Maseru, Lesotho, January 19, 2011 –
IFC and the World Bank are assisting Lesotho to draft a public-private
partnership (PPP) policy that will fund and develop large infrastructure
projects to support broad economic growth and greater access to services
in the country.
The Government of Lesotho, IFC, and
the World Bank hosted a PPP awareness workshop in Maseru on January 19
that attracted participants from both the public and private sectors. The
workshop covered many key areas, including the various models that other
countries have used to develop PPPs, and lessons learned from successful
PPP programs around the globe.
Saleem Karimjee, IFC Country Manager
for Lesotho, said, “IFC supports Lesotho’s commitment to adopt innovative
approaches to leverage the private sector to develop infrastructure and
deliver efficient and high quality public services at the lowest cost.”
PPPs are contracts between governments
and the private sector that have proved an excellent model for countries
to develop large infrastructure projects. PPPs tap private sector expertise,
management, and finance, effectively addressing some of the constraints
of finance and management faced by the public sector.
Ruth Kagia, World Bank Country Director
for Lesotho, said, “Public-private partnerships are needed to bolster
economic growth and boost service delivery. As an early pioneer,
Lesotho has shown how such partnerships in the health sector can improve
coverage, quality, and human welfare. Lesotho’s example holds the promise
of replication across Africa.
IFC and the World Bank are helping Lesotho
develop an appropriate policy to provide the institutional and legal framework
for encouraging the private sector to play a larger role in financing infrastructure
projects and services. Lesotho has already committed to several PPPs, most
recently the Lesotho National Referral Hospital PPP for a new national
referral hospital and three primary health care clinics in Maseru.
IFC acted as lead transaction advisor
to Lesotho’s government on this pioneering PPP transaction, which will
serve as a model for increased private sector participation in sub Saharan
Africa’s often overburdened health sector.
The World Bank is the administrator
for the Global Partnership on Output-Based Aid (GPOBA) which provides support
for the new National Referral Hospital and clinics. The World Bank
Group’s Public-Private Infrastructure Advisory Facility (PPIAF) provided
funding for the public awareness workshop in Lesotho.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
The International Development Association,
IDA, is the World Bank’s Fund for the Poorest which provides grants and
interest-free long-term credits. One of the world’s largest sources
of aid, IDA provides support to poor countries for agriculture, education,
health and infrastructure projects among others. Lesotho receives
funding from IDA. For more information, visit www.worldbank.org/ida.