Project Title

Attracting Private Investment to Transportation Infrastructure Public-Private Partnerships (PPPs): Training APEC Economies to Better-Package “Bankable Projects" 

Project Year

2015   

Project Number

TPT 03 2015 

Project Session

Session 2   

Project Type

Standard 

Project Status

Completed Project   
View Budget TableView Budget Table
|
PrintPrint

Project No.

TPT 03 2015 

Project Title

Attracting Private Investment to Transportation Infrastructure Public-Private Partnerships (PPPs): Training APEC Economies to Better-Package “Bankable Projects" 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

General Project Account 

Sub-fund

None 

Project Year

2015 

Project Session

Session 2 

APEC Funding

65,000 

Co-funding Amount

209,045 

Total Project Value

274,045 

Sponsoring Forum

Transportation Working Group (TPTWG) 

Topics

Transportation 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; Canada; China; Korea; New Zealand; Philippines; Chinese Taipei 

Expected Start Date

01/12/2015 

Expected Completion Date

31/12/2016 

Project Proponent Name 1

Christopher Clement 

Job Title 1

US Head of Delegation to the APEC TPTWG 

Organization 1

US Department of Transportation 

Postal Address 1

1200 New Jersey Avenue, SE, Washington, DC 20590, USA 

Telephone 1

1-202 4930623 

Fax 1

Not Applicable 

Email 1

Christopher_Clement@dot.gov 

Project Proponent Name 2

Nadira Mailewa 

Job Title 2

US-ATAARI Economic and Human Security 

Organization 2

US-ATAARI Project, Nathan Associates 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

nmailewa@nathaninc.com 

Declaration

Christopher Clemtn and Nadira Mailewa 

Project Summary

APEC Leaders instructed “officials to take concrete actions to strengthen cooperation on PPP[s]” in 2014.  APEC Transportation Ministers instructed the TPTWG “to explore opportunities for deepening cooperation…in transportation infrastructure investment…, particularly with regard to [PPPs]” in 2013.  In response, this project proposes to educate and share global best practices with government staff who package transportation infrastructure PPP deals for bidding out to private investors, project developers, and design/build firms.  Constrained budgets, new innovations in the field of project finance, and an increasing appetite for long-term financial returns by investors are increasing Economies’ interest in PPPs.

The single unifying skillset required of all government agencies involved in transportation infrastructure PPPs is the ability to understand how to create project opportunities that are attractive to private investors while creating value for the government sponsor.  This is the core skillset required to attract private investment and, through two, 2-day training workshops in [TBD] and [TBD], APEC Economies will develop and refine these skills.

Relevance

Public-private partnerships (PPPs) are a tool that APEC Economies can better-leverage to build and maintain transportation infrastructure.  PPPs are not new – toll roads have existed in North America since the 18th century, for example – but constrained government budgets, new innovations in the field of project finance, and an increasing appetite for long-term financial returns by investors are conspiring to reignite interest in leveraging PPP frameworks for transportation infrastructure.  For the Asia-Pacific region, where booming economic growth is sometimes outpacing APEC Economies’ ability to fund infrastructure development at a speed that keeps up with demand, PPPs are viewed as a key tool in narrowing APEC’s transportation infrastructure gap. 

Though private capital can move internationally, laws, financial regulations, and business cultures are locally entrenched.  Consequently, PPP legal frameworks vary dramatically from one APEC economy to another.  This creates a challenge for investors, particularly less-sophisticated transportation infrastructure PPP investors.  All economy level/domestic transportation infrastructure PPP markets would attract more private capital and interest to their projects if deals were better structured to hold greater appeal to private investors. 

Broadly speaking, the educational workshops and follow-on web-based trainings that are part of this work stream will help APEC Economies address the four following gaps:

1) Infrastructure Gap:  The Asian Development Bank estimated in 2010 that Asia’s infrastructure needs total $8 trillion in the 10 year period through 2020.  Lack of transportation infrastructure effectively creates a speed limit on the pace of economic growth and increased economic connectivity within the Asia-Pacific region.

2)  Funding Capacity Gap:  Many APEC Economies are unable to pay for all the transportation infrastructure that is needed to maintain economic growth.  This is a common challenge across the region, and greater private investment may fill the gap.

3) Skills Gap:  APEC Economies do not always possess the project finance expertise needed to fully leverage private capital to support the region’s transportation infrastructure development.  This is not the fault of governments, but a function of the fact that PPP approaches to infrastructure financing are relatively new.

4) “Public Dialogue” or “Public Interest” Gap:  Successful PPPs require, by definition, public dialogue and engagement by government, the public, and private industry.  Robust public dialogue helps ensure that a project is designed and financed in a way that supports the public interest and effectively safeguards the public investment. 

This project is a 2015 Rank 1 priority, as defined by The Philippines in 2015, and adds new insights to existing PPP work streams in the Committee on Trade & Investment (CTI), Finance Ministers Process (FMP), Investment Experts Group (IEG), and APEC Business Advisory Council (ABAC). 

This project supports the following Rank 1 goals:

·  Investment Facilitation and Liberalization

·  Infrastructure Development and Investment, including through PPP

·   Ease of Doing Business

·  Standards, conformity assessment, technical regulations, regulatory cooperation, and regulatory coherence, including good regulatory practices

·   Travel facilitation for enhancing mobility

·   Building Sustainable and resilient communities

Objectives

The two core objectives of this project are:

1)  Ensure that training participants have a larger body of knowledge on PPPs:

a) Understand what deal structures, risk-sharing arrangements, and contractual agreements are most appealing to private sector investors

b) Develop skills to more effectively communicate and negotiate with private sector investors

c) Know which types of transportation infrastructure PPP projects (e.g., toll road) are most amenable to PPP structures and which are less so

2) Empower training participants to improve their economies’ PPP frameworks/approaches:

a) Make recommendations within their own governments to improve transportation infrastructure PPP-enabling laws and regulations

b)  Play a positive role in economy level dialogues about transportation infrastructure PPPs, articulating their benefits to a sometimes wary public

c) Translate best practices in one APEC Economy, which has its own unique set of laws and regulatory frameworks, to lessons that their own governments can benefit from.

Alignment

This project will contribute to APEC-wide engagement on PPPs by receiving technical support from the following APEC entities, all of which have historically engaged on PPP infrastructure issues:

1) APEC Committee on Trade & Investment (CTI):  In April 2013 in Surabaya, Indonesia, an “APEC Dialogue on Infrastructure Development & Investment” took place on the margins of the CTI2 meetings.  The lack of both “bankable projects” (i.e., projects that are commercially appealing to private sector investors) and understanding by government staff as to how to share risk with the private sector were identified as the two greatest barriers to more infrastructure PPPs in the Asia-Pacific region.

2)  APEC Finance Ministers Process (FMP)

3)  APEC Investment Experts Group (IEG):  The IEG has compiled a PPP Guidebook, demonstrating the variability of PPP-enabling laws, regulations, and institutional structures across the APEC region.

4) APEC Business Advisory Council (ABAC):  For almost two years ABAC has pushed APEC Economies to fill out the “ABAC Enablers of Infrastructure Investment Checklist” to help governments assess the extent to which their existing policies promote the participation of the private sector in infrastructure investment.

TILF/ASF Justification

This project is focused on helping APEC Economies better understand what private investors, most of them foreign investors, need to see in order to commit capital to transportation infrastructure projects.  A related component of attracting foreign investment to PPP transportation infrastructure deals is incubating a positive environment for foreign direct investment.

Beneficiaries and Outputs

Outputs: The main outputs of this activity will be as follows:

1) An analytical study identifying the most prevalent PPP deal structures (e.g., design-build, design-build-operate, design-build-operate-maintain) are most effective, generally speaking, across the Asia-Pacific region.

2) Two, 2-day workshops to be implemented over the course of 2016. Based on these workshops, the project proponents will develop brief workshop summaries which will include next steps. 

Outcomes: Changes in behavior:  Increased capacity and knowledge of participants to develop sound PPP frameworks and approaches to improve transportation infrastructure in APEC economies.

A central desired outcome is to increase comfort level with PPP transportation infrastructure projects in general among government officials and citizens.  There is a concern in many governments that PPPs, which are uncharted territory for some Economies, may be perceived by the citizens as NOT being in the public interest.  This work stream hopes to highlight the value proposition that PPPs can bring to benefit the public (i.e., lower cost infrastructure, longer life-cycle durability, faster delivery). 

Changes in policy:  It is envisioned that APEC Economies will implement policies that increase private sector confidence in transportation infrastructure PPPs.  This may include new policies to handle unsolicited bids, to streamline government feasibility studies, or to detach certain government PPP-related decision making functions from elected government officials. 

Changes in process:  Broadly speaking, the hope is that transportation infrastructure planning will evolve to consider a wider array of projects for PPP at the origination stage. 

Beneficiaries: The direct beneficiaries will be the main users of the project outputs and those that participate in the capacity building workshops (as participants, policy makers and practitioners from the relevant agencies). In addition to government entities participating in the capacity building workshops, private sector stakeholders will benefit as well by more fully understanding the limitations that current exist within APEC Economies (i.e., the “public” participants in “public-private partnerships”).  Participant selection will be based on sourcing nominations of appropriate personnel.  The target audience for participation in this work stream is director-level representatives from offices within APEC Economy ministries that play a role in structuring/bidding out PPP projects to incentivize private investment as well as those responsible for creating/maintaining the PPP facilitating regulatory framework.  Depending on how roles and responsibilities are structured within APEC Economies, the Central Government ministries attending this workshop may be in the fields of Finance, Transportation, or Public Works.  Participation is also welcome from sub-national government entities as relevant and appropriate. Private sector representatives will also benefit from this work, as users of the project outputs. 

It is important to note that each APEC Economy structures its PPP regimes and processes differently.  Also, there are disparate levels of the division of responsibility between central governments, sub-national governments, and local governments.  Consequently, the U.S. project sponsor will work closely with APEC Investment Expert Group (IEG) representatives to ensure that economy-specific representation makes sense – the APEC IEG has already created a large document that lists which government ministries/agencies within each APEC Economy engage have PPP responsibilities. 

Indirect beneficiaries include members of the public who stand to benefit from more efficient and better quality transportation infrastructure in the region.

Dissemination

The only publication that is envisioned is the analytical study identifying the most prevalent PPP deal structures (e.g., design-build, design-build-operate, design-build-operate-maintain) are most effective, generally speaking, across the Asia-Pacific region.  This document is expected to be published electronically and will be circulated to all TPTWG members (as well as other relevant APEC fora such as IEG) to be shared more broadly within relevant agencies and institutions in APEC economies identified below. In doing so, members will be encouraged to upload the study on to relevant sites to ensure that the resource document can be accessed readily by policy makers and practioners.  (Specific details of the sites will be provided in the Project Completion Report). Additionally, all workshop materials will be shared broadly to promote flow-on capacity building benefits. 

The target audience for this publication includes: 

1) Central, sub-national, and local government officials in APEC Economies engaged in transportation infrastructure PPPs

2) The public, to gain greater knowledge and comfort about transportation infrastructure PPPs, and

3) Private investors, project developers, and consultants.

Gender

In terms of how the project outcomes benefit women, PPPs enable the development and maintenance of more efficient transportation infrastructure in the Asia-Pacific region, which in turn facilitates more robust and safe transportation networks for women.

The steps taken by the POs to ensure the effective participation and engagement of men and women in project activities include the following:

1)  The active participation of women will be promoted at all stages of the project. Firstly, the proposed analytical study will aim to collate sufficient information (where possible) on how/whether existing PPPs deal structures in the Asia Pacific region sufficiently address gender issues. The POs will ensure that the views of both men and women are included in the study and the baseline survey.

2)  The organizers will also encourage women to be involved during the workshop as both speakers and participants in the workshop.  Invitations sent to the TPTWG will take due consideration of gender concerns by encouraging the suggestion and nomination of both female speakers and participants. Where possible, specific discussions/presentations at the workshops on aspects of transportation infrastructure PPPs, (including PPP-enabling laws and regulations, policy frameworks and specific capacity and skills required to negotiate PPPs etc.) will seek to incorporate gender issues.

Additionally project evaluations will seek to collate gender aggregated data which will be reported in the PCR.

Work Plan

This work stream has three (3) components: 

1) An Analytical Study: [NOTE:  This component will be paid for exclusively by the U.S. government.  As such, and in keeping with APEC norms, the full scope and timing of this component may be subject to change.] 

Since the objectives of the overall project are to leverage public private partnerships to improve APEC connectivity, as outlined in the APEC connectivity blueprint, the objectives of the analytical study, which will be conducted as a desk study, will consequently be to collect information needed to better focus the capacity building workshop content on the identified capacity building needs of developing APEC economies.  Success of the workshops will be improved if it transmits information at an appropriate level for the target audience of APEC economies, particularly middle income economies.  The workshop will better serve APEC connectivity objectives if examples are focused on transportation modes most relevant to APEC connectivity.  A secondary objective of the study will be to inform the design of follow on activities, such as economy level technical assistance.

The desk study will consist of a literature review of publicly available documents, and when necessary, emails and telephone calls to confirm findings.  It is hoped that this study will be completed at least one month before the first workshop.

The desk study will answer the following research questions:

- Given the PPP experience of developing APEC economies, what level of sophistication is appropriate for the workshop?

- What infrastructure bottlenecks are barriers to trade in APEC?  What modes of transportation are most critical to achieving progress on APEC connectivity blueprint?

- Which mechanisms (such as build-operate- transfer) have been found most useful for these modes of transportation infrastructure?  How can governments best structure project opportunities that are attractive to private investors while creating value for the government sponsor?

2) First workshop: (Location - in Asia region - possibly Brisbane, Australia) to: 1) ensure that participants have a larger body of knowledge on PPPs, and 2) empower participants to improve their economies’ PPP frameworks.  Case studies from ASIA and globally.  Course content will be primarily geared towards those PPP approaches most prevalent in ASIA.

Second workshop, location TBD in western hemisphere to 1) ensure that participants have a larger body of knowledge on PPPs, and 2) empower participants to improve their economies’ PPP frameworks.  Case studies from the WESTERN HEMISPHERE and globally.  Course content will be primarily geared towards those PPP approaches most prevalent in the WESTERN HEMISPHERE.
Activity/Task

Timing

Responsibility

Output

Project Plan and funding confirmed

Mid

 Nov

BMC/APEC Secretariat

Approved Project Proposal

Drafting Terms of Reference for Study

Mid Nov

(following

Approval)

Project Overseers (POs)

Final Terms of Reference

Consultant selection/contracting

Early-mid

 Dec

POs

Consultant/s appointed/

Contracted

Scoping work of study with consultant/s

Mid Dec

2015

POs

Outline of study completed

and approved

Study finalised and Draft report shared with

TPTWG members

Early February

2016

(in time

for the 1st

 TPTWG

Meeting

2016)

Consultant/s and POs

Final Draft Analytical Report

Report Finalised

Mid Feb

Consultants/POs

Final Analytical Report

(First) W’shop planning and preparations

Draft Invitations seeking nominations

Mid Feb

POs/in consultation with members

Agenda finalized, venue selected

Participants confirmed

Sourcing key experts and speakers

Mid Feb

POs

Speakers/experts sourced

Workshop evaluations

Late Feb?

POs

1st Workshop finalized

 (Second) workshop planning and prep

Invitations sent seeking nominations

End July/

August

2016

POs/in consultation

with members

Agenda drafted, venue confirmed

P’pant invites sent

 Experts and Speakers selected

August

2016

POs

Arrangements finalised

2nd Workshop completed

Sept 2016

POs

Final evaluations

Risks

One risk for this project is ensuring that we get a good number of targeted officials and experts in the room for the workshop- given the locations and the timing it might be challenging for some officials to attend. In order to mitigate this risk, the project overseers will actively reach out to targeted speakers and participants well in advance of the workshop, and will also work with TPTWG delegates and representatives to identify the most appropriate representatives in each of the economies. The invitation will also be issued well in advance to ensure time for participants and speakers to plan for attendance at the event. This will be managed by ensuring that the work is demand driven and addressing identified needs/gaps by members. POs will ensure that members are actively engaged and will work in close consultation with co-sponsoring economies of this activity. 

Other challenges include continuing to focus the problem statement and the work stream on this issue.

Another risk is the potential risks of duplication – The POs will ensure that this risk will be managed through ensuring the close and effective engagement of other APEC working groups (SFOM/FMP, IEG) and  ABAC as well as other relevant non-APEC bodies engaged in this space such as the ASEAN, G20, World Bank, ADB, OECD etc.

Monitoring and Evaluation

Broadly speaking, the main indicators used to monitor and evaluate this work stream’s efficacy would involve an assessment of any improvements in skills and capacities by the workshop attendees. These are mostly qualitative indicators. 

To achieve this, a targeted survey will be undertaken as the start of the project to gauge skill and knowledge levels and capacity gaps in APEC economies in areas such as PPP risk-sharing arrangements, PPP specific procurement related aspects, financing aspects and in general issues relating to effective PPP frameworks . While providing a sound baseline, this information will also assist in determining appropriate indicators to measure the level of increase in knowledge and capacity of participants. This information will also be used to guide the structure and content of the workshops so that the workshops will be well targeted to address the specific capacity needs and knowledge gaps of participants. Where possible, this survey will aim to collect gender disaggregated data. 

In addition, the project overseers will design and distribute an evaluation questionnaire at the end of each workshop on Day 2, taking care to build time into the agenda before the conclusion of the workshop so that speakers and participants can complete it.  Participants will be able to provide qualitative feedback on the two day workshop program through the questionnaire, including suggestions for areas of follow up. The feedback from the first workshop will assist to inform the directions of the 2nd workshop. In terms of participation (a quantitative indicator),the results and feedback will be closely reviewed through an evaluation form that will be given to participants at the workshop, collected and reviewed. 

The project overseers will review these evaluations and finalize the feedback prior to finalizing the workshop report and deliverables. In addition, the US implementers will send a follow up survey to the one undertaken at the start of the project, one year after the workshop, to ask how and if participants are using the knowledge that they acquired both in terms of any changes to relevant domestic procedures or policies. All of these results will be disaggregated by sex as part of the evaluations. The primary indicator for the follow up survey will be knowledge gained/knowledge applied by participants following the workshops.

Linkages

This project will contribute to APEC-wide engagement on PPPs by receiving technical support from the following APEC entities, all of which have historically engaged on PPP infrastructure issues:

1) APEC Committee on Trade & Investment (CTI):  In April 2013 in Surabaya, Indonesia, an “APEC Dialogue on Infrastructure Development & Investment” took place on the margins of the CTI2 meetings.  The lack of both “bankable projects” (i.e., projects that are commercially appealing to private sector investors) and understanding by government staff as to how to share risk with the private sector were identified as the two greatest barriers to more infrastructure PPPs in the Asia-Pacific region.

2) APEC Finance Ministers Process (FMP): This includes the work on the APEC Multi-Year Plan on Infrastructure Development and Investment (MYPIDI),

3) APEC Investment Experts Group (IEG):  The IEG has compiled a PPP Guidebook, demonstrating the variability of PPP-enabling laws, regulations, and institutional structures across the APEC region.

4) APEC Business Advisory Council (ABAC):  For almost two years ABAC has pushed APEC Economies to fill out the “ABAC Enablers of Infrastructure Investment Checklist” to help governments assess the extent to which their existing policies promote the participation of the private sector in infrastructure investment.

In addition this work will complement the work undertaken to date in APEC through the APEC Supply Chain Connectivity Initiative endorsed by Leaders in 2009 which (under Chokepoint #2) aims to address chokepoints relating to “inefficient or inadequate transport infrastructure and the lack of cross border physical linkages e.g. roads, bridges…” and the APEC Connectivity Blueprint 2015-2025.

Sustainability

This project has great potential for sustainability, because PPPs are a complicated issue and the progress this work stream will achieve on transportation-specific PPPs can be applied to other infrastructure sub-sectors as well. 

It is anticipated that the analytical study (which will be a major project output) will be used by participants as a guide to inform the development of appropriate policy frameworks for PPPs in their economies, post project. This will ensure that the project will have sufficient impact after APEC funding is finished.  To facilitate this, the POs will ensure that this output is shared widely within APEC as a key resource document, using as a platform the APEC IEG list of key government ministries/agencies within each APEC economy (that have PPP responsibilities) as well as through relevant TPTWG networks. 

Workshop participants will also be provided with soft copies of all presentations and workshop materials to be shared widely to multiply capacity building efforts. 

As indicated under section 9, a baseline survey and a follow up ex-post evaluation survey will be undertaken to gather data and measure progress on impacts and outcomes. The post-activity evaluation surveys will provide information to guide possible follow up projects.  Any future follow up activities will seek to build on this project and aim (to the extent possible) to target the same participants to enhance capacity building outcomes.

Project Overseers

Christopher Clement is Senior Advisor on Asian international transportation and trade matters within the Office of the Secretary at the U.S. Department of Transportation (USDOT).  He is responsible for the Department’s engagement in APEC (serving as U.S. Head of Delegation to the APEC Transportation Working Group), ASEAN, and pan-Asia matters.  He has 10 years of experience working in the U.S. government, having worked at The Export-Import Bank of the United States and the U.S. Department of Commerce before joining USDOT.  Mr. Clement holds an MA in International Relations from the University of Chicago and a BA from the University of Notre Dame. 

Nadira Mailewa is the Economic and Human Security Specialist working for the US-ATAARI project. She is an experienced project manager having worked on APEC projects for a number of years. She also has a sound appreciation of infrastructure issues in the Asia Pacific region and is across the work being undertaken by multilateral and regional organisations working in this space - including ASEAN, World Bank and ADBI.  She holds a Masters in Development Administration from Deakin University in Australia and a Bachelors (Honours) Degree in Development Studies from the Australian National University.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
Attachments
Version: 6.0 
Created at 03/12/2015 21:06  by Lucy Phua 
Last modified at 26/05/2017 13:44  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
Content Type: Standard Proposal
Version:
Created at by
Last modified at by
Go Search