Public-Private Infrastructure Advisory Facility

(See also Public-Private Partnerships; Infrastructure.) The Public-Private Infrastructure Advisory Facility (PPIAF) was created in 1999 to act as a catalyst to increase private sector participation in emerging markets. It provides technical assistance to governments to support the creation of a sound enabling environment for the provision of basic infrastructure services by the private sector. A sound business enabling environment consists of strong institutions, legal systems and rule of law, high standards of public and corporate governance, transparency, competition, protection of investments, enforcement of laws, and dispute resolution mechanisms.

Governments are the main generators of private sector projects, but there are obstacles that impede private sector participation. PPIAF assists in removing some of these obstacles by supporting:

• Policy formulation, as public authorities decide between public and private provision of infrastructure services

• The selection of the best mode of delivery of infrastructure services and the risk allocation between the public and the private sectors

• Building capacity in public authorities to design public-private partnership projects, manage the award process and the service delivery, and partner with private investors

• Adequate consultation with beneficiaries to share project objectives

• Legislation and institutional reforms to ensure the sustainability of the investments and the protection of property and contractual rights

• Support for the negotiations of contracts to ensure adequate risk allocation between public and private parties

PPIAF is a multidonor technical assistance facility, financed by 17 multilateral and bilateral donors: Asian Development Bank, Australia, Austria, Canada, European Bank for Reconstruction and Development, France, Germany, International Finance Corporation, Italy, Japan, Millennium Challenge Corporation, Netherlands, Sweden, Switzerland, United Kingdom, United States, and the World Bank. PPIAF funds are untied and grants are provided on a demand-driven basis.

PPIAF is governed by a Program Council composed of its donors. An independent technical advisory panel reviews PPIAF activities and provides strategic advice to the Program Council.

The Project Management Unit manages day-today operations. To facilitate outreach and monitoring of its technical assistance activities, the project management unit maintains field offices in Nairobi and Dubai.

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