PPP Regulatory Reform and Infrastructure Development
Overview
The World Bank's "Benchmarking Infrastructure Development" report highlights the significant impact of PPP regulatory reforms on infrastructure PPP investments. Between June 2019 and June 2022, 45 economies passed reforms that affected their PPP scores, with most changes occurring in contract management practices, particularly in the Middle East and North Africa (MENA) region.
Key Findings
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Correlation Between Reforms and Investments
- New evidence shows a strong correlation between PPP regulatory reforms and increases in infrastructure PPP investments. Reforms associated with approximately $488 million in additional investments were identified.
- The correlation was determined using data from the average country with a GDP per capita of $4,000, spanning from 1990 to 2019.
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Reform Areas
- Reforms have been concentrated in specific areas, with many simple and useful reforms remaining unimplemented globally.
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Regional Focus
- The MENA region saw the most significant changes, reflecting improvements in contract management practices.
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Graphical Representation
- Figure ES1: The number of economies adopting major PPP regulatory reforms and total PPP investments from 1990 to 2022.
- Figure ES2: The number of economies with PPP regulatory reforms increasing BID scores by thematic area and region (June 1, 2019 – June 1, 2022).
Country Case Studies
- Ghana, Panama, Saudi Arabia, Ukraine: These countries demonstrated varying levels of success in implementing PPP regulatory reforms.
Conclusion
- Progress and Challenges:
- Global progress on PPP regulatory quality from these reforms has been modest, averaging modestly positive changes.
Acknowledgments
- The report was prepared by a team led by Fernanda Ruiz Nuñez and Mikel Tejada Ibañez, with contributions from various experts and institutions.
References and Data
- The data used in the report includes PPP regulatory reform analysis supported by the Public-Private Infrastructure Advisory Facility (PPIAF).
- Additional support came from the World Bank’s Private Participation in Infrastructure (PPI) data.
Figures and Graphs
- Figure ES1: Number of Economies Adopting Major PPP Regulatory Reforms and Total PPP Investments (US$, billions), 1990-2022.
- Figure ES2: Number of Economies with PPP Regulatory Reforms Increasing BID Scores by Thematic Area and Region (June 1, 2019 - June 1, 2022, N=140).
These figures illustrate the trends and the impact of PPP regulatory reforms on infrastructure investments over time.