SOLUTIONS

have market and governance conditions that
prove unpalatable to the private sector.
Both the IEG (2014) and the ADB (2009) have
emphasized the need for strategic engagement
to promote PPPs, including the creation of
an organizational definition and operational
frameworks to promote these arrangements.
Both have suggested that PPPs be addressed
systematically as a crosscutting issue in country
strategies, based on a customized diagnostic
of investment and governance environments.
Where necessary, a longer-term perspective
should be adopted that incorporates PPP
awareness, capacity development, project
selection and co-financing support. A demanddriven
approach which focuses primarily on
co-financing projects will allocate the majority
of resources to MICs, whereas lower-income
countries and fragile states will continue to face
serious challenges in funding infrastructure
development.
As an example of best practice, the ADB (2012)
has produced an Operational Framework for
PPPs that addresses the main lessons and
recommendations of the evaluation. It envisions
PPP operations based on advocacy and capacity
development and regulatory and legal reform
that create an enabling environment including
capacity development for public sector officials,
sector analyses, and the development of road maps
for PPPs. It also envisions project development
whereby regional departments are expected to
actively promote PPPs by assisting with project
selection, developing country-specific screening
tests, and providing technical assistance for
procurement and value-for-money assessments.
Lastly, it envisions project co-financing and credit
enhancement products to the resulting projects.
Another important factor to consider is the
AfDB’s possible role in promoting PPPs as
part of broader development partnership. As
IDEV's recent stocktaking assessment noted, the
AfDB has engaged in relatively few non-lending
operations specifically targeting the creation of
a PPP-enabling environment. If it is unfeasible
to provide such support to RMCs given internal
capacity, resources and experience, it must be
determined how the AfDB can partner with other
MDBs to ensure that RMCs receive long-term,
multi-faceted support, including for creating an
enabling environment, capacity building, project
planning, selection, and financing.
Convening potential partners and leveraging
private sector resources through innovative
lending and non-lending support is a key feature
of the Bank's Ten Year Strategy. Promoting PPP
arrangements to address infrastructure gaps
and improve the delivery of basic services fully
embodies these objectives, but PPPs are not a
panacea for the infrastructure challenges of cashstrapped
countries. PPPs must be approached
strategically and selectively to fully realize their
potential value. The experience of other MDBs
suggests that the challenges and complexities of
PPPs may be particularly acute for Africa, which
further underscores the need for a more strategic
approach. Going forward, the AfDB should
examine its current approach and achievements
to date in promoting PPPs critically, as other
MDBs have done, and identify opportunities to
better implement its strategic, long-term vision
for Africa's development.
References
African Development Bank Group, 2010.
"Infrastructure Deficit and Opportunities
in Africa," Economic Brief, Issue 1, Volume
1, http://www.afdb.org/fileadmin/uploads/
afdb/Documents/Publications/ECON%20
Brief_Infrastructure%20Deficit%20and%20
Opportunities%20in%20Africa_Vol%201%20
Issue%202.pdf
---, Independent Development Evaluation, 2015.
"African Development Bank's Utilization of
the Public Private Partnership Mechanism
77
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