PUBLIC-PRIVATE PARTNERSHIP
Vietnam: Cooperation on the Development of a Public-Private Partnership Financing Framework for Infrastructure Projects
Bank Project: The World Bank (WB) has, over the last two years, been working with the Ministry of Planning and Investment (MPI) and Ministry of Finance (MOF), Government of Vietnam (GOV) to support the development of a market-oriented PPP Financing Framework to leverage private capital into infrastructure, and bridge the infrastructure financing gap. The GOV and WB have agreed to build a pipeline of well-prepared pilot PPPs to process through, and test, the PPP Financing Framework, as well as learn early lessons from implementation
Leveraging on the World Bank-Singapore Urban Hub, the WB and the MPI are keen to tap into Singapore’s public and private sector expertise to provide the MPI with the requested technical assistance as it finalizes the PPP Financing Framework.
Focus of Singapore Support:
- Preparation of a note on the experience of PPPs in the Singapore context- from a private sector perspective- and the relevant lessons that can be adapted for Vietnam.
- Provision of written comments on the draft PPP Financing Framework, with practical, and where relevant, specific suggestions on how to improve the framework.
- Organization of two training programs jointly with the WB for senior Vietnam government officials in Singapore and Vietnam aimed at facilitating a candid dialogue on the operationalization and implementation of the Framework, with an emphasis on practical solutions to topical issues and problems.
Singapore agencies involved: Singapore Cooperation Enterprise, Singaporean public and private sectors.
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China: Cooperation on the Development of Public-Private Partnerships in the Expressway and Roads Sector in Chongqing Municipality
Bank Project: The World Bank (WB) has committed to continue its support to Chongqing Municipal Government (CMG) in the area of reforming its Urban Development Investment Corporations (UDICs) with respect to sustainable infrastructure financing and marketization. This support will include Public Private Partnerships (PPP) with pilot transitions for the Chongqing Expressway Group Company Ltd/ (CEGC) to implement the WB’s recommendations of its technical assistance to CMG.
Leveraging on the World Bank-Singapore Urban Hub, the WB and CMG are keen to tap into Singapore’s public and private expertise sector expertise to provide advanced advisory services to CEGC in structuring a transaction(s) to sell a package of toll-roads in the international market.
Focus of Singapore Support:
- Preparation of a package for international public offering in order to select investors through an international tender process.
- Creation of a performance framework for managing the toll roads.
- Clarification of legal and regulatory aspects of the financing program.
Singapore agencies involved: Singapore Cooperation Enterprise and private sector.
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Indonesia: Cooperation in the Development of the Infrastructure Guarantee Fund
Bank Project: The World Bank (WB) and the Ministry of Finance Indonesia (MOFI) has, for the past year, been working on implementing a Risk Management Framework to allow the Government of Indonesia (GOI) to provide an efficient allocation of infrastructure risk between the private and public sectors. The development of the independent Infrastructure Guarantee Fund (IGF) will provide public support for privately financed infrastructure projects by offering guarantees for the GOI’s liability in PPP contracts, and to limit the GOI’s fiscal exposure.
The IGF is expected to be an independent public entity, with a mandate to provide guarantees or other forms of contingent support to PPP projects, to support the mobilization of private financing (local and international) for PPP such projects.
Leveraging the World Bank-Singapore Urban Hub, MOFI is keen to tap into Singapore’s experience in developing and structuring PPP projects. In addition, MOFI intends to gauge market perception on the Infrastructure Guarantee Fund design and product to match the needs of the market. The sharing of experiences on public corporate governance between MOFI and the Ministry of Finance Singapore (MOFS) is also important element in the cooperation.
Focus of Singapore Support:
- Participation of senior officials from the Government of Singapore in a roundtable dialogue on policy issues and best practices in corporate governance and development of PPP projects.
- Design of the corporate governance structure and strengthening the operational governance of IGF.
- Preparation of a study on the perception of Singapore-based investors of a guarantee provided by the IGF.
- Preparation of a study on the risk allocation of potential projects.
- Capacity building on managing the PPP infrastructure project risk through training in the areas of financial modeling, project finance and risk management.
Singapore agencies involved: Singapore Cooperation Enterprise, Temasek Foundation, commercial banks, investment banks, private investors, credit rating agencies, insurance companies, contractors, developers, and consulting management companies.
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Mongolia: Cooperation on Building Capacity to Structure Transactions for Private Participation in Mining Infrastructure Projects in Southern Mongolia
Bank Project: The Ministry of Finance, Government of Mongolia (MOF) and the World Bank (WB) are working together to develop a technical assistance project to support the development of public-private partnerships (PPPs) as a means to stimulate investment in infrastructure to support mining activities in Southern Mongolia, and build local capacity to prepare viable transactions with investors.
Through the World Bank-Singapore Urban Hub, the MOF is keen to tap into Singapore’s public and private sector expertise in preparing and managing PPPs to develop infrastructure facilities and services.
Focus of Singapore Support:
- Organization of a training program in Singapore for key Mongolian Government Officials responsible for delivering infrastructure in Southern Mongolia, aimed at facilitating a candid dialogue on structuring infrastructure projects for private participation, and sharing how Singapore developed its capacity to prepare transactions with investors.
- Provision of practical comments on proposed PPP transactions, and where relevant, specific suggestions on how to improve them.
- Assistance on identifying priority investments to support mining activities in Southern Mongolia.
Singapore agencies involved: Singapore Cooperation Enterprise and private sector entities.
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Last Updated: Apr 19, 2016
