Government approves a Memorandum with the IFC, allowing for work on the financing of PPP projects
During its session on October 28, the Cabinet of Ministers of Ukraine has approved the draft Memorandum of Understanding between the Government of Ukraine and the International Finance Corporation (IFC), which is a member of the World Bank Group.
“This Memorandum will allow us to jointly identify and work on the financing of public-private partnership projects in various areas of the economy. We are talking about projects in the energy sector, infrastructure, and other sectors,” Prime Minister Denys Shmyhal emphasized.
According to the Head of the Government, this will bring additional investments, opportunities for private business, new jobs as well as will strengthen the economy of Ukraine.
The source is the website of the Cabinet of Ministers of Ukraine – https://www.kmu.gov.ua/news/denys-shmyhal-uriad-skhvalyv-memorandum-iz-mfk-shcho-dozvolyt-pratsiuvaty-nad-finansuvannia-proektiv-derzhavno-pryvatnoho-partnerstva?fbclid=IwAR2NVdYunRDYqmOXSo6AQtxPzxIjUkxbKpiVSTjlSr4qIMM2pUwh5rQvDB4
We remind that government agreements and memorandums with the International Finance Corporation (IFC) have become the key to success for the effective structuring of PPPs and the attraction of private financing in various developing countries.
So, on April 25, 2022—the International Finance Corporation (IFC) has signed an agreement to support Uzbekistan as it structures a public-private partnership (PPP) to mobilize private sector experience and capital to construct and operate up to 500 megawatts wind power plants across Uzbekistan. The project will help Uzbekistan transition towards clean energy, meet the growing demand for electricity, and contribute to Uzbekistan’s target of generating 25 percent of its electricity from renewable sources by 2026.
In general, IFC has been advising the government of Uzbekistan on attracting private investments in the energy sector on transparent and competitive terms and in line with the highest environmental, social and governance standards since 2018. IFC has already helped tender out and finance a privately developed 100-megawatt solar power plant in the Navoi region, the country’s first utility-scale renewable energy facility that produces enough electricity to power more than 30,000 homes. In addition, IFC provides assistance to the Government of Uzbekistan in the structuring of PPP projects and organizing a competitive tender process to attract a private operator/investor to finance, set up, equip, maintain and operate several dialysis centers in select regions of the country. For example, in 2022, two more dialysis centers in the Khorezm region opened under a PPP project structured by IFC. These projects are pilot PPP projects in the field of healthcare in Uzbekistan.
Also, the World Bank, together with IFC, continue to support the Kyrgyz Republic in the development of hydro and solar energy with the participation of the private sector through an open tender for a 100MW solar energy PPP project. This support will help the country in achieving targets in small and medium hydropower with a capacity of 100 MW by 2026 and solar energy with a capacity of 700 MW by 2030.
Issues of cooperation with the International Finance Corporation (IFC) and ensuring the quality and sustainability of infrastructure projects and increasing the institutional capacity of PPPs were also discussed during the International PPP Conference in Bishkek, on 6 October 2022, co-organised by UNECE with the PPP Center of Kyrgyzstan, UNICEF, the Asian Development Bank (ADB) and the International Finance Corporation (IFC). At the conference, the Kyrgyz Government presented an ambitious PPP pipeline of 56 projects to be implemented by 2026, in sectors such as energy, healthcare and transportation. The projected investment is estimated at around 1.2 billion US dollars, which would more than quadruple the current PPP investment in the country.
About the International Finance Corporation (IFC)
IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. IFC work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. In 2022, IFC and the European Commission allocated 25 million euros to Ukraine to help Ukrainians who were forced to flee the war. For more information, visit www.ifc.org.