The conclusions derived from specific experience in the projects examined in conjunction with their associated environments point to two potential levels of further work for the client countries and multi-lateral development institutions like the World Bank:
• Immediate work focused specifically on small-scale projects that will get quick wins
• Slower but more embedded work focused on the larger environment for small PPPs
The latter can be undertaken as part of the general work on strengthening the environment for PPPs over the medium and longer term.
Some specific areas where there could be more immediate results with relatively lower levels of investment are discussed below.
• Upstream institutional structures and processes: This includes examining current procedures and processes, identifying gaps, and streamlining the different phases in the implementation of small-scale projects from conception through development, appraisal, approval, and procurement. It entails examining a separate framework including simpler institutional structures for processing projects as well as the creation of standard procurement and contract documents and templates to reduce the time and costs involved.
• Sector policy and regulation: This consists of country-level work exploring identified emerging sectors with regard to the current status of sector regulations, appropriateness or adequacy of the regulations for small-scale projects, identification of gaps, outlining/drafting modifications or new regulations, sector guidance and tariff policy,.
• Support for financing of PPP: This includes an examination of available government support mechanisms for small-scale PPP projects, designing modifications to available mechanisms and instruments, and exploring and outlining possible new mechanisms and instruments customized to small projects and to sectors where such projects are more common. Focused work on the creation of funding and credit enhancement facilities customized to small-scale urban and rural projects can help expand the pipeline in a very short space of time.
• Focused capacity building: Focused capacity building at subnational levels with all entities involved in the PPP process, with particular focus on project development, implementation and contract management skills of subnational staff, small project appraisal skills of local commercial bankers and targeted workshops/communication campaigns focused on increasing knowledge of PPP among potential private investors would help enhance the quality of projects entering the pipeline and improve project processes.
Reforms to financial regulations and the strengthening of capital markets are among the longer term measures that need to be undertaken as a part of general strengthening of infrastructure finance; these exercises need to retain a deliberate focus on the small-scale project segment. In addition, the institutional and financial strengthening of subnational bodies-already a part of the work of several World Bank Group units-could be taken up with special focus on those countries and entities that present scope for PPP implementation.