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Projects
Beteiligung an DevCo/SSIP im Rahmen von PIDG
Short Description:
Overall goal
If the MDGs are to be achieved, the attraction of increased private investment to aid infrastructure provision in the LDCs will be essential. However, among other factors; high up-front transaction costs, risk and poor information, are deterring the private sector from investing in working up prospective infrastructure projects in developing countries in the manner undertaken by companies in OECD countries. Thus, there is a paucity of projects structured in a way attractive to private sector involvement. To address this, in 2003 the Private Infrastructure Development Group (PIDG), a multi-donor initiative, established a facility (DevCo) to augment an existing project development advisory facility operated by the IFC, which provides advisory support to governments for the development of private sector investment opportunities, in order to encourage the development of projects for private sector investment in the LDCs.
In 2005 the PIDG created a window within DevCo that supports Small-Scale Infrastructure Providers ( SSIPs). SSIPs are a growing market, and are often key in providing utility services to the poor. They have shown the flexibility, demand responsiveness, and local knowledge necessary to successfully deliver or improve services in areas such as rural and peri-urban water and electricity supply. Initially DevCo's SSIP window will focus on four programs in Sub-Saharan Africa (water in Uganda and Tanzania, and electricity in Madagascar and Uganda). SSIP will be co-managed by CAS and IFC's Private Enterprise Partnership for Africa (PEP Africa). After its accession to the PIDG in July 2006, ADA agreed to dedicate part of its membership contribution to DevCo, and in particular to the SSIP window,. Whilst each program is tailored to the specific context, generic components include:
1. Capacity Building for the relevant Ministries and Government Departments
2. Capacity Building for Private Sector Operators
3. Development of Financial Products