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This report discusses the evolution of private sector involvement in U.S. foreign assistance programs over recent decades, how globalization has driven the modern approach to development partnerships, potential benefits and drawbacks of public-private partnerships (PPPs), and how partnerships are being used by other bilateral donors and multilateral development agencies. The report then discusses partnership-related issues that may be of interest to Congress as part of the foreign assistance authorization and reform process.
Foreign assistance is a fundamental component of the international affairs budget and is viewed by many as an essential instrument of U.S. foreign policy. Since the terrorist attacks of September 11th, 2011, foreign aid has increasingly been associated with national security policy. U.S. foreign aid policy has developed around three primary rationales: national security, commercial interests and humanitarian concerns. These broad rationales are the basis for the myriad objectives of U.S. assistance, including promoting economic growth, reducing poverty, improving governance, expanding access to health care and education, promoting stability in conflictive regions, promoting human rights, strengthening allies, and curbing illicit drug production and trafficking. This book provides an overview of the U.S. foreign assistance programs, foreign aid spending, delivery of foreign assistance, and public-private partnerships (PPPs).
Foreign assistance is a fundamental component of the international affairs budget and is viewed by many as an essential instrument of U.S. foreign policy. Since the terrorist attacks of September 11th, 2011, foreign aid has increasingly been associated with national security policy. U.S. foreign aid policy has developed around three primary rationales: national security, commercial interests and humanitarian concerns. These broad rationales are the basis for the myriad objectives of U.S. assistance, including promoting economic growth, reducing poverty, improving governance, expanding access to health care and education, promoting stability in conflictive regions, promoting human rights, strengthening allies, and curbing illicit drug production and trafficking. This book provides an overview of the U.S. foreign assistance programs, foreign aid spending, delivery of foreign assistance, and public-private partnerships (PPPs).
The book offers an overview of international examples, studies, and guidelines on how to create successful partnerships in education. PPPs can facilitate service delivery and lead to additional financing for the education sector as well as expanding equitable access and improving learning outcomes.
Over the last decade or so, private-sector financing through public-private partnerships (PPPs) has become increasingly popular around the world as a way of procuring and maintaining public-sector infrastructure, in sectors such as transportation (roads, bridges, tunnels, railways, ports, airports), social infrastructure (hospitals, schools, prisons, social housing) public utilities (water supply, waste water treatment, waste disposal), government offices and other accommodation, and other specialised services (communications networks or defence equipment). This book, based on the author's practical experience on the public- and private-sector sides of the table, reviews the key policy issues which arise for the public sector in considering whether to adopt the PPP procurement route, and the specific application of this policy approach in PPP contracts, comparing international practices in this respect. It offers a systematic and integrated approach to financing PPPs within this public-policy framework, and explains the project-finance techniques used for this purpose. The book deals with both the Concession and PFI models of PPP, and provides a structured introduction for those who are new to the subject, whether in the academic, public-sector, investment, finance or contracting fields, as well as an aide memoire for those developing PPP policies or negotiating PPPs. The author focuses on practical concepts, issues and techniques, and does not assume any prior knowledge of PPP policy issues or financing techniques. The book describes and explains: * The different types of PPPs and how these have developed * Why PPPs are attractive to governments * General policy issues for the public sector in developing a PPP programme * PPP procurement procedures and bid evaluation * The use of project-finance techniques for PPPs * Sources of funding * Typical PPP contracts and sub-contracts, and their relationship with the project’s financial structure * Risk assessment from the points of view of the public sector, investors, lenders and other project parties * Structuring the investment and debt financing * The key issues in negotiating a project-finance debt facility. In addition the book includes an extensive glossary, as well as cross-referencing. *Reviews the PPP policy framework and development from an international perspective *Covers public- and private-sector financial analysis, structuring and investment in PPPs *No prior knowledge of project financing required
This Handbook aims to support policy-makers, national governments, national and regional public administrations, PPP officers, practitioners and academia in the design, implementation and assessment of appropriate responses to foster PPPs' uptake in the context of developing and emerging economies.
Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.