospital and manage it for the period of 30 years, including the provision of healthcare services. I have been involved in this project at the time of my engagement with my previous law firm, advising financing banks inter alia on the PPP regulations and their practical implications.

The hospital in Żywiec has recently been opened to public, despite the Covid-19 pandemic. The success of this project will hopefully attract more interest in the PPPs in the sector and translate into a steadily growing number of PPP contracts in the years to come.

What is in your view the added-value of PPPHealth4All and how it could help in preparation of sustainable healthcare PPPs?

PPPHealth4All can certainly be helpful for all stakeholders on the PPP market by providing access to best practices, peer-to-peer support and specialized training. All these are very valuable, as know-how and experience are crucial for a PPP project to be successful.

Interview by Natalia Korchakova-Heeb

The Government of Uzbekistan selected Nephroplus to deliver vital dialysis care for over 1,000 patients.

Nephroplus won the bid to finance, construct, equip, train personnel, and operate four dialysis clinics in the city of Tashkent, the Republic of Karakalpakistan, and Khorezm region to deliver vital dialysis care for over 1,000 patients.

As transaction advisor to the Ministry of Finance and the Ministry of Health, IFC, a member of the World Bank Group, assisted the Ministries in designing and tendering a public-private partnership (PPP) that will deliver dialysis care to Uzbek patients in line with best industry standards, providing higher quality care, reduced risk of infection, and no out-of-pocket payments for patients. IFC and the World Bank advised the Government in updating dialysis standards in line with international levels and developing a procedure for selecting and referring patients to dialysis in accordance with transparent selection criteria based on clinical and social conditions.

“The Government of Uzbekistan is committed to expanding access to affordable and quality health care,” said Timur Ishmetov, Uzbekistan’s Minister of Finance. “This first-of-its-kind, market-changing PPP will help upgrade health services and increase access to critical dialysis care to more patients in the country.”

Rural patients will particularly benefit from the project because Nephroplus will introduce the country’s first-ever peritoneal dialysis, a treatment that enables patients to receive dialysis care in their own homes, reducing travel time and costs for families, and extending the reach of dialysis care to rural and remote areas, an important innovation for the country.

More information

Nephrocare Health Services Pvt Ltd (NephroPlus) is the largest network of dialysis centres in India with 97 operations centres (as on Jan 31, 2017) spread across 63 cities in 16 Indian states.

The low-cost business model used by NephroPlus is influenced by 3 factors. Cost effective sourcing of consumables and equipment, staff costing and in-house maintenance and quality teams. Having an in-house training academy ensures that there is a steady supply of low-cost, well-trained technicians who are adept at quality protocols. This helps to not only keep costs under control but also to consistently deliver high-quality dialysis across the network. The model used by NephroPlus, not only reduces maintenance costs but elongates the life of machines, thus reducing CAPEX and maintaining highest standards of operations.

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets.

As transaction advisor to the Ministry of Finance and the Ministry of Health, IFC, a member of the World Bank Group, assisted the Ministries in designing and tendering a public-private partnership (PPP) that will deliver dialysis care to Uzbek patients in line with best industry standards, providing higher quality care, reduced risk of infection, and no out-of-pocket payments for patients. IFC and the World Bank advised the Government in updating dialysis standards in line with international levels and developing a procedure for selecting and referring patients to dialysis in accordance with transparent selection criteria based on clinical and social conditions.

PPPHealth4All Persona – Marco Fürstenberg, CEO Fürst Solutions GmbH

Marco, could you please introduce yourself?

My specialisation is in the training and consulting of technical issues related to dialysis projects. I was born in South Africa but most of my career spent in Germany, working with market leaders like Fresenius and B. Braun for 18 years.  I studied biomedical engineering at the technical university of Pretoria and completed my master equivalent in Germany at the Fachhochschule Gießen, and found myself consumed by the dialysis world straight away. I had the opportunity to contribute to small and large dialysis projects all over the world, from Surinam to Chile, or Senegal to Ethiopia. Especially the African and South American continents I have seen major developments in the dialysis field. It has become a personal mission of mine to help these countries maintain European standards and provide patients with the same quality of care you would expect in developed countries which resulted in the establishment of the company Fürst Solutions in 2018.

You worked for Fresenius Medical Care and B. Braun for 18 years. These companies are ones of the biggest world PPP dialysis providers. What are dialysis PPPs, how do they work and why do we need them?

PPP’s are a very interesting business model, with great benefits to all parties involved. Especially in developing countries where governments and private companies are battling with issues like corruption, mismanagement, lack of education, lack of funds, etc. Companies like Fresenius and B.Braun supply the PPP dialysis projects (also called provider business ) that the government desperately needs. It’s very close cooperation between public and private partners. The government provides the patients, the private companies provide the infrastructure and educated staff and the community benefits from first world dialysis services. There are many other benefits, like the education of nursing staff and doctors, the creation of jobs in other segments of the governmental hospitals, or even far-reaching benefits, like nutritional programs for the community, where patients open kitchens that cook for the patients and their families. There are countless examples.

What are the best practices, failures that could be avoided with PPP dialysis projects when designing such projects? What public and private partners should keep in mind?

It’s extremely important to have a technical team involved from the beginning of the project. I have seen it a thousand times: projects are started and plans are made by architects who don’t really have the experience in designing dialysis facilities, and before you know it, a dialysis unit is designed, that is impossible to build. This causes a lot of extra (unnecessary) costs.

Another interesting cultural aspect of Africa, that many European companies (private sector) do not take the power of being present in Africa into consideration. “The guy who shows up gets the job!” It’s hard to believe, but even if that company has no experience, they will get the business, just because they are there. This, of course, makes PPP’s a tricky job since the projects usually take a long time to get off the ground. Market presence should always be considered before projects like these are started.

Benin, Cotonou – CHNU HKM Hospital

The third thing I often see in developing countries are financial restrictions. Private companies who are able to provide funding of some sort, or have the right contacts to do so, have a great advantage. This makes PPP’s particularly interesting because project proposals have to be considered from multiple parties: the government institution, the private company and the financial institute providing the funding, all having their own requirements. It’s a balancing act of note.

You are running a social network platform. Tell us more about it. How did you come up with this idea and what is the purpose and current status of your platform?

Our company Fürst Solutions GmbH recently created a social network platform Afri-EU. Europe has so many resources and knowledge to offer and Africa has so many ideas and motivation. The Afri-EU platform offers a virtual bridge for African and European tech entrepreneurs, tech start-ups, well-established tech companies, business angels, investors, consultants, etc. to connect and network.

The Afri-EU platform offers many services which support a diversity of tech enterprises to transform their business idea into a successful business. It enables the tech groups to present themselves and their business ideas or already established businesses. People can exchange and share news, personal blog posts, interesting articles, etc. The social network also has a marketplace which allows members to buy and sell services, for example, consultations. The e-learning feature offers learning opportunities through online training material.

Why you have joined PPPHealth4All and where do you see a value of PPPHealth4All?

I am excited to join PPPHealth4All because I see a lot of potential in participating in new projects, especially in Africa. It is clear that PPP’s are developing faster and I would like to be part of this. I look forward to exploring the network in your PPPHealth4All community and finding new opportunities.

Interview by Natalia Korchakova-Heeb

Bolivia, Oruro – Oruro Corea Hospital

EBRD and Greece establish new PPP facility

The European Bank for Reconstruction and Development (EBRD) is joining forces with the Ministry of Development and Investments of Greece to establish a new public-private partnership (PPP) preparation facility cooperation account, following a request from the Greek authorities. Focus on health and other sectors.

The agreement was signed today in Athens by EBRD Regional Director Andreea Moraru and Greece’s Alternate Minister of Development and Investments Nikos Papathanasis.

The EBRD will manage the fund, which will provide high-quality, client-oriented project preparation, training and advisory services, policy support and institutional strengthening activities related to the infrastructure sector in Greece.

The Ministry will fund the activities of the facility with €20 million.

The project pipeline will mostly be in the social infrastructure sector (education and health), sustainable urban infrastructure, and water and waste management.

The new facility will follow the successful example of the EBRD’s Infrastructure Project Preparation Facility, which includes projects such as the construction, acquisition of equipment and facility management of a new building by the Biomedical Research Foundation of the Academy of Athens, for the provision of specialised services in the field of personalised medicine and DNA research.

More information

 

The Public-Private Partnership Center of the Philippines publishes new investment opportunities for healthcare PPPs.

The PPP Center of the Philippines publishes a new investment broshure that presents a row of PPP healthcare projects

-1 project to be approved by the relevant governmental authorities (University of the Philippines Philippine General  Hospital (PGH) Manila Cancer Center Project)

– and 5 projects under development:

  • Philippine General Hospital (PGH) Diliman Project;
  • Mental Wellness Center and ancillary facilities in the Mariveles  Mental Health and General Hospital (MMWGH) compound;
  • Baguio General Hospital and Medical Center (BGHMC) – Renal Center Facility Project;
  • Cagayan Valley Medical Center (CVMC) Hemodialysis Center Project;
  • Bicol Medical Center’s (BMC) Medical Arts Building and Upgrading of Health  Services Project.

Investment Opportunities Brochure (September 2020)

REQUEST FOR EXPRESSIONS OF INTEREST – Technical Consultant for the Uzbekistan Radiotherapy Public-Private Partnership (PPP) Project

 

 

ASSIGNMENT OVERVIEW

Assignment Title: 1271407 – Technical Consultant for the Uzbekistan Radiotherapy Public-Private Partnership (PPP) Project

Assignment Countries:

  • Uzbekistan

ASSIGNMENT DESCRIPTION

The Government of the Republic of Uzbekistan recognizes the need for increasing access to radiotherapy services. MOH and MOF have requested IFC advisory services to structure and implement a PPP in radiotherapy care in three oblasts (the Project). The three regions will be selected and confirmed by the Government with IFCs assistance.
The objective of the Project is to attract a reputable and qualified private sector investor, through a competitive transparent tender process under a long-term PPP agreement. It is envisioned that the private sector investor(s) will build new radiotherapy centers in the three select regions, equip, maintain and operate the centers and provide the radiotherapy care to a certain number of oncology patients who are referred by the Government, entitled to and in need of this medical procedure.
IFC will appoint a technical consultant , to provide technical consultancy support during the implementation of the Project.

ELIGIBILITY

Eligibility restrictions apply:
[Please type list of restrictions]

INDIVIDUAL / FIRM PROFILE
The consultant will be a firm.

SUBMISSION REQUIREMENTS
The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.

Interested firms are hereby invited to submit expressions of interest.

Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant2 (https://wbgeconsult2.worldbank.org/wbgec/index.html)

NOTES
Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted.

Electronic Submissions through World Bank Group eConsultant2

Opening Session on Sustainable Infrastructure and SDGs for PPPs – 5th Istanbul PPP Week (2 November 2020)

Shortened transcript of the opening Panel on Sustainable Infrastructure and SDGs, 5th Istanbul PPP Week (2 November 2020)

Natalia Korchakova-Heeb: Good morning, ladies and gentlemen! I am happy to greet you at the opening panel of the 5th Istanbul PPP Week dedicated to sustainable infrastructure and Sustainable Development Goals. (SDGs). Let me introduce myself – I am Natalia Korchakova-Heeb, Managing Director of SDG.17 Consulting GmbH, Germany and founder of PPPHealth4All – a global platform to facilitate sustainable and people-centered healthcare PPPs. Today we are very fortunate to have a distinguished panel: well-known experts that don’t really need an introduction.

Let’s me start from the ladies:  I am very pleased to introduce Hulya Pasaogullari, who is Principal Consultant for PPPs, Economics & Finance at IMC Worldwide. Hulya is a former Head of PPP Office within the Turkish Treasury and has a long track of experience in sovereign borrowing and public investments, PPP Advisory, Infrastructure Finance and Governance.

Next speaker is Mark Moseley, who is is Principal of Moseley Infrastructure Advisory Services. He is the former Chief Operating Officer of the G20 Global Infrastructure Hub and a former Lead Lawyer in the World Bank’s Infrastructure Practice Group. It is a special pleasure for me to introduce Mark as he is also a member of the Advisory Board for PPPHealth4All.

Next speaker is Hugues de La Forge, Partner at the Law Firm Fidal, France. He is Head for PPP projects and is in charge of African countries. Hugues has more than 22 years of experience in advising the public and private clients on contract management, disputes and international arbitration. Thanks to all of you for being with us today.

Ladies and gentlemen,

It is very symbolic that our conference is being opened with discussion on sustainable infrastructure- thanks to organisers for giving a priority to this topic.

Sustainable infrastructure is an essential foundation for achieving the Sustainable Development Goals (SDGs) and the objectives of the Paris Agreement. It is not any about building more roads, hospitals, schools – it is about building sustainably by establishing a sustainable life-cycle: sustainable design, sustainable procurement, sustainable financing, sustainable construction, sustainable operation and maintenance and impact assessment. It is also about increased quality, efficiency, innovation of service delivery and meeting all sustainability criteria (social, environmental, institutional, and economic-financial criteria). My first question goes to Mark Moseley:

Mark, during your time with the World Bank and the Global Infrastructure Hub, you worked closely with the G20 in regard to sustainable /quality infrastructure. Can you describe the G20’s approach to sustainability and the achievement of the infrastructure-related SDGs, and could you please also explain us how the G20’s approach relates to other sustainable infrastructure initiatives?

Mark: Thank you, Natalia, for that kind introduction, and thanks also to the organisers of this year’s Istanbul PPP Week for the invitation to join this panel. I had the honour of speaking at the inaugural Istanbul PPP Week in 2015 and it is great to be back at the event – although the extraordinary circumstances of this year have meant that we are not able to enjoy the opportunity to gather in the wonderful city of Istanbul.

Even though all of us have been forced to deal with the immediate impacts of the pandemic, we should not lose our focus on critically important longer-term objectives, such as the achievement of the United Nations Sustainable Development Goals. And, as infrastructure practitioners, we must not abandon our efforts to help achieve the infrastructure -related SDGs, in terms of universal access to basic infrastructure services for both economic infrastructure such as transport, power, water and digital services, as well as social infrastructure such as hospitals and schools. The need for these services remains acute, and we must redouble our efforts to achieve the SDG objectives while recognising the new realities that will arise in the post-pandemic world.

Recently, many infrastructure strategists – including Thomas Barret, Chairperson at OECD Infrastructure Governance Forum in today’s keynote address — have promoted the concept of ‘Building Back Better’. Indeed, I believe that there is some sort of election currently going on in the United States in which the opposition candidate has adopted that idea. But what do we mean by ‘building back better’? I suggest that what the idea should mean is a commitment to pay close attention to the quality of the infrastructure we are building.

And this is what brings me to the G20’s approach to achieving the infrastructure-related SDGs, as raised by Natalia. As Thomas Barrett (OECD) also noted this morning, the G20 has, for the last few years – beginning in 2015 under Turkey’s G20 Presidency – been focusing on the quality of infrastructure investments. This focus ultimately led to the G20 Leaders formally approving, last year, the Principles for Quality Infrastructure Investment, also known as the QII Principles.

But what, exactly, are these QII Principles, and how do they relate to the SDGs?

There are six main QII Principles, as follows:

  • Principle 1 is to Maximise the positive impact of infrastructure to achieve sustainable growth and development. This principle directly incorporates the UN’s 2030 Agenda for Sustainable Development, under which the SDG goals were articulated.
  • Principle 2 is to Raise Economic Efficiency in view of life-cycle cost. This involves taking into account all phases of the life-cycle of an infrastructure project, including planning, construction, operation, maintenance and disposal.
  • Principle 3 calls for the Integration of environmental considerations in infrastructure investments, by taking into account the positive and negative impacts of infrastructure projects on ecosystems, biodiversity, climate, weather and the use of resources.
  • Principle 4 speaks to Building resilience against natural disasters and other risks, and the need to create comprehensive disaster risk management plans which inform the design and operation of key infrastructure facilities. Of course, as Thomas mentioned, Turkey unfortunately knows all about the importance of resilience, as was demonstrated by the recent tragic earthquake near Izmir.
  • Principle 5 is the Integration of Social Considerations in infrastructure investment, and it urges the adoption of policies that provide open access to infrastructure services on a non-discriminatory basis.
  • Finally, Principle 6 addresses the need to Strengthen Infrastructure Governance, in terms of the government institutions and processes that impact on the planning, procurement and management of infrastructure investments.

This last principle is, in my view, particularly important. Very recently, both the World Bank and the IMF have emphasised the relationship between good governance and the efficiency of infrastructure investments. In this regard, I would particularly recommend taking a look at the new book which the IMF produced in September, entitled Well Spent – How Strong Infrastructure Governance Can End Waste in Public Investment, which can be freely downloaded from the IMF’s website.

The important point is that the G20, alongside the United Nations and organisations such as the World Bank and the IMF, is now focusing clearly on the practical problems associated with achieving the infrastructure-related SDGs by 2030 – and this focus is demonstrating the importance of infrastructure quality and infrastructure governance, as key elements in the achievement of the SDG objectives.

Hulya, based on your experience in Turkey plus in various developing countries you have been working with, where do you see the gaps for achieving a better sustainability in the PPP governance, particularly from the public finance and the financiers’ side (i.e. project prioritization, policy alignment, etc)? What needs to be done and where the policies to be re-shaped?  project screening and preparation phase? 

Hulya: I wish to elaborate on what Mark has just presented but in terms of public perspective. Our priority is to understand how sustainability contribute to the the success factors of the public services. Here we are taking about hard/soft infra sectors, the service facilities in investment policies. This all relates to the global development efforts. Politicians and the public authorities are setting the trends and goals of sustainability in their development agenda  and these goals need to be achievable ones.

Considering the project life cycles the critical perspective and the responsibility is in the public side when it comes to the project preparation and the project availability for the private sector. Let me elaborate a bit. When you are working on a country diagnostic study, the first ever thing to understand that country is to look at the high level policy documents.  You will screen the development plans and the high-level investment plans of a country.

The related strategies, goals and targets are all very inter-connected and there is an aim to decrease the existing infra gap with fostering the economic growth with investment. Considering the sectors one by one, I believe we have a new paradigm with the COVID that the priorities have been changed in the public services. I was in Kathmandu (Nepal) last year to support the Investment Authorities for PPP policies. We were drafting the PPP guidelines. The key sectors identified were tourism, energy and transportation when we were discussing the procurement parameters for the candidate airport project. But during COVID pandemic, we start discussing the remote education facilities and healthcare service. This is a remarkable shift in all such discussions. This is the demand side key shift that we face with. The needs are changing.  Coming to the supply side, yes, we know that the public money is limited. Especially now, the resources are more limited with the slowdown in the economy and the urgent budgetary expenditures. This increases the importance of the private sector participation which will also trigger the effective usage of resources including the time  saving!

We need to identify how PPPs may help to close infrastructure gaps and inequalities and seek suggestions from PPP experts to improve:

  • poor planning and project selection: analysis, technology and innovation;
  • inefficient delivery: life cycle management and long-term perspective;
  • limited public resources: private financing.

We need to encourage further discussions on best practices in PPP preparation with the aim of creating a knowledge that could assist governments in doing better PPPs. 

Another consideration: some candidate PPP projects are better in terms of financial viability including the affordability and revenue generation capabilities. However, considering the sustainability and the SDG, there is an increasing demand to showcase the social benefit of the projects.

So, if the key consideration is time (which is more important than money nowadays), the social impact of a project is more critical to highlight the importance of the private sector engagement. All these prioritization shifts also impact the project screening and preparation aspects.

This is also good to see that in the last decade there are plenty of new cases of the ESG -compliant projects and I am sure we will be able to hear more from the speakers in the forthcoming sessions where the real cases and country examples to observe that shift will be demonstrated.

The countries and decision-makers should look at the changing world on how they can integrate better the PPP governance and sustainable development. We have seen plenty of good examples during the last 8 months.

Hulya, where you see the differences in the policies and approaches across the countries related to integration and implementation of the SDG goals within PPP projects? Does it increase the complexity of PPPs? How we can facilitate a better stakeholder engagement in PPPs to foster the implementation of Sustainable Goals?

Hulya: Every country has a different way of doing business, which shapes their the political decision making and even technical valuation and criteria settings.Moreover, it is also very crucial who will hold the flagship of SDGs. It is very clear that the governments and public agencies are the key players in leading SDGs.

Happy to see that the private sector who have more integrations with the public side is  more  and more focusing on the social and development-oriented strategies in their corporate activities.  This is a really good pick for these big scale private sector players having a dominant role which puts people in the centre of all these decisions.

I have been intensively working with the South Asia countries in the last two years and have witnessed that the social benefits and the impact of an infra investment iare very important for the politicians to demonstrate to the public to proof the effective public money spending.  This also relates to the transparency. We observe these sensitivities also in the local level. This also yield an increase in the social infra sectors as top priority in the developing countries.

The key challenge is the local capacity and domestic resources needed both for technical and financial capabilities. The countries who also connect their local development with private sector solutions in terms of domestic mobilization also have a better development impact , especially in mitigating the foreign exchange rate risk and country risks.

Attracting long term investment in private financing is also very crucial for these countries and the

  • tariff regulations,
  • pricing policies,
  • government support tools,
  • creating an enabling environment for the foreign investors like
  • step in rights and arbitration

– are all key elements that require further consideration.

Hugues, you have a lot of practical experience on the ground in Africa, especially with governments and project sponsors. What are the actual trends regarding the inclusion of social impact in infrastructure projects in Africa?

Thank you, Natalia. I would also like to warmly thank the organization of the Istanbul PPP Week for inviting me and especially Dr Eyup Vural Aydin. For sure we would have preferred meeting each other’s in persons and enjoying the view on the Bosporus but for the time being we mainly enjoy our home offices views!

Whereas Africa has been apparently less impacted than others continent by the Covid 19 virus, the current pandemic reveals the weakness of most of African countries as they either depend on importations of goods from outside or rely on exportations of their oil and gas productions. I would like here to remind a few facts:

  • 600 million Africans do not have access to water;
  • the amount of funding needed to achieve the Sustainable Development Goals (SDGs) by 2030 would exceed € 150 billion per year;
  • less affluent and / or isolated social classes are the most affected;
  • investors logically focus on creditworthy and easy-to-serve clients, which excludes the less fortunate and the most landlocked;
  •  Projects affecting a large population – therefore less solvent – are more difficult to finance.

Hence it is urgent to modify the scope of all infrastructure projects to include populations that are less easy to serve, and at the same time finding financial making projects dedicated to make them viable.  

Hugues, could you give us concrete examples on the extent of which infrastructure projects in Africa are modified/adjusted to take into account those social, sustainable and environmental criteria?

Absolutely. The priority list of infrastructures that needs to be addressed is the following :

  • drinking water and sanitation
  • electricity and energy
  • health and education
  • transport and communications

For example :

-a mining train which, although it may find its profitability by its sole mission of evacuating metals or minerals, it can become a structuring axis for entire regions by ensuring passenger trains with adapted (and probably subsidized tariffs) .

– dams are more and more designed to also benefit the surrounding populations, partly as compensation for the nuisance of the building, partly with the consequence of a much greater social acceptability of the entire project.

– off-grid electrical service models are increasingly available, thanks to photovoltaics and mobile phones; the move to a larger scale requires additional capital, and therefore, upstream, studies showing the profitability for the investor, and its conditions. Other specific modes of production or distribution have been developed, in Africa and elsewhere, often thanks to non-profit funding (international aid, NGOs, foundations, CSuR, etc.): shared transport, autonomous management of wells or fountains, multifunctional platforms, subsidized tariffs.

Mark, do you think there is a need to streamline the practices across countries and donors. How should take a lead on that?  Would you please elaborate on this?

Mark: Well, Natalia, your question is a provocative one – because it points to a basic flaw in our system of dealing with international challenges – particularly challenges, like the achievement of the SDGs and the issue of climate change, which require collective action by multiple countries.

Of course, the SDGs are a product of deliberations at the United Nations, and there was a consensus of countries in support of the SDG goals. However, the UN has, historically, struggled to mobilise countries to act on their commitments. In short, it’s fine to agree on aspirational goals, but they are meaningless unless countries actually implement their promises.

Indeed, in response to the long-standing perception that it is very difficult for the United Nations to force countries to honour the commitments which they have made, various states have created other groupings and organisations to take collective action. That was one of the reasons behind the establishment of the G7 Group and, when the G7 was found to be too narrow, a decision was taken to create the G20.

Interestingly, the G20 Group brings together not only advanced economies, but also emerging market countries, such as Indonesia and South Africa. And this gives the G20 a certain ‘moral legitimacy’ in terms of  acting as a coordinating agency. Also, the members of the G20 have significant influence on the boards of directors of the major development organisations, such as the World Bank, the Asian Development Bank, the African Development Bank and their various sister institutions.

Accordingly, I believe that the G20 can and should play a key role in coordinating sustainability practices across countries and onerous – and that is why I wanted to provide some details, in my earlier remarks, on the direction that the G20 is currently taking in regard to quality infrastructure investments.

Natalia Korchakova-Heeb: Thanks a lot for your insights and interesting discussion. Hope we provoked some thinking and inspire our audience to integrate SDGs and make infrastructure projects more sustainable.   Let me close  the session. We wishing our participants a good continuation of the conference.

Chile is progressing with Buin-Paine Hospital concession

Consejo Políticas de Infraestructura announced that six consortiums submitted on 19 October 2020 their technical and economic offers for the Buin-Paine Hospital concession to construct and maintain for 19 years.

The tender is part of the second health facility concession program promoted by the government of Chile. The Buin-Paine Hospital will will be a facility with 200 beds and total area of 56,000 m2 -it will serve the inhabitants of the two communities.  Investment required is US $ 120 million.

There were nine prequalified consortia, but the choice will be made   between:

More information about the project

 

 
 

WORLD HEALTH SUMMIT DIGITAL 2020

On October 25 begins the World Health Summit. The focus will be on the latest findings on COVID-19, new global strategies for pandemic prevention and control, the role of Europe and WHO in global health. All sessions can be accessed through individual Zoom links available in the program planner.

The opening ceremony on Sunday, 25 October at 6:00 pm (CET) with Federal President Frank-Walter Steinmeier, EU Commission President Ursula von der Leyen, UN Secretary-General Anónio Guterres, WHO Director-General Tedros Adhanom Ghebreyesus and other speakers will be available as a livestreamworldhealthsummit.org

Participation in the World Health Summit 2020 (October 25.-27.) is completely online.
– All 50 keynote sessions, panel discussions and workshops will be broadcast digitally.
– The individual Zoom links can be accessed cost-free and without registration here or directly in the program, where you also find all information on speakers and topics.