Corporate and Government Partnering (PPPs and other formats) for Societal Impact by Sola David-Borha from The Kingdom Summit 2017.

1. 2017
Sola David-Borha
Corporate and Government Partnering
(PPPs and other formats) for Societal Impact

2. #tks17
Opening Thoughts
Trevor
Manuel
Former Minister
of Finance
(South Africa)
“The diverse interests of different sectors
can in fact, be harnessed for the collective
good. This is what PPPs are about.
The Public gets better, more cost-effective
services; the Private sector gets new
business opportunities.
Both are in the interests of the nation.”

3. #tks17
What is PPP?
Arrangement where the private sector supplies infrastructure assets and
services that traditionally have been provided by the government.
IMF
Relationships formed between the private sector and public bodies often with the
aim of introducing private sector resources and/or expertise in order to help provide
and deliver public sector assets and services.
European
Investment Bank
Forms of co-operation between public authorities and the world of business
which aim to ensure the funding, construction, renovation, management and
maintenance of an infrastructure of the provision of a service.
European
Commission
Any medium- to long-term relationship between the public and private sectors,
involving the sharing of risks and rewards of multi-sector skills, expertise and
finance to deliver desired policy outcomes.
Standard and
Poor’s
Public and Private sector working in partnership for the good of the nation
Need to distinguish them clearly from traditional
procurement and privatisation, but also from concessions.

4. #tks17
Key Challenges of PPP
For an effective PPP, the above key challenges need to be addressed.
POLITICAL WILL AND
LEADERSHIP
• Leaders need to
demonstrate
ownership of a
common agenda to
facilitate regional
integration.
• There has to be
continuity- post
elections and change of
government.
• There needs to be trust
or at the very least
agreement with leaders
of neighboring countries
and/or private sector.
NATIONAL REFORM
• Each country needs to
have a working legal
and regulatory
framework to support
inter-continental and
inter-country
infrastructure initiatives
in each of the
infrastructure service
areas.
• Good governance and
transparent fiduciary
management are
required
INVESTMENT CLIMATE
• Companies and
industries need reliable
electricity, broadband,
transport, and water
resources to support
their production and
delivery of goods and
services.
INSTITUTION BUILDING
• Each country needs to
have functioning
institutions in each of
the infrastructure
service areas, able to
dialogue with
neighboring countries, in
order to be better able to
support improvement of
inter country/regional
dialogue.

5. #tks17
Benefits of PPP
Economies
of Scale
Risk Mitigant
Quality
Output
Sustainability
Enhanced service
delivery to end-
users
Leverage of private party
capital and expertise.
Societal Benefit
Better service delivery
mechanisms.
Substantial project risk
(financial, technical,
operational) transferred to the
private party.
Long-term maintenance of
public infrastructure.

6. Power (Energy):
Projects including major hydroelectric projects, and power pools to meet the
forecast increase in demand.
Total cost: $40 billion
I
Africa Infrastructure Needs
• 360b USD envisaged to be spent up to 2040 in the
critical infrastructure sectors.
• $67.9b is projected to be spent in key infrastructure projects up to 2020.
Source: PIDA (Program for Infrastructure Development in Africa)
Transport:
Projects focused on connectivity, corridor modernization, ports and railways
modernization, air transport modernization
Total Cost: $25 billion
Water Resource:
Projects targeting multipurpose dams, capacity building of lake and river basin
organizations and water transfer
Total Cost: $2 billion
ICT (Information and Communication):
Projects focusing on capacity building, land interconnection infrastructure, and
internet exchange points – each country connected to two different submarine
cables.
Total Cost: $0.9 billion

7. Uganda-Kenya Petroleum Products Pipeline
300 km long pipeline for a lower cost mode of transport of petroleum products
Cost: $150 million
I
Africa’s Major PPP Projects
67.9b USD is projected to be spent in key infrastructure
projects up to 2020. Some of the major PPP projects are:
Abidjan-Lagos Coastal Corridor (ALC)
This program would modernize the most heavily travelled ARTIN corridor in West
Africa (trade facilitation, OSBPs, capacity enhancement and implementation of
PPP) for five countries: Côte d’Ivoire, Ghana, Togo, Benin and Nigeria
Cost: $1290 million
Lesotho HWP Phase II – water transfer component
Water transfer program supplying water to Gauteng Province in South Africa.
Cost: $1.1 billion
ICT Terrestrial for Connectivity
This program has two main components: secure each country connection by at
least two broadband infrastructure and ensure the access to submarine cable to all
landlocked countries
Cost: $0.9 billion

8. #tks17
PPP Project: Africa’s Success Story
Senegal’s Dakar-Diamniadio Toll Road opened on time and on budget in August 2013
Toll Road Toll Plaza Control Centre
Key Success Factors:
1. Political commitment: The Government of Senegal set the project as a priority.
The first driver on the road was the President – who paid the toll!
2. Experienced concessionaire with strong commitment to Senegal.
3. Strong involvement of development institutions in both public and private financing.
4. Clear, visible benefits: Commuters are saving three hours a day.
The road is safer and the quality of the ride is higher.

9. #tks17
Organizations that enable PPP’s
Kenya • PPP Unit
Ghana
• PPP Advisory Unit (Public Investment Division of the Ministry of
Finance)
Malawi • Public Private Partnership Commission
Nigeria
 Nigerian Economic Summit Group (NESG)
 Infrastructure Concession Regulatory Commission (ICRC)
Uganda
• PPP Unit (Ministry of Finance, Planning and Economic
Development)
Public Private Partnerships- A New Catalyst for Economic Growth

10. #tks17
Conclusion
Governor
Akinwunmi Ambode
Lagos State
(Nigeria)
“There is a need to explore alternative
financing strategies such as PPP to fast
track economic growth and development
in the country.”
Public Private Partnerships- A New Catalyst for Economic Growth

11. 2017
Sola David-Borha
Corporate and Government Partnering
(PPPs and other formats) for Societal Impact