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The Public Private Infrastructure Advisory Facility
(PPIAF) has launched a three-year pilot,
the Sub-National
Development Technical Assistance Program (PPIAF-SND),
to help sub-national entities improve their
creditworthiness so they can access market-based
financing on their own account without sovereign
guarantees. PPIAF (www.ppiaf.org)
is a multidonor technical assistance facility,
administered by the World Bank Group. It aims to
help developing countries improve the quality of
their infrastructure through private sector
involvement. The goal of this new program is to help
mobilize local capital for improvements in
infrastructure services and promote the development
of local financial markets.
Responsibility for meeting the enormous demand for
new and better infrastructure services in developing
countries increasingly has shifted from national to
sub-national entities. But these entities, typically
local governments or utilities, often lack the
policy and institutional frameworks and especially
the financial resources to fulfill this
responsibility. Filling this financial gap is not
easy. Traditional sources of sub-national financing
require sovereign guarantees, which are often
inadequate because of fiscal constraints at the
national level or policies to promote local
financial accountability.
The PPIAF-SND program will provide technical
assistance grants to support local governments and
other sub-national entities:
-
Access financing
for infrastructure improvements from banks or
bond markets without relying on sovereign
guarantees
-
Obtain a credit
rating or improve their rating from a recognized
credit rating agency
-
Take measures to
enhance their creditworthiness to potential
lenders with a view to achieving one of the
above
Local governments with responsibilities for
delivering infrastructure services along with
utilities, authorities, special districts, and
state-owned enterprises, will be eligible to receive
the grants. Development finance institutions with a
primary focus on infrastructure lending will also be
eligible.
For more information or to access the new SND
application go to:
www.ppiaf.org/SNTA or email SND at
snta@ppiaf.org.
To view the SNTA brochure, please click
here.
Please click
here for Contact Information, or call SND at
1-202-458-5588
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