The availability and quality of infrastructure is essential for a country to develop its economy, reduce poverty and tackle climate change. However, public investment in infrastructure is limited by tight fiscal space. Governments seek to reduce this infrastructure gap by enhancing private sector participation. An essential requirement for the mobilization of private capital is an effective enabling environment. PPIAF has led the way in improving framework conditions for private sector investment in infrastructure in many developing countries since its establishment in 1999. SECO has been supporting this endeavour from the beginning.

PPIAF’s overarching goal is to facilitate private-sector involvement in the provision of infrastructure (in particular in climate-smart infrastructure) by building better sector, policy and regulatory frameworks and public sector capacity. PPIAF through the provision of technical assistance to specific governments in our partner countries and by developing and sharing knowledge products that are freely accessible for all countries to use.

Governments adopt policies, plans and regulations to promote openness of markets to private participation, increased competition, adoption of technology & digitalization, and greater efficiency and accountability.

Governments introduce and improve institutional frameworks for public-private partnerships (PPP) in order to accelerate capital mobilization.

Private Participation in Infrastructure (PPI) Ecosystem Actors enhance their capacity to manage private participation in infrastructure projects through training, access to knowledge, tools and scalable platforms.

Governments diversify sources of funding for infrastructure services by (1) improving creditworthiness of municipal entities and state-owned enterprises and (2) developing long-term local currency financing.

Governments adopt policies, plans and regulations for greater resilience, equity and climate co-benefits in privately delivered infrastructure.

Expected results:  

Technical advice and capacity development on engaging the private sector in infrastructure

Specific technical advice on supporting climate resilience and environmental sustainability in infrastructure projects

Knowledge products on private sector involvement in infrastructure in order to demonstrate how private sector investment in infrastructure can add value

Specific knowledge products on engaging the private sector in a manner that supports climate resilience and environmental sustainability

Gender analysis which is incorporated in technical advice and knowledge products

Results from previous phases:  

Availability of water, transport and energy infrastructure accelerated in 6 out of 7 SECO Priority Countries where PPIAF was active and in 26 of the 35 PPIAF partner countries overall

Established or strengthened 213 institutions

Enabled appr. $10 billion in infrastructure transactions

Helped mobilize $158 million of subnational financing without sovereign guarantees

Improved the performance of almost 550 subnational entities in the past 5 years

Cumulative since 1999: 489 institutions strengthened- 24,300+ public officials trained- 200+ policies, laws and regulations adopted promoting public-private investments in infrastructure