Reliable infrastructure is vital for a country to develop its economy and reduce poverty. The absence of energy, water, transport and other basic infrastructure directly impacts the daily lives of people and often is a major constraint to doing business. In developing countries, public funds are often insufficient to provide basic infrastructure services. At the same time, the private sector does not step in, because of various political and financial risks as well as regulatory uncertainty. This results in an infrastructure financing gap of USD 1-1.5 trillion to achieve the Sustainable Development Goals by 2030 in developing countries.

PIDG’s overall goal is to improve the livelihoods of people in sub-Saharan Africa as well as south and south-east Asia through sustainable basic infrastructure, thus helping to promote economic development and fighting poverty. PIDG helps to address the infrastructure gap by using public funds to de-risk infrastructure projects, allowing the private sector to co-invest. The importance of attracting private sector investments into sustainable and resilient infrastructure is key for Sustainable Development Goal (SDG) 17 (partnerships to mobilize financial resources and investment from multiple parties in support of poverty alleviation in developing countries), SDG 6 (clean water), SDG 7 (clean energy) as well as for SDG 13 (Climate Action).

Increased capital mobilized, of which from private sector/climate finance (measured in bn USD).

Improved access to infrastructure (measured by millions of people with new or improved access to infrastructure services, disaggregated by gender).

Employment created and maintained (measured by direct short-term jobs created during construction and long-term jobs during operations, disaggregated by gender).

Wider economic impact (qualitative assessment of enhanced local capacity, number of jobs enabled by the infrastructure, impact on public finances).

Climate change mitigated (measured by tons of CO2 avoided).

Demonstration effect (measured by the change in the cost of finance over time for comparable infrastructure projects, the change in the availability of finance over time for comparable infrastructure projects, the change in the tenor of finance over time for comparable infrastructure projects, reduction in foreign exchange risks, increase in commitments by private sector investors).

Risultati principali attesi:  

PIDG consists of 7 facilities that work with private investors at every stage of the infrastructure project development cycle to narrow the infrastructure financing gap. They address the following key challenges:

Providing technical assistance including technical studies, advice and training for institutional strengthening.

Taking on early-stage project development risk in order to develop a project into a bankable transaction.

Offering targeted financial instruments and guarantees needed to get projects to reach financial close in order for construction to begin.

Risultati fasi precedenti:  

35.3 billion USD mobilized since 2002, of which 22.1 billion from the private sector-

218 million people provided with access to new or improved infrastructure-

116 projects brought to operation and 171 to financial close-

317’000 jobs created, 67’0000 of which short term, 250’000 long term-

More recently, for the period 2017-2020, SECO funding alone has mobilized approximately USD 347 million in private sector funds and thereof USD 65 million for climate.