We are pleased to present the Public–Private Partnership Monitor (PPP Monitor), a detailed review of the current state of the PPP-enabling environment in selected countries in Asia and the Pacific.
Availability of adequate infrastructure is a measure of a country’s ability to sustain its economic growth. For economies across Asia and the Pacific, provision of basic infrastructure services, including water, health, energy, transportation, and communications, is an important public sector activity. As demand for infrastructure has increased faster than government budgets, the public sector has increasingly considered partnership with the private sector as an alternate modality for financing infrastructure.
The Asian Development Bank (ADB) estimates that Asia and the Pacific must spend $1.7 trillion a year on infrastructure until 2030 to maintain growth, meet social needs, and respond to the effects of climate change. That amount is expected to go up. The traditional sources of finance for infrastructure—the government’s budgetary allocations—have not been enough to meet the demand. Prior to the coronavirus disease (COVID-19) pandemic, ADB estimated an annual infrastructure gap of $204 billion to be filled through private sector investment. That amount is also now expected to increase.
For the private sector, investment in infrastructure, whether through PPPs or otherwise, represents an investment avenue competing with various other investment options available. In order to compete, and to crowd in private capital into infrastructure, governments need to provide a conducive environment to adequately establish and protect the rights of the private sector, and the necessary support to ensure every asset brought to market provides returns that are commensurate with the risks.
The PPP Monitor provides the investor community with business intelligence on the enabling environment, policies, priority sectors, and deals to facilitate informed investment decisions. For ADB developing member countries (DMCs), the PPP Monitor serves as a diagnostic tool to identify gaps in their legal, regulatory, and institutional framework. ADB and other international development agencies can also benefit from the PPP Monitor as it could be useful in initiating dialogues to assess a country’s readiness to tap PPPs as a means to develop and sustain its infrastructure.
Building on the success of the previous editions, the new PPP Monitor is now being brought online to widen its reach. More countries will be continually added in the PPP Monitor and it is expected to become a primary knowledge base for assessing a country’s PPP environment for the government and the business community. The PPP Monitor features an interactive online version which allows users to compare and contrast the key PPP parameters and features across the DMCs. The online version of the PPP Monitor may be accessed at www.pppmonitor.adb.org.
The PPP Monitor has been upgraded to provide a "one-stop" information source, derived from a consolidation of (i) the previous PPP Monitor; (ii) leading PPP databases of multilateral development banks like the World Bank and the International Finance Corporation, and organizations like the Economist Intelligence Unit (EIU) [Infrascope], and the Global Infrastructure Hub (GI Hub) [InfraCompass]; (iii) reports of a country’s PPP unit; (iv) a country’s legal framework; and (v) consultations with leading technical experts and legal firms as well as financial institutions.
The PPP Monitor includes more than 500 qualitative and quantitative indicators to profile the national PPP environment, the sector-specific PPP landscape (for eight identified infrastructure sectors), and the PPP landscape for local government projects. The COVID-19 pandemic has pushed social infrastructure into the forefront of policy and planning; hence, where possible, this PPP Monitor takes a bigger focus on social and municipal aspects like health, education, and affordable housing.
The PPP market in most of ADB DMCs is still at an emerging or developing stage, and continuous regulatory reforms and institutional strengthening are required to facilitate further private sector investment in infrastructure and to create a sustainable pipeline of bankable projects. Through the PPP Monitor, ADB continues to provide support for DMCs in addressing various infrastructure and PPP-related challenges, in developing sustainable infrastructure projects, and in delivering efficient and effective public services through PPPs. ADB also helps DMCs improve their investment climates, formulate sound market regulations, and build robust legal and institutional frameworks to encourage private sector participation in infrastructure through PPPs.
We hope that this PPP Monitor will pave the way for continued dialogue between the public and private sectors and stimulate the adoption of PPPs in the Asia and the Pacific region.
Head, Office of Public–Private Partnership
Asian Development Bank
Definitions of Terms
Term Definition Public–private partnership (PPP)
Contractual arrangement between public (national, state, provincial, or local) and private entities through which the skills, assets, and/or financial resources of each of the public and private sectors are allocated in a complementary manner, thereby sharing the risks and rewards, to seek to provide optimal service delivery and good value to citizens. In a PPP, the public sector retains the ultimate responsibility for service delivery, although the private sector provides the service for an extended time.
Within Asian Development Bank operations, all contracts such as performance-based contracts (management and service contracts), lease–operate–transfer, build–own–operate–transfer, design–build–finance–operate, variants, and concessions are considered as various forms of PPP.
- contracts involving turnkey design and construction as part of public procurement (engineering, procurement, and construction contracts);
- simple service contracts that are not linked to performance standards (those that are more aligned with outsourcing to private contractor staff to operate public assets);
- construction contracts with extended warranties and/or maintenance provisions of, for example, up to 5 years post-completion (wherein performance risk-sharing is minimal as the assets are new and need only basic maintenance); and
- all privatization and divestures.
Affermage or lease contracts Under a lease contract, the private sector developer is responsible for the service in its entirety and undertakes obligations relating to quality and service standards. Except for new and replacement investments, which remain the responsibility of the government contracting agency, the operator provides the service at its expense and risk. The duration of the leasing contract is typically 10 years and may be renewed up to 20 years. Responsibility for service provision is transferred from the public sector to the private sector and the financial risk for operation and maintenance is borne entirely by the private sector operator. In particular, the operator is responsible for losses and for unpaid consumers' debts. Leases do not involve any sale of assets to the private sector. Availability- and/or performance-based payments Method of investment recovery in PPP projects, when payments to the private party are made by the government contracting agency over the lifetime of a PPP contract in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards. Best and final offer (BAFO) An incentive mechanism provided by the government contracting agency to the private sector developer, initiating a PPP project through the unsolicited proposal route (USP proponent) to be automatically shortlisted for the final bidding round and provide its best and final offer to match the other bidders’ best offer. Build–lease–transfer A type of PPP whereby a private sector developer is authorized to finance and construct an infrastructure or development facility, and upon its completion hands it over to the government contracting agency on a lease arrangement for a fixed period after which ownership of the facility is automatically transferred to the government contracting agency. Build–own–operate A type of PPP whereby a private sector developer is authorized to finance, construct, own, operate, and maintain an infrastructure or development facility from which the private sector developer is allowed to recover its total investment, and operating and maintenance costs plus a reasonable return thereon by collecting tolls, fees, rentals, or other charges from facility users. Under this PPP type, the private sector developer which owns the assets of the facility may assign its operation and maintenance to a facility operator. Build–operate– transfer
Build–operate–transfer (BOT) and similar arrangements are a specialized concession in which a private firm or consortium finances and develops a new infrastructure project or a major component according to performance standards set by the government.
Under BOTs, the private sector developer provides the capital required to build a new facility. Importantly, the private operator now owns the assets for a period set by contract—sufficient to give the developer time to recover investment costs through user charges.
Build–transfer A type of PPP under which the private sector developer undertakes the financing and construction of a given infrastructure or development facility, and after its completion hands it over to the government contracting agency, which pays the private sector developer on an agreed schedule its total investments expended on the project, plus a reasonable rate of return thereon. This arrangement may be employed in the construction of any infrastructure or development project, including critical facilities which, for security or strategic reasons, must be operated directly by the government contracting agency. Commercial close Indicates the signing of the PPP contract between the government contracting agency and the identified private sector developer. Usually occurs after the terms and conditions of the draft PPP contract are negotiated and agreed between the government contracting agency and the identified private sector developer. Competitive bidding A process under which the bidders submit information detailing their qualifications and detailed technical and financial proposals, which are evaluated according to defined criteria—often in a multi-stage process—to select a preferred bidder. Competitive bidding may also include competitive negotiations and license schemes. Concession A type of PPP which makes the concessionaire (established by the selected private sector developer) responsible for the full delivery of services in a specified area, including operation, maintenance, collection, management, and construction and rehabilitation of the system. Importantly, the private sector developer is responsible for all capital investment. Although the concessionaire is responsible for providing the assets, such assets are publicly owned even during the concession period. The public sector is responsible for establishing performance standards and ensuring that the concessionaire meets them. In essence, the public sector’s role shifts from being the service provider to regulating the price and quality of service. Currency conversion swap fee A premium which is paid by the borrower to settle on a swap in which the parties sell currencies to each other, subject to an agreement to repurchase the same currency in the same amount, at the same exchange rate, and on a fixed date in the future. Direct agreement An agreement normally made between the concessionaire (established by the private sector developer), the government contracting agency, and the lenders. The agreement usually gives the lenders step-in rights to take over the operation of the key PPP contracts. Direct negotiations A type of PPP procurement under which the PPP contract is awarded on the basis of a direct agreement with a private sector developer without going through the competitive bidding process. Dispute resolution A process to resolve any dispute between the government contracting agency and the private sector developer as agreed in the PPP contract. The possible dispute resolution mechanisms in a PPP contract could include resolution through
- discussion between both parties,
- dispute resolution board,
- expert determination,
- mediation or conciliation, or
Environmental impact assessment A process of evaluating the likely environmental impacts of a proposed project or development, taking into account interrelated socioeconomic, cultural, and human health impacts, both beneficial and adverse. Feed-in tariff (FIT) A policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term purchase agreements for the sale of renewable energy electricity. Financial close An event whereby (i) a legally binding commitment of equity holders and/or debt financiers exists to provide or mobilize funding for the full cost of the project, and (ii) the conditions for funding have been met and the first tranche of funding is mobilized. If this information is not available, construction start date is used as an estimated financial closure date. Financial equilibrium A mechanism in a PPP agreement for dealing with changes, when changes in specified conditions and circumstances trigger compensating changes to the terms of the agreement. Some civil law jurisdictions emphasize economic or financial equilibrium provisions that entitle a partner to changes in the key financial terms of the contract to compensate for certain types of exogenous events that may otherwise impact returns. The partner is protected as the economic balance of the contract must be maintained and adequate compensation paid for damages suffered. Unexpected changes that merit financial equilibrium may arise from force majeure (major natural disasters or civil disturbances), government action, and unforeseen changes in economic conditions. Force majeure An event that is reasonably beyond the reasonable control of the affected party as a result of which such party’s performance of its obligations under the PPP contract is prevented or rendered impossible. Force majeure events may include
- war, civil war, armed conflict or terrorism;
- nuclear, chemical, or biological contamination unless the source or the cause of the contamination is the result of the actions of or breach by the concessionaire or its subcontractors;
- pressure waves caused by devices traveling at supersonic speeds, which directly causes either party (the “Affected Party”) to be unable to comply with all or a material part of its obligations under the contract; or
- any other similar events that are beyond reasonable control of the affected party, and prevent or render impossible the performance by such party of its obligations under the PPP contract.
Government contracting agency The ministry, department, or agency that enters into a PPP contract with the private sector and is responsible for ensuring that the relevant public assets or services are provided. Government guarantee Agreements under which the government agrees to bear some or all risks of a PPP project. It is a secondary obligation which legally binds the government to take on an obligation if a specified event occurs. A government guarantee constitutes a contingent liability, for which there is uncertainty as to whether the government may be required to make payments, and if so, how much and when it will be required to pay.
In practice, government guarantees are used when debt providers are unwilling to lend to a private party in a PPP because of concerns over credit risk and potential loan losses. Government guarantees can also be used to benefit equity investors in a PPP company when they require protection against the investment risks they bear.
Government pay (Offtake) Represents the payment made by the government contracting agency to the concessionaire (established by the private sector developer) for the infrastructure assets provided and services delivered through a PPP project. These payments could be
- usage-based—for example, shadow tolls or output-based subsidies;
- based on availability—that is, conditional on the availability of an asset or service to the specified quality; and
- upfront subsidies based on achieving certain agreed milestones.
Gross-cost contract A type of PPP contract arrangement in the railway sector under which all revenues (from fares and other sources) are transferred to the government contracting agency, and the risks absorbed by the developer are confined to those associated with the cost of operations. Hybrid arrangement A method of investment recovery in PPP projects when payments to the private party are made as a combination of user charges and availability payments over the lifetime of a PPP contract, in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards. Independent power producer
A scheme whereby a producer of electrical energy, which is not a public utility, makes electric energy available for sale to utilities or the general public.
A scheme whereby a producer of electrical energy, which is a private entity, owns and/or operates facilities to generate electricity and then sells it to a utility, central government buyer, or end users. The IPP invests in generation technologies and recovers cost from the sale of the electricity.
Institutional arbitration An arbitration process in which a specialized institution intervenes and takes on the role of administering the arbitration process between the government contracting agency and the private sector developer for a PPP project-related dispute. This institution would have its own set of rules which would provide a framework for the arbitration, and its own form of administration to assist in the process. Interest rate swap fee A premium paid by the borrower for a hedging contract to convert a ﬂoating interest rate into a ﬁxed rate. The two parties agree to exchange interest rate payments based on a notional principal amount, with typically one paying a fixed rate and the other generally paying a floating rate. Joint venture An alternative to full privatization in which the infrastructure is co-owned and operated by the public sector and private operators. Under a joint venture, the public and private sector partners can either form a new company or assume joint ownership of an existing company through a sale of shares to one or several private investors. The company may also be listed on the stock exchange. Lender’s step-in rights Lender’s rights in project-financed arrangements to “step in” to the project company’s position in the contract to take control of the infrastructure project where the project company is not performing. Management contract A PPP type which expands the services to be contracted out to include some or all of the management and operation of the public service (i.e., utility, hospital, port authority). Although ultimate obligation for service provision remains in the public sector, daily management control and authority is assigned to the private partner or contractor. In most cases, the private partner provides working capital but no financing for investment. Material adverse government
An action by the government which directly and materially affects the private party of a PPP project in performing its obligations under the relevant PPP contract, and which would reasonably be expected to result in a material adverse effect. Net-cost contract A type of PPP contract arrangement in the railway sector under which all revenues (from fares and other sources) are retained by the developer, and traffic and revenue risks are absorbed either fully or as per a contractually agreed portion. Nominal interest rate
The nominal interest rate is the interest rate applicable to a borrowing before taking inflation adjustment into account. In certain cases, nominal interest rate also refers to the advertised or stated interest rate on a borrowing, without taking into account any fees or compounding of interest.
Nominal interest rate = Real interest rate + Inflation rate
Nonrecourse/limited recourse project financing The financing of the development or exploitation of a right, natural resource, or other assets where the bulk of the financing is to be provided by way of debt, and is to be repaid principally out of the assets being financed and their revenues. Output-based aid (OBA) Refers to development aid strategies that link the delivery of public services in developing countries to targeted performance-related subsidies. OBA provides a way in which international financial institutions can directly structure their financing to benefit poor people, even when the service provider is a private company. OBA is the use of explicit, performance-based subsidies funded by the donor agencies to complement or replace user fees. It involves the contracting out of basic service provision to a third party—such as private companies, nongovernment organizations, community-based organizations, and even public service providers—with subsidy payment tied to the delivery of specified outputs. This means that targeted and valuable subsidies to disadvantaged populations are funded through donor funds. The private partner, meanwhile, can only recover this funding by achieving specific performance outcomes. Project bond financing An alternative source of financing infrastructure project by placing bonds. Project development Indicates the stage of the PPP project life cycle, including PPP project identification, preparation, structuring, and procurement up to commercial close between the government contracting agency and the private sector developer. Project development fund (PDF) A fund dedicated to reimbursing the cost of feasibility studies, transaction advisers, and other costs of project development, to encourage contracting agencies to use high-quality transaction advisers and best practice. PDFs provide the specialized resources needed to conduct studies, to design and structure a PPP, and then to procure the PPP. Real interest rate
The real interest rate is the interest rate applicable to a borrowing that takes inflation rate into account.
Real interest rate = Nominal interest rate – Inflation rate
Regulatory framework A framework encompassing all laws, regulations, policies, binding guidelines or instructions, other legal texts of general application, judicial decisions, and administrative rulings governing or setting precedent in connection with PPPs. In this context, the term “policies” refer to other government-issued documents, which are binding on all stakeholders, are enforced in a manner similar to laws and regulations, and provide detailed instructions for the implementation of PPPs. Rehabilitate–operate–transfer A type of PPP whereby an existing facility is handed over to the private sector developer to refurbish, operate, and maintain for a franchise period, at the expiry of which the legal title to the facility is turned over to the government contracting agency. Risk allocation matrix Matrix indicating the allocation of the consequences of each risk to one of the parties in the PPP contract, or agreeing to deal with the risk through a specified mechanism which may involve sharing the risk. Service contract A type of PPP under which the government contracting agency hires a private company or entity to carry out one or more specified tasks or services for a period, typically 1–3 years. The government contracting agency remains the primary provider of the infrastructure service and contracts out only portions of its operation to the private partner. The private partner must perform the service at the agreed cost and must typically meet performance standards set by the government contracting agency. Government contracting agencies generally use competitive bidding procedures to award service contracts, which tend to work well given the limited period and narrowly defined nature of these contracts. Social impact assessment Includes the processes of analyzing, monitoring, and managing the intended and unintended social consequences—both positive and negative—of planned interventions (policies, programs, plans, projects) and any social change processes invoked by those interventions. Its primary purpose is to bring about a more sustainable and equitable biophysical and human environment. Social infrastructure Covers social services, including hospitals, schools and universities, prisons, housing, and courts. State-owned enterprise (SOE) A company or enterprise owned by the government or in which the government has a controlling stake. Swiss challenge A process in public procurement when a government contracting agency that has received an unsolicited bid for a project publishes details of the bid and invites third parties to match or exceed it. Tax holiday A government incentive program that offers tax reduction or elimination to projects and/ or businesses. In the context of a PPP project, tax holidays are provided to exempt the concessionaire from making any tax payments during the initial demand ramp-up period to make the project financially viable. Unsolicited bid A proposal made by a private party to undertake a PPP project. It is submitted at the initiative of the private party, rather than in response to a request from the government contracting agency. User charges A method of investment recovery in PPP projects when payments to the private party are fully derived from tariffs paid by users or offtakers over the lifetime of a PPP contract, in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards. Viability gap fund A scheme wherein the projects with low financial viability are given grants (or other financial support from the government) up to a stipulated percentage of the project cost, making them financially viable as PPPs.
Guide to Understanding the PPP Monitor
Guide to Understanding the PPP Monitor
The profile provides a snapshot of the PPP legal and regulatory framework; the number of PPP projects reaching financial close across sectors; the total investment made in PPPs across sectors; and the features of past PPP projects, including the number of PPPs procured through various modes, the number of PPP projects under preparation and procurement, the number of PPP projects supported by government, the payment mechanism for PPPs, and foreign sponsor participation in PPPs from 1990 to 2019. The profile also provides the major sponsors active in the infrastructure sector in each country, and the challenges associated with the local PPP landscape.
Guide to Understanding the PPP Monitor
National PPP Landscape
The national PPP landscape for the country is profiled using three major parameters: (i) the national PPP-enabling framework, (ii) the government support for PPP projects, and (iii) the maturity of the PPP market. A brief overview of the parameters and sub-parameters covered for profiling the national PPP landscape is as follows:
National PPP Legal and Regulatory Framework
This section provides the details on the legal and regulatory framework applicable to PPPs and its evolution since the introduction of PPPs in the country. This section also provides details on the other supporting laws and regulations governing PPPs in the country.
Types of PPP
This section provides the details on the types of PPP allowed to be used as per PPP legal and regulatory framework. In case the PPP legal and regulatory framework does not specify the PPP types, this section provides the details on the specific PPP types which have been adopted thus far for various PPP projects at various stages of the PPP life cycle.
This section provides the details on various infrastructure sectors for which projects could be procured through the PPP route as per the PPP legal and regulatory framework.
PPP Institutional Framework
This section provides the details on the PPP institutional framework, including the availability of a PPP unit; the functions of the PPP unit; the principal public entities associated with PPPs and their respective functions; and the details of the public entities responsible for PPP project identification, appraisal, approval, oversight, and monitoring.
This section provides the details on the various stages of the PPP process, including PPP project identification, preparation, structuring, procurement, and management as per the PPP legal and regulatory framework in the country.
PPP Standard Operating Procedures, Tool Kits, Templates, and Model Bid Documents
This section provides the details on the standard operating procedures, standard templates, and model bidding documents available for PPPs (if any). This section also provides details on the key clauses in a PPP agreement based on the review of selected PPP agreements already executed, and/ or the review of the PPP legal and regulatory framework.
Lender’s Security Rights
This section provides the details on the rights available to lenders when taking exposure to PPP projects.
Termination and Compensation
This section provides the details on the events of default which may lead to the termination of the PPP agreement, and the private partner’s compensation in case termination of the PPP agreement due to various reasons.
Unsolicited PPP Proposals
This section provides the details on the possibility of submission of unsolicited PPP proposals and their treatment, including potential advantages provided to the unsolicited PPP proposal proponent at the PPP procurement stage.
Foreign Investor Participation Restrictions
This section provides the details on any statutory restrictions on foreign equity investments and ownership in PPP projects.
This section provides the details on the dispute resolution process and mechanisms available in the country.
Environmental and Social Issues
This section provides the details on whether the legal and regulatory framework governing PPPs stipulates a mechanism for managing the environmental and social impact of a PPP project, including the potential environmental and social issues which could be caused by a PPP project.
This section provides the details on various mechanisms through which landownership and/ or land use rights could be provided to the private partner in respect of the project site for a PPP project. It also provides the details on land records and registration which could be provided to the private partner.
Government Financial Support for PPP projects
This section provides the details on the various mechanisms of government financial support available to make PPP projects financially viable. It also provides the salient features of such government financial support mechanisms available.
Project Development Funding Support
This section provides the details on the various sources through which funding could be availed for the development activities (preparation, structuring, and procurement) for a PPP project. It also provides the details on stages of the PPP project development stage during which such funding could be availed and utilized including, payments to transaction advisors.
PPP Project Statistics
This section provides the details on the key PPP statistics in the country such as the availability of a PPP database showing distribution of PPP projects across sectors and across various stages of the PPP life cycle, and the availability of a national PPP project pipeline and its alignment with the national infrastructure plan for the country.
Sources of PPP Financing
This section provides the details of the sources of financing for PPP projects in the country. It also provides the details on typical financing terms for various sources of financing, banks active in project finance for the last 24 months, active PPP project sponsors in the country for the last 24 months, availability of derivatives market, and availability of credit rating agencies in the country.
Guide to Understanding the PPP Monitor
Sector-Specific PPP Landscape
The sector-specific PPP landscape for each of the eight identified infrastructure sectors for the country is profiled using five major parameters: (i) sector-specific PPP contracting agencies, (ii) sector laws and regulations, (iii) sector master plan (including sector-specific PPP pipeline), (iv) features of past PPP projects in the sector, and (v) sector-specific challenges for PPPs. The sectors which do not appear consistently across the countries are covered under the ‘Other sectors’ category as a part of the sector-specific PPP landscape. A brief overview of the parameters and sub-parameters covered for profiling the sector-specific PPP landscape is as follows:
Contracting Agencies in the Sector
This section provides the details on which government agencies could act as the contracting agencies for a PPP project.
Sector Laws and Regulations
This section provides the details on the applicable sector laws and regulations for PPP projects, including the sector regulators and their respective functions.
Foreign Investment Restrictions in the Sector
This section provides the details on the maximum allowed foreign equity investment in greenfield PPP projects in the particular sector.
Standard Contracts in the Sector
This section specifies if standard contracts are available for PPP projects in the particular sector.
Sector Master Plan
This section provides details on the master plan and/or roadmap adopted for infrastructure development in the sector by the national government and the corresponding line ministry. It also provides details on the pipeline of PPP projects for the sector aligned with this sector master plan and/or roadmap. This section also provides the details on the PPP projects under preparation and procurement in the sector.
Features of Past PPP Projects
This section provides the features of the past PPP projects based on supporting indicators in terms of the number and value (where applicable) of PPP projects for each supporting indicator.
Tariffs Applicable to the Sector
This section provides the details on the indicative tariffs applicable in the sector based on the examples of select PPP or other projects operational in the sector.
Typical Risk Allocation for PPP Projects in the Sector
This section provides the details on the typical risk allocation between the government contracting agency and the private partner based on examples of select PPP projects which have achieved commercial close.
Financing Details for PPP Projects in the Sector
This section provides the typical financing details based on past PPP projects on the lines of the identified supporting indicators.
Challenges Associated with PPPs in the Sector
This section provides the details on the PPP-related and sector-specific challenges faced by PPP projects in the sector.
Typical Sector-Specific Infrastructure Indicators for the Country
This section provides the details on select sector-specific infrastructure indicators for the country.
Guide to Understanding the PPP Monitor
Local Government PPP landscape
The PPP landscape for local government projects in the country is profiled using seven major parameters: (i) local governance system, (ii) infrastructure development plans for local governments, (iii) sectors in which local governments can implement PPPs, (iv) revenue sources for local governments, (v) borrowings by local governments, (vi) budgetary allocation to local governments, and (vii) credit rating of local governments. A brief overview of the parameters and sub-parameters covered for profiling the PPP landscape for local government projects is as follows:
Key Indicators Related to Local Governments in the Country
This section provides the details on the local governments using select key indicators on the number and levels of local governments, the typical expenditure profile and heads, the typical revenue profile and heads, the typical debt profile and heads, and grants and transfers from the higher levels of the government.
Local Governance System
This section provides the details on the local governance system in the country, including the various levels of local governments; their roles, responsibilities, and functions; and the devolution of powers from the higher levels of government to these various levels of local governments.
Infrastructure Development Plan for Local Governments
This section provides the details on the infrastructure development plans prepared by the local governments based on their capital investment projects in the pipeline, and the coverage of such infrastructure development plans.
PPP-Enabling Framework for Local Governments
This section provides the details on the PPP-enabling framework applicable to local government PPP projects, including the PPP legal and regulatory framework, the PPP policy framework, and the PPP institutional framework.
Eligible Sectors for PPPs for Local Governments
This section provides the details on the eligible sectors in which PPPs could be undertaken by local government as government contracting agency.
Revenues for Local Governments
This section provides details on the typical sources of revenue for local governments.
Borrowings by Local Governments
This section provides the details on the typical sources of debt financing available for local governments, the purpose for which borrowed funds could be used, the terms of such borrowings, and the borrowing exposure of select local governments.
Budgetary Allocation to Local Governments
This section provides the details on the budgetary allocations and transfers to the local governments from the higher levels of government.
Credit Rating of Local Governments
This section provides the details on the precedence of local governments being rated by credit rating agencies in the country, and the details of credit ratings obtained by select local governments in the past.
Case Study on a Local Government PPP
This section provides a case example of a PPP project undertaken by a local government in the past, covering details on project background, project assets, PPP structure for the project, risk allocation among the parties for the project, project finance and project revenue details, and key learnings from the PPP project.
Guide to Understanding the PPP Monitor
Critical Macroeconomic and Infrastructure Sector indicators
This section captures the critical macroeconomic and infrastructure sector indicators (including the Ease of Doing Business scores) from globally accepted sources.
Critical Macroeconomic and Infrastructure Sector Indicators
This section provides the details of the select key macroeconomic and infrastructure indicators for the country.
Ease of Doing Business
This section provides the details on the various parameters for the country based on the World Bank’s Ease of Doing Business publication.