5.1  Project Identification and Selection

In PPPs, the Bank uniquely has two clients: the Provider - normally the Bank's borrower, and the Promoter - a public-sector institution. This potentially gives the Bank two roles: lender to the Provider, and mentor to the Promoter, who may have much less experience in PPPs than the Bank. This situation arises particularly where the Bank gets involved in projects at an early stage, and there is obviously potential conflict between these roles. Initially the Bank may be sitting on the Promoter side of the table helping to define and shape the project. It then moves to the Provider side, sitting opposite the Promoter, to help negotiate the PPP Contract which is the main security for the Bank's loan. The Bank, as a public-sector institution, may therefore find itself in the situation of seeking to negotiate a contract which is in its financial interest, but which may not be in the best interests of the Promoter/Public Sector.