10th March 2017
Paving the way for innovative infrastructure
TAF and DevCo are overcoming project development challenges to boost development impact
PIDG’s Technical Assistance Facility (TAF) and transaction advisory service, DevCo, work ahead of and alongside our other companies to finance critical project preparation work.
Their work supports infrastructure development ‘upstream’, at the very beginning of the project life cycle, by providing grant funding for feasibility work, Viability Gap Funding at financial close, capacity building and transactional and regulatory support for governments and local investors.
These two PIDG entities are working more closely together to help overcome challenges that restrict the development of investor-ready projects in the poorest countries. This helps people get access to essential infrastructure more quickly.
Expanding our offer
TAF has expanded its grant menu to include returnable grants, scale up its upstream technical assistance grants, and expand its viability gap funding. These developments respond directly to the infrastructure market in our target countries. DevCo is now conducting upstream project pipeline assessments and preliminary project viability evaluations to help TAF target its project development grants to where they are most needed.
Developing capacity for public-private infrastructure
TAF and DevCo are jointly supporting capacity building initiatives in our target countries. TAF has provided funding for DevCo’s training programmes, for both public and private stakeholders, to enable the implementation of PPPs in a financially, socially and environmentally sustainable manner. These initiatives expand the opportunity for economic activity in our target countries, leading to sustainable economic development, increased private sector investment and poverty reduction.
Building a pipeline of bankable projects
Working with other PIDG companies, TAF and DevCo are responding to public sector requests for transaction advisors to be embedded alongside host country government staff to help increase their capacity to put together a pipeline of bankable infrastructure projects that will attract private sector participation. This initiative addresses a key market failure – the lack of well-prepared, viable projects needed to close the infrastructure gap in developing countries – and will ensure governments can develop and prioritise projects that will improve lives.
Co-ordinating the rapid scale up of infrastructure
We are pioneering joint development schemes which encourage multiple PIDG companies to work together to rapidly scale up infrastructure in a chosen country or sector. The TAF-DevCo collaboration helps drive these initiatives by acting as a knowledge centre for technical project issues, leading joint missions to our target countries to assess project opportunities and co-ordinating a joined-up ‘one PIDG’ approach. TAF is due to provide grants to support the development of four new projects in Myanmar as a result of one such joint development schemes. The projects - which include two energy schemes, a rural electrification initiative and a 40MW gas power project - recognise the opportunity new infrastructure has to substantially improve economic and social development in the country.
PIDG’s technical assistance is becoming increasingly important as its model continues to adapt to meet the infrastructure needs of developing countries. By helping countries overcome development obstacles ‘upstream’, PIDG can continue to support innovative private sector-led infrastructure solutions to the challenges faced in the world’s poorest and most fragile countries.