IFC ECA Public-Private Partnership Transaction Advisory Program

Infrastructure investment requirements in developing and transition countries are enormous and cannot be met only through national budgets and contributions of international cooperation. The private sector, however, is in the position to cover the financial gap and can provide related knowhow through Public-Private Partnerships (PPPs). IFC, executing the ECA Program, has longstanding experience in PPP transaction consultancy and has developed a broad portfolio of advisory services covering the support for identification, preliminary assessment, preparation, tendering of potential PPP projects, including post transaction support.

Overall goal

The strategic objectives of the ECA Program:

• Contribute to regional poverty alleviation, economic growth and environmental improvement through public-private partnerships.
• Be an effective bridge between public sector players such as, municipalities, local and national governments in the Southeastern and Central Asian region on the one side and private sector investors, operators, owners and financing institutions on the other side.
• Increase availability of well-prepared infrastructure projects that are attractive for private sector participation and investments.
• Generate bankable investment opportunities for IFIs and other financiers in the region.
• Increase  the  capacity  of  its  public sector counterparts.
• Fully align the projects within the donor specific country development agenda, the clients’ and WBG development priorities and IFC’s Climate Change program.

Outcomes

Expected outcomes are

• a reduction of green-house gases of 500,000 tCo2 equivalent per year,
• a private sector investment leverage of 500mUS $,
• fiscal savings of 350m US $ over the whole program,
• 4m people shall be reached by the ECA pro- gram and benefit from new or improved ser- vices.

Key outputs

• The ECA Program will engage in 29 new PPP transaction advisory mandates, bring 15 to tender and will close successfully 6 of them.
• It is proposed that IFC organises a total of 15 workshops or 3 workshops per year within the ECA Program, depending on the clients needs.

Previous phases results

Despite operating in a challenging environment, the SECO supported PPP transaction advisory facilities have produced good results. Under the first phase (PEPSEI), 13 Financial Advisory Services Agreements (FASAs) were signed with governments, two projects were successfully closed and entered implementation. In the second phase (SEIA / CAIA), 18 FASAs were signed, three transactions successfully closed and entered implementation. The successful projects implemented have led to a total of USD 607m of private sector investment mobilized, positive fiscal impact to the client governments of USD 305m, 2,2m people receiving improved infrastructure services and saving of 435,000 t CO2eq of GHG emissions annually.