In the dynamic and rapidly growing markets of developing and emerging economies, strategically implementing PPPs in Developing and Emerging Economies is a crucial mechanism for bridging critical infrastructure gaps, accelerating economic growth, and enhancing public service delivery by mobilizing private capital, technical expertise, and operational efficiencies that public budgets alone often cannot provide. These contexts present unique opportunities due to high demand and growth potential, but also distinct challenges such, as political and regulatory instability, currency risks, limited local financial markets, and capacity constraints within public institutions, demanding tailored approaches to project structuring, risk mitigation, and stakeholder engagement. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial institutions, and legal professionals with the advanced knowledge and practical strategies required to navigate the specific complexities of developing and implementing successful PPPs in these challenging yet promising environments, ensuring sustainable development outcomes and robust project viability. Without robust expertise in PPPs in Developing and Emerging Economies, stakeholders risk project failures, financial losses, and a missed opportunity to unlock transformative development, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Officials from Ministries of Finance, Planning, Infrastructure, and Sectoral Ministries in developing and emerging economies
• PPP Unit Professionals and Staff in these regions
• Private Sector Project Developers, Investors, and Operators targeting emerging markets
• International and Local Financial Institutions, Development Finance Institutions (DFIs), and Multilateral Development Banks (MDBs)
• Legal Professionals specializing in project finance and infrastructure development in emerging markets
• Consultants advising on PPPs in developing economies
• Representatives from Bilateral and Multilateral Aid Agencies
• Academics and Researchers focused on infrastructure development in emerging markets
• Anyone involved in the planning, financing, or management of PPP projects in developing and emerging economies.

Objectives

• Understand the unique opportunities and challenges of PPPs in developing and emerging economies.
• Learn about the specific risk factors prevalent in these markets (e.g., political, currency, regulatory).
• Acquire skills in adapting PPP models and contractual structures to emerging market contexts.
• Comprehend techniques for mobilizing diverse sources of finance, including blended finance.
• Explore strategies for mitigating political and regulatory risks effectively.
• Understand the importance of building robust public sector capacity in these environments.
• Gain insights into managing foreign exchange risk and ensuring currency convertibility.
• Develop a practical understanding of local content requirements and community engagement.
• Master the role of international financial institutions (IFIs) and DFIs in de-risking projects.
• Acquire skills in addressing governance, transparency, and anti-corruption challenges.
• Learn to apply international best practices and lessons learned from successful emerging market PPPs.
• Comprehend techniques for fostering local private sector participation.
• Explore strategies for designing projects that are fiscally sustainable and affordable.
• Understand the importance of adapting to evolving macroeconomic conditions and policy shifts.
• Develop the ability to lead and implement impactful PPPs in Developing and Emerging Economies.

Course Content

Module 1: Introduction to PPPs in Developing and Emerging Economies

• The infrastructure gap and development challenges in emerging markets.
• Why PPPs are a strategic necessity for these economies.
• Opportunities: high growth potential, large unmet demand, demographic dividends.
• Overview of common challenges: political instability, weak institutions, limited local finance.
• The role of PPPs in achieving Sustainable Development Goals (SDGs).

Module 2: Political and Regulatory Risk in Emerging Markets

• Types of political risks: expropriation, policy changes, civil unrest, breach of contract.
• Strategies for political risk mitigation: MIGA guarantees, political risk insurance, government undertakings.
• Regulatory uncertainty and instability: impact on tariffs, licenses, and approvals.
• Legal and judicial system weaknesses and their implications for enforcement.
• The importance of a stable and predictable legal framework.

Module 3: Currency Risk and Local Currency Financing

• Challenges of foreign exchange risk for project revenues and debt service.
• Hedging strategies and their costs in emerging markets.
• Role of local currency financing and domestic capital markets.
• Development of local bond markets and institutional investors.
• IFIs' role in providing local currency loans or guarantees.

Module 4: Public Sector Capacity Constraints

• Weaknesses in PPP Units, line ministries, and local governments.
• Lack of skilled personnel in project appraisal, procurement, and contract management.
• Strategies for capacity building, training, and knowledge transfer.
• Leveraging external advisors and technical assistance effectively.
• Institutional reforms to enhance readiness.

Module 5: Project Structuring for Emerging Market Contexts

• Adapting PPP models to specific country conditions and risk appetites.
• Designing robust concession agreements and off-take contracts.
• Balancing risk allocation between public and private sectors.
• Importance of clear output specifications and performance standards.
• Flexibility in contracts to manage unforeseen circumstances.

Module 6: Mobilizing Diverse Sources of Finance

• Role of commercial banks, private equity, and infrastructure funds.
• Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs) as key partners.
• Blended finance solutions: combining concessional and commercial finance.
• Export Credit Agencies (ECAs) and their role in project financing.
• Attracting local institutional investors.

Module 7: Fiscal Management and Affordability

• Assessing the fiscal impact of PPPs on public budgets.
• Managing contingent liabilities and government guarantees.
• Ensuring long-term affordability for both government and end-users.
• Developing robust fiscal risk management frameworks.
• The importance of transparent fiscal reporting.

Module 8: Governance, Transparency, and Anti-Corruption

• Challenges of corruption and rent-seeking in emerging markets.
• Implementing robust anti-corruption measures in PPP processes.
• Enhancing transparency in procurement and contract disclosure.
• Role of independent oversight bodies and civil society.
• Promoting integrity and ethical conduct.

Module 9: Stakeholder Engagement and Social Impact

• Importance of early and continuous engagement with local communities.
• Addressing social safeguards, resettlement, and livelihood impacts.
• Ensuring inclusive development and equitable access to services.
• Managing public expectations and building social license to operate.
• Local content requirements and job creation.

Module 10: Procurement Strategies in Emerging Markets

• Designing competitive and transparent procurement processes.
• Attracting a diverse pool of qualified bidders (local and international).
• Managing unsolicited proposals effectively.
• Capacity for bid evaluation and negotiation.
• Addressing procurement delays and challenges.

Module 11: Contract Management and Dispute Resolution

• Challenges of contract management in resource-constrained environments.
• Monitoring performance and enforcing contractual obligations.
• Managing changes, variations, and renegotiations fairly.
• Effective dispute resolution mechanisms: mediation, arbitration.
• Enforcement of awards in local jurisdictions.

Module 12: Sector-Specific Considerations in Emerging Markets

• Energy PPPs: grid stability, off-grid solutions, renewable energy integration.
• Water and sanitation: affordability, access, non-revenue water.
• Transport: rural connectivity, urban mobility, logistics hubs.
• Social infrastructure: health, education, affordable housing.
• Digital infrastructure: bridging the digital divide, smart cities.

Module 13: Local Private Sector Participation

• Strategies for encouraging and enabling local private sector involvement.
• Capacity building for local firms.
• Access to finance for local developers and contractors.
• Joint ventures and partnerships between local and international firms.
• Policy incentives for local content and employment.

Module 14: Case Studies and Lessons Learned

• In-depth analysis of successful PPPs in various developing and emerging economies.
• Discussion of challenges faced and how they were overcome.
• Examination of projects that faced difficulties or failed, and the reasons why.
• Identifying transferable lessons and best practices for different regional contexts.
• Role of adaptive learning and continuous improvement.

Module 15: Practical Workshop: Developing an Emerging Market PPP Strategy

• In-depth analysis of a hypothetical infrastructure challenge in a developing economy.
• Group exercise: Designing a high-level PPP strategy for the given context.
• Identifying key risks and proposing mitigation measures specific to emerging markets.
• Developing a preliminary financing strategy involving diverse funding sources.
• Discussion of institutional and policy reforms needed to support the strategy.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.