The four topics covered by this focus area are:
- public-private partnerships and concesions
- information and communication technology (ICT)
- infrastructure developments
- natural resource extraction and usage
Why reform is needed
With EBRD countries conveying high demand for investments in infrastructure development and the extraction of natural resources, potential investors expect clear and non-discretionary regulatory frameworks to govern activities and protect their interests. Public-private partnership (PPP) structures are one of the most common instruments for the development of emerging economies, utilising funding and expertise from the private sector.
The EBRD's experience shows that effective implementation of PPP structures for infrastructure development, particularly in growing economies, is impossible without efficient and transparent policy, legal/regulatory and institutional frameworks encouraging private sector participation (including foreign capital), on sustainable terms and with appropriate allocation of risks between the public and private sectors.
Also, information and communication technology, including broadband internet, is increasingly becoming a major factor supporting economic growth.
Where countries lack a clear legal framework they face investors viewing them as excessively risky, leading them to direct their investment elsewhere. Similarly, without modern laws, robust legal and regulatory systems, adequate transparency and capable institutions, accountability for decisions will be lacking, risking the squandering of substantial benefits that can flow from responsible exploitation of resources.
The LTP's role
Working across stakeholder groups (government, regulators, operators and investors and civil society), the EBRD actively helps to develop and modernise extractive sector policies, establish and enhance legal and regulatory frameworks, and build and strengthen the institutions responsible for implementation and enforcement of policy, law and regulation. We provide support on policy, law and regulation relating to diverse aspects of the extractive sector, among which are: governance; institutional arrangements and legislative frameworks; award of rights and licensing; geodata management; taxation and revenue management; transparency; investment protection; land access and use; labour practices; mine safety and worker health; environmental monitoring and reporting; remediation, closure and rehabilitation; legacy environmental impacts; social and cultural safeguards; social protection and benefits sharing; community consultation and public information; community-based conflict mitigation and dispute resolution; security; value addition and extractive-related development.
Moreover, LTP supports governments in bringing their PPP/concession regimes in line with internationally accepted standards and best practices in the PPP/concessions sector. The Bank’s technical assistance in the PPP/concessions domain focuses on the formulation of national PPP policies; PPP legal and regulatory drafting; providing capacity building support and development of PPP/concessions enabling environment; delivering trainings to officials in preparing PPP projects; development of PPP model legislative instruments and practical guidelines. In regard to the COVID-19 pandemic, LTP has been putting increasing attention on PPP policy and practical enabling measures and tools to upgrade efforts focusing on methodology and guidance, streamlining different approaches and further enhancing capacity in respect of PPPs/concessions with a particular focus on post-crisis revival measures. Finally, LTP carries out PPP standard setting activities and develops comprehensive assessments of PPP laws and practices in the EBRD region.
EBRD support comes in two main forms: (i) policy dialogue activities, through which we engage with policymakers and regulatory authorities to advocate for the adoption of policy approaches, the implementation of corresponding rules and practices, and the establishment or strengthening of accompanying institutions that drive effective and responsible development; and, (ii) where that advocacy is successful, we lead technical assistance projects which support practical implementation and application of those policy, legal and institutional frameworks.