Infrastructure is the foundation for reliable access to quality basic services. Yet, growing populations and aging infrastructure are straining the capacity of most nations to deliver these services and grow their economies. IFC's advice in public-private partnerships (PPPs) is helping national and municipal governments in developing countries partner with the private sector to improve access to services such as education, electricity, healthcare, and sanitation.
It will cost about $2 trillion a year to modernize infrastructure and at least $100 billion a year to tackle climate change in the developing world. To help meet these needs, well-structured PPPs can help governments leverage the expertise and efficiency of the private sector, raise capital, and spur development. They also help allocate risk across the public and private sectors to where it can best be managed and ensure that resources are wisely allocated in addressing the most urgent development needs.
Every country has its own, often very complex, development challenges, priorities, and financial constraints, and there is no one solution to addressing all of them. While PPPs are not the answer to every country’s infrastructure and social service needs, they are a tool that helps governments meet development challenges and should be considered in line with national priorities, resources, and capacity.
THE IMPACT OF IFC CLIENTS IN PPPS:
|59||ACTIVE PPP PROJECTS|
|16.5||MILLION PEOPLE GAINED ACCESS
TO BASIC SERVICES IN FY15
|$3||BILLION IN PRIVATE INVESTMENT
FACILITATED IN FY15
|$20||BILLION IN PRIVATE INVESTMENT
FACILITATED SINCE 2004
|$50||MILLION IN FISCAL BENEFITS
TO COUNTRIES IN FY15
PPPs are long-term contracts between a private company and a government agency for providing a public asset or service.
They include roads, ports, buildings, power generation, and water and healthcare services.