PUBLIC-PRIVATE PARTNERSHIPS Version 3 Reference Guide PUBLIC-PRIVATE PARTNERSHIPS PPP REFERENCE GUIDE

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PUBLIC-PRIVATE PARTNERSHIPS Version 3 Reference Guide PUBLIC-PRIVATE PARTNERSHIPS PPP REFERENCE GUIDE Reference Guide Reference PUBLIC-PRIVATE PARTNERSHIPS Version 3 Version Reference Guide PUBLIC-PRIVATE PARTNERSHIPS Version 3 Version Reference Guide PPP REFERENCE GUIDE This version of the PPP Reference Guide is available in its entirety, including referenced documents, in the PPP Knowledge Lab. The PPP Knowledge Lab brings together the most relevant and authoritative resources on public-private partnerships in one location to empower governments and their advisors to decide whether a PPP is the best option to deliver infrastructure services and, if so, help them design and deliver best in class infrastructure projects. Whether you are just learning how and when to use PPPs or need more specific information on a country or sector, the PPP Lab has the resources to support you. Launched in 2015 by the African Development Bank (AFDB), the Asian Development Bank (ADB), the European Bank for Re- construction and Development (EBRD), the Inter-American Development Bank (IADB), the Islamic Development Bank (IsDB), and the World Bank Group, with the support of the Public-Private Infrastructure Advisory Facility (PPIAF), the PPP Knowledge Lab serves the needs of governments and practitioners alike, filling the gap in reliable, trustworthy knowledge about public-private partnerships. Since launch, five new partners have joined the Lab: the European Investment Bank (EIB), the Global Partnership on Output-Based Aid (GPOBA), the Organisation for Economic Co-operation and Development (OECD), the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and the United Nations Economic Commission for Europe (UNECE). © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW | Washington DC 20433 | Telephone: 202-473-1000 | Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected] Photo credits: People Images/istockphoto (p5), hxdb2xy/istockphoto.com (p57), snvv/istockphoto.com (p113). Foreword We are delighted to present the third edition of the PPP Reference Guide. The two previous editions were jointly developed by the World Bank Group, the Asian Development Bank (ADB) and the Inter-American Development Bank (IADB). For this version, in addition to the ADB and IADB, we have had the pleasure of collaborating with the European Bank for Reconstruction and Development (EBRD), Global Infrastructure Hub (GI Hub), Islamic Development Bank (IsDB), Organisation for Economic Co-operation and Development (OECD), United Nations Economic Commission for Europe (UNECE), and United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). Since the last edition of the Guide, governments have endorsed the Sustainable Development Goals (SDGs), and have reached agreement at the International Conference on Financing for Development (FfD) that public finance alone will not suffice to deliver the infrastructure necessary to eliminate extreme poverty, and meet the SDGs and COP21 objectives. Government officials and multilateral institutions are increasingly looking for innovative ways to mobilize private sector contributions, blend public and private finance to scale up infrastructure investments, and enhance the efficiency and quality of public service delivery. PPPs are at the very core of this endeavor. A major objective of the World Bank Group and the other multilateral organizations that have contributed to this product is to help governments make well-informed decisions regarding their infrastructure programs, based on sound analysis, and commensurate with their macroeconomic objectives and institutional capabilities. To this end, we are generating global knowledge and diagnostic tools, offering advisory services, and technical assistance. This book is part of this effort to help decision makers and PPP practitioners. It aims to disseminate good practices on infrastructure and PPP policies and implementation. The third edition of the Guide is particularly interested in the development of efficient legal and institutional frameworks that help governments identify and select PPP projects, and structure and procure affordable, sustainable PPP contracts that deliver needed services to populations. We are also pleased to witness the expansion of this Reference Guide into new subject areas, particularly Stakeholder Communication and Engagement, Environmental & Social Studies and climate change. Additional relevant sections also now address municipal PPPs, climate change issues, and private participation in fragile and conflict-affected states. This Reference Guide now has an online version, allowing for regular updates, on the PPP Knowledge Lab, the online PPP knowledge dissemination platform that the World Bank Group shares with other multilateral organizations. On behalf of the World Bank Group and its partner institutions, we hope that you will find the information in this Reference Guide interesting, pragmatic and useful. Laurence Carter Ryuichi Kaga Thomas Maier Chris Heathcote José Agustín Aguerre World Bank Asian European Bank for Global Inter-American Group Development Bank Reconstruction and Infrastructure Hub Development Bank Development Walid Abdelwahab Rolf Alter Geoffrey Hamilton Shamshad Akhtar Islamic Development Organisation for United Nations United Nations Bank Economic Co-operation Economic Commission Economic and Social and Development for Europe Commission for Asia and the Pacific PPP REFERENCE GUIDE Acknowledgements The PPP Reference Guide Version 3 is a joint product of the World Bank Group, ADB, EBRD, GI Hub, IADB, IsDB, OECD, UNECE, and UNESCAP. The Infrastructure, Guarantees, and PPP Cross-Cutting Solutions Area (CCSA) of the World Bank Group (WBG) steered this project. It was prepared by a team led by Rui Monteiro under the direction of Olivier Fremond. Members of the core team included: Rupinder Kaur Rai, Joshua Anastassios Si- monidis, Paris Gkartzonikas, Lama Kiyasseh, and Jeanine Delay. The editorial team would like to acknowledge the support of Laurence Carter and Clive Harris of the Infrastructure, Guarantees, and PPP CCSA, François Bergère from PPIAF, and Chiaki Yamamoto from the PPP Knowledge Lab. Numerous individuals contributed to the development of this Guide but the team would particularly like to thank the following for their significant contributions: James Ballingall, Pedro Barros, David Baxter, Philippe Burger, David Ehrhardt, Karineh Grigorian, Andrés Rebollo, Andrew Sprott, James Stewart, Stephane Straub, and Ned Yescombe. Additionally, the team would like to thank the many experts who contributed their insightful comments and input: Farida Aboulmagd (WBG), Anna Aghabab- yan (WBG), Aijaz Ahmad (WBG), Sara Ahmed (WBG), Cigdem Aslan (WBG), Mairée Uran Bidegain (WBG), Jyoti Bisbey (WBG), David Bloomgarden (IADB), Dennis Blumenfeld (IADB), Tony Bonnici (UNECE), Ashraf Bouajina (WBG), Laura Bozanigo (WBG), Richard Cabello (WBG), Rodrigo Silvei- ra Veiga Cabral (WBG), Mehmet Coskun Cangoz (WBG), Carlota Cenalmor (EIB), Sharmila Chavaly (MOF India), James Close (WBG), Andrew Davies (OECD), Kirti Devi (WBG), Jeffrey John Delmon (WBG), Victoria Delmon (WBG), David Duarte (WBG), Ben Eijbergen (WBG), Edward Farquharson (EPEC EIB), Joshua Gallo (WBG), Nadine Ghannam (WBG), Bjorn Gillsater (WBG), Gabriel Goldschmidt (WBG), Sudarshan Gooptu (WBG), Geoffrey Hamilton (UNECE), Ian Hawkesworth (OECD), Hassan Idris (IsDB), Jane Jamieson (WBG), Marcin Jędrasik (MED Poland), Edith Jibunoh (WBG), Matthew Jordan-Tank (EBRD), Ellis J. Juan (IADB), Mouhamadou Madana Kane (IsDB), Ali Kayar (IsDB), Geoffrey Keele (WBG), Dongjin Kim (WBG), Jay-Hyung Kim (WBG), Jens Kromann Kristensen (WBG), Olivier Lambert (WBG), Morgan Landy (WBG), Carolina Maria Lembo (IADB), Lili Liu (WBG), Claire Lockhart, Ramatou Magagi (WBG), Thomas Maier (EBRD), Cledan Mandri-Perrot (WBG), Isabel Marques-de-Sá (WBG), Daniella Carrera Marquis (IADB), Helen Martin (WBG), Rocío Medina-Bolívar (IADB), Sylvain Adokpo Migan (WBG), Shamiela Mir (WBG), Leo- poldo Montañez (IADB), Giovanna Monti (WBG), Mark Moseley (GI Hub), Giulia Motolese (WBG), Mohammad Asheque Moyeed (IsDB), Nathalie Munzberg (WBG), Miguel Navarro-Martin (WBG), Philippe Neves (WBG), Adesinaola Odugbemi (WBG), Daniela Henrike Klau Panhans (WBG), Silvina Panizza (MEF Uruguay), Christina Paul (WBG), Axel Peuker (WBG), Veronica Piatkov (WBG), Amr Qari (ADB), Fida Rana (IsDB), Isabel Rial (IMF), María Patricia Sandoval (FDN Colombia), Pablo Pereira dos Santos (IADB), Julie Rozenberg
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