2.1 The scope of this review is limited and relies on a high level non-statistical methodology. The review is based on desk research and consultations with practitioners in client countries and staff involved in the provision of financing or transaction advisory services to small-scale PPP projects. The review does not rely on the selection of a scientific sample, given the low level of information available on small projects in non-traditional sectors as well as the limited objective of the review, which is to come to preliminary conclusions on small-scale projects solely with the purpose of informing further detailed work in this area
2.2 Small projects are not easy to define. Usually a rigid cap or ceiling for what can be considered a small-scale PPP may not be practical. In addition, several small projects when bundled together could be perceived as a large project and no longer fit into a definition based on size/value, but the larger project could still continue to retain several of the characteristics of its constituent projects. In addition, the definition of "small" is relative and could differ depending on the size of country, density of population and other factors. However, given the need to have a structure and better focus for the review, a limited sub-set of PPP projects was considered. Based on discussions with several practitioners familiar with the PPP landscape, only projects $50 million or below in terms of total project value have been included. The examination of the PPI and other databases has relied on this definition of size.
2.3 Water and energy sector projects are not the focus of this review. The existing literature on small-scale PPP projects was examined in some depth with the finding that studies on projects in the water and energy sectors abound over the last two decades However, there have been relatively fewer studies in other sectors associated with small-scale projects. Given this position, the review excluded energy and water projects, with the exception of solar PPP projects that are just beginning to take root and have some interesting lessons to offer, and energy efficient street lighting projects that do not strictly fall into the energy sector.
2.4 Small projects from traditional sectors have not been included in the review. It was observed in the preliminary literature search and the analysis of project databases that several conventional projects appeared to be relatively small in small states, including island states, due to their small populations and geographic size. However, these projects differ from most small projects in non-traditional sectors elsewhere in terms of project profiles and characteristics and, as such, have not been included in this review.
2.5 Ten projects have been selected and examined for the purpose of this review. The tenprojects were selected from the landscape of small projects that remained globally after application of the exclusions described above. These projects have been selected based on the ease of availability of information rather than through the use of any scientific methodology. The number of non-water, non-energy small projects was found to be larger and growing quite rapidly in the South Asia region, specifically India; therefore, we have a selection of six projects from India. In addition, there is one project each from Kenya, Lesotho, South Africa, and West Bank and Gaza
2.6 Information on a few areas of focus has been collected from each project and a limited number of countries. While not all the information on every project was convenient to find or forthcoming, the following key questions formed the basis of information collection and are broadly covered in the rest of this paper:
Global trends in project size
• PPI aggregate database: Which countries, regions, and sectors are good examples for small projects?
• What do country level databases say on project size and sectors?
Institutional and policy frameworks
• Are small projects defined in countries in any way?
• Are there separate institutional and policy frameworks for small projects? What are the processes for approvals and procurement? Have simplified and "fast-track" approaches been adopted? Are standard documents available?
• Has bundling of projects been used as an option? How are multi-jurisdictional issues being treated in bundled projects?
Financing and structuring issues
• What kind of PPP modes are being used for small PPPs (BOT, BOO, management/ performance contracts)?
• What is the profile of the investors who have been participating in the bids (local versus foreign; small versus large)?
• What are the major issues in financing? Has there been an attempt to use wholesale platforms to take groups of similar projects to market? Are there any regulatory impediments in financing these projects?
• Have these projects often needed to be supported by government? How well have instruments of support been defined? Are there mechanisms in the country for pooling the risk of sub-national projects, or are credit enhancement techniques available?
Capacity: public and private
• What are the specific capacity issues-for public as well as private entities-that would need to be taken care of in order to have more and better structured projects?