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The Caribbean PPP Environment

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Presentation delivered by S. Brian Samuel, Head of Regional Public-Private Partnerships (PPPs), CDB on the experiences, challenges and opportunities for PPPs in the Caribbean during a webinar on the Caribbean PPP Toolkit on June 28, 2017.

Published in: Economy & Finance
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The Caribbean PPP Environment

  1. 1. The Caribbean PPP Environment S. Brian Samuel Head of Regional PPPs Caribbean Development Bank Webinar on the Caribbean PPP Toolkit 28th June, 2017
  2. 2. AGENDA 1 Pressing Investment Needs 2 Review of PPP Experience 3 Caribbean PPP Opportunities 4 CDB and PPPs
  3. 3. Pressing Investment Needs  A 2014 study by CDB estimated that our 19 Member Countries need about US$21 billion in infrastructure investments over the next 10 years: 26% 18% 56% Required Investment Water & Sanitation Transport Electricity Source: Public-Private Partnerships in the Caribbean, CDB, 2014
  4. 4. Countries Increasingly Turning to PPPs Policies in place or being drafted: • Grenada • Haiti • Jamaica • St. Lucia • Trinidad & Tobago • Guyana PPP Units in place: • Jamaica (Development Bank, and Min Fin) • Trinidad & Tobago (Min Fin) • Haiti (Min Fin)
  5. 5. Jamaica Leads the Way $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $4,564 $794 $552 $441 $208 $184 $131 $111 $60 $30 Caribbean PPI Investments 1990-2015 (US$000 Million)
  6. 6. Sobering Lessons Endless Delays • Flawed transaction processes • Gaps in due diligence and preparation • Lack of capacity Failure to Close • Insufficient project preparation • Lack of awareness of PPP potential • Lack of Regional support mechanisms Post-closing fiscal surprises: • Inappropriate risk allocation • Inadequate due diligence and preparation • Insufficient fiscal oversight
  7. 7. “Many Rivers to Cross” Major sector reform required • Need for stable legal, regulatory and policy environments Lack of political support • Policy history of state-directed investment • “Dragged kicking and screaming to the altar of PPPs?” Lack of trained staff Ad hoc project selection • Too many unsolicited proposals Limited marketability of smaller PPPs
  8. 8. The Inverse Pipeline Pyramid Most PPP projects in the Caribbean pipeline never get past the drawing board: Concept Stage Feasibility Study Stage Tender Stage 25 Projects 10 Projects 9 Projects = = =
  9. 9. Top 10 PPP Opportunities in the Caribbean 1 2 3 4 5 6 7 8 9 10 Conventional energy Renewable energy Water & sanitation Ports ICT Cruise ship terminals Airports Roads & bridges Government facilities Tourism
  10. 10. CDB is Moving into the PPP Financing Arena  With IDB and WB, CDB launched the Regional Support Mechanism (RSM): – PPP Boot Camps – PPP Toolkit – PPP Helpdesk  New phase deepens CDB’s support for PPPs, by providing technical assistance to develop early stage PPP projects  CDB seeking to provide long- term finance to infrastructure PPPs, either: – Public sector; or – Private sector
  11. 11. Thank you: S. Brian Samuel Head of Regional PPPs Caribbean Development Bank Samuels@caribank.org

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