implementation of a ppp transaction in the rural water sector in uganda

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Outline • What is a small scale PPP and What are the Main characteristics ? • Main Challenges in the rural water sector in Uganda and IFC’s role • Small Scale Transaction Implementation o Result of IFC Due Diligence in Busembatia o Result of the Bidding Process • Lessons Learned
Small Scale Transaction Implementation : A Phased Process I. Origination II. Analysis III. Implementation Discussions b/w IFC and Municipality/ Government Assess PPP Options Define Transaction Structure Market to Investors Prepare PPP Contract Conduct Tender Award / Financial Closing • Is there decentralized government/ service delivery? • Is there sufficient capacity in the market? • Concept of paying for service accepted? • Is there a likely source for capex subsidy? Main Issues to consider for small scale infrastructure projects Technical analysis – keep the design simple and appropriate Try to cluster to get economies of scale A lot of stakeholder consultation required including with communities to ensure buy in. Risk allocation Payment mechanism and subsidy mechanism Along side usual marketing to operators need for capacity building and support in accessing finance Appropriate service standards – likely to be low and different for different communities highly sensitive to price. Ensure operators are incentivized to stay for the long run despite low tariffs. Prequalification – set standards that are appropriate for the market. Provide support to bidders through the bidding process. After financial close ensure follow on support from other parts of IFC or partners Look for scale up opportunities 15
Page 1 and 2: Implementation of a PPP Transaction
Page 3 and 4: What is Small Scale PPPs? • Small
Page 5 and 6: Busembatia - Uganda Example of a Ne
Page 7 and 8: Benin - Djidja Example of Water Con
Page 9 and 10: Outline • What is a small scale P
Page 11 and 12: Small Scale Infrastructure Developm
Page 13: Location of the Small Towns The map
Page 17 and 18: Main Results of the Legal Due Dilig
Page 23 and 24: Results of the Tender Process • F
Page 25 and 26: Outline • What is a small scale P
Page 27 and 28: • Importance of Clustering Busemb

implementation of a ppp transaction in the rural water sector in uganda

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