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1、PPP Regulatory Landscape:Assessing Quality and Exploring ReformsBenchmarkingInfrastructureDevelopmentPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure Authorized 2024 International Bank for Reconstruction and DevelopmentThe World Bank1818 H Street

2、NWWashington,DC 20433Telephone:202-473-1000Internet:www.worldbank.orgThis work is a product of the staff of The World Bank with external contributions.The findings,interpretations,and conclusions expressed in this report are entirely those of the authors and should not be attributed in any manner to

3、 The World Bank Group,to its affiliated organizations,or to members of its Board of Executive Directors or the countries they represent.The World Bank Group neither guarantees the accuracy of the data included in this publication nor accepts responsibility for any consequence of their use.The bounda

4、ries,colors,denominations,and other information shown on any map in this report do not imply on the part of The World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.For questions about this publication or information about ordering mo

5、re copies,please e-mail:benchmarkinginfrastructureworldbank.org.Rights and PermissionsThe material in this work is subject to copyright.Because The World Bank Group encourages dissemination of its knowledge,this work may be reproduced,in whole or in part,for noncommercial purposes as long as full at

6、tribution to this work is given.Any queries on rights and licenses,including subsidiary rights,should be addressed to World Bank Publications,The World Bank Group,1818 H Street NW,Washington,DC 20433,USA;fax:+1-202-522-2625;e-mail:pubrightsworldbank.org.2Measuring the Legal and Regulatory Quality to

7、 Prepare,Procure,and Manage PPPs 24Regulatory Frameworks and Institutional Arrangements for PPP Projects 25Regulatory Frameworks for PPPs 25Institutional Arrangements for PPPs 28Preparation of PPPs 31Assessments of PPPs 35Fiscal Treatment of PPPs 37Procurement of PPPs 40PPP Procurement Methods 46Sta

8、ndstill Period 49Contract Management 51Contract Management System:Oversight Mechanisms 55Mechanisms Addressing Changes to the Contract 57Unsolicited Proposals 61Regulatory Framework for USPs 64Competitive Bidding and Minimum Time Limit 65Incentive(Compensation)Mechanisms 67Disclosure of Information

9、Throughout PPP Life Cycle 68Acknowledgments 6Abbreviations 7Key Messages 8Overview 10ContentsBuilding Ecosystems for Successful Infrastructure PPP Programs 16Introduction 17Beyond Regulations:Country Paths to Achieving PPP Program Success 18PPP Regulatory Reforms and Infrastructure Investments 1914B

10、enchmarking Infrastructure DevelopmentUnderstanding PPP Regulatory Reforms Through Country Case Studies 72Ghana 75Panama 77Saudi Arabia 79Ukraine 81Conclusions 85Economy Data Tables for PPP Scores 91References 116Endnotes 11835ContentsAcknowledgments Benchmarking Infrastructure Development(BID)is a

11、product of the World Banks Infrastructure Finance Practice Group.It was prepared by a team led by Fernanda Ruiz Nuez and Mikel Tejada Ibaez.Guangzhe Chen,Imad Fakhoury,Sebastian Molineus,Fatouma Ibrahima Wane,Aijaz Ahmad,and Maria Vagliasindi provided overall guidance during the preparation of this

12、report.The core team members included Iana Djekic,Isabela Franco Emerick Albergaria,and Maroi Kouka.Alejandro Sicra and Khasankhon Khamudkhanov provided data analysis.Mumba Ngulube,Fernanda Ruiz Nuez,and Maria Vagliasindi produced the analytical background paper under this flagship report.Seong Ho H

13、ong and Deblina Saha provided support with World Bank Private Participation in Infrastructure(PPI)data.Jyoti Bisbey assisted with the preparation of country case studies.The team would like to offer special thanks to the formal peer reviewers of this report:Mazen Alsad,Daron Bedrosyan,Henri Blass,Be

14、kele Debele,Vivien Foster,Antoni Albert Nogues Comas,Victoria Hilda Rigby Delmon,Edgar Saravia,Stephane Straub,Tea Trumbic,and Namoos Zaheer.The Public-Private Infrastructure Advisory Facility(PPIAF)provided financial support for the reports PPP regulatory reform analysis.The report was edited by Lu

15、ba Vangelova and designed by a team from Base Three LLC,led by Marianne Siblini.Fernando Di Laudo was responsible for overseeing the reports knowledge management and outreach strategy,and Erin Scronce and Alia Nankoe managed the reports media and external outreach components.Benchmarking Infrastruct

16、ure Development would not have been possible without the generous contributions of a network of almost 1,200 local public-private partnership(PPP)legal experts,private sector operators,academics,government officials,and other professionals administering or advising on PPP procurement processes in th

17、e 140 economies surveyed.The names of those wishing to be acknowledged individually are listed at http:/bpp.worldbank.org.6Benchmarking Infrastructure DevelopmentAbbreviationsADB Asian Development BankBID Benchmarking Infrastructure DevelopmentBAFObestandfinalofferBOT build-own-transfer EIA environm

18、ental impact assessmentESA European System of Accounts IPSAS International Public Sector Accounting StandardsMoF Ministry of FinancePDF project development fundsPPI Private Participation in InfrastructurePPP public-private partnershipRFP request for proposalsSIA social impact assessmentUSP unsolicit

19、ed proposalVfM value for money RegionsAFE Eastern and Southern Africa AFW Western and Central AfricaEAPEastAsiaandPacificECA Europe and Central AsiaLAC Latin America and the CaribbeanMENA Middle East and North AfricaOECD Organisation for Economic Co-operation and DevelopmentSAR South Asia7Abbreviati

20、ons051015202530Related trends of PPP investment and economies adopting PPP regulatory reformsRegulatory PPP reforms associated with almost US$488 million increase in infrastructure PPP investments*New evidence developed for this study confirms the significant correlation between PPP regulatory refor

21、ms and PPP investments.Benchmarking Infrastructure Development:Key Messages Countries have strengthened their PPP regulatory frameworks,with 45 economies passing reforms that impacted their BID scores between June 2019 and June 2022.Most of the changes have been seen in contract management practices

22、 and in the Middle East and North Africa(MENA)region.20250Note:*The correlation was determined using data from the average country in the sample,which has a gross domestic product(GDP)per capita of US$4,000,spanning the years 1990 to 2019.PreparationProcurementContract managementUSPFigure ES1:Number

23、 of Economies Adopting Major PPP Regulatory Reforms and Total PPP Investments(US$,billions),1990-2022Figure ES2:Number of Economies with PPP Regulatory Reforms Increasing BID Scores by Thematic Area and Region(June 1,2019-June 1,2022,N=140).Viet NamLao PDRIndonesiaCambodiaPanamaEcuadorDominican Repu

24、blicBrazilArgentinaUkraineMontenegroArmeniaEstoniaPPP investment,all sectors(US$,billions)Number of economies adopting major PPP regulatory reformsPresented data for 6 months04812160501001502001990199520002005201020152022PPP investment,all sectorsNumber of economiesUnited Arab EmiratesSaudi ArabiaQa

25、tarMoroccoJordanEgypt,Arab Rep.TanzaniaSudanMalawiTogoSenegalGuineaGhanaChadViet NamLao PDRIndonesiaUkraineMontenegroKyrgyz RepublicPanamaEcuadorDominican RepulicParaguayEcuadorDominican RepulicUkraineArmeniaViet NamLao PDRUnited Arab EmiratesSaudi ArabiaMoroccoLebanonJordanEgypt,Arab Rep.DjiboutiTa

26、nzaniaMalawiKenyaBotswanaAngolaZimbabweSudanSomaliaAngolaTogoGuineaGhanaChadTogoGhanaPanamaEcuadorDominican RepulicPolandGreeceTrkiyeUzbekistanUkraineMontenegroArmeniaAlbaniaViet NamPhilippinesLao PDRIndonesiaCambodiaUnited Arab EmiratesTunisiaSaudi ArabiaQatarJordanSaudi ArabiaQatarEgypt,Arab Rep.T

27、anzaniaSudanMalawiAngolaNepalPakistanGreecePolandEastern and Southern AfricaEast Asia and PacificOrganisation for EconomicCo-operation and DevelopmentMiddle East and North AfricaWestern and Central AfricaEurope and Central AsiaLatin America and the CaribbeanSouth AsiaTogoSenegalGuineaGhanaChadUS$488

28、 mil.increase in infrastructurePPP investments128Benchmarking Infrastructure Development051015202530Related trends of PPP investment and economies adopting PPP regulatory reformsRegulatory PPP reforms associated with almost US$488 million increase in infrastructure PPP investments*New evidence devel

29、oped for this study confirms the significant correlation between PPP regulatory reforms and PPP investments.Benchmarking Infrastructure Development:Key Messages Countries have strengthened their PPP regulatory frameworks,with 45 economies passing reforms that impacted their BID scores between June 2

30、019 and June 2022.Most of the changes have been seen in contract management practices and in the Middle East and North Africa(MENA)region.20250Note:*The correlation was determined using data from the average country in the sample,which has a gross domestic product(GDP)per capita of US$4,000,spanning

31、 the years 1990 to 2019.PreparationProcurementContract managementUSPReforms tend to be concentrated in certain areas,leaving many relatively simple and useful reforms systematically left on the table across the world.636427444627Procurement64653057591820202023Number of economies that increased their

32、 scoreGlobal progress on PPP regulatory quality from these reforms has been modest,averaging two out of 100 score points.PPP preparation remains the thematic area with the most room for improvement,particularly for low-income and Western and Central Africa(AFW)economies.13%19%18%15%20%19%11%26%26%5%

33、Minimum time to submitalternative bids:at least 90 daysOperation performanceinfo published onlineContract management teamwith required specific qualificationsConstruction performanceinfo published onlineSpecific procedure for sole proposalMinimum time to submitthe bids:at least 60 daysDebriefing mee

34、ting regulatedAssessment includedin tender documentsProcurement strategyUSPContractmanagementProcurementPreparationMarket soundingtechnologicalalternatives and innovationsUS$488 mil.increase in infrastructurePPP investments1234PreparationContract managementUSPEven economies that have undergone signi

35、ficant reforms can further refine their regulatory frameworks.The projects website,http:/bpp.worldbank.org,has all the details,with specific good international regulatory practices yet to be adopted by each of the 140 economies.Source:Benchmarking Infrastructure Development 2023.5Figure ES3:Average

36、PPP Score by Thematic Area in 2020 and 2023(score 1-100,N=140)Figure ES4:Lowest Adoption of Good International Practices by Score Area(percent,N=140)9AbbreviationsKey MessagesOverview10Benchmarking Infrastructure Development Increasing efficiencies in delivering infrastructure services is at the cor

37、e of addressing the infrastructure gap,and the private sector plays a crucial role.Numerous countries have turned to private sector participation in infrastructure development to achieve these efficiencies and catalyze private capital investments.Although there are different modalities to procure in

38、frastructure,many countries have extensively used public-private partnerships(PPPs)to deliver successful programs.This report aims to provide a better understanding of the governance factors that contribute to successful PPP programs(Chapter 1);assess the quality of the PPP regulatory frameworks glo

39、bally,and identify areas of improvement(Chapter 2);and provide greater insights into the complexity of the most recent regulatory reforms through country case studies(Chapter 3).Building Ecosystems for Successful Infrastructure PPP Programs(Chapter 1)To make the transition from a single project to a

40、 successful program,countries need a robust PPP ecosystem.Strengthening the PPP ecosystem is an evolving journey.As evidenced by many countries,such as Colombia,Kenya,and the Philippines,this process requires numerous actions to be taken,including making regulatory and institutional reforms,developi

41、ng mechanisms to reduce project risks,securing project preparation funding to create a pipeline of viable projects,and consistently adapting to changes in market conditions.Regulatory quality is only one ingredient of the PPP ecosystem,yet empirical evidence suggests that it plays an important role

42、in attracting PPP infrastructure investments.PPP experts agree that good governance gives the private sector a more predictable,stable,and safe investment climate for PPP projects.The empirical literature,such as Hammami,Ruhashyankiko,and Yehoue(2006),Moszoro et al.(2015),and Kumar(2019),supports th

43、e hypothesis that higher governance quality is positively associated with increased levels of PPP investments.Using primary data collected as part of Benchmarking Infrastructure Development(BID)2023 and the World Bank Private Participation in Infrastructure(PPI)database,this study fills a critical g

44、ap in knowledge and contributes to the World Bank Knowledge Compact and the Private Capital Enabling(PCE)agendas.This report provides fresh insights into the role of PPP-specific major regulatory reforms in unlocking PPP investments.It shows that there is a positive correlation between adopting a ma

45、jor PPP regulatory reform and PPP investments.Even though causality cannot be confirmed,the data suggest that when major PPP regulatory reforms are implemented,there tends to be an average increase in infrastructure PPP investments in transport,energy,water,and information and communication technolo

46、gy(ICT)of approximately US$488 million,and US$211 million when only the transport sector is considered,with the latter having a higher statistical significance two years after the reform.Those correlations are estimated for the average country with a mean gross domestic product(GDP)per capita of app

47、roximately US$4,000 during 1990-2019.Using the BID 2023 database,this report assesses the regulatory quality of preparing,procuring,and managing PPP infrastructure projects in 140 economies.This initiative builds on the success of the 2020 edition and uses the same methodology,questionnaire,and geog

48、raphical coverage.It aims to support evidence-based regulatory reforms to improve the environment that enables the development of high-quality PPP infrastructure projects.BID focuses on the different phases of the infrastructure project cycle,including preparation,procurement,and contract management

49、.It also assesses the management of unsolicited proposals(USPs)and highlights the importance of disclosure of information for PPP projects.It only assesses regulations at the national/federal level,providing de jure indicators that are strictly regulatory based.11Overview Primary data were collected

50、 under BID 2023,and the data are available online,along with economy profiles,customized queries,and additional methodological details.BID 2023 presents the PPP regulatory landscape as of June 1,2022,and provides actionable indicators to improve the PPP regulatory framework.The projects revamped and

51、 interactive website can be found at http:/bpp.worldbank.org.Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPs(Chapter 2)Countries have significantly strengthened their PPP regulatory frameworks,with 60 economies passing reforms between June 2019 and June 2022.Most change

52、s have been seen in the Middle East and North Africa(MENA)region.A total of 45 out of the 140 economies(32 percent)introduced regulatory changes that impacted their scores.Eight economiesnamely Armenia,the Dominican Republic,Ghana,Montenegro,Panama,Qatar,Saudi Arabia,and Sudanintroduced their first

53、PPP laws.Seven economies(Burkina Faso,Jordan,Kenya,the Kyrgyz Republic,Malawi,Senegal,and Togo)have restructured their legal frameworks by adopting new PPP-specific laws,repealing and replacing previous stand-alone PPP laws.Since 2020,scores have increased in all four thematic areas,most notably con

54、tract management.Though some countries have embarked on reforms that have increased their scores significantly,the improvement in global scores was minimal.The thematic areas of preparation and USP increased their global scores by two points,while procurement and contract management only increased b

55、y one.Contract management stands out as the area for which the largest number of economies(30)have passed reforms that increased their score.12Benchmarking Infrastructure Development Establishing PPP units remains a common feature of the institutional framework for PPPs,with 87 percent of the econom

56、ies having a dedicated PPP unit,yet the roles they assume vary significantly.The Dominican Republic,Panama,and Qatar have recently established their first PPP units.In only 7 percent of the surveyed economies do the PPP units assume the role of procuring authorities for PPPs.In comparison,80 percent

57、 of the PPP units have an advisory role to the PPP procuring authorities,usually line ministries.Among those PPP units with advisory roles,however,42 percent retain the capacity to approve PPP projects,usually by actively participating in the preparation and approval of the PPP feasibility studies.O

58、f the three new PPP units,only Qatar has vested its PPP unit with approval authority.Globally,35 of the 140 surveyed economies have laws for creating project development funds(PDFs).Cambodia,Greece,Jordan,Morocco,Senegal,and Tunisia recently passed reforms establishing PDFs.It is worth noting that a

59、lthough there is a trend to create PDFs,most of them are not operational yet.Indonesias PDF,initially established in 2006,has gone through several reforms,but,as of mid-2022,the PDF supported roughly half of the PPP projects that had successfully reached financial closure in the economy,and it has 2

60、0 projects in the pipeline.PPP preparation is the thematic area with more room for improvement,particularly for low-income and Western and Central Africa(AFW)economies.Market sounding for technology and innovations is only required by 5 percent of the economies,showing a mere 1 percent increase sinc

61、e BID 2020.Despite being the thematic area with the lowest score,only a slight improvement has been observed since June 2019.Moreover,adopted reforms usually focus on already widely established good practices,so there is room for improvement.Financial viability or bankability,adopted by 77 percent o

62、f the economies,shows the most significant increase(6 percent)since BID 2020.A robust public fiscal management system helps mitigate potential financial sustainability challenges that a distressed or canceled PPP could create.Yet only 19 economies have adopted specific provisions for all three of th

63、e following elementsbudgeting,reporting,and accountingand only 18 economies disclose PPP liabilities in a publicly accessible online platform or database.Armenia and Montenegro now require approval from the budgetary authority before signing a PPP contract;Ghana and Ukraine have introduced specific

64、provisions regulating PPPs budgeting,reporting,and accounting treatment.Armenia and Ukraine implemented new regulations requiring data on PPP liability to be made accessible online.Approval by the budgetary authority before initiating the PPP procurement procedure(68 percent)and before signing the c

65、ontract(38 percent)are considered international good practices.Currently,44 economies require both.A successful PPP project depends heavily on choosing the right private sector partner.However,some more advanced procurement practices are still uncommon.Only 11 percent of the surveyed economies inclu

66、de the possibility of holding a debriefing meeting in their legislation,and a mere 19 percent meet the requirement of allowing at least 60 calendar days for the bidders to prepare and submit their bids,which could allow adequate time for all bidders to prepare their proposals.Other good internationa

67、l procurement practices also remained rarely adopted:Online publication of contract amendments was only carried out in 22 percent of cases,and requiring a specific procedure when only one bid is received was reported in only 20 percent of cases.Some economies have adopted new practices.Botswana,Braz

68、il,Ghana,Senegal,Sudan,Ukraine,and Viet Nam have introduced competitive dialogue as one potential procurement method,with one of the most significant increases related to procurement.The Lao Peoples Democratic Republic(Lao PDR),Qatar,Togo,and Viet Nam introduced norms that 13Overviewmandate that the

69、 pre-qualification requirements be regulated to ensure competitiona good step towards a more open procurement process.MENA is the leading region in reforms regarding regulating the standstill period,with three economies(Djibouti,Lebanon,and Saudi Arabia)introducing standstill period requirements as

70、part of complaints review mechanisms.A sound PPP contract management system is crucial to determining whether the project delivers the expected value for money(VfM).Despite slight progress,disclosing contract management information to the public is still low,with 15 percent of the economies disclosi

71、ng project construction and 19 percent operational performance information.More than 80 percent of the surveyed economies adopt more than half of good contract management practices,with 30 economies increasing their scores.Nine economies have seen considerable improvements of more than 12 points in

72、their contract management scores:Armenia,the Dominican Republic,Ecuador,Ghana,Lao PDR,Montenegro,Panama,Saudi Arabia,and Togo.Although much work remains to be done,this illustrates a growing understanding of the importance of robust contract management systems.Additionally,the data show that the num

73、ber of economies adopting new requirements for third-party approval of PPP contract modification continues to grow(a 5 percent increase).This favors better due diligence and prevents opportunistic behavior in renegotiation processes.The other most significant improvement(an increase of 5 percent)is

74、seen in economies that have undergone reforms,further regulating changes in PPP ownership.Monitoring and evaluation mechanisms to track construction works and subsequently oversee the implementation of the PPP contract after construction ensures the private party meets its contractual obligations.On

75、ly 37 percent of the economies require payments linked to performance.BID 2023 captures progress in Angola,Panama,Senegal,and Ukraine,which have introduced new regulations and laws linking payment to performance.The renegotiation of PPP contracts is regulated to avoid opportunistic behaviors.Renegot

76、iation is expressly regulated by most surveyed economies(90 percent).However,the critical PPP issue of changes in risk allocation is explicitly addressed in only 19 percent of the economies(a 2 percent increase since BID 2020).Seven economies have updated their legal frameworks since 2020 to include

77、 third-party agencies renegotiation approval:Armenia,the Dominican Republic,Guinea,Montenegro,Saudi Arabia,Togo,and Uzbekistan;this is a critical feature to provide more impartial oversight.Proper regulation of unsolicited proposals(USPs)is required to ensure they are pursued transparently and for t

78、he right reasons,such as innovation.Although progress was shown in adopting good practices for USPs,only 13 percent of the economies have a minimum period of at least 90 days during which the prospective bidders may prepare their proposals.Nine economies,1 introduced formal regulatory frameworks for

79、 USPs after June 2019.Ninety-two economies(66 percent),mainly in the Eastern and Southern Africa(AFE)region,expressly regulate USPs.Croatia,Lebanon,India,and recently Albania explicitly prohibit USPs.Armenia,Greece,Lao PDR,Somalia,Pakistan,and Viet Nam are the six economies that have enacted regulat

80、ions explicitly addressing the need for a competitive procurement procedure.Moreover,for USP-originated projects,Greece has established a minimum timeframe within which bids must be submitted that is longer than for government-originated proposals(100 days instead of 30 days),which is considered an

81、international good practice.14Benchmarking Infrastructure DevelopmentUnderstanding PPP Regulatory Reforms Through Country Case Studies(Chapter 3)Since June 2019,the governments of Ghana,Panama,and Saudi Arabia have introduced their first PPP laws,and Ukraine has amended its existing PPP regulatory f

82、ramework.These four case studies illustrate that economies can take diverse paths in achieving their PPP reforms.Ghanas new PPP act introduces significant reforms,especially in improving contract management.The reform process was deliberate and required engagement with critical stakeholders.Panama e

83、stablished its first PPP law after discussions spanning more than a decade,aligning with a greater number of international good practices in all major areas of the procurement process.Saudi Arabias new PPP framework enhances the competitiveness of the procurement process and reinforces contract mana

84、gement.This reform required preliminary discussions regarding how the PPP law would address general contract-related issues,an important lesson for economies without civil law.Ukraine has amended the PPP Law and introduced a new Concession Law,despite a change in government during legislation implem

85、entation,illustrating the importance of the governments commitment to following through on legislative plans to enact reform.Each countrys journey reflects its unique context and the need for a tailored approach to PPP regulation that aligns with its institutional organization,national development o

86、bjectives,and the broader investment climate.The landscape of PPP regulation is continually evolving.Improving the PPP legal framework tailored to a specific countrys market conditions is an iterative process,and many countries still have room to implement additional legal and institutional reforms

87、to develop complex PPPs effectively.Even economies that have undergone significant reforms continue to refine their regulatory frameworks to provide greater clarity as they gain insights from PPP project development.For specific recommendations of good international practices yet to be adopted by ea

88、ch of the 140 countries,visit the projects website:http:/bpp.worldbank.org.15Overview1Building Ecosystems for Successful Infrastructure PPP Programs16Benchmarking Infrastructure DevelopmentIntroduction Despite its intrinsic relevance and policy makers efforts to address the infrastructure gap,progre

89、ss has been limited.A confluence of challengesfrom macroeconomic shocks and political instability to weak institutional capacityhas hindered the capacity of countries to develop infrastructure that meets demand.Increasing efficiencies in delivering infrastructure services is at the core of addressin

90、g the gap(Foster and Briceo-Garmendia 2010;Rozenberg and Fay 2019).Numerous countries have turned to private sector participation in infrastructure development to achieve these efficiencies and catalyze private capital investments.Although there are different modalities to procure infrastructure,pub

91、lic-private partnerships(PPPs)2 have been extensively used by many countries to deliver successful programs.Infrastructure PPPs are advantageous because they integrate infrastructure projects design,construction,financing,and maintenance,ensuring long-term efficiency and quality.By bundling these ph

92、ases into a single contract,PPPs align the incentives of private partners with public goals,fostering a life-cycle approach to project management.This integrated structure encourages innovative solutions and cost-effective practices during the construction phase,and guarantees ongoing maintenance,wh

93、ich helps preserve the infrastructures functionality and value over time.Consequently,PPPs can deliver superior infrastructure performance,reduce the risk of deferred maintenance,and provide better service to the public.This report examines one of the key elements of an overall sound PPP ecosystem,t

94、he crucial role that the quality of PPP regulatory frameworks3 plays in fostering a conducive ecosystem for successful PPP programswhile acknowledging that it is just one of several critical factors.This report incorporates new empirical analysis from primary data collected through Benchmarking Infr

95、astructure Development 2023(BID 2023).It also uses country case studies to illustrate and draw lessons from how countries have created robust PPP ecosystems and strengthened PPP regulatory frameworks over time.This report is aligned with the Knowledge Compact Agendas focus on evidence-based decision

96、-making by providing evidence-based knowledge that can inform development strategies and PPP operations.Additionally,it focuses on fostering the PPP ecosystem that is conducive to private sector investment,thereby contributing to the Private Capital Enabling(PCE)objectives that will ultimately suppo

97、rt Private Capital Mobilization(PCM),two critical corporate objectives of the World Bank Group to help to close the infrastructure gap.The BID 2023 database was collected as a World Bank PPP group initiative to assess the regulatory quality of preparation,procurement,and management of PPP infrastruc

98、ture projects.Building on the foundations of previous editions,which started in 2015,it covers 140 economies with different legal,regulatory,and institutional systems.BID 2023 collects primary data through a survey distributed to more than 10,000 contributors.The questionnaire only includes de jure

99、questions,so the actionable indicators are strictly regulatory based and do not capture the actual implementation of the legal requirements.The survey uses case study assumptions(a national highway transport project procured by a federal authority)to ensure cross-country comparability and aggregabil

100、ity,and it only assesses national-level regulations.It is important to highlight that this is the first BID edition to use the exact same questionnaire and the same geographical coverage as the previous BID 2020 edition.As a result,reforms implemented between June 2019 and June 2022 can be analyzed

101、without the need for data adjustment.Additionally,no changes in the methodology have been made.Details4 about the BID initiative are publicly available on the projects website(https:/bpp.worldbank.org).Exploiting the wealth of information provided by this strategic data collection effort,this report

102、 covers the following topics:17Building Ecosystems for Successful Infrastructure PPP Programs Chapter 1 shows that there are many determinants of PPP infrastructure investments,yet PPP regulatory quality is a crucial ingredient to building a supportive environment for successful PPPs.Different count

103、ries take very diverse paths to developing the PPP market.Based on the existing and novel empirical analysis that builds upon information collected as part of BID 2023,this section also explores the relationship of major regulatory reforms with PPP infrastructure investments.Chapter 2 relies extensi

104、vely on BID 2023 data and describes the quality of PPP regulatory frameworks,highlighting major trends and reforms,and pinpointing areas where the adoption of international best practices could be improved.Chapter 3 presents four country case studies.These cases,selected from countries where BID 202

105、3 detected major regulatory reforms,are intended to share experiences and lessons learned by showcasing positive regulatory changes and illustrating the complexity of the journey toward achieving strong PPP regulatory frameworks.Lastly,in the final section,the report presents conclusions and next st

106、eps.Beyond Regulations:Country Paths to Achieving PPP Program SuccessPPPs are complex and require the right and conducive ecosystem to succeed.Moreover,evolving from one successful PPP project to a sustainable program requires multiple factors to be in place.This ecosystem includes several critical

107、components,such as macroeconomic and political stability;sound policy and regulatory frameworks;political commitment;mature financial markets;institutional capacity,such as well-staffed PPP units and clear definition of roles and responsibilities,particularly for the PPP unit,the Ministry of Finance

108、(MoF)and the procuring entities;strong infrastructure governance;effective risk allocation;stakeholder engagement;effective performance monitoring;a transparent process;and a long-term vision.Moreover,each sector has its own set of challenges that must be addressed in parallel,such as robust sectora

109、l regulatory frameworks,market competition,tariff adjustment,project sizing to attract private investments,etc.Support from development finance institutions(DFIs)from upstream to downstream has proven to be a critical element as well.The cases of Colombia Kenya and the Philippines5 illustrate how co

110、untries have undertaken significant reforms to nurture a sound ecosystem for successful PPP programs.These are just some of many experiences worth exploring that complement other very well-known examples,such as Australia,Brazil,Chile,and South Africa.It is abundantly clear from all these experience

111、s that each country is unique in its evolution of the PPP program,and there is no one-size-fits-all solution to establishing a PPP program.Kenya and the Philippines exemplify countries that started with PPPs in energy generation.This has been the case in many countries that started with small renewa

112、ble energy projects and built on the experience to evolve into larger,more complex projects.Colombia was one of the few countries that was able to develop PPPs in the transport sector from a very early stage.Colombia has developed a comprehensive PPP program through reforms that involve adapting reg

113、ulations and institutions to overcome limitations and using DFI support to enable commercial financing.Kenyas journey started with various sectoral reforms supported by DFIs.Those sectoral reforms were accompanied by PPP legislation and policies,and the use of risk mitigation financial 18Benchmarkin

114、g Infrastructure Developmenttools aimed at unlocking private sector participation.Though Kenya managed to have PPPs in several sectors,most of the success of its PPP program focuses on energy generation projects,with a growing emphasis on renewables.The evolution of the PPPs in the Philippines refle

115、cts a journey of policy and regulatory reforms from a build-own-transfer(BOT)law to the PPP Act,institutional strengthening of the PPP Center,and the creation of funds to ensure a continuous pipeline of projects and to reduce project risks.The shift to a programmatic approach has supplied the market

116、 with a continuous pipeline of PPP projects,enhancing the local financial and private sector development.By nurturing an ecosystem,governments can foster an enabling environment conducive to the transition from individual PPP projects to sustainable programs.However,as evidenced by Colombia,Kenya,an

117、d the Philippines,successful PPP implementation requires more than just regulatory frameworks;it demands continuous adaptation to market dynamics.In fact,aligned with this anecdotal but well-documented evidence,the empirical literature on the determinants of PPP investments also underscores how nume

118、rous factors significantly correlate with PPP investments,with PPP regulatory quality being one of them.The following section will delve into this analysis,based on existing and novel empirical work,to further advance our understanding of these determinants.PPP Regulatory Reforms and Infrastructure

119、InvestmentsThe empirical literature on the determinants of PPP investment shows that a countrys macroeconomic,institutional,regulatory,and market conditions are associated with the PPP markets growth.In fact,given the high costs and risks investors face,numerous criteria must be met,particularly in

120、emerging markets and developing economies(EMDEs),where economic and financial conditions are often more tenuous.Most of the literature uses the World Bank Private Participation in Infrastructure(PPI)Database to analyze the determinants of PPP investments and control for the macroeconomic environment

121、,such as inflation,exchange rate,government debt,macro crisis,and market size(population,gross domestic product(GDP),etc.).19Building Ecosystems for Successful Infrastructure PPP ProgramsVarious studies have explored the impact of the institutional and regulatory environment on PPPs and PPI.Hammami,

122、Ruhashyankiko,and Yehoue(2006)found that a reduction in corruption and a stricter rule of law correlate with an increase in PPP projects.Banerjee,Oetzel and Ranganathan(2006)observed that robust property rights and bureaucratic quality are conducive to attracting more PPI,while also noting a paradox

123、ical increase in PPI with higher corruption levels.Araya,Schwartz and Andres(2013)identified a negative relationship between a countrys sovereign risk and PPI investment in infrastructure.Moszoro et al.(2015)demonstrated a positive link between PPI investment in infrastructure and several factors:fr

124、eedom from corruption,the effective rule of law,and regulatory quality,and a negative link with the frequency of sectoral disputes.Yang et al.(2019),restricting the sample to the Belt and Road countries,concluded that large PPP investments are more sensitive to the governance quality of the host cou

125、ntry compared to smaller PPP projects.Kumar(2019)provided evidence that a higher Global Governance Index score is positively associated with the number of PPP projects.Lastly,Foster and Ngulube(2024),using the governance index as an explanatory variable,concluded that a unit increase in the governan

126、ce index is associated with an increase in the expected normalized PPI investment amount by 16 percent.To understand the evolution of major PPP regulatory reforms since 1990,a new discrete variable that counts major reforms over time since 1990 at the country level(hereafter referred to as“reform va

127、riable”)was generated.A major regulatory reform is defined as positive changes that significantly alter the PPP regulatory framework.Consequently,regulatory development(e.g.,via executive decrees)or amendment to the existing framework does not constitute a major reform.On the other hand,the adoption

128、 of a PPP law where only public procurement rules used to exist,the regulation of a new type of PPP,or the introduction of a tendering process would be instances of major reforms.Figure 1 below illustrates the number of economies adopting major PPP regulatory reforms over time.Figure 1:Number of Eco

129、nomies Adopting Major PPP Regulatory Reforms,1990-2022,by Region051015202519901995200020052010201520202022UntilJune2022Europe and Central AsiaLatin America and the CaribbeanEastern and Southern AfricaEast Asia and PacificOrganisation for Economic Co-operation and DevelopmentMiddle East and North Afr

130、icaWestern and Central AfricaSouth AsiaSources:OriginalfigurebasedontheWorldBankBIDdatabaseandindependentresearch.20Benchmarking Infrastructure DevelopmentFigure 2 and Figure 3 present the number of economies implementing major PPP regulatory reforms and the monetary value of PPP investments in all

131、sectors,6 and transport-specific PPP investments,respectively.Figure 2:Number of Economies Adopting Major PPP Regulatory Reforms and Total PPP Investments(US$,billions),1990-202202468101214162022050100150200250PPP investment,all sectorsNumber of economiesPPP investment,all sectors(US$,billions)Numbe

132、r of economies adopting major PPP regulatory reformsPresented data for 6 months19901995200020052010201520202022Sources:WorldBankPPIdatabase,BIDdatabase,andindependentresearch.Thesamplecoversthe99economiesinboththeWorldBankPPIandBID2023databases.Note:Thetermallsectorsreferstothedigital,energy,transpo

133、rt,andwatersectors.Figure 3:Number of Economies Adopting Major PPP Regulatory Reforms and Transport PPP Investments(US$,billions),1990-20220246810121416180102030405060708090Transport PPP investmentNumber of economies19901995200020052010201520202022Transport PPP investment(US$,billions)Number of econ

134、omies adopting major PPP regulatory reformsPresented data for 6 monthsSources:WorldBankPrivateParticipationinInfrastructure(PPI)database,BIDdatabase,andindependentresearch.Thesamplecoversthe99economiesinboththeWorldBankPPIandBID2023databases.21Building Ecosystems for Successful Infrastructure PPP Pr

135、ogramsAs shown in Figure 2 and Figure 3 above,the variables have similar trends.These figures show that the variables move similarly over time with a certain lag,but there are no statistically significant correlations.Figure 3 shows that transport sector PPP investments seem to be moving closer to t

136、he PPP regulatory reforms.This is expected because the database collected under BID uses a highway transport project in its questionnaire as a guiding example to ensure comparability across countries.This means that some sector-specific reforms other than transport may not necessarily be captured in

137、 the BID database.This is usually the case for energy that,for several countries,is regulated outside the PPP regulations.The figures above confirm that many factors affect PPP investments beyond regulatory quality.As shown in the cases of Colombia,Kenya,and the Philippines,countries introduce regul

138、atory reforms to establish a solid legal framework that reduces the costs and risks of developing projects,and that framework provides the private sector with a more predictable,stable,and safe environment to invest in PPP infrastructure projects.Although this is only one ingredient of the many nece

139、ssary to develop a successful PPP program,countries have,over time,tried to improve their regulations by introducing reforms to bring more clarity and address possible legal vacuums.This is a long process,and,as illustrated in the case studies,most countries have to go through major reforms and amen

140、dments until their frameworks are well established;even then,further adjustments are required over time.A more rigorous empirical analysis is required to isolate the effect of PPP regulatory frameworks from other factors.The current body of research primarily utilizes broad measures of governance wi

141、thout exploring the importance of the specific regulatory frameworks that govern PPPs.A background paper by Ngulube,Ruiz-Nuez,and Vagliasindi(2024)produced under this flagship report,assesses how positive major reforms in the PPP regulatory frameworks correlate with PPP investments while controlling

142、 for a broad set of other factors.7 The sample includes 99 developing countries from 1990 to 2019.It uses the World Bank PPI database to measure PPP investments in all infrastructure sectorsenergy,transport,information and communication technology(ICT),and waterand PPP investments in the transport s

143、ector only.The PPI database captures investment commitments at financial closure.Using a zero-inflated negative binomial(ZINB)model to control for the high frequency of zero values in the dependent variable PPP investments,the 2024 empirical analysis by Ngulube,Ruiz-Nuez,and Vagliasindi shows that m

144、ajor PPP regulatory reforms are associated with an increase in PPP investments.It also uses a lagged reform variable to test the correlation of one-,two-,and three-year delays between the major reforms and the change in investment values.Although causality cannot be conclusively established,major re

145、gulatory reforms coincide with increased investment in infrastructure PPPs.The estimates indicate that,on average,a major PPP regulatory reform is associated with a marginal increase8 in the PPP investment across infrastructure sectors of US$488 million,US$424 million,and US$446 million,when zero,on

146、e,and two lags of the reform variable are used,respectively.Specifically,the data suggest that when major PPP regulatory reforms are implemented,there tends to be an average increase in PPP investments of approximately US$488 million.9When transport PPP investments are used instead of total infrastr

147、ucture PPP investments,the increases average about US$173 million to US$213 million,depending on whether we consider immediate effects or effects with one,two,or three years of delay.Whereas the estimated average increases in transport PPP investment are lower than with PPP investments across infras

148、tructure sectors,the most statistically significant10 effect is found at two years of delay with transport PPP 22Benchmarking Infrastructure Developmentinvestment,with an average increase of US$211 million.11 Finding a more statistically significant correlation for transport aligns with expectations

149、.First,PPP projects are complex to prepare,and therefore,it may take a few years after the reform to see projects reaching financial closure.Second,the BID database mainly captures reforms in the transport sector.As previously mentioned,BID 2023 uses highway transport projects as a guiding example t

150、o ensure cross-comparability.Consequently,other sector-specific reforms are not always captured under the reform variable.The correlations mentioned above are estimated for the average country with a mean GDP per capita of approximately US$4,000 during 1990-2019.Although these results cannot be inte

151、rpreted as definitively asserting that regulatory reforms cause an increase in PPP investments,there is a significant association between the two.Specifically,the data suggest that when major PPP regulatory reforms are implemented,there tends to be an increase in PPP investments.The following sectio

152、ns analyze in more detail the quality of PPP regulatory frameworks worldwide and the regulatory reforms in the adoption of international good practices(Chapter 2).In Chapter 3,country case studies illustrating the regulatory reform process and its complexities are presented.23Building Ecosystems for

153、 Successful Infrastructure PPP Programs2Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPs24Benchmarking Infrastructure DevelopmentThis section leverages data from BID 2023 to assess the regulatory quality of PPP frameworks in 140 economies in four thematic areas:preparati

154、on,procurement,contract management,and unsolicited proposals(USPs),highlighting major trends.It also analyzes the regulatory reforms since the last BID 2020 edition(i.e.,reforms spanning from June 1,2019,to June 1,2022)and pinpoints areas where adoption of international best practices could be impro

155、ved.This section covers the overall PPP regulatory framework and institutional arrangements,as well as the preparation,procurement,contract management,and disclosure of information in PPP projects.Regulatory Frameworks and Institutional Arrangements for PPP ProjectsBID 2023 covers a wide array of ec

156、onomies with different legal,regulatory,and institutional systems.Among the 140 economies measured,the legal approach to preparing,procuring,and managing PPPs varies.There are many ways to set up legal and institutional frameworks for PPP projects.No single approach works best for all economies,and

157、the most suitable way will depend on the administrative and legal traditions in place as well as on the governments priorities,goals,and objectives.Therefore,the current report does not score economies based on their specific approaches to governing PPPs.Instead,it aims to provide contextual informa

158、tion by exploring various regulatory and institutional set-ups,which can help better understand thematic areas scored in the following sections:preparation,procurement,contract management,and unsolicited proposals.Regulatory Frameworks for PPPsEconomies around the world adopt different legal approac

159、hes to regulate PPPs,depending on the legal tradition in place,the political commitment to PPPs,and the desired objectives.In general,two main legal configurations exist:on the one hand,a PPP-specific framework comprised of PPP laws,regulations,guidelines,or policies explicitly addressing the identi

160、fication,preparation,and implementation of PPP projects,and on the other hand,a more general framework for public procurement.Either option can lead to robust PPP frameworks so long as PPP requirements are well specified and project governance and decision-making processes are clearly defined.The ad

161、option of PPP-specific laws and regulations can undoubtedly be considered an effective tool to foster PPP development.By themselves,however,such laws and regulations do not necessarily guarantee a high-quality PPP regulatory framework,much less the success of the PPP program,which requires ingredien

162、ts beyond a good regulatory framework.PPP-specific regulations must be properly embedded in a broader regulatory framework,particularly in public procurement laws and regulations,to avoid legal vacuums.For example,stand-alone PPP laws that explicitly exclude the subsidiary application of public proc

163、urement rules(for areas not specifically covered by the PPP law)are more likely to leave legal voids.Conversely,the lack of a PPP-specific law does not,in and of itself,result in a less mature PPP market.In fact,many economies with mature PPP markets,such as Australia,have developed successful PPP p

164、rograms using general procurement regulations complemented by PPP-specific 25Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPsguidelines without enacting a stand-alone PPP law.Any legal framework can create an environment favorable to the effective development and impleme

165、ntation of PPPs,provided that all key elements affecting the PPP process are addressed without conflicting with the existing laws in force.BID 2023 data show that most economies adopt different instruments governing PPPs with varying legal significance.In fact,109 of the 140 economies(78 percent)hav

166、e a PPP-specific regulatory framework in the form of PPP laws,regulations,guidelines,policies,and manuals.Moreover,79 economies have PPP-enacted laws(56 percent).In theory,economies with civil law legal systems characterized primarily by the codification of core legal principles are more likely to h

167、ave stand-alone PPP legislation and regulations.The data reveal,however,that the difference between the percentage of common law economies(78 percent)and the number of civil law economies with a PPP-specific framework(83 percent)is only minimal(Figure 4).Globally,for economies that adopt PPP-specifi

168、c regulatory frameworks,some regional variations emerge.Latin America and the Caribbean(LAC)is the champion of this trend,followed by Western and Central Africa(AFW)(94 percent and 93 percent,respectively),whereas the East Asia and Pacific(EAP)and Organisation for Economic Co-operation and Developme

169、nt(OECD)regions display the lowest adoption rate of this practice among all regions(65 percent)(Figure 4).It is important,thus,to note that the characterization of a PPP-specific framework as opposed to a public procurement framework is not necessarily based simply on the existence of a PPP-specific

170、 law.Though this is the case in most of the economies measured in this report,the reality is much more nuanced.For example,Australia and Malaysia have developed PPP-specific guidelines and standardized documents while applying a public procurement framework.Other economies adopted stand-alone PPP la

171、ws to regulate certain aspects of PPP projects while referring to public procurement laws and regulations for other matters.Lebanon,for instance,regulates the standstill period under the general framework for public procurement.On the other hand,economies like Sudan and Qatar have adopted new PPP la

172、ws expressly,excluding the application of the general public procurement laws and regulations to PPP projects.26Benchmarking Infrastructure DevelopmentFigure 4:PPP-Specific Frameworks and Regulatory Reforms Since June 2019,by Legal System and Region(percent,N=140)78%22%43%83%17%45%94%6%39%93%7%40%86

173、%14%57%79%21%53%77%23%69%67%33%33%65%35%29%65%35%29%0%10%20%30%40%50%60%70%80%90%100%WorldwideCivil law78%22%26%LACAFWECAAFEMENASAREAPOECDhigh-incomePPP-specific frameworkPPPs regulated in general procurement laws or regulationsReforms since June 2019CommonlawSource:B enchmarkingInfrastructureDevelo

174、pment2023.Note:AFE=EasternandSouthernAfrica;AFW=WesternandCentralAfrica;EAP=EastAsiaandPacific;ECA=EuropeandCentralAsia;LAC=Latin America and the Caribbean;MENA=Middle East and North Africa;OECD=Organisation for Economic Co-operation andDevelopment;SAR=SouthAsia.Lao PDR adopted a decree to regulate

175、PPPs,whereas seven other economies,namely Armenia,the Dominican Republic,Ghana,Montenegro,Qatar,Saudi Arabia,and Sudan,introduced their first laws specifically addressing PPPs in the period from June 1,2019,to June 1,2022.This growing number of economies illustrates a preference for addressing PPPs

176、separately rather than relying on a more general set of rules for public procurement.Over the same period,seven economies restructured their legal frameworks by adopting new PPP-specific laws repealing and replacing previous stand-alone PPP laws,namely Burkina Faso,Jordan,Kenya,the Kyrgyz Republic,M

177、alawi,Senegal,and Togo.Other economies opted for the amendment of their existing PPP laws.This is the case in Egypt,Morocco,North Macedonia,and Pakistan.There have been a significant number of PPP regulatory framework reforms since June 2019.In total,60 out of 140 economies(43 percent)introduced som

178、e changes that affected their PPP regulations.Most civil law economies have undergone minor or major reforms(45 percent of civil law economies and 26 percent of common law economies)(Figure 4).In terms of regional disparity,the regions that have seen the most changes in the legal framework governing

179、 PPPs are the Middle East and North Africa(MENA),followed by Europe and Central Asia(ECA)and Eastern and Southern Africa(AFE),with 69 percent,57 percent,and 53 percent,respectively(Figure 4).Although not all these reforms resulted in a significant impact on the quality of the PPP legal environment a

180、s measured by BID 2023,individual cases have seen a large increase in the attributed score.For example,Togo has profoundly redefined its legal framework by introducing a new PPP law and implementing decrees,which has led to the most significant increase in the scores attributed to all thematic areas

181、.27Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPsInstitutional Arrangements for PPPsThere is no one-size-fits-all institutional arrangement for PPPs,just as there is no one-size-fits-all regulatory framework.BID 2023 does not score institutional setups.However,understa

182、nding how economies have restructured their institutions by establishing PPP units or setting dedicated support funds for project preparation is important to inform future reforms.PPP UnitsGiven the complexity of PPPs,it is standard practice to have a specialized government entity,namely a PPP unit,

183、to facilitate the development of PPP programs and provide administrative and technical support.Eighty-seven percent of surveyed economies have a dedicated PPP unit,slightly higher than the 84 percent reported in 2020.The Dominican Republic,Panama,and Qatar have recently established their first PPP u

184、nits.Only 13 percent of surveyed economies(18 economies)do not have a PPP unit,as shown in Figure 5.Though the duties and functions of PPP units vary,three major roles are distinguished.First,activities representing the advisory role of the PPP unit.This role is held by 80 percent of the surveyed ec

185、onomies(Figure 5)as opposed to 77 percent measured in BID 2020.Advisory activities include the following tasks:PPP regulation and policy guidance(76 percent);capacity building for other government entities(75 percent);promotion of the PPP program(74 percent);technical support in the implementation o

186、f PPP projects(72 percent);and oversight of PPP implementation(66 percent).The second role is the procuring role of PPP units.Only a few economies(7 percent)have centralized PPP procuring authorities in PPP units(Figure 5).No variation has been noted since BID 2020.The third role is the approval aut

187、hority.The percentage of PPP units with approval authority is only slightly higher(42 percent)than the ones that opted for a PPP unit unable to approve PPP projects(38 percent)(Figure 5).Figure 5:PPP Units Roles in the PPP Process(percent,N=140)PPP unit with procuringauthority role7%No PPP Unit13%PP

188、P unit with advisory role80%PPP unit withoutapproval rolePPP unit withapproval role38%42%Source:BenchmarkingInfrastructureDevelopment2023.28Benchmarking Infrastructure DevelopmentTypically,one of the most important aspects of establishing a new PPP framework is creating a PPP unit.For instance,in th

189、e Dominican Republic,the General Directorate of PPPs was established as the centralized government agency in the area of PPPs as part of the PPP law and related regulations enacted in 2020.Since June 2019,two more economies have passed reforms,resulting in the establishment of their first PPP units,

190、namely Panama creating the PPP National Secretariat in 2019,and Qatar creating a PPP Department within the Ministry of Commerce and Industry in 2020.The newly established PPP units in the Dominican Republic,Panama,and Qatar share the same core advisory functions as the majority.Interestingly,only Qa

191、tar has vested its PPP unit with approval authority.Project Development Funds The complexity and long-term implications of PPP projects require that,prior to initiating a PPP procurement,the procuring or relevant authority ought to complete thorough due diligence and carry out rigorous assessments t

192、o determine the feasibility of the project and its viability.This preliminary phase is crucial to ensuring that only a well-structured and commercially viable PPP project capable of providing value for money goes to the procurement phase.The cost of properly preparing a PPP is typically higher than

193、that for a traditional public procurement project,primarily because PPP projects call for additional feasibility studies.In addition to the socio-economic,technical,environmental,and social assessments,PPPs also require value-for-money assessment,risk analysis,and market sounding to ensure their suc

194、cessful implementation.For many economies,the high upfront cost of project preparation is a major obstacle to developing robust PPP programs.For others,a lack of the required skills,expertise,and institutional capacities hampers the development of quality projects.The establishment of a project deve

195、lopment fund(PDF)with a sustainable source of financing and relevant expertise can address these challenges and ensure the effective and successful preparation of PPP projects.BID 2023 captures the existence of a dedicated fund mechanism to support PPP projects in the pre-investment stage,irrespecti

196、ve of its structure.Globally,35 out of the 140 surveyed economies(25 percent)have laws providing for the creation of a central financial support mechanism for project preparation.Interestingly,16 out of those 35 economies with PDFs are lower-middle-income,nine are upper-middle-income,and six are hig

197、h-income-OECD.Afghanistan,Burkina Faso,Tanzania,and Uganda are the four low-income economies that have legal provisions for the creation of PDFs.Since the 2020 edition,six economies have passed reforms,resulting in the establishment of PDFs for project preparation,namely Cambodia,Greece,Jordan,Moroc

198、co,Senegal,and Tunisia.Of these economies,only Morocco has PDF-specific legislation.12 Tunisias Finance Law13 establishes its first PDF,whereas in the remaining economies,the PDF is created by a provision included in the PPP law.It is worth noting that most of these PDFs are in the very early stages

199、 of creation,have not yet been fully operational,and are not staffed.For example,though the PPP law in Senegal provides for establishing a PDF to support and finance the preparation,awarding,and execution of PPP projects,the decree specifying the financing terms,organization,and operation of the fun

200、d has not been adopted yet.In Tunisia,the government announced in June 2023 that the PPP Support Fund(Fonds dappui aux Partenariats Public-Priv)14 is operational and has begun its fundraising efforts.Indonesia is an example of an economy with a more mature PDF(Box 1).29Measuring the Legal and Regula

201、tory Quality to Prepare,Procure,and Manage PPPsPDFs are not necessarily established institutions.For instance,in Jordan,the 2020 PPP law created a separate bank account for the PPP units expenditures related to preparing PPP projects.The account funds,inter alia,studies,experts costs,and reports rel

202、evant to PPP projects.15 However,Cambodia set up a more institutionalized fund,namely the Project Development Facility,16 to financially support implementing agencies,covering the costs of the consultants assisting with project development and/or appraisal and other relevant tasks.17Box 1:Example of

203、 a Well-Established Project Development Fund:The Case of Indonesia Indonesia has a history of establishing dedicated financial facilities to support government contracting authorities in preparing projects.It initially created a project development fund(IPDF)within the Ministry of National Developme

204、nt Planning(BAPPENAS),in 2006,with US$22 million of project preparation funding to support a wide range of projects.18 In total,IPDF has supported the preparation of more than 30 projects.However,only three were successfully awarded,and only 65 percent of funding was expended.This was mainly due to

205、several challenges hindering effective project preparation,namely,weak capacity for PPP project identification,insufficient coordination with implementing agencies,and lack of commitment to deliver projects as PPPs.19After this initial attempt,the Project Development Facility(PDF)was established wit

206、hin the Ministry of Finance as a separate team under the PPP unit.The PDF was formally established by Regulation No.PMK265/2015,further operationalized by Regulation No.73/2018,and subsequently amended by MoF Decree No.180/2020.The World Bank Indonesia Infrastructure Finance Development(IIFD)Program

207、 assisted the government of Indonesia in implementing the above-mentioned MoF decrees.The PDF runs on annual budgetary allocations and is administered by the PPP unit,which manages the PDF funds and screens applications for support.The PPP unit is assisted in implementing PDF activities by the state

208、-owned non-bank financial institutions PT SMI and the Indonesia Infrastructure Guarantee Facility(IIGF),which support the procurement of consultants and capacity building for individual PPP projects receiving PDF support.Moreover,this institutional arrangement has been helpful in providing finance t

209、o local governments.The World Bank IIFD program contributed to the preparation of 32 projects through the PDF and facilitation of 25 PPP projects to reach financial close at a total investment value of US$14 billion.As of mid-2022,the PDF supported roughly half of the PPP projects that had successfu

210、lly reached financial closure in the economy and had 20 projects in the pipeline.20One of the critical lessons learned from developing a PDF is the importance of identifying the right institution to house the fund,and the financial institutions to assist with project structuring,financing,and guaran

211、tees.In Indonesia,having the institutions with the necessary expertise and resources was crucial in fostering a demand-driven approach,especially from local governments.30Benchmarking Infrastructure DevelopmentPreparation of PPPsThe preparation phase for PPPs comprises several key stages,commencing

212、with identifying projects that may be suitable for delivery as PPPs.The procurement authorities select and prioritize potential projects aligned with integrated infrastructure plans and goals.The fiscal implications of PPPs,including their budgetary,accounting,and reporting treatment,should also be

213、identified.A PPP projects viability depends on the number of preliminary assessment results.Feasibility studies are commonly used to achieve this goal and include the projects socioeconomic analysis,financial viability,risk allocation mechanism,potential market participant interest and available tec

214、hnology(market sounding),procurement strategy,VfM,and fiscal affordability.At this stage,social and environmental impact assessments should be conducted as well.In addition,it is considered good practice to make the findings of such evaluations public by including them in the request for proposals(R

215、FP)or tender documents and by making them available online.The last step of the preparation phase includes developing and disclosing documents required to launch a procurement process,including preparing a draft contract and its summary.This stage occurs after the structure of the PPP transactions h

216、as been defined.As good international practices advise,PPP contracts should be standardized and made available to the public to ensure transparency and consistency throughout the procurement process.One of the biggest obstacles procuring authorities encounter when attempting to attract private-secto

217、r financing is a lack of well-structured PPP projects.It is essential to comprehend,promote,and implement the recognized good practices for preparing PPP projects outlined in Box 2.These practices can increase the likelihood of the projects success.31Measuring the Legal and Regulatory Quality to Pre

218、pare,Procure,and Manage PPPsBox 2:Preparation of PPPs:Good Practices Scored in Benchmarking Infrastructure Development 2023Good practices that help ensure a well-informed decision to deliver a PPP project,and that all necessary groundwork was done before launching,include the following:The Ministry

219、of Finance or central budgetary authority assesses,accounts for,and signs off on the long-term fiscal implications of a project,before both launching procurement and signing a contract.There is a system in place to track the fiscal impact of PPPs,such as inclusion of PPP projects in the budget,and a

220、ccounting for and reporting on them.The project is selected,assessed,and prioritized together with all other public investment projects in accordance with national public investment plans and strategies.The project is adequately justified based on the following types of assessments:Socioeconomic ana

221、lysis;Fiscal affordability assessment;Risk identification,allocation,and assessment(risk matrix);Comparative assessment to evaluate whether a PPP is the best option to deliver a project,including public sector comparator or value-for-money analysis;Financial viability or bankability assessment;Procu

222、rement strategy;Market sounding assessment regarding potential interest for a project among market participants;Market sounding assessment to identify solutions and technology available,as well as opportunities for innovation;Environmental impact assessment,including a consultation process with affe

223、cted communities;and Social impact assessment,including a consultation process with affected communities.The results of the above-mentioned assessments are included in the tender documents.The results of conducted assessments are published online.The tender documents are published online.The procuri

224、ng authority prepares a draft PPP contract and includes it in the request for proposals and/or tender documents.The procuring authority has developed standardized PPP contracts and/or transaction documents to facilitate the procurement process and to guarantee consistency.Of the 19 good practices sc

225、ored for the preparation phase,17 showed moderate improvement since BID 2020(Figure 6).Whereas assessments such as environmental(98 percent),fiscal affordability(86 percent),socioeconomic(81 percent),value for money(79 percent),risk identification and allocation(77 percent),and financial viability o

226、r bankability(77 percent)remained the most adopted,the latter shows the largest increase since BID 2020,with a 6 percent increase in the adoption of bankability assessments worldwide.There is a significant difference between the most and least adopted good practices.Only 5 percent of the surveyed ec

227、onomies require market sounding for technology and innovations,showing a mere 1 percent increase since BID 2020.32Benchmarking Infrastructure DevelopmentFigure 6:Share of Economies That Adopt Good Preparation Practices by Scored Areas(percent,N=140)1%2%1%1%4%4%7%4%4%2%2%6%4%3%2%5%1%5%26%26%33%34%38%

228、51%54%63%68%72%75%76%77%77%79%81%86%98%0%10%20%30%40%50%60%70%80%90%100%Market soundingtechnologicalalternatives and innovationProcurement strategyAssessments included in tender documentsAssessments published onlineStandardized PPP transaction documentsCentral budgetary authoritys approvalbefore con

229、tract signatureMarket soundingprivate-sector interest and capacityTender documents available onlineFiscal treatment for PPPs(budgetary,reporting or accounting requirements)Central budgetary authoritys approval before tenderingConsistency of PPPs withgovernment priorities requiredInclusion of draft P

230、PP contract in tender documentsSocial impact assessmentFinancial viability/bankability assessmentRisk identification analysisComparative assessment(value for money)Socioeconomic analysisFiscal affordability assessmentEnvironmental impact assessmentPercentage of economies with good regulatory practic

231、ePercentage of economies with reforms in each areaSource:BenchmarkingInfrastructureDevelopment2023.The BID 2023 data show regional variation and income group differences in the average score for the preparation phase(Figures 7 and 8).The OECD and high-income economies continue to outperform all othe

232、r regions and income groups,with scores of 54 and 53 points,respectively.Latin America and the Caribbean(LAC)(53 points),Europe and Central Asia(ECA)(52 points),and the OECD-high-income region score above the global average of 46 points.Disaggregating the data by income level reveals that the lower

233、an economys income level,the lower its average score for the project preparation phase.33Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPsFigure 7:Global Overview of PPP Preparation Scores(score 1100,N=140)PreparationNo data0-2020-4040-6060-8080-100Source:BenchmarkingInfr

234、astructureDevelopment2023.Figure 8:Preparation of PPPs,Average Score by Region and Income Group(score 1100,N=140)545352454238373553494038460102030405060708090100OECDhigh-incomeLACECASARAFEMENAEAPAFWHighincomeUppermiddleincomeLowermiddleincomeLowincomeGlobal averageRegionIncome groupSource:Benchmarki

235、ngInfrastructureDevelopment2023.Note:AFE=EasternandSouthernAfrica;AFW=WesternandCentralAfrica;EAP=EastAsiaandPacific;ECA=EuropeandCentralAsia;LAC=Latin America and the Caribbean;MENA=Middle East and North Africa;OECD=Organisation for Economic Co-operation andDevelopment;SAR=SouthAsia.The following s

236、ubsections present and discuss the main findings for the different assessments of PPP projects and the fiscal treatment of PPPs.34Benchmarking Infrastructure DevelopmentAssessments of PPPsThe success of PPP projects relies heavily on accurate assessments,and it is essential to conduct a detailed ana

237、lysis of the projects influencing factors early on.A good assessment of PPP projects contributes to identifying projects of the utmost quality with a high probability of achieving financial close and producing the desired outcomes.The assessment process allows the procuring authority to fully compre

238、hend the projects feasibility and establish the projects structure well before designing a comprehensive PPP contract.Given the significance of PPP assessments,the BID 2023 survey asks whether the following evaluations are conducted during the preparation stage:1)socioeconomic analysis;21 2)fiscal a

239、ffordability assessment;3)risk identification,allocation,and assessment(risk matrix);4)comparative assessment to evaluate whether a PPP is the best option when compared to other procurement alternatives(sometimes known as a value-for-money assessment,although the question coverage is not limited to

240、this particular methodological approach);22 5)financial viability or bankability assessment;6)procurement strategy;7)market sounding,23 divided into two components:(a)including the potential interest from contractors and capacity in the market for the contract,and(b)specifically designed to identify

241、 the solutions and the technology available as well as the opportunities for innovation;8)environmental impact assessment,which includes a consultation process with affected communities;and 9)the social impact assessment,including a consultation process that involves affected communities.In addition

242、,this study also analyzes whether the surveyed economies have established methodologies for each of those assessments,and whether they are consistently employed across different PPP projects.A standardized methodology is beneficial for increasing government transparency and building institutional ca

243、pacity,because it establishes objective and uniform criteria,is publicly available,and is readily applicable to multiple PPP proposals.A methodology may consist of supporting materials or methodological guidelines,such as guides for designing and evaluating investment projects.Although by only small

244、 percentages,the adoption of all 10 assessments has increased since BID 2020.The largest increase was in the adoption of fiscal affordability assessments in 6 percent of the economies.The environmental impact assessment(EIA)remains the most commonly required evaluation,at 98 percent(Figure 9),with a

245、n increase of 1 percent explained by reforms in Ecuador.Since the BID 2020 edition,Ecuador has introduced the PPP regulation24 that emphasizes the importance of conducting EIAs and performing project feasibility studies,bringing the total number of economies that regulate EIA to 137.The prevalence o

246、f the EIA is explained by the general applicability of broader national environmental laws to PPPs.These laws require the EIA to be carried out for any large infrastructure project regardless of the delivery mechanism.Although Morocco already had the EIA requirement in place,it has also adopted a ne

247、w handbook of good practices that details the EIA methodology.25 Despite being less prevalent,the social impact assessment(SIA)is required in 76 percent of economies,and 52 percent of economies also require a consultation process with affected communities during the SIA,recognizing the importance of

248、 community engagement.Similar to EIA,the requirement to conduct an SIA is often within the scope of environmental impact studies.Since the BID 2020 edition,there has been an increase of 2 percent in economies adopting SIA,namely Cambodia,Tanzania,and the United Arab Emirates.For example,the new PPP

249、regulation in Tanzania 35Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPsdetails the prominent aspects of the proposed project,including a description of the environmental and SIA.26 Also,Ukraine now has a new methodology in place analyzing the social consequences of PPP

250、 implementation.27The fiscal affordability assessment for PPPs is the second most required assessment,with 86 percent of economies including this analysis in their regulatory framework.By conducting this assessment,the government compares the public interest and social return to the projects cost an

251、d assesses the projects long-term fiscal and budgetary impact.The fiscal affordability of PPPs appears to be receiving increasing attention in the regulatory framework.Since the publication of the BID 2020 edition,seven28 of the assessed economies have adopted new legislation requiring a fiscal affo

252、rdability assessment as part of the preparation phase for PPP projects,and three economies,namely Argentina,the Dominican Republic,and Jordan,have devoted specific methodologies for conducting such assessments.For instance,in its 2022 fiscal commitments and contingent liabilities operational and pro

253、cedural manual,Jordan29 specifies a methodology and calculation methods.The Jordan PPP guidelines also provide an approach for conducting affordability evaluations.The financial viability and bankability assessments have been newly implemented in eight economies(Cambodia,Chad,Jordan,Montenegro,Qatar

254、,Panama,Sudan,and Senegal),as shown by the BID 2023 data.This is the type of assessment with the largest number of reforms.The financial viability or bankability evaluation compares the cost of operating,maintaining,and replacing assets to the projects benefit using market pricing.In Senegal,for ins

255、tance,the PPP decree stipulates that the preliminary evaluation includes a financial feasibility study to demonstrate the financial robustness of the PPP project,taking into account the expected revenues and the corresponding financial and operating costs.30 Only one economy,Indonesia,has adopted a

256、methodology to determine the mechanism of return on investment to assess the projects feasibility based on economic and financial criteria.31 The procurement strategy is an assessment that is rarely required.Since the previous edition of this initiative,only three economies have adopted new regulati

257、ons on this,namely the Arab Republic of Egypt,Brazil,and the United Arab Emirates,with 26 percent of economies requiring one as part of their legislative framework(and only 11 percent with a specific methodology).This evaluation would include a fast assessment to plan and strategize the tendering pr

258、ocess in advance to suit the intended purpose.Notably,two economies,Egypt and the United Arab Emirates,have also developed a specific methodology for performing such an assessment.For instance,in the United Arab Emirates,the project procurement strategy and roadmap are part of the Department of Fina

259、nce(DoF)PPP Guidelines.32Market sounding continues to be one of the least required assessments.Market sounding for private sector interest is required in 51 percent of the surveyed economies,whereas market sounding for technology and innovation is required in only 5 percent.Six economies(Cambodia,Ec

260、uador,Ghana,Montenegro,Tanzania,and Sudan)have introduced new legislation requiring market sounding for private sector interest.For example,in Ghana,the new PPP Act requires the promotion of the PPP project to prospective bidders without limiting competition using market sounding,among others,33 and

261、 in Tanzania,the new regulation requires the contracting authority or PPP advisor acting on behalf of the contracting authority to conduct a market sounding assessment,during or following the preparation of the feasibility study.34 The survey also assesses whether the market sounding assessments are

262、 designed to identify opportunities for innovation.This is the least commonly performed assessment when preparing PPPs.This BID report reveals that there has been a marginal improvement in that area;for example,according to the new PPP law in Brazil,the market survey consists of an analysis of possi

263、ble alternatives and technical and economic 36Benchmarking Infrastructure Developmentjustification for choosing the type of solution to be contracted.35 Overall,market sounding remains an area that requires substantial development.Figure 9:Assessments Conducted During the PPP Preparation Phase(perce

264、nt,N=140)98%76%52%0%10%20%30%40%50%60%70%80%90%100%Fiscal affordabilitySocio-economic analysisAssessment is requiredMethodology is developedConsultation process is part of assessmentNumber of economies with reforms since 202086%31%3781%35%3479%36%4477%39%5551%18%6126%11%325%2%11131Valuefor money,pub

265、lic sector comparatorRisk analysis and matrixMarket sounding for privatesector interestProcurement strategyMarketsoundingfor technologyand innovationsEIASIA77%30%81Financial viability49%187%79%Source:BenchmarkingInfrastructureDevelopment2023.Note:EIAstandsforenvironmentalimpactassessment.SIAstandsfo

266、rsocialimpactassessment.Fiscal Treatment of PPPsAlmost all PPPs involve some form of fiscal commitment,either because they are explicitly structured as government-pays PPPs or because they require government assistance to be marketable and bankable.Full recognition and comprehension of the level of

267、public commitment entailed by a PPP are not automatic.Typically,the upfront cost of the investment is not borne by the government but is embedded in the financial structure,to be paid over a long period of time,with availability payments from the government(in government-pays PPPs)or user fees(in us

268、er-pays PPPs,which can ultimately be viewed as potentially foregone government revenue).Although there is a wide variety of potential public commitments,they can be divided into two broad categories:1)direct liabilities,such as availability payments or shadow tolls,whose values are usually set out i

269、n the contract;and 2)contingent liabilities,such as guarantees or compensation clauses,whose occurrence,timing,and amount are contingent on some unforeseeable future events beyond a governments control.A robust public fiscal management system and specific PPP-related provisions are desirable to ensu

270、re that fiscal commitments resulting from PPPs are utterly recognized.This also helps mitigate any potential challenges to overall fiscal sustainability that a distressed or canceled PPP could create.The PPP fiscal treatment provisions are intended to increase the transparency of existing 37Measurin

271、g the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPscommitments and prevent fiscally risky transactions(see Herrera Dappe et al.(2023)for further analysis of the fiscal implications).Economies with such provisions are anticipated to have more financially resilient PPP portfolios and

272、 fewer concealed liabilities resulting from PPPs,which may be especially relevant during times of turmoil.BID 2023 evaluates a set of pillars comprising a robust economic framework for PPPs,including the fiscal affordability assessment covered in the previous section.Providing the Ministry of Financ

273、e(MoF)or central budgetary authority with controlling power before the execution of PPP contracts is another crucial element in establishing such a rigorous framework.The legal and regulatory framework should explicitly delegate this responsibility to the MoF.Being responsible for the overall fiscal

274、 sustainability of an economy,the MoF or central budgetary authority is in the best position to determine whether a PPP is fiscally sustainable,and acts as a counterbalance to spending agencies that typically serve as procuring authorities.Before initiating the PPP procurement procedure,approval by

275、the MoF or central budgetary authority is required in 95 of 140 economies surveyed(68 percent).This initial PPP approval process can significantly influence the project preparation quality and financial structure.However,only 38 percent of the economies surveyed require a second approval by the same

276、 authorities before signing a PPP contract.This may also be necessary to guarantee that the project remains fiscally affordable following any significant changes that may have occurred during the tendering process.Since BID 2020,two more economies,Armenia and Montenegro,require both approvals,giving

277、 the MoF a more comprehensive veto power and increasing the total number of economies to 44(31 percent).Figure 10 shows the MoFs approval power in the procurement process.Figure 10:MoF Approvals of the Procurement Process(percent,N=140)MoF approval before launchingthe procurement processMoF approval

278、 before signingthe PPP contractBoth approvals required68%64%38%36%31%29%20232020Source:BenchmarkingInfrastructureDevelopment2023.Note:MoF=MinistryofFinance.Specific provisions regulating the budgeting,reporting,and accounting treatment of PPPs are another part of a robust framework for the fiscal tr

279、eatment of PPPs.The BID 2023 data reveal that two more economies,Ghana and Ukraine,now have all three aspects regulated,increasing the total 38Benchmarking Infrastructure Developmentnumber of economies to 19 out of the 140 surveyed.Although Ghana already had budgeting and reporting obligations in pl

280、ace,it adopted a new PPP Act requiring the controller and accountant general to ensure that transactions related to PPP projects are covered in the National Accounts.36 Sixty-one economies(44 percent)have specific provisions regarding the budgetary treatment of PPPs,whereas 53(38 percent)have implem

281、ented some form of regulatory provision regarding the accounting treatment of PPPs.Reporting liabilities remains the least regulated instrument,with only 41 economies(29 percent)having a legal provision concerning the matter.Figure 11 illustrates an interesting correlation between the elements discu

282、ssed above.Most economies that have adopted specific provisions for PPPs budgetary,reporting,and accounting treatments also require the approval of the MoF or central budgetary authority.Even though the overall numbers are low,economies that have assigned a formal gatekeeping responsibility for PPPs

283、 to the MoFs are more likely to have established specific budgeting,reporting,and accounting requirements for PPPs.Certain European Union economies(for example,Greece,Poland,Germany,and Austria)are required to follow European System of Accounts(ESA)accounting standards,making up the larger proportio

284、n(9 percent)of economies that follow specific accounting standards while not having provided their MoF with approval authority.Figure 11:Fiscal Treatment of PPPs in 2020 and 2023(percent,N=140)38%32%29%27%24%23%6%5%9%9%5%4%PPP budgetarytreatmentPPP accountingPPP reportingPPP budgetarytreatmentPPP ac

285、countingPPP reportingMoF with some type of approval role for PPPsMoF without any type of approval role for PPPs20232020Source:BenchmarkingInfrastructureDevelopment2023.Note:MoF=MinistryofFinance;PPPs=public-privatepartnerships.There are many forms of budgetary treatment provisions,but they all entai

286、l an express recognition of the long-term impact of PPP liabilities.This could be a requirement to approve the full commitment of a project at inception or a limit on the total liabilities from a PPP portfolio.Nine economies have implemented new PPP budgetary provisions as part of broader PPP regula

287、tory reforms since the BID 2020 report:Armenia,Cambodia,the Dominican Republic,Jordan,Malawi,Montenegro,Panama,Saudi Arabia,and Togo.For example,in Panama,the new PPP law requires that during the term of the PPP contract,the Ministry of Economy and Finance will be in charge of developing the methodo

288、logy to evaluate the impact of the PPP project on the specific public expenditures of the contracting public entity and the general budget of the state,37 and in Malawi,the new PPP Act now requires that PPP project costs be included in annual budgets.3839Measuring the Legal and Regulatory Quality to

289、 Prepare,Procure,and Manage PPPsSince BID 2020,four economies have adopted new reporting obligations,namely the Dominican Republic,Jordan,Panama,and Ukraine,reaching 29 percent in BID 2023.Effective reporting of liabilities arising from PPPs supports solid public financial management of the PPP prog

290、ram.For instance,according to the new PPP law in the Dominican Republic,each year,the MoF will publish an evaluation of the firm and contingent liabilities arising from current PPP contracts.39 In Jordan,there is a requirement to publish a report on each PPP project,including its financial and budge

291、tary obligations.40Accounting refers to how PPPs are treated in national accounts(for instance,which party assumes the PPP-related debt on its balance sheet as a liability).The OECD economies that are members of the European Union are subject to the common ESA,which requires the public sector to acc

292、ount for PPP-related debt if it retains a substantial portion of the risk in the PPP project.The International Public Sector Accounting Standards(IPSAS)serve as a model for the accounting treatment of PPPs,but only about 10 percent of economies have adopted them.According to IPSAS,a PPP must be incl

293、uded in the public sector balance sheet if the public sector retains control of the service provided and a residual interest in the project.Since the last edition of the report,Ghana has been the only economy to adopt a new regulation requiring that the“Controller and Accountant General,in reporting

294、 PPP transactions in the National Accounts,apply the International Public Sector Accounting Standards relating to PPPs arrangements and projects.”41 As a final point,BID 2023 assesses whether the government discloses PPP liabilities in a publicly accessible online platform or database.There are now

295、a total of 18 economies,and two of them(Armenia and Ukraine)have implemented new regulations since the last edition of the study to make the data accessible online.For instance,in Ukraine,the Ministry of Economy maintains a register of long-term obligations within the framework of PPPs and posts rel

296、evant information on its official website following the procedure determined by the Cabinet of Ministers of Ukraine.42 Although this type of mechanism aids in ensuring PPPs are managed transparently and adequately,it is evident that it is still not widely adopted among the surveyed economies.Procure

297、ment of PPPsA successful PPP project depends heavily on working with the correct private partner.Ultimately,how much value the private partner can bring forth via innovation and increased efficiency will determine whether the government meets its envisioned value for money.To select the right partne

298、r,a procuring authority typically conducts a public bidding procedure in compliance with either the general public procurement norms or those rules that have been created specifically for PPPs.Given the fact that PPPs are long-term agreements involving substantial public resources,the significance o

299、f choosing the appropriate private partner is further emphasized.In this regard,it is essential for governments to establish a long-lasting partnership based on trust with the private partner,for which reason they must carefully assess the credentials and proposals of the bidders throughout the proc

300、urement process.Compared to traditional public procurement,PPPs long-term and complex nature typically results in more drawn-out and challenging tendering processes.PPP tendering methods that are expensive and time consuming may eventually discourage competition by preventing potential bidders from

301、putting together bids and taking part in the procurement process.This indicates that a reduction in 40Benchmarking Infrastructure Developmenttransaction costs,in conjunction with clarity,fairness,and openness of the procurement process,are crucial components to guaranteeing a level playing field for

302、 all prospective bidders.These important factors should be taken into consideration by procuring authorities when starting a PPP procurement procedure.This BID report covers a wide range of topics that occur throughout a PPP procurement process,such as ease of access for bidders to information about

303、 the procurement process;the clarity and comprehensiveness of the procurement documents;the qualification of the bid evaluation committee members;the bid selection criteria used;the way governments deal with the cases of sole proposals;and restrictions on negotiations during the award phase.BID 2023

304、 scores each economys procurement framework based on accepted best practices that are enumerated in Box 3 to determine how well each of the examined economies is performing a PPP procurement process.41Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPsBox 3:Procurement of P

305、PPs:Good Practices Scored in Benchmarking Infrastructure Development 2023Good practices that help to ensure fair competition,value for money,and transparency during a PPP procurement process include the following:The members of the bid evaluation committee are required to meet minimum qualifications

306、.The procuring authority publishes the public procurement notice online.Foreign bidders have unrestricted access to participate in a PPP tender.The procuring authority grants at least 60 calendar days to potential bidders to submit their proposals.The procuring authority can choose among a range of

307、competitive procurement methods to select the private partner based on the methods suitability.If direct(non-competitive)award is possible,there are well-defined circumstances in which the usage of such a procurement method is justified.The tender documents explain in detail the procurement procedur

308、e,providing the same information to all bidders.The tender documents specify the qualification requirements(or the pre-qualification requirements,when applicable).The qualification requirements(or the pre-qualification requirements,when applicable)are effectively regulated to ensure equal access for

309、 all qualified bidders to a PPP tendering process without limiting competition.Potential bidders can submit questions to clarify a public procurement notice and/or the request for proposals(RFP),and the answers are disclosed to all potential bidders.Potential bidders can suggest innovations to impro

310、ve the tender documents or the procurement approach,including through the submission of variant bids,value engineering,and/or technologically neutral options.There is a set timeframe for the procuring authority to provide answers to the bidders questions or requests for clarification.If any changes

311、or modifications are made to the tender documents,the bid submission deadline is extended sufficiently to allow the potential bidders to adjust their bids.The procuring authority conducts a pre-bid conference to further inform the potential bidders,and clarifications provided during the conference a

312、re disclosed to all potential bidders.Bidders prepare and submit a financial model with their proposals or are asked to fill out the pro-forma financial model prepared by the procuring authority.The procuring authority evaluates the proposals strictly and solely in accordance with the evaluation cri

313、teria stated in the tender documents.Non-price criteria can be used for the bid evaluation,and such criteria are justified,objective,and quantifiable.The procuring authority provides a cost estimate or a value of a PPP contract in the tender documents.The procuring authority follows a specific proce

314、dure to guarantee value for money if only one proposal is submitted.The procuring authority publishes an award notice online.The procuring authority provides all bidders with the results of a PPP procurement process,42Benchmarking Infrastructure Developmentincluding the grounds for the selection of

315、the winning proposal.The procuring authority provides the bidders with the option of holding a debriefing meeting to discuss why their bids were not selected.There is a standstill(or a pause)period of at least 10 calendar days after the notice of intent to award a contract is issued and before a con

316、tract is signed to allow unsuccessful bidders to challenge an award decision,and this period is specified in the RFP documents or in a notice of intent to award a contract.Any material negotiations between the selected bidder and the procuring authority after the award and before the signing of a PP

317、P contract are restricted and regulated to ensure transparency.There is a specific complaint review mechanism for complaints related to the PPP procurement process.There is a set timeline in which decisions on complaints will be issued.The decision on complaints is subject to appeal.The original com

318、plaint or appeal is reviewed by an independent body(other than a procuring authority or the courts).The procuring authority publishes the signed PPP contract and its amendments online.Figure 12 shows that some of the most fundamental criteria for a strong procurement process are widely used,such as

319、having the evaluation criteria specified in tender documents and tender notices published online(95 percent).Since the last edition of this report,two more economies,the Dominican Republic and Ecuador,have passed reforms that state that the evaluation criteria will be specified in the tender documen

320、ts.Some of the more advanced procurement practices are still quite uncommon(Figure 12).Only 11 percent of the surveyed economies include the possibility of holding a debriefing meeting in their legislation.Other good international procurement practices also remained hardly adopted:online publication

321、 of contract amendments(22 percent)and having a specific procedure when only one bid is received(20 percent).Even more startling is the fact that only a relatively small percentage of economies(19 percent)meet the requirement of allowing at least 60 calendar days for the bidders to prepare and submi

322、t their bids,which could allow proper time for all bidders to prepare their proposals.Even though procurement is a vast topic,few practice areas have experienced noticeable reforms between June 1,2019,and June 1,2022.Overall,the availability of multi-procurement methods only increased by 2 percent(F

323、igure 12).However,the biggest reforms come from procurement methods,such as the institution of the availability of competitive dialogue,which has been introduced by 5 percent of the surveyed economies,namely Botswana,Brazil,Ghana,Senegal,Sudan,Ukraine,and Viet Nam.Many of these reforms come from new

324、ly implemented or recently updated PPP and procurement laws,which specify that a competitive dialogue can be used as a procurement method.Another noteworthy reform comes from four economies,Lao PDR,Qatar,Togo,and Viet Nam,signifying an increase of 3 percent(Figure 12)compared to the previous 2020 as

325、sessment,which introduced norms that mandate that the pre-qualification requirements be regulated to ensure competitiona good step towards more open and honest procurement processes.43Measuring the Legal and Regulatory Quality to Prepare,Procure,and Manage PPPsFigure 12:Share of Economies That Adopt

326、 Good Procurement Practices by Scored Areas(percent,N=140)1%11%1%19%-1%20%2%22%25%2%26%35%2%39%1%39%1%44%4%44%44%2%45%1%49%2%51%1%52%3%54%1%56%2%57%1%61%66%2%70%1%76%1%78%1%79%1%79%1%81%1%83%1%88%1%94%94%2%95%1%95%96%96%96%0%-10%50%100%Debriefing meeting regulatedMinimum time to submit the bids:at l

327、east 60 daysSpecific procedure for sole proposalsPPP contract amendments published onlineAward notice includes standstill periodFinancial model submitted with proposalsAnswers from pre-bid conference disclosed to all biddersStandstill period:at least 10 calendar daysPPP contract published onlineEval

328、uation committee members with required specific qualificationsPre-bid conference regulatedStandstill period requiredPrice/cost estimate provided to biddersTimeframe to address questions and clarifications regulatedBidders can suggest innovations/submit variant bidsMultiple procurement methods availa

329、bleAward notice includes grounds for selection of winnerPre-qualification requirements regulated to ensure competitionDecision on complaints reviewed by independent authorityBid submission deadline extended if tender documents modifiedMaterial negotiations with winner restrictedObjective,justifiable

330、 and quantifiable non-price criteriaDirect negotiation restricted to regulated circumstancesDecision on complaint subject to appealTimeframe to resolve complaints regulatedAnswers to questions and clarifications disclosed to all biddersAward notice published onlineAward notice sent to biddersMinimum

331、 time to submit bids regulatedQuestions and clarifications process regulatedNon-price criteria available for evaluationProcurement procedure detailed in tender documentsTender notice published onlineEvaluation criteria specified in tender documentsProposals evaluated according to published criteriaC

332、omplaint review mechanism regulatedForeign bidders permitted to bid without restrictions43%-3%Percentage of economies with good regulatory practicePercentage of economies with reforms in each areaSource:BenchmarkingInfrastructureDevelopment2023.44Benchmarking Infrastructure DevelopmentBID 2023 data

333、analyze regional and income group variations in the average score for the PPP procurement phase(Figures 13 and 14).When analyzing the scores by region,the OECD economies lead,with 77 points,followed by the economies in the ECA(70 points)and LAC(62 points)regions.Across the regions of OECD,ECA and LAC,there was an increase of two points compared to the 2020 assessment.A great discrepancy can be not