Last update: 10-Dec-2013 10:54 am
Tuesday, December 10, 2013
Trinidad & Tobago Guardian Online
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MIF support for health and education projects
The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank Group, will support the Government of T&T to pilot the use of Public Private Partnerships in the health and education sectors. This programme envisions development and delivery of ten early childhood education and primary schools and three imaging and laboratory diagnostic centres.
Building on prior co-operation, these projects will provide the government with the practical knowledge and processes needed to develop successful PPPs, and equip the government with the experience necessary to implement the PPP model for a wide range of projects in the future. The intervention is based on MIF best practices and draws on effective strategies for “learning by doing” and managing risks associated with the adoption of new mechanisms to deliver infrastructure.
The development of these pilot projects will receive continued technical advice and financial support from the MIF as part of its programme, Promoting Public Private Partnerships for Infrastructure in Trinidad and Tobago.
This PPP initiative will be funded as follows: a technical cooperation of US$864,000 from the MIF to develop institutional capacity, an enabling environment and governance structure to deliver infrastructure and related services through PPPs; financial support totaling US$500,000 from Compete Caribbean; and an additional US$450,000 in resources from the Inter-American Development Bank.
The Ministries of Health and Education have formed PPP execution teams to assess, design and structure the projects while the PPP Unit in the Ministry of Finance and Economy will provide technical support, oversight and manage the overall process. MIF and Compete Caribbean financing will support the development of the business case for each of the pilots to ensure that the proposed projects are economically, financially and socially justified as the best value for money compared to traditional procurement modalities.
The second stage of the PPP project development will involve structuring the pilot transactions and initiation of a competitive bidding process to select qualified and experience private sector providers. Funding from the IDB and MIF as well as the Government will support technical advisors at this stage
The MIF has been supporting PPPs in T&T since 2010. With support from the MIF, the Government has established a PPP Unit, adopted a PPP policy and governance structure, identified projects, and invested in initial capacity building.
It will provide continued support PPP capacity building within the Government through financing an expert advisor to mentor and advise the PPP Unit and pilot execution teams, applied in-country PPP training for the execution teams for and during all stages of the PPP process, and foundation training in the basic principles and concepts of PPPs.
This initiative seeks to demonstrate the application of PPPs as an alternative development model to close infrastructure gaps in smaller economies, notably in the Caribbean region. Lessons learned during the first phase of the project will be highlighted at a knowledge exchange forum being organized by the MIF and the Caribbean Development Bank in November to examine the use of PPPs to address infrastructure challenges posed by climate change, an area of particular importance to Caribbean states
This programme of support is an example of cross-collaboration across sectors and divisions of the IDB as well as synergies with Canada’s CIDA and the UK’s DFID development agencies through Compete Caribbean to provide technical support, knowledge and financial resources required to address the complex development challenges of small member states, a priority of the IDB.
The efforts were catalyzed by IDB research on the feasibility of PPPs for Caribbean states in 2008 and 2009, as well as early investment by the MIF to mobilize efforts to apply this modality in T&T.
The MIF supports private sector-led development benefitting low-income populations and the poor—their businesses, their farms, and their households. As an experienced actor and partner with practical knowledge on a local level, the MIF has organized programmes throughout the region to improve regulatory frameworks, and to increase the capacity of governments to develop and implement PPPs for infrastructure and basic services.
Since 2004, the MIF has leveraged $20 million in 19 technical cooperation projects, serving as a catalyst for an additional $671 million in private investment and more than $4 billion in anticipated future investments through PPPs.
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