Joint Efforts of IGGP and the CDC to Unlock the Infrastructure Development in North Africa through Public-Private Partnerships

Developing countries are facing significant challenges in their macroeconomic environment, with high levels of public debt hampering their ability to finance infrastructure projects through traditional means. These challenges have been further exacerbated by the consequences of Covid-19, climate change, and high trade deficits. As a result, there is an urgent need to explore alternative financing methods for sustainable and inclusive infrastructure development.

One potential solution is the mobilization of private sector resources and capital through public-private partnerships (PPPs). However, in North Africa, despite the presence of legal frameworks and dedicated bodies for PPPs in countries like Tunisia, Morocco, Egypt, and Mauritania, and upcoming ones in Libya and Algeria, the progress in developing and operating bankable PPP infrastructure projects has been slow, despite a strong demand for such projects.

The low success rate of PPP Infrastructure Development in North Africa highlights the challenges faced by policymakers and other stakeholders in the infrastructure ecosystem, including financial institutions, engineering firms, and transaction advisory firms. To address these challenges, the Bank, in collaboration with the IGGP and the CDC of Tunisia, is proposing to organize a seminar with the following objectives:

• Identify the barriers that hinder the successful development and completion of PPP infrastructure projects in the North African region.
• Disseminate knowledge and best practices for conducting PPP projects, covering all stages from identification and preparation to structuring, procurement, implementation, and operation and maintenance.
• Establish an association of national bodies responsible for PPPs in North Africa.

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