Infrastructure

The EBRD’s Infrastructure Project Preparation Facility (IPPF)

One of the reasons for the global shortage of investment in infrastructure is the weak pipeline of bankable projects. This results, in turn, from limited capacity to structure, procure and deliver these often complex projects.

While the reform agenda in many of the countries the EBRD works in needs to be re-energised in general, this is particularly true of the infrastructure sector. Here much needed reforms and regulatory support mechanisms have been often delayed or remain incomplete.

The EBRD’s Infrastructure Project Preparation Facility (IPPF), approved by our Board of Directors in October 2014, offers an improved support mechanism focused on bankable project preparation, coupled with a coordinated approach to infrastructure policy dialogue.

The EBRD Governors approved funding of the IPPF at our Annual Meeting in Tbilisi in 2015 with €40 million pledged. It began operations in September 2015. 

The IPPF provides high-quality, client-oriented project preparation, policy support, and institutional strengthening, thus reaffirming EBRD’s position in the market as a leading provider of comprehensive, sustainable and inclusive infrastructure solutions.

This strategic vision is supported by a team of experts working for the IPPF, who maintain a sharp focus on clients and transition impact.

IPPF has already built its brand and will continue assisting both the public and private sectors to accelerate investment in infrastructure across the countries the EBRD invests in.

Its objective is to offer an improved support and delivery mechanism for project preparation aimed at improving efficiency, quality and replicability of infrastructure projects.

IPPF focuses on project preparation, policy dialogue and institutional strengthening to address both public sector infrastructure projects as well as PPPs.

Such efforts will help streamline public investment, strengthening institutional capacity of the public sector and attract additional private investment to the infrastructure sector.

The IPPF has operated for nearly 3 years.

The IPPF, as a novelty delivery vehicle for infrastructure projects, has grown from a start-up operation to a robust and efficient tool in mobilising TC funding.  It demonstrates the importance of project preparation mechanism with efficiency, quality and replicability and carries out policy dialogue with the counterpart governments and their PPP units.

The EBRD’s independent evaluation department (EvD) evaluated the IPPF in 2017 and published its evaluation report.

The number of the assignments, which IPPF has engaged for project preparation, started picking up in 2018 both for public sector projects and PPP. It is catching up with the appraisal estimates when the IPPF was approved in 2014.

With great variety and coverage, sustainable Infrastructure Window (SIW) delivered 43 consultancy services assignments worth €15 million to support 52 investment projects in public sector. The IPPF-supported EBRD investments are estimated at €2.3 billion and their total project costs are expected to be €6.7 billion across 17 countries.

The sectors covered by IPPF varied from water and wastewater (30%), urban transport (28%), road (16%), solid waste, irrigation, district heating, civil aviation to facilities management in an industrial zone (2%) in terms of assignment number.

SIW geographical distribution by contract value (€ million) as of August 2018

In 8 different countries the IPPF has been mandated to provide independent PPP advisory services to the clients in order to procure and implement PPPs to international standard. Only one project has launched a PPP tender and two stand at the tender preparation stage. Advisory consultants have been mobilised in other 4 projects. Transport is the major sector for PPP Window, but facilities management and healthcare sectors have been added in 2018. 

PPPW geographical distribution of PPP advisory services by contract value (€million)