Definition and concepts |
Definition:
Indicator based on WBG data: “Amount of United States dollars committed to public-private partnerships in infrastructure.”
The indicator by the World Bank Group defines the term Public-Private Partnership (PPPs) as “any contractual arrangement between a public entity or authority and a private entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility.”
The term infrastructure refers to:
- Energy: electricity generation, transmission, and distribution, and natural gas transmission and distribution pipelines
- Information and communications technology (ICT): ICT backbone infrastructure
- Transport: Airports, railways, ports, and roads.
- Water: potable water treatment and distribution, and sewerage collection and treatment.
Concepts:
PPPs is defined as “any contractual arrangement between a public entity or authority and a private entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility.”
The term infrastructure refers to:
• Energy: electricity generation, transmission, and distribution, and natural gas transmission and distribution pipelines
• Information and communications technology (ICT): ICT backbone infrastructure
• Transport: Airports, railways, ports, and roads.
• Water: potable water treatment and distribution, and sewerage collection and treatment.
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Data sources |
The indicator has a established methodology that is available at the website http://ppi.worldbank.org/methodology/ppi-methodology and the data collection process is as follows:
- Team of researcher gather data for each of the regions using public sources; commercial news databases as well as from commercial specialized and industry publications/subscriptions, specialist portal, sponsor information and multilateral development agencies.
- Data is uploaded to an administrative website through a template to make sure data is standardized.
- Data is validated by a group of experts in Singapore first (PPI team), then for the World Bank Group focal points colleagues.
- Data is later uploaded to the public website (www.ppi.worldbank.org) and make it available free of charge.
The dataset is known as the Private Participation in Infrastructure (PPI) database. Updates are provided every six months (usually April and October) and the data is publicly available at www.ppi.worldbank.org. This indicator is also available at the World Development Indicators at http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators
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Comment and limitations |
The limitations of the proposed indicator is that it does not account for other sectors such as education and health may account for a significant part of PPPs but they are not captured by the database.
The database only covers low and middle income countries (World Bank classification) and it does not collect the indicator for high income countries. Expanding the data to include high income countries as well as PPPs in other sector beyond infrastructure is something that the World Bank is considering but it is currently limited by budget constraints.
Unfortunately, PPI database does not collect data on civil society partnerships and this will not fit the currently methodology of data gathering and is outside the present work’s scope.
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Method of computation |
The indicator has a established methodology that is available at the website http://ppi.worldbank.org/methodology/ppi-methodology and the data collection process is as follows:
- Team of researcher gather data for each of the regions using public sources (from government and MDBs websites); commercial news databases ( such as Factiva, Business News America, ISI Emerging markets, and the Economist Intelligence Unit’s databases) as well as from commercial specialized and industry publications/subscriptions (Thomson Financial’s Project Finance International, Euromoney’s Project Finance, Media Analytics’ Global Water Intelligence, Pisent Masons’ Water Yearbooks, and Platt’s Power in Asia, etc.), specialist portal (such as Privatization, IPAnet, and Privatization Barometer), Internet resources (such as web sites of project companies, privatization or PPP agencies, and regulatory agencies) sponsor information (primarily through their Web sites, annual reports, press releases, and financial reports such as 10K and 20F forms submitted to the NYSE) and multilateral development agencies primarily through information on their Websites, annual reports, and other studies.
- Data is uploaded to an administrative website through a template to make sure data is standardized.
- Data is validated by a group of experts in Singapore.
- Data is later uploaded to the public website (www.ppi.worldbank.org) and make it available free of charge.
The limitations of the proposed indicator is that it does not account for other sectors such as education and health may account for a significant part of PPPs but they are not captured by the database. Expanding the data to include PPPs in other sector beyond infrastructure is something that the World Bank is considering but it is currently limited by budget constraints.
Unfortunately, PPI database does not collect data on civil society partnerships and this will not fit the currently methodology of data gathering and is outside the present work’s scope.
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