Country Guidance (Part I): Streamlining Sustainable Development into PPP Projects/Programs

"Everything should be made as simple as possible, but not simpler."

Albert Einstein

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• Strategic opportunity to maximize the contributions made by public infra and services delivered via PPP to the SDGs

• Guidance for PPP practitioners on 2 levels:– PPP program (framework)

– PPP project levels

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Cautions

• 17 goals, and 169 targets …

• PPPs are complex in their own right …

• Be realistic, and opportunistic

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SDGs and PPPs

• Direct – PPP project outputs– Providing water

– Providing energy

– Providing quality education, etc…

• Indirect – PPP project design– Gender equality

– Inclusion

– Income equality, etc…

• PPP Program/Framework – PPP policy, law, institutions (PPPU, PDF, VGF,…)], procedures …– Gender equality

– ‘Rule of law’

– Inclusion, etc…

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SDGs and PPP Programs i.

• Build awareness and understanding of SDGs– Include SDGs in PPP communications

– Specific training on how/which projects can contribute most to SDGs

– Include SDGs in wider PPP capacity building programs and activities

• Design Program to stimulate PPP projects with SDG relevance– Incorporate SDGs into policy / law as explicit objectives

– Put SDG in project eligibility / selection / prioritization criteria

– Add SDGs into PDF, VGF or other support decisions

– Make SDGs a consideration in procedural decision-making (“does the project contribute to SDGs?”)

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SDGs and PPP Programs ii.

• Achieve SDGs in the setup and operation of the PPP Program itself– Gender and inclusiveness in composition of PPP institutions (e.g.

PPPU, PDF, etc.)

– Transparent and effective operation of PPP institutions / procedures

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SDGs and PPP Projects

• 4 project stages

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1. Identification

• Discrete exercise to identify PPP projects that specifically address SDGs

• Emphasise / consider potential direct and indirect contributions of all projects

• Use SDGs in project selection / prioritization criteria to push SDG relevant projects ‘up the list’

Sectoral planning / Capital Budgeting / Project pipeline creation / Specific SDG planning / USPs

=> Infra / service projects to further assess for PPP delivery

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2. Preparation• Method 1: Incorporate SDGs in standard project

preparation activities– Demand / market / developmental assessment– Technical, financial, commercial, legal assessment– Options analysis

• Method 2: In addition, conduct specific SDG assessment of the project– What are direct project outputs relevant for SDGs? Can more

be added? Can outputs be increased?– What are indirect SDG contributions of the project? How can

project design increase these?

• Method 3: Add SDGs in decision-making on the project FS– E.g. alongside value-for-money, affordability, etc …– does the project achieve SDG objectives?

Pre-Feasibility Study / Feasibility Study & Business Case=> Project PPP structuring and decision on transaction stage

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3. Transaction

1. Tender Strategy– Local benefits (SMEs) and inclusiveness

– Gender

– Transparency

– Include SDGs in proposed bid evaluation methodology

2. Tender Documents– SDG ‘policy’ or credentials of firms in pre-qualification requirements

– Ask firms to address SDGs in their Tech Prop (added scoring points)

– Include requirements to address SDGs in draft PPP Contract

3. Tendering– Good governance – transparent, open tendering procedure

– ‘Rule of law’ in practice

– Gender, inclusiveness in makeup of procurement bodies (tendering committees)

Tender Strategy / Bid Docs / Tendering=> Competitive selection of the private partner

Trigger the market

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4. Management• Specific SDG performance monitoring

– Regularly / periodically monitor whether / how PPP projects are contributing to SDGs

• Incorporate SDGs in monitoring bodies– Inclusiveness in monitoring methods, technology and channels– Gender in composition of bodies, etc…

• Transparency– Public disclosure of information on projects and performance

• Long term monitoring of lessons learnt– Feed back into next generation of PPP projects– How to maximise project outputs for SDGs– How project design can contribute more to SDGs

Contract Management / Monitoring=> Ensure PPP projects support SDGs in reality

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Part II – Guidance on PPP Projects in Specific SDG Sectors

• Healthcare

• Education

• Water and Sanitation

• Energy

• Industry and Trans-border Infrastructure

• Urban Sector

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SDGs and PPPs

A strategic opportunity to intervene for a sustainable future

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Rolf Dauskardt

rolf.dauskardt@rebelgroup.com

+31 6 125 0 66 24 (mobile)