Building Integrated Markets within the East African Community : EAC Opportunities in Public-Private Partnership Approaches to the Region's Infrastructure Needs
There are significant economic gains to be realized if the East Africa sub region improves the overall integration of its markets. But infrastructure development that links markets across countries faces particular challenges, political, institutio...
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| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19629051/building-integrated-markets-within-east-african-community-eac-opportunities-public-private-partnership-ppp-approaches-regions-infrastructure-needs http://hdl.handle.net/10986/18552 |
| Summary: | There are significant economic gains to
be realized if the East Africa sub region improves the
overall integration of its markets. But infrastructure
development that links markets across countries faces
particular challenges, political, institutional, and
economic. In the case of East Africa, these challenges have
served to hold back investment into regional infrastructure,
despite significant recent efforts within the region to
develop regional infrastructure investment plans and promote
an increased use of Public-Private Partnership (PPP)
approaches to mobilize private sector financing and
expertise. The report also recommends funding options for
regional PPPs. The two main products identified are a
Viability Gap Facility (VGF), which would bridge the gap
between the commercial viability of a regional PPP and its
economic viability; and a Project Development Facility
(PDF), which could support the preparation costs of regional
PPPs. The VGF could potentially be linked to the EAC
Development Fund. Partner States need to be aware when
designing these products that they may compete for funds
with domestic financing needs. The report also considers the
desirability of a regional long-term debt facility, and
while there is widespread recognition of the need for
longer-term local currency financing, the challenges
involved in implementing such a facility are such that this
will need to be revisited at a future date. |
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