Designing, structuring, and implementing PPPs remains a challenging and complex endeavor. Their success depends on the enabling environment they are embedded in. The World Bank Group has supported countries to create an enabling environment for PPPs along with structuring advice and finance. This evaluation finds that:

  • The World Bank'€™s upstream policy reform and institution building reaches the right countries. Most of the upstream work aims at sector reform, which, however, failed in almost half of the cases because of the complexity and political implications of the reform processes. Advice on how to manage fiscal implications from PPPs is rarely given.
  • The World Bank Group has made a significant contribution to capacity building for PPPs, but a lack of local skills and resources for the preparation of a PPP pipeline and bankable PPP projects poses a serious limitation across most World Bank-supported countries. 
  • International Finance Corporation (IFC) Advisory Services have achieved important impacts in advising on PPP structuring, despite the fact that only about half of the projects result in the award of a contract, mostly because of volatile government commitment.
  • IFC also added value when investing in PPPs during due diligence and implementation, but a higher share of its PPP portfolio could be located in countries and markets with less developed PPP frameworks.
  • The Multilateral Investment Guarantee Agency (MIGA) increased investors’ confidence and effectively implemented PPPs in those countries that are about to develop their PPP frameworks.
  • PPPs supported by the Bank Group are largely successful in achieving their development outcomes, but data are scarce on the effects on the poor.
  • The three Bank Group institutions deploy their respective comparative advantages well, but their approach should be more strategic and better tailored to countries.