The Middle East and North Africa (MENA) region is home to over 300 million people and millions of lives are threatened every day by unsafe water and poor sanitation. Many businesses lack reliable electricity supplies, with an estimated 20 percent regional shortfall in installed power generation. This is part of a wide and growing regional infrastructure gap. It is likely that MENA needs between $75 and $100 billion in infrastructure investment annually to sustain the economic growth rates observed in recent years.
IFC Advisory Services helps address these challenges through its Public-Private Partnerships (PPP) program, which advises governments on how to harness private sector investment and expertise in the development of key infrastructure projects. By leveraging the private sector, these partnerships can help make life better for millions by improving access to schools, hospitals, transport networks, power plants, and water and sanitation facilities.
The Public-Private Partnership program strives to:
Increase access to public services, while improving their quality and efficiency;
Alleviate the budgetary constraints facing many regional governments;
Respect the ability of consumers to pay for public utilities; and
Attract private sector know-how and investments through the structuring of bankable transactions, while ensuring cost recovery and the financial sustainability of the sector.
The Public-Private Partnership program is active across the Middle East and North Africa.
In the West Bank, we successfully advised on a PPP to operate and maintain a solid waste management facility that will serve almost 800,000 people.
In Egypt, IFC is advising on the Dairut IPP project, and is supporting multiple PPP pre-feasibility studies in the urban transport, solid waste, health, and telecommunications sectors. We have also advised the government on PPPs to build a waste-water treatment plant in greater Cairo and two state-of-the-art hospitals in Alexandria.
In Pakistan, IFC has signed memoranda of understanding with the government of Punjab, to explore PPPs across the infrastructure sectors, and with the Privatization Commission of Pakistan, to assist them in the privatization program of state owned enterprises.
In Jordan, the recent opening of a state-of-the-art airport terminal in Amman is the product of an IFC-led PPP, in which IFC also co-invested with the Islamic Development Bank and other commercial banks.
In Saudi Arabia, we advised on and helped structure a 25-year agreement to expand, operate, and maintain an airport in the holy city of Medina. The airport is expected to generate $1.3 billion in private investment and serve as a model for the rest of the region.
In Afghanistan, IFC is advising the national power utility, DABS, on a management support contract to improve the financial and operational performance of utilities in Kandahar.