CDB Launches Regional PPP Support Facility

Published on
The Caribbean Development Bank (CDB), in cooperation with its development partners the World Bank, the Inter-American Development Bank, Multilateral Investment Fund, and the Public Private Infrastructure Advisory Facility, has established a USD1.2 million Regional Public-Private Partnerships (PPP) Support Facility, based in its Barbados headquarters. Given the high infrastructure needs and severe fiscal challenges faced by countries in the Region, policy-makers are increasingly turning to PPPs, as a means of delivering infrastructure services. Regional governments would therefore benefit from receiving practical assistance in adopting sound PPP policies, and advisory assistance to implement projects. PPPs are still relatively new to the Caribbean. Over the past ten years, some PPPs have been successfully implemented, delivering high-quality infrastructure facilities and providing value for money to both governments and consumers alike. However, in many cases the complexity of the transaction process - and lack of capacity within governments - has meant long delays in delivering projects; many of which languish for years and ultimately fail to launch. With support from its multilateral development partners, CDB has launched the first phase of activities under the Facility, designed to assist its Borrowing Member Countries in the development and implementation of PPPs. These activities include: 1. Strengthening the enabling environment: Developing a Caribbean web-based PPP Toolkit Seminars and workshops to increase technical capacity among governments 2. Hands-on support: Quick-response to ad-hoc technical requests In-country support to introduce PPP policies and programmes Screening and developing of potential projects 3. Business plan for PPP Facility: Estimating demand for advisory assistance and investment needs Defining the scope of services to be offered by the Facility Funding mechanisms for project preparation costs Eventually, the aim is for the Facility to comprise a PPP implementation team that will work with governments to develop and implement sound policies and transactions. The costs of the PPP team, and external advisors engaged to support projects, will be covered by a planned revolving fund, such that the Facility will be sustainable over time. The aim is for this fund to be replenished by contributions from governments; as well as cost recovery mechanisms from winning bidders. CDB is the primary implementing agency for the Facility. Substantial technical support will be provided by CDB's multilateral development partners, while the PPP team builds its in-house technical capacity. This important initiative demonstrates the ongoing commitment of CDB and its multilateral development partners, to promote the provision of infrastructure services in the Region, utilising the modality of PPPs.

Related News