United Nations Economic Commission for Europe
International PPP Centre of ExcellenceInternational PPP Forum:“Implementing the United Nations 2030 Agenda for
Sustainable Development through effective, peoplefirst Public-Private Partnerships”
May 2017

Case Study Material**A total of 27 case studies were received by the UNECE secretary for the International PPP Forum. The
material is being published as received from the contributors.

Acknowledgements
Many have contributed to this compilation of case study material. Special
thanks are due to Pedro Neves and to the contributors of each case study.
The secretarial team was led by Tony Bonnici.

Table of Contents
Case 1: Algeria, Port Sector, PPP- Bejaia International Container Terminal ................................... 1
Case 2: Armenia, Water Sector, PPP-based Reforms in the Water Sector of Armenia .................... 6
Case 3: Chile, Health Sector, Hospital Infrastructure PPP Programme Maipu and La Florida
Hospitals........................................................................................................................ 11
Case 4: China, Transport Sector, Longhua Modern Tram (Phase I) PPP/BOT Project..................... 16
Case 5: China, Transport Sector, MTR (Shenzhen) Line 4 PPP/BOT Project................................... 21
Case 6: Egypt, Waste Water Sector, New Cairo Waste Water Treatment Plant ............................ 26
Case 7: Ethiopia, Energy Sector, Energy Access to Shine Refugee Camp ....................................... 31
Case 8: Ethiopia, Transport Sector, Ethiopia Light Railway Project .............................................. 36
Case 9: Morocco, Energy Sector, Noor II and III Solar Power Plants ................................................. 41
Case 10: Myanmar, Energy Sector, People First PPP in Post Sanction Myanmar ............................. 46
Case 11: Philippines, Health Sector, Total Laboratory Automation of Clinical Laboratory .............. 51
Case 12: Philippines, Regional Development, Butuan City Regional Development Programme .... 56
Case 13: Poland, Urban Development, Development of Urban Adaptation Plans for Cities withmore than 100,000 Inhabitants in Poland........................................................................ 61
Case 14: Portugal, Business Incubator, Mafra & Ericeira Business Factory ................................... 66
Case 15: Russia, Education Sector, Public Private Partnership Department.................................. 71
Case 16: Russia, Health Sector, Construction of Water Sports Complexes.................................... 76
Case 17: Russia, Health Sector, Public Utility Infrastructure Systems ......................................... 81
Case 18: Russia, Health Sector, Medical Industrial Park ............................................................. 86
Case 19: Russia, Waste Management Sector, Construction and Operation of Waste Recycling
Plant .............................................................................................................................. 91
Case 20: Segegal, Transport Sector, Dakar Toll Road................................................................... 96
Case 21: Spain, Energy Sector, Barcelona Districlima ................................................................ 101
Case 22: Spain, Transport Sector, Barcelona’s Highway Maintenance – ‘Las Rondas’ ................. 106
Case 23: Spain, Sustainable Cities, Maintenance and Conservation of the Furniture andEquipment in the Beaches; Cleaning of the Beaches in the Metropolitan Area ofBarcelona..................................................................................................................... 111
Case 24: Ukraine, Port Sector, PPP Kherson Port & Lower Dnieper River ................................... 116
Case 25: Ukraine, Waste Water Sector, Mechanical Biological Treatment Plant in Khmelnitsky as
the First Waste PPP in Ukraine ..................................................................................... 121
Case 26: United States of America, Disaster Recovery, PPP for Temporary-to-Permanent Housing
in Disaster Recovery ..................................................................................................... 126
Case 27: United States of America, Health Sector, Harbor-UCLA Medical Center Expansion andSurgery and Emergency Facility Replacement ............................................................... 131

Case 1
Algeria
Port Sector
PPP- Bejaia International Container Terminal

1

Project:

PPP- Bejaia International Container Terminal

Project Proponent:

Portek International Pte Ltd (PIPL)

Project Organization:

Algerian Government via Entreprise Portuaire de Bejaia (EPB)

Public Organization:

Ministry of Transport and Ministry of Finance

Private Organization:

Portek International Pte Ltd (PIPL)

Capital Providers:

EPB invested in infrastructure upgrading via a soft loan from PIPL. PIPL invested in modern
container handling equipment, IT system and management expertise of International
standard to operate the facility

Why is this project a Case Study for People First PPPs:
It is the first PPP for port privatization in Algeria. The Joint Venture (JV) in which the Government via EPB holds amajority stake but gives the management control to a private entity, PIPL. In the last decade of the collaboration, theport has grown the container volume by almost 3 times, while employment has increased by 4 times. The transfer ofmanagement expertise, which covers all level of the workforce has resulted in deployment of 2 expatriates out of a
total workforce of 600 people only. Our current CEO is an Algerian. The success of this venture can be attributed to agood working relationship between EPB and Portek in which the Government is supportive of PIPL’s implementationof business plans including but not limited to assisting in getting Governmental approval, promoting best practices
and enhancing strong labour union relationship.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:The project is in Bejaia in Algeria, a small City of about 200,000 people but the port actually serves the key sectors in sugar, consumption
products and industrial goods. Our involvement expands the coverage to benefit the Central-East of Algeria including the Inland regions.

Why:

Our involvement in the project actually made the port in Bejaia grow from among the smallest ports in Algeria to the 3rd largest port in
the Country. As such, new industries start to develop in the region, logistic sector grows and more factories were set up. So, besides
increase in employment in our port, it also has a multiplier effect in job creation in the region.

What:

We strongly believe in creating quality employment as a means to improve quality of life. When we say quality, we refer not only tocreating employment in the lower level but skill upgrade to higher level like Engineering, IT and even management skills.

Who:

The key players are the Port Authorities, labour unions, customers and even fellow workers. We have regular communication in thehandling of the business with the Port authorities, always providing innovative ideas to improve the efficiency. We have regulardialogues and visits to understand and satisfy customer needs and even have union representatives sitting in the Board so that they
understand the business direction of the organization.

When:

It is a 20-year concession starting from 2006 and we have duly implemented all the initiatives as committed in the agreement, many
well ahead of time.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind2a) Increase access to essential services and promote equity
Ports have always been the main gateway to import and export of goods. Efficient infrastructure development of the port andits management has positive impact in managing the cost of goods in the Country via lower transportation cost.
Efficient management also brings about employment and impart of essential skills quality. Portek usually promotes social
equality as we measure our people in terms of capability.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
Our presence in this PPP has raised the productivity of the port operation by at least 3 fold. This means that vessel cancomplete their operation early.
The improvement in Infrastructure development to handle specialized container handling equipment allows shipping lines theoption to switch from inefficient geared vessels to the more efficient and newer non-geared vessels helps in cutting CO2
emission.

The creation of our Inland Container Depot (ICD) unlock the congestion in the port and brings us closer to the customers.
Our strong advocate to use rail transportation between our port and the ICD works towards reduction of CO2 emission
However, many of our equipment is still diesel operated rather than electric due to instability in power supplied from the Grid.
This is an area in which we hope to work with the Government so that we can switch to electric operated equipment.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind3c) Demonstrate the economic and financial effectiveness of the project
The investment in development of the Port facility is internally funded by private investment with pay-back from the business.
The Government does not require to invest incrementally into the business as we have a re-investment plan whereby weallocated a portion of the profit on an annual basis. The rest are distributed as dividend between the shareholders which is theGovernment.
We also allocated a fixed budget on training. This has the impact of increasing the skill level of our people who can thencommand higher salary.

Our activities also resulted in a multiplier effect of rejuvenating the economy leading to more local industries being created
and thus, more employment.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
The project in Bejaia, Algeria is into its 10th year of collaboration. Expansion plan is in the pipeline. We are replacing the older
equipment with newer and more fuel efficient units.
We are also investing in upgrading new stretch of quay. In the pipeline, we are in the process of building a new training centerfor the Port sector including but not limited to installation of crane simulators for training of operators. This will be the first of
its kind in Algeria.
Human Capital needs continuous investment. It is not just about increasing employment and also improving the quality of theskill set. We earmarked an annual budget (pegged to revenue) for training.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind4e) Engage all stakeholders
Transparency is the key. Internally, we have regular dialogue session with staff and Union representatives. We even have Union
representatives sitting in our Board of Directors meeting so that they are kept updated on the business direction of the Company.
Externally, we engaged regularly with stakeholders in the Port including Customs, Police as well as our customers.
We are also involved in colleges and Universities from recruitment of fresh school leavers to giving talks to students. This is the entry
level. Thereafter, we have programs to train the personnel either in the technical or administrative aspects. The establishment of the
training center will further enhance such trainings.
For managerial roles, cross training is also available, either locally or overseas, even in Singapore and TokyoUNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind5Case 2
Armenia
Water Sector
PPP-based Reforms in the Water Sector of Armenia

6Project:

PPP-based reforms in the Water Sector of Armenia

Project Proponent:

Gagik Khachatryan

Project Organization:

Government of Armenia

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Project area: the territory of Armenia
Population: more than 2.1 million
The sector: water supply and sewerage

Why:

The water sector is entirely managed based on PPP
Partnership with stakeholders
Connection with SDGs
Access to better services

Who:

Backgroundwater supply was a few hours a day
water quality was at high risk

Reform expectations
access to universal, safe and reliable water supply for all
increased water supply duration, providing affordable water
Key players
SCWE
PSRC
WRMA
PPP Milestones
First Generation of Reforms: 3 Management & 1 Lease contracts
Second Generation of Reforms: National lease contract
UNECE _ 500 People First PPPs for the SDGs … our w.ay to end poverty, protect the planet while leaving no one behind

97a) Increase access to essential services and promote equality
Access to essential services•
water duration has increased 3-4 times and is currently in average 19-23 hours (24 hours in major residencies)•
supplied water quality complies with health standards•
affordable water has been provided•
starting from the mid-2017 more than 60% of consumers will have access to the newly constructed wastewater treatment facilities
Equality
Equal water standard for all
Gender Action Plan

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
Carrying out PPP contracts•
managed infrastructures and investments according to best industry practice•mainly changed water supply structure from mechanical to gravitational•
implemented zoning/sectorization of networks•
energy consumption in the sector has been reduced around 10 times•
fuel consumption has been lowered around twice
Consequence
Resilient infrastructures became attractive for applying advanced forms of PPP (lease/concession)

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind8c) Economic and financial effectiveness of the project
Financial sources to support the project within next 15 years
Tariff (responsibility of the lessee)• expenses of the lessee and a reasonable profit - more than $830 million• financial debt partially payments undertaken by the government - $236 million• mandatory capital expenditures - $77 million• lease fee - $175 million• no subsidiary fund from the state budget
Performance guarantee - $5.9 million(responsibility of the lessee)
Major Investments - around $550 million, (for the first 5 years - $200 million)(responsibility of the lessor)
Development of the local market
Participation into PPP contracts
Procurements of goods and services
Utilities staff

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

d)
d) Be
Be replicablereplicable andand scalable
scalable
Sharing
Sharingexperiences
experiencesand
andknowledge
knowledgebetween
betweencountries
countries
International
International cooperationcooperation
Capacity
Capacitybuildingbuilding support
supportto
tocountries
countriesand
andreform
reformleadersleaders
Development
Developmentof
ofhumanhumanresources
resources

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protectthe
the planet
planetwhile
while leaving
leavingno
noone
onebehindbehind9e) Engage all stakeholders

Partnership between stakeholders in launching PPP contracts
Consultation during establishing tariff

Coordination investment implementation
Coordination and monitoring of PPP contract KPIs

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind10Case 3
Chile
Health Sector
Hospital Infrastructure PPP Programme
Maipu and La Florida Hospitals

11

Project:
Project:

HOSPITABLE
HOSPITABLE INFRASTRUCTURE
INFRASTRUCTURE PPP
PPP PROGRAMMEPROGRAMME
MAIPU
AND
LA
FLORIDAHOSPITALS
MAIPU AND LA FLORIDA HOSPITALS

Project
ProjectProponent:
Proponent:San
San osos --Tecno
TecnoControl
ControlS.A.
S.A.(Spanish(Spanishcompanies)
companies)

Project
ProjectOrganization:
Organization:

Consortium
Consortium throughthroughaaconcessionaire
concessionairecompany
company

PublicPublicOrganization:
Organization:Ministry
MinistryofofPublic
PublicWorks
Worksmandated
mandatedby
bythe
theHealth
HealthMinistry.
Ministry.
PrivatePrivateOrganization:
Organization:San
SanJoséJosé––Tecno
TecnoControl
Controlconsortium,
consortium, inincharge
chargeof:of:projectprojectdevelopment,
development,building,building,supply
supplyofofnon-clinicalnon-clinicalfurniture
furnitureandandoperation
operationof
ofbasic
basicand
andspecial
specialservices.
services.
CapitalCapitalProviders:
Providers: 100
100%%private
privatefinancing.
financing.
Why
Whyisisthis
thisprojectprojectaaCase
CaseStudy
Studyfor
forPeople
PeopleFirstFirstPPPs:
PPPs:•• Reduce
Reducethetheconstruction
constructiontime
timeandandguarantee
guaranteethe
thedelivery
deliveryof
ofthe
theprojectprojectin
inthe
theagreed
agreedtime.
time.
•• Avoids
Avoidsdeviations
deviationsin
inbuildingbuildingand
andequipment
equipmentbudgets.
budgets.
•• Private
Privatesector
sectorhas
hasmoremoreexperience
experiencein
inproject
projectmanagement
managementand
andisismore
morespecialized
specializedandandinnovative.
innovative.
•• Relevant
Relevantrisk
risktransfer.
transfer.
•• Releases
Releasespublic
publicresources
resourcesfor
forotherotherprojects.
projects.
•• Allows
Allowseconomic
economicprogramming
programmingof
ofhealthcare
healthcaresystems
systemswith
withhistoricalhistoricaldeficit.
deficit.

UNECE
UNECE __ 500
500People
PeopleFirstFirstPPPs
PPPs forfor thetheSDGs…
SDGs… ourourwayway toto endendpoverty,
poverty,protect
protectthe
theplanetplanetwhile
whileleaving
leavingno
noone
onebehindbehindWhere:

located in Santiago’s two main populated municipalities: Maipú and La Florida. These two hospitals represent an assigned population of
more than 2 million poeple.

Why:the country is reforming the health system in order to achieve the following objectives:• Decrease inequalities• Challenges in population ageing• Provide services according to expectations• Improve healthcare achievements

What:both hospitals were awarded in November 2009 and now they are in operation.

Who:

When:

the Ministry of Public Works mandated by the Health Ministry.
San José – Tecno Control consortium won the tender.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind12a)a) Increase
Increase access
access toto essential
essentialservices
servicesandand promote
promote equity
equityAcortaAcorta loslos plazos
plazos para
para lala puesta
puesta enen servicio
servicio dedeloslos centros
centros hospitalarios.
hospitalarios.
Benefits
Benefitsfor
forusers:
users:••

ReduceReducehospital
hospital start-up.
start-up.

••

Greater
Greatercomplexity
complexity inininfrastructure
infrastructure andandequipment.
equipment.

••

Guarantee
Guarantee maintenancemaintenance andandconservationconservation ofof
infrastructure.
infrastructure.

••

Maintenance
Maintenance andandrenewal
renewalofofequipment
equipment••

Guarantee
Guarantee levels
levels ofofservice.
service.de
de la
la

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb) Develop a resilient infrastructure and improve environmental sustainability•

Guarantees maintenance and conservation of infrastructure’s initial conditions in similar terms during the period ofconcession.

•

Hospital design meets Chilean seismic regulation standards for public building. The regulation was reviewed during 2010
after the February earthquake, incorporating higher levels of security and requirements.

•

There are existing insurances covering infrastructure from possible catastrophic events.

•

The project was submitted to the Environment Impact Evaluation, fulfilling all environmental standards.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind13c)c) Demonstrate
Demonstrate thethe economic
economic andand financial
financial effectivenesseffectiveness ofof thethe projectproject
In
Interms
terms ofofpublic
public subsidy,
subsidy, both
both proposals
proposals required
required aa22%
22%lesslessofofresources.
resources.
Building
Operation
Buildingstage
stage
Operationstage
stage
Final
Max
Final
Final
Max
Final
subsidysubsidysubsidy Saving
Saving(%)(%) subsidy
subsidysubsidy Saving
Saving(%)(%)

Hospital
HospitalMaxMax
subsidysubsidy

Maipu
Maipu
La
LaFlorida
Florida27.494.727
27.494.727 21.418.393
21.418.393
29.785.955
29.785.955 23.203.259
23.203.259

22%
22%
22%
22%

4.630.691
4.630.691
5.016.582
5.016.582

4.630.691
4.630.691
5.016.582
5.016.582

0%
0%
0%
0%

The
The construction
constructioncost
costper
persquaresquare meter
meter using
usingPPP
PPPisislower.
lower.

Hospital
Hospital built
built with
with
PPP
(U$/m2)
PPP (U$/m2)

Hospital
Hospital built
built directly
directly PPP/direct
PPP/direct(U$/m2)(U$/m2)

1.502
1.502

1.867
1.867

80%
80%

Operational
Operational budget
budget ofofotherother hospitals
hospitals isisclearlyclearlylower
lower throughthrough concessions.
concessions.

HOSPITALHOSPITAL

operational
operational Anual
Anualbudgetbudget (U$)
(U$)

Anual
Anual concesion
concesionbudgetbudget (U$)(U$)

ActualActual Budget
Budget vsvsConcession
Concession (%)(%)

ANTOFAGASTAANTOFAGASTASALVADORSALVADOR –– GERIÁTRICOGERIÁTRICOSANTIAGOSANTIAGO OCCIDENTEOCCIDENTE

36.784.850
36.784.850
46.418.938
46.418.938
24.963.002
24.963.002

21.475.030
21.475.030
22.531.768
22.531.768
17.427.597
17.427.597

71,29%
71,29%
106,02%106,02%
43,24%
43,24%UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd) Be replicable and scalable
The project is replicable due to the important benefits that presents:•

Lower costs in construction and operation.

•

Reduces commissioning time in service deadlines.

•

Offers more complex infrastructure with greater services, equipment and number of beds.

•

Guarantees periodical maintenance and appropriate renewal of medial and clinical equipment.

•

Ensures permanent levels of service previously defined in terms of food, cleaning, waste management and security.

This model is adaptable to the specific needs: it can vary from construction and maintenance of infrastructure up to theprovision of all clinical and medical services.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

14e) Engage all stakeholders
During the stage of project design, citizen participation procedures were executed fulfilling the ministry’s requirements.
At the same time, public authorities, both regional and national, have had instances of participation and contribution to theproject. All which are regulated by the Environmental Impact Evaluation System.

The Health Ministry, Public Works Ministry and Health service authorities were engaged since early stages in the project
development.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind15Case 4
China
Transport Sector
Longhua Modern Tram (Phase I) PPP/BOT Project16

Project:Longhua Modern Tram (Phase I) PPP/BOT Project

Project Proponent:

Longhua Modern Tram (Phase I)

Project Organization:

Government of Longhua District, Shenzhen

Public Organization:

Government of Longhua District, Shenzhen

Private Organization:

Shenzhen Metro Group

Capital Providers:

Government of Longhua District, Shenzhen Metro GroupWhy is this project a Case Study for People First PPPs:
The tram system will integrate the north side of Longhua into the city’s rail network and is expected to significantly
ease commuting difficulties, especially since the northern extension of Line 4 is still being planned. The tram line will
eventually connect with Line 4 at Guanlan Central Station. This project provides the citizens with convenient, safe,and environment-friendly railway transit service by motivating all the parties.

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Longhua Modern Tram is located in Shenzhen, Guangdong. The forecast peak passenger flow will be 21 million in 2017Why:

BOT project upgrades the governmental investment, construction, operation and management in urban railway transit, makes moreclear the responsibilities of government, society and enterprises; It also attracts the enterprises to invest and operate of the urban
railway transit; It will have a good economic benefit by transforming the extensive management to meticulous management

What:

This project provides the citizens with convenient, safe, and environment-friendly railway transit service

Who:

Government of Longhua District, Shenzhen, Shenzhen Metro GroupWhen:

Construction of two tram lines in Longhua New District, Shenzhen, Guangdong, China commenced on December 2013. Phase I was put
into operation in 2017

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind17a) Increase access to essential services and promote equity•

Demonstration Line starts from Qinghu Station of Line 4, crossing Qinglong Road, Meilong Road, Dahe Road, Renmin Road,
and Ping’an Road, and ends the Cross of Guanlan Avenue. The branch line is set in South Huanguan Road.

•

The total length of the Line 4 is 11.7km with 20 station while the length of the Main line is 8.59 km with 15 stations andthe average distance between each station is 606m and the Branch line is 3.13km long with 5 stations and average
distances is 572m.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability•

The sections and greenbelts between trams jointly shared to save land resource and beautify urban landscape. Crossingsof trams are jointly shared with other vehicles.

•

Car Depot covers and area of 8 hectares with the 56 trains’ parking capacity, together with other five and seven modules. It
is also has the Parking garages, repair workshops, complex building and line network control centers.

•

Trains are 100% low-floor steel wheel and steel railway tramcars, with the wireless (super-capacitor) energy storage forpower supply. The initial stage has 15 care and the long-term stage is 34 cars.

•

The operation is integrated with intelligence control. The 11 subsystems in the line are managed under the integrated
system. Two signal systems feature by connection and independent check. By using the priority strategy, the traffic police
can realize the unified control, and maintenance management respectively.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind18c) Demonstrate the economic and financial effectiveness of the project
1. Public bidding projects• Modern tram project BOT investment, construction and operation & simultaneously-implemented projects
2. Contents of bidding(1) Modern tram project BOT investment, construction and operation (social investment)(2) BOT project franchise operation and supervision (supervised by government)(3) General contracting of simultaneously-implemented projects (invested by government)• Superstructure Platform Structure Project of Car Depot.
• Urban Road Planning and Reconstruction Project along the Line.
• South Hengkeng Road Reconstruction Project• Line 4 Northern Extension Project from Qinghu Station
3. Three contracts• Tram BOT Project Contract (bid-inviter and bidder sign Investment and Construction Franchise Operation Contract).
• Tram Operation and Supervision Contract (governmental department and bidder sign Operation and Supervision Contract).
• General Contract of Simultaneously-implemented Project (bid-inviter and bidder sign General Contract of Simultaneouslyimplemented Project)

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
•

•

•
•

•

Through the open, fair and just bidding of the projects such as Shenzhen Metro Line 4, Hualong Modern Tram PPP/BOT, thecompetent social capitals and management (investment, operation and construction undertakers) have been introduced
into Shenzhen. This is helpful for improving construction, operation and management of urban railway transit. It will bringgood economic and social benefits. In addition, it will provide healthy development strategy for the transformation andupgrading of the supply mode in urban railway transit.
Break the traditional city rail transit full government investment, commissioned by the enterprise (state-owned) on behalfof the construction and operation of the single (cost return) management mode, financing market management market
mechanism ecological city rail transportation supply innovation side.
Break the traditional extensive management in solving the transportation problem; and preliminary establish a new
ecological development for the PPP/BOT project construction and operation management by using cover spatial reusedevelopment (track + property) on railway.
Break the traditional extensive management of the single subsidies plan and initially establish an open and fair biding for
Government’s city rail transit project and realize the unified franchising mechanism.
Break through the traditional urban railway transit investment, construction and management mechanism that only relies
on subsidies, and established the ecological franchise operation mechanism, in which the government organizes bidding
invitation, the society and enterprises conduct joint investment, financing, construction, operation and management, andthe passengers enjoy transportation service at a reasonable ticket price.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind19e) Engage all stakeholders•

By conducting the separated bid of superstructure of the car depot, it provides a legal application example for the land use
mode of urban railway transit.

•

The project encourages all the parties including the government, society and market to enhance the management of urban
public welfare facilities and to meet the development of modern international city.

•

The project provides the citizens with convenient, safe, and environment-friendly railway transit service by motivate all theparties.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind20Case 5
China
Transport Sector
MTR (Shenzhen) Line 4 PPP/BOT Project21

Project:
Project:

ShenzhenShenzhenLong
Long Hua
Hua Light
Light RailRail PPP/BOT
PPP/BOT Project
Project

Project
ProjectProponent:
Proponent:

Main
Mainlinelineandandbranchbranchline
lineofofShenzhen
ShenzhenLong
LongHua
HuaLight
LightRailRail

Project
ProjectOrganization:
Organization:

ShenzhenShenzhenMunicipal
MunicipalGovernment
Government

PublicPublicOrganization:
Organization:Long
LongHua
Hua(Shenzhen)(Shenzhen)District
DistrictGovernment,
Government,Shenzhen
ShenzhenMetro
MetroGroupGroup

PrivatePrivateOrganization:
Organization:

Qian
QianHai
HaiFund
FundCorporation
Corporation(Shenzhen)(Shenzhen)

CapitalCapitalProviders:
Providers:

Qian
QianHai
HaiFund
FundCorporation
Corporation(Shenzhen)(Shenzhen)

Why
Whyisisthis
thisprojectprojectaaCase
CaseStudy
Studyfor
forPeople
PeopleFirstFirstPPPs:
PPPs:

Long
LongHua
Hualight
light rail
railconstruction
constructionprovides
providesgreat
greatbenefit
benefitfor
forthethecitizens
citizensin
inShenzhen.
Shenzhen.Besides
Besidesreducing
reducingtraffic
trafficcongestion,congestion,secondary
secondaryroads
roadsarearebuild
buildandandbuildingbuildingblocks
blocksareareconstructed
constructedalong
alongthetheline.
line.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty,protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindWhere:Long Hua light rail is located in the Long Hua District of Shenzhen, Guangdong, China. This line can be connected with metro Line 4.

Why:

By implementing the urban railway transit PPP/BOT project, innovative investment and financing systems will be used, and finally it canrealize a more positive competition and healthier project development.

What:

The project improves international development of Shenzhen and provides citizens with better urban railway transit services.

Who:Long Hua (Shenzhen) District Government, Shenzhen Metro Group, Qian Hai Fund Corporation (Shenzhen)

When:Long Hua district government began to launch the study of light rail project PPP/BOT in 2013. The formal contract was signed in July
2015. This line will be officially put into use in June.2017.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind22a)a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity
equityWith
Withthis
this project,
project,allallthethe districts
districts ofofShenzhen
Shenzhen cancanbe
beconnectedconnected more
moreclosely.
closely.They
Theywill
willbebethe
themostmostpreferable
preferabledestinations
destinations ofofregional
regional economy
economyandandsocialsocialresources.
resources.ItItisissignificantly
significantly important
important totopromotepromote thethe modernization
modernization andandinternationalizationinternationalization level
levelofofShenzhen
Shenzhen city.
city.With
Withthethe technology
technology
usedusedininthisthis project,
project,notnotonly
onlythethecarbon
carbondioxide
dioxide emissions
emissions cancanbebereduced,
reduced, butbutalsoalsothethe urban
urban landscapelandscape cancanbe
bepromoted.
promoted. For
Forthethe citizens,
citizens,thethe light
light

rail
railisisananeffective
effective andandhelpful
helpful project,
project,especially
especially forforthethe area
areawhichwhich cannot
cannotbe
becoveredcoveredby
by thethe metro
metro lines.
lines.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb) Develop a resilient infrastructure and improve environmental sustainability
Main line of Demonstration Line starts from Qinghu Station of Line 4, and crosses Qinglong Road, Meilong Road, Dahe
Road, Renmin Road, Central HUanshi Road, Ping'an Road, and the crossing of Guanlan Avenue. The branch line is set

in South Huanguan Road. The main line is 8.59 km with 15 stations of which the average distance between stations is606m. The branch line is 3.13km with 5 stations of which the average distance between stations is 572m.
Trains are 100% low-floor steel wheel and steel rail tramcars. Wireless (super-capacitor) energy storage for power
supply. Initial stage: 15 cars; long-term stage: 34 cars.
The sections and greenbelts between trams jointly save land resource. Crossings of trams are jointly shared with otherroad vehicles.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind23c)c) Demonstrate
Demonstrate thethe economic
economic andand financial
financial effectivenesseffectivenessofof thethe projectproject
BOT
BOTinvestment,
investment,construction
constructionand
andoperation
operation
project
project

BOT
BOTprojectprojectenterprises
enterprises
Investment,
Investment,construction,
construction,procurement,
procurement,trial
trialand
andoperation
operation

Predicted
Predictedprojectprojectrevenue
revenue

Designed
Designedpassenger
passengerflow
flow
TicketTicketrevenue
revenue

Non-ticket
Non-ticketrevenue
revenue(Ticket(Ticketrevenue:
revenue:X%)
X%)

SpecialSpecialManagement
ManagementCommittee
Committee(Take(Takecharge
chargeofofdaily
dailywork)
work)

StaticStaticexpenditure
expenditureofofprojectprojectconstruction
constructionand
andoperation
operation

StaticStaticrevenue-expenditure
revenue-expendituregap
gap

Construction
Construction
investment
investment

Total
Totalexpenditure
expenditureofofoperation
operationandandproduction
production

60%
60%ofofbank
bankloansloans
AnnualAnnualinterest
interest

40%
40%capital
capitalOperation
Operationand
andproduction
productioncost
cost

Five-year
Five-yearequal
equalamountamountBank
Bankloanloanpayment
payment
Interest
Interest

60%
60%ofofbank
bankloansloans

Construction
Constructioncapital
capitalfor
fordynamic
dynamicrevenuerevenueexpenditure
expendituregap
gap
andandoperation
operationrevenue-expenditure
revenue-expendituregap
gap（(yield
rateofinternal
finance（(yield rate of internal financeshall
shallbebeno
nolowerlowerthan
than
national
nationalbenchmark
benchmarkrate)rate)））
discount
discountatatthe
theraterateofof6%
6%andandestablish
establish
payment
paymentsubsidy
subsidyofofthat
thatyear
year

Payment
Paymentofoftotal
totalsubsidies
subsidieswithin
within5-10
5-10
years
years

Operation
Operationtaxes
taxes
Maintain
Maintainoperation
operationand
andproduction
production
investment
investment(Newvehicleprocurement)(New vehicle procurement)

Equal
Equalpayment
paymentofofsubsidies
subsidieswithin
withinfive
five
years
years

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd) Be replicable and scalable
The transformed and upgraded investment, construction, operation and management in urban rail transit make theresponsibilities, rights and interests of government, society and enterprises more clear. This has attracted the companies toinvest in the construction and operation of urban rail transit. It is expected that this will result in better management.
This project provides the methodology for other countries or regions, especially in the city infrastructure construction field.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind24e) Engage all stakeholders
Project bidding franchise
operation and management

BOT project enterprises

Ticket adjustment mechanism

1. Every 3-5 years, entrust the third-party to calculate operation
revenue and expenditure. If the rising price of commodities surpassthe calculation gap of the bidding, it can apply for price adjustment.
2. When the actual passenger flow reaches or surpass the predictedpassenger flow, the x% of the increased revenue resulting from theadjusted price shall be shared by government and enterprise.
3. The actual passenger flow does not reach the x% of the predictedpassenger flow, th revenue of the adjusted price makes up the thepart of the insufficient passenger flow.

Special Management Committee

Revenue distribution and subsidy mechanism

1.Every 3-5 years (in the initial stage: 3 years; in the shortterm stage: five years; the trial operation stage excluded), theenterprise shall entrust the third-party to calculate operation
revenue and expenditure.
2. ±x% (included) of passenger flow in the bidding shall not
be shared and subsidized.
3. x% (not included) of higher of the passenger flow in thebidding shall be shared by government and enterprise.
4. x% (not included) lower of the passenger flow in thebidding shall be undertaken by government and enterprise.

Operation safety service andquality supervision mechanism

1. Transportation department shall be responsible for
operation and supervision in accordance with operationand management laws and regulations and operationand supervision contract.
2. Special Management Committee shall coordinate
and manage the investment, construction and operation
safety and quality service according to bidding
documents and relevant regulations.
3. BOT project enterprise shall be responsible forproviding quality service for investment, construction
and operation safety.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind25Case 6
Egypt
Waste Water Sector
New Cairo Waste Water Treatment Plant

26

Project:
Project:

New
New Cairo
Cairo Waste
Waste Water
Water Treatment
Treatment Plant
Plant (New(New Cairo
Cairo WWTP)
WWTP)

Project
ProjectProponent:
Proponent:

New
NewUrbanUrbanCommunities
Communities Authority
Authority (NUCA)(NUCA)––Ministry
Ministry ofofHousing
Housing,,Utilities
Utilities
andand Urban
UrbanCommunities
Communities

Project
ProjectOrganization:
Organization:

Orasqualia
Orasqualiafor
forthetheDevelopment
Development ofofthe
theWastewater
Wastewater Treatment
TreatmentPlant
PlantSAE
SAE

PublicPublicOrganization:
Organization:

Ministry
Ministry ofofHousing
Housing,,Utilities
Utilities andand Urban
Urban Communities.
Communities.
Ministry
Ministry ofofFinance
Financeinincharge
chargeof
ofthe
the Public-Private
Public-Private Partnership
Partnership Central
Central Unit
Unit

PrivatePrivate Organization:
Organization: Aqualia
Aqualia New
NewEurope
Europe (is(isaajoint
joint venture
venture ofofAqualia
Aqualia (51%)(51%)andandthetheEuropean
European Bank
Bankforfor
Reconstruction
andDevelopment(EBRD)(49%))(50%
shares),OrascomConstruction
Industries
SAE
(OCI)
Reconstruction and Development (EBRD) (49%)) (50% shares), Orascom Construction Industries SAE (OCI)(50%(50%
shares),shares), Aqualia
Aqualia Infraestructuras
Infraestructuras (EPC),(EPC),FCC
FCCAqualia
Aqualia (O&M),(O&M),Orascom
OrascomConstruction
Construction Industries
Industries (EPC
(EPCand
andO&M)
O&M)
CapitalSPV
CapitalProviders:
Providers:
SPVregisteredregistered capital
capital (Dec.
(Dec.2015)2015) 30,140,485.31US.
30,140,485.31US. National
National Société
SociétéGénérale
Générale BankBankSAESAE(NSGB)12(NSGB)12(32.99%),(32.99%), Commercial
Commercial International
International Bank
Bank(Egypt)(Egypt) SAE
SAE(CIB)(CIB)(32.77%),(32.77%), Arab
ArabAfrican
AfricanInternational
International BankBankSAE
SAE(17.12%)(17.12%) andand Ahli
AhliUnited
United Bank
Bank(Egypt)(Egypt) SAE
SAE(17.12%).
(17.12%).

Why
Whyisisthis
this projectprojectaaCase
CaseStudy
Studyfor
forPeople
People FirstFirst PPPs:
PPPs:
Drinking
water
shortagewasapressing
issue
Drinking water shortage was a pressing issue inin Egypt’s
Egypt’s environmental
environmental sustainability.
sustainability. The
The existing
existing wastewater
wastewater
treatment
treatment infrastructure
infrastructure did
did not
not produce
produce water
water with
with adequate
adequate levels
levels ofof quality
quality toto enable
enable thethe waterwater toto be
be usedused totoirrigate
irrigate agricultural
agricultural andand urban
urban green
green areas,
areas, forcing
forcing freshwater
freshwater toto be
be usedused instead.
instead. AA PPP
PPP waswas used
used toto build
build newnew
Place
Placeaapcture
pctureemblematicemblematicof
ofyouryourinfrastructure
infrastructure toto reusereuse urban
urban wastewater
wastewater forfor irrigation,
irrigation, thereby
thereby reducing
reducing freshwater
freshwater use.
use. The
The projectproject would
would
project
project
additionallyadditionally reduce
reduce thethewaterwater pollutants
pollutants entering
entering thethe RiverRiverNile.
Nile.
The
The administration
administration benefited
benefited fromfrom thethe private
private know-how
know-howand
and capital
capital investment
investment while
while thethe private
private firms
firms participatedparticipatedininaamilestone
milestone profitableprofitable andandsustainable
sustainable project.
project.
UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindWhere:
Where:
Why:
Why:

The
TheNew
NewCairo
CairoWastewater
Wastewater Treatment
TreatmentPlant
Plantisisaaplant
plantlocatedlocatedin
inNew
NewCairo,
Cairo,aacity
citycreatedcreatedin
inthe
thesoutheastern
southeastern part
partofofCairo
Cairoinin 2000
2000 ininaa
formerformerdesert
desertarea,
area,totoeaseeaseproblems
problemsderiving
deriving fromfromananovercrowded
overcrowdedcapital.
capital.
One
Oneof
ofthe
themainmainchallenges
challengesfaced
facedbybythe
thenew
newcity
citywaswasthetheshortage
shortageof
ofdrinking
drinkingwater
waterdue
dueto
tothe
theharsh
harshenvironmental
environmental conditions.
conditions.The
The
purposepurposeof
ofthe
theurbanurbanwastewater
wastewater plant
plant waswasto
totreattreatregular
regularurban
urbanwastewater.
wastewater. On
Onthetheotherotherhand,
hand,thethelack
lackofofpublic
publiccapital
capitalto
to financefinanceinfrastructure
infrastructurewas
wassolved
solvedusing
using aaPPP,
PPP,that
thatwould
wouldbring
bringininhighlyhighlyneededneededcapital
capitalandandknow-how
know-howtransfer
transferby
byprivate
private sector.
sector.

What:
What:

(1)
(1)An
Anincrease
increasein
inthe
theavailability
availability ofofdrinking
drinking water
water(since(sincetreatedtreatedwater
waterwould
wouldbebeusedusedforforirrigation
irrigationpurposes
purposesinstead
insteadof
offreshwater);freshwater);(2)(2)
aareduction
reductionin
inthe
theenvironmental
environmental impact
impactof
ofthe
thewastewater
wastewater discharge
dischargeinto
intothetheRiverRiver Nile
Nile(with(withaadirect
directpositive
positive impact
impactononhumanhumanhealthhealthandandthetheriver’s
river’secology).
ecology).

Who:
Who:

The
Thecontracting
contractingauthority,
authority,New
NewUrbanUrbanCommunities
CommunitiesAuthority
Authority(NUCA)(NUCA)waswasassigned
assignedrisks
riskssuch
suchasas landscape,landscape,supply
supply ofofutilities
utilitiesandanddemand;demand;Orasqualia
Orasqualiawas
wasassigned
assigned risks
riskssuch
suchasasconstruction,
construction,financing,financing,interest
interestrates,
rates,and
andforeignforeignexchange
exchangerates.
rates.

When:
When:

(2008)(2008) PPIAF
PPIAFassistanceassistanceprogram
programreport,
report,(2009)(2009) announcement
announcement ofofthe
theNew
NewCairo
CairoWWTP
WWTPcontract,contract,(2010)(2010) financial
financialclosure
closureandandconstruction
constructionstart,
start,(2011)(2011) politicalpoliticalprotests
protestsstart,
start,(2012)(2012) construction
constructionfinished,finished, (2013)(2013) New
NewCairo
CairoWWTP
WWTPstarts
startsoperations,operations,(2029)(2029)
contract
contractends.
ends.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehind27a)a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity
equityBeforeBeforethe
the New
NewCairo
CairoWWTP
WWTPwaswasin
in operation,
operation, wastewater
wastewater was
was emptied
emptied into
into thethe river,
river, which
which hadhadsignificant
significant negative
negative effects
effectsnot
not
only
onlyononthe
the river’s
river’s ecosystemecosystembut
but ononpublic
public health,health, particularly
particularly on
onthosethosemore
morevulnerable
vulnerable that
thatmakemake fromfromthethe river
river aaway
way ofofliving.
living.
New
NewCairo
CairoWWTP
WWTPwaswasdesigned
designed to:to:•• Reduce
Reduce thethe useuseof
of (scarce)(scarce) freshwater
freshwater forfor tasks
tasks such
such asasirrigating
irrigating agricultural
agricultural andandurbanurban green
green areas.
areas.
•• Limit
Limitthethe volume
volumeofof polluted
polluted water
water dumped
dumped into
into thethe river
river withwithconsequentconsequent negative
negative effects
effects on
on human
humanhealthhealthandandthetheecosystem.
ecosystem.
Benefits
Benefits forforthethe residents
residents andandsociety:society:•• Increase
Increase ininthe
the availability
availabilityofof freshwater.
freshwater.

•• Reduction
Reduction ofof pollutants
pollutants dumped
dumpedinto
into thetheriverriver led
led toto improved
improved public
publichealth.
health.
•• Better
Better quality
quality forfor farming
farmingincreased
increased thethequality
quality ofof products
products withwithdirect
direct effects
effects ononhumanhumanhealth,health, andandmight
mighthave
have
increased
increased agricultural
agriculturalproductivity,
productivity, fostering
fostering economic
economic growth
growthininthe
the region.
region.
•• TheTheplant
plantprovided
provided regular
regular jobs
jobsforfor 6363 permanent
permanentskilled
skilled workers
workers directly
directly andand617617workers
workers indirectly.
indirectly.
UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb)b) Resilient
Resilient infrastructure
infrastructure andand improvement
improvement inin environmental
environmental sustainability
sustainability
The
The PPPPPP allowed
allowed toto bundle
bundle thethe construction
construction andand operations
operations activities,
activities, adopting
adopting aa lifecycle
lifecycle management
management approach,approach, thatthat led
led totoefficiency
efficiency gains
gains and
andreduction
reduction ofofthe
the maintenancemaintenance costcostforforthethe SPV.
SPV.
Maximum
Maximum environmental
environmental standards
standards required
required by
by NUCA.
NUCA. During
During thethe construction
construction processprocess NUCANUCA did
did not
not accept,
accept, as
as isis thethecommoncommonrule,
rule,anyanydischarge
dischargeof
ofwaterwaterofofaaquality
qualityoutside
outside thetheparametersparameters establishedestablished ininthe
thecontract.
contract.That
Thatforced
forcedOrasqualia
Orasqualia totoconstructconstruct (at(atitsitsownowncost)cost)aa22km
kmpipepipe totothe
theclosest
closestWWTP
WWTPforforfurther
further treatment
treatment during
during thethecommissioning
commissioning period.
period.

Once
Once functioning
functioning thethe plant
plant enabled
enabled aa reduction
reduction inin thethe quantity
quantity ofof pollutants
pollutants (raw(raw sewage)
sewage) dumped
dumped into
into thethe RiverRiver Nile.
Nile. ThisThis
improved
improved thetheriver’s
river’s water
water quality,
quality,which
which had
hadpositive
positive direct
directeffects
effectson
onthe
the river
riverecosystemecosystemandandon
on human
human health.
health.Additionally,
Additionally,more
morefresh
freshwater
water waswasavailable
available forforhuman
human consumption.
consumption.
An
Anestimatedestimated measure
measure ofofthe
the reduced
reduced river
river pollution
pollution withwiththethe plant
plant working
working at
atfullfull capacity
capacitywould
would bebeasasfollows:
follows:••

94
94tonstons ofofBOD5
BOD5(five-day(five-day biologicalbiological oxygen
oxygen demand)
demand) per
perdayday avoided
avoided••105
105tons
tons ofofTSS
TSS(total(totalsuspended
suspended solids)
solids)perperdayday avoided
avoided••135
135tons
tons of
ofCOD5
COD5(five-day(five-day chemicalchemicaloxygen
oxygen demand)
demand) per
perdaydayavoided
avoidedUNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehind28c)c) Economic
Economicand
and financial
financialeffectivenesseffectiveness ofof thethe projectproject
The
TheNew
NewCairo
Cairoplant
plant mobilized
mobilizedprivate
private investments
investments totaling
totaling$140$140 million.
million.
PPP
PPPcontract
contractvalue
value US$482
US$482million
millionfor
for20-year
20-year concession
concession

Payment
Payment based
based onon aa sewage
sewage treatment
treatment charge
charge including
including aa fixed
fixed payment
payment coveragecoverage (investment,(investment, debt,
debt, RoE
RoE andand fixed
fixed operating
operating cost)cost) plus
plus variablevariable
operatingoperatingcharge
chargebased
basedononvolume
volumeof
oftreated
treatedsewage
sewage(m³)(m³)
The
The SPV
SPV waswas createdcreated onon April
April 9,9, 2009,2009, with
with registeredregistered capital
capital inin Egyptian
Egyptian pounds
pounds ofof E£250,000
E£250,000 (45,704(45,704 USD).
USD). OnOn December
December 31,
31, 2015
2015 thethe registeredregisteredcapitalcapitalwas
was236,000,000
236,000,000 EGP
EGP(30,140,485.31(30,140,485.31 USD).
USD).

The
Thedebt,
debt,structured
structuredas
asproject
projectfinancefinance without
withoutrecourse,
recourse,amounted
amounted totoE£566
E£566 million11
million11(103.47(103.47 million
millionUSD)
USD)inintwo
twotranches:
tranches:
••
••

E£550
E£550 million
million (100.55(100.55 million
million USD)
USD) inin thethe form
form ofof aa long-termlong-term facility
facility (15(15 years)
years) toto financefinance up
up toto 70%
70% ofof thethe Project’s
Project’s investment
investment cost
cost (EPC(EPC cost)
cost)(estimated(estimated at
atE£785.2
E£785.2 million,
million,thenthenworthworth143.55
143.55 million
millionUSD).
USD).The
Theremaining
remaining30%
30%waswasin
inequityequity ofofthe
theSPV.
SPV.
E£16
E£16 million
million(2.93(2.93million
millionUSD)
USD)ininthe
theform
formofofoperation
operationperformance
performanceletterslettersof
ofguarantee
guarantee totobe
beissuedissuedduring
duringthetheoperation
operationperiod.
period.

The
The banks
banksacting
actingasaslenderslenders were
wereNational
National Société
Société Générale
GénéraleBank
BankSAE
SAE(NSGB)12(NSGB)12(32.99%),(32.99%),Commercial
Commercial International
International Bank
Bank(Egypt)(Egypt)SAE
SAE(CIB)(CIB) (32.77%),(32.77%),
Arab
Arab African
African International
International Bank
Bank SAE
SAE (17.12%)(17.12%) andand Ahli
Ahli United
United Bank
Bank (Egypt)(Egypt) SAE
SAE (17.12%).
(17.12%). The
The banks
banks had
had aa step-in
step-in right
right andand aa pledge
pledge regarding
regarding thethe
SPV
SPVshares
sharesacknowledged
acknowledged in
inthe
thePPPPPPagreementagreement by
byall
allthetheparties
partiesinvolved
involved under
under specificspecificcircumstances.
circumstances.
Local
Localeconomy
economybenefited
benefitedfrom
from thethespill
spilloverovereffects
effects ofofimporting
importingthe
theexperience
experience andandknow-how
know-howof
ofaamultinational
multinational enterpriseenterprise such
suchasasAqualia
Aqualia working
workingininalliancealliancewith
withaalocal
localoperator.
operator.That
That should
shouldresult
resulteventually
eventually ininimprovements
improvements ofofefficiency
efficiencyin
inthe
thelocal
localeconomy.
economy.
The
Thetotal
totalnumber
number ofofregular
regularjobs
jobsassociatedassociatedwith
withthetheplant
plant are
are63
63(5
(5for
forthetheSPV
SPVandand58
58forforthetheO&M
O&Mjoint
joint venture)
venture) to
toadd
addto
tothe
theindirect
indirectjobs
jobscreated.
created.
UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd)d) Replicability
Replicability andand scalability
scalability
The
The New
New Cairo
Cairo WWTP
WWTP provides
provides aa good
good example
example on
on how
how toto develop
develop aa complex,
complex, technologicallytechnologically advanced,
advanced, andand costly
costly infrastructure
infrastructure in
in aa
lower
lower middle
middle income
income country,
country, with
with environmental
environmental andand sustainable
sustainable problems,
problems, unstable
unstable politicalpolitical system,
system, andand weakweak currency.
currency. The
The latterlatter isis aa
criticalcriticalelement
element when
when trying
trying to
toattract
attract international
international bidders
bidders //investors.
investors.
Some
Someofofthe
the valuablevaluable learned
learned lessons
lessonsthatthat cancanbebeconsidered
considered when
when trying
trying totoreplicate
replicate this
this PPP
PPPprojectprojectin
inotherother developing
developing countries
countries are:are:•• Adequate
Adequate risk
risk transfer
transfer toto thethe part
partmoremore able
abletoto dealdeal withwithitit•• Incentivize
Incentivize international
international firms
firms toto invest
invest by
by offeringoffering fair
fair financial
financial conditions.
conditions. That
That will
will also
also foster
foster aa more
more
competitivecompetitive tendertender•• Critical
Critical toto setset ananindependent
independent PPP
PPPunitunit toto provide
provide stability
stability toto thetheprojectproject•• Design
Designgood
goodgovernancegovernancesystems
systems toto fosterfoster communication
communication between
between thethe contracting
contracting authority
authority andandSPVSPVThe
The experience
experience acquired
acquired inin thethe projectproject was
was also
also used
used toto designdesign thethe Law
Law No.
No. 67,67, regulating
regulating Partnership
Partnership with
with thethe Private
Private Sector
Sector inin
Infrastructure
Infrastructure Projects,
Projects, Services
Services andand Public
Public Utilities,
Utilities, passed
passed on
on AugustAugust 2010.
2010. AA stablestable legal
legal framework
framework andand thethe first
first successful
successful experience
experiencecancanhavehave positive
positive effects
effectson
onencouraging
encouraging other
other Ministries
Ministries andand sectors
sectorsto
todevelop
develop PPPs.
PPPs.Success
Successas
asexample.
example.
The
The projectprojectalso
alsorequired
required training
training local
localemployees
employees toto useusethethelastlast technology
technology systems
systems usedusedininthe
the New
NewCairo
CairoWWTP.
WWTP. Ultimately,
Ultimately, that
that
would
would benefit
benefit local
localeconomy
economydue
due totospillspilloverovereffects
effectsandandsetting
setting best
bestpractices.
practices.
UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehind29e)e) Stakeholders
Stakeholders engagement
engagement
As
Asaaurban
urban project,
project, New
NewCairo
CairoWWTP
WWTPinvolved
involved many
manydifferent
different stakeholders
stakeholders
••
••
••
••
••

Ministries:
Ministries: Ministry
Ministry ofofHousing,
Housing, Utilities
Utilities andandUrbanUrbanDevelopment,
Development, andandMinistry
Ministry ofofFinance
Finance
Independent
Independent bodies:bodies:Public-Private
Public-Private Partnership
Partnership Central
Central Unit
Unit
Regional
Regionalgovernments:
governments: Cairo
CairoGovernorate
Governorate
Firms:
Firms:Financial
Financial institutions
institutions (IFC,(IFC,ERDB,ERDB,private
private banks),
banks), private
private firms
firmsincluding
including concessionaires
concessionaires andanditsits providors
providors
Egyptian
Egyptian citizens,
citizens,consumers,
consumers,and
andfishermen.
fishermen.

New
New Cairo
Cairo city
city isis thethe result
result ofof thethe policy
policy implemented
implemented byby thethe Egyptian
Egyptian government
government toto easeease thethe congestion
congestion inin downtown
downtown Cairo.
Cairo. The
The lacklack ofof aa proper
properwater
water treatment
treatment systemsystem affectedaffected particularly
particularly Egyptians
Egyptians throughthrough productproduct consumptions,consumptions, either
either consuming
consuming fish
fish fromfrom thethe RiverRiver Nile
Nile oror agricultural
agricultural
products
products irrigatedirrigated with
with polluted
polluted water.
water.
However
However thethe most
most affectedaffected were
were those
those making
making fromfrom thatthat area
area ofof thethe Rive
Rive Nile
Nile thethe way
way ofof theirtheir living,
living, as
as they
they were
were exposed
exposed to
to waterwater with
with highhighpollution
pollution levels.
levels.

The
The construction
construction ofof thethe New
New Cairo
Cairo WWTP
WWTP improved
improved substantiallysubstantially thethe environmental
environmental conditions
conditions andand mademade more
more fresh
fresh water
water available
available benefiting
benefiting thethesocietysocietyacrossacrossthethe board.
board. These
Theseimprovements
improvements had
hadspecially
specially beneficial
beneficial effects
effectson
onthosethosemore
morevulnerable.
vulnerable.
AA good
good governancegovernance systemsystem isis criticalcritical forfor thethe correct
correct development
development ofof thethe processprocess andand involvement
involvement ofof thethe mainmain stakeholders
stakeholders inin thethe decision
decision making.
making.
New
New Cairo
Cairo WWTP
WWTP establishedestablished two
two governancegovernance committees
committees toto supervise
supervise how
how thethe projectproject was
was functioning
functioning andand toto dealdeal with
with unexpected
unexpected situations
situations that
that
might
might arise
ariseduring
during thethe contract:contract:Partnership
Partnership Committee
Committee andandPerformance
PerformanceMonitoring
Monitoring Committee.
Committee.

The
ThePPPPPP governancegovernance committees
committees were
were composedcomposedofof members
members ofof thethe administration
administration andandSPVSPV toto supervise
supervise thethe correct
correctfunctioning
functioning ofof thethe infrastructure
infrastructure
and
to
deal
with
eventualchangesinthecircumstances
under
which
the
contract
wassigned.
They
included
also
independent
experts.
and to deal with eventual changes in the circumstances under which the contract was signed. They included also independent experts.
UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehind30

Case 7
Ethiopia
Energy Sector
Energy Access to Shine Refugee Camp

31

Project:
Project:

EnergyEnergy Access
Access toto Shire
Shire Refugee
Refugee Camps
Camps inin Ethiopia
Ethiopia
www.alianzashire.org
www.alianzashire.org

Project
ProjectProponent:
Proponent:
Project
ProjectOrganization:
Organization:
PublicPublicOrganization:
Organization:

AECID
AECIDSpanish
SpanishAgency
Agencyfor
forInternational
International Development
Development Cooperation
Cooperation
itdUPM
itdUPMInnovation
Innovation andandTechnology
TechnologyforforDevelopment
DevelopmentCentre,
Centre, TechnicalTechnicalUniversity
UniversityofofMadrid
MadridPrivatePrivate Organization:
Organization:

Iberdrola,
Iberdrola,Philips
PhilipsLighting
LightingSpain
Spain&&Fundación
FundaciónAcciona
AccionaMicroenergía
Microenergía

Other
OtherOrganizations:
Organizations:

UNHCR
UNHCRUnited
United Nations
NationsHigh
HighCommissioner
Commissionerfor
forRefugees.
Refugees.Collaborating
Collaboratingpartner.
partner.
NRC
NRCNorwegian
NorwegianRefugee
RefugeeCouncil.
Council.Implementing
Implementing partner.
partner.

CapitalCapitalProviders:
Providers:

Seed
Seed capital
capital provided
providedby
byAECID.
AECID.Human
Human and
andin
inkindkindcapital
capital provided
providedby
byprivate
privateorganizationsorganizations andanditdUPM.
itdUPM.

Which
Which
SDG
SDGisisclosercloserto
to
your
your
project
project

Why
Whyisisthis
thisprojectprojectaaCase
CaseStudy
Studyfor
forPeople
PeopleFirstFirstPPPs:
PPPs:
Alianza
AlianzaShire
Shireisisaacross-sectoral
cross-sectoralpartnershippartnership where
wherepublic,
public,private
privateand
andinternational
internationalorganizationsorganizations combine
combineresources
resourcesininorder
order toto improve
improve energy
energy access
access inin humanitarianhumanitarian contexts,
contexts, specificallyspecifically inin refugees
refugees andand IDPs
IDPs camps.
camps. Energy
Energy access
access isis aa
problemproblemthat
thatneedneed totobe
beapproachedapproached throughthroughinnovative
innovativesolutions
solutions able
abletotosolvesolvethethechallenges
challengesfaced
facedininaarefugee
refugeecamp
camp
due
dueto
to thethelacklack ofof energy
energy likelikeenvironmental
environmental degradation,
degradation, SGBV,
SGBV, absence
absenceofof livelihood
livelihood opportunities
opportunities andand limitations
limitations ininthetheprovision
provisionof
ofbasic
basicservices.
services.

Place
Placeaapicture
pictureemblematicemblematicof
ofyouryourproject
project

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindWhere?

Who?

Shire Refugee camps: Eritrean refugees, young population
Adi-Harush: Settled in 2010, sheltering 8000 refugees
Why?
Gender and protection
Lack of livelihood opportunities
Deforestation
Conflict with host community
Camp management

Issuesrelated to
the lack ofenergyaccessWhat & When?
Set-up of thePartnership andelection of Shire
refugee camps

Characterization of thecontext andidentification oftechnical solutions

Design andimplementationof the Pilot
Project

2014

2014-2015

2015-2017

Evaluation,
lessons learned
and scale up
2017

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind32a)a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity.
equity. Pilot
Pilot projectproject
Lighting
Lighting••••

Installation
Installation of
ofstreetstreet lighting.
lighting. 64
64 lighting
lighting points
points ininmoremorethanthan 44km
kmaroundaround thethecampcampandandthethe host
host community
community
Installation
Installation ofofindoorindoor lighting
lighting in
in77communal
communalkitchens.
kitchens.

Improvement
Improvement andand extension
extension ofof thethe electricity
electricity grid
grid••

Connection
Connection ofof77communal
communalservices,
services,including
including communal
communalkitchens,
kitchens,thethe PrimaryPrimary School,
School,Market
MarketPlaces,
Places,Wellness
Wellness Centre
Centre forforwomen
women andandgirls
girls•• Reparation
Reparation andandrehabilitation
rehabilitation ofofone
onetransformer
transformer•• Installation
Installation ofofprotections
protections in
in14
14communal
communalservices
services(Distribution(Distribution boxes,
boxes,
GeneralGeneral Protection
Protection Boxes,
Boxes,groundground connections…)
connections…)

Protection
Protection issues
issues••••••Prioritization
Prioritization ofofthe
the areas
areasandand services
servicesmore
morerelevant
relevant forforthethe life
lifeofofthe
theunaccompanied
unaccompanied
minorsminors ininthe
the camp
camp
Prioritization
Prioritization ofofthe
the zones
zoneswithwithaahigher
higher rate
rate ofof gender
gender based
based violence
violence incidents
incidents
Inclusion
of
the
Host
Community
Inclusion of the Host Community

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindAdi-Harush refugee camp – Street Lighting Map

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind33b)b) Develop
Develop aa resilient
resilient infrastructure
infrastructure andand improve
improve environmental
environmental sustainability.
sustainability. Pilot
Pilot Project
Project
Training
Training••••

Theoretical
Theoreticaltraining
training (lighting,(lighting, electric
electricgrid,
grid,risk
riskprevention
prevention andandfirst
first aid)aid)toto28
28 persons
persons
Practical
Practicaltraining
training (installation(installation of
ofthe
theequipment)
equipment) toto15
15 refugees
refugeesandand44persons
persons fromfromthethehosthost community
community

Technical
Technical Sustainability
Sustainability•• Creation
Creation ofofan
anOperation
Operation andandMaintenance
Maintenance WorkWorkTeam,
Team,formed
formed by
by44refugees
refugeesthatthat will
willwork
workasasNorwegian
NorwegianRefugeeCouncilsocialworkers
with
a
3
years
contract
Refugee Council social workers with a 3 years contract•• Main
Mainactivities:
activities: Maintenance
Maintenance of
ofthe
theinstallations,installations, connection
connection of
ofnew
newservices
servicesand
andcollection
collection of
ofinformation
information forforthethemonitoring
monitoring andandevaluation
evaluation

Environmental
Environmental impact
impact•• Deforestation.
Deforestation. The
Theconnection
connection ofofthe
thecommunal
communal kitchens
kitchensto
to thethegridgridwill
willavoid
avoid thethecollection
collection of
offirewood
firewood forfor
cookingcookingpurposes.
purposes.
AccordingAccordingto
tothe
theestimations,estimations, depending
depending on
onthe
theavailability
availability ofofelectricity
electricity fromfromthethegrid,
grid, aroundaround 1500
1500 Tn
Tnfirewood
firewoodperperyearyearwill
willnot
notbe
becollectedcollected•• CO2CO2emissions.
emissions. The
Theconnection
connection ofofthe
thecommunal
communal services
serviceswill
willreduce
reducethe
theemissions
emissions ofofCO2
CO2duedueto
tothe
theburningburningofoffirewood
firewoodfor
forcooking
cookingor
ordieseldiesel forforrunningrunning thetheservices.
services.The
TheCO2CO2emissions
emissions savings
savings will
willbebebetween
between1000
1000 andand
3000
3000TnTnperperyear,year,depending
depending on
onthe
theavailability
availability ofofenergy
energyfrom
fromthethegrid
grid

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way totoend
end poverty,
poverty, protect
protectthe
the planet
planetwhile
while leaving
leaving nonoone
onebehindbehindc) Demonstrate the economic and financial effectiveness of the pilot project
Funds
•
•

Seed capital: 280000 € since December 2014, funded by AECID
Human resources and in kind contributions:o Private companies: IBERDROLA, PHILIPS, FUNDACIÓN ACCIONA
o itdUPM
o UNHCR

Estimated impact•••

Key data: Daily diesel consumption for running the communal services in the camp:€/L = 166€/day = 60000€/year
Price of kWh from diesel generators: 0,25 €.
Price of kWh from the grid: 0,029 €.
Economic savings: Depending on the availability of electricity from the grid, around 35000 €/year
These savings don’t include those avoided costs in terms of SGBV incidents, deforestation or CO2 emissions

200 L x 0,83

Livelihood opportunities••

Operation and Maintenance Work Team created among the refugees trained to ensure the sustainability of the installations
Opportunities of the creation of energy related businesses to the refugees trained by the project

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

34

d)
d) Be
Be replicablereplicable andand scalable
scalableIn
In Shire
Shire refugee
refugee camps
camps

Once
Oncethethe pilot
pilotprojectprojecthas
hasbeenbeen successfully
successfully implemented,
implemented, thethe replication
replication in
inShireShirerefugee
refugee camps
campswould
would bebefeasible
feasible due
dueto
todifferent
different factors
factorslike:like:-- Knowledge
Knowledge ofofthe
the context,
context,-- Elaboration
Elaboration ofofaaspecificspecifictools
tools adapted
adapted totoaarefugee
refugee camp
campcontext
context (training(training toolkit,
toolkit, audit
audit ofofthe
thegrid)
grid)-- Synergies
Synergies createdcreated at
atfield
fieldlevel
level-- Availability
Availability ofofquality
quality material.
material.

In
In otherother camps
camps inin Ethiopia
Ethiopia••••••

CommonCommonfactor
factorin
inEthiopian
Ethiopian refugee
refugeecamps:
camps:connection
connectionor
orproximity
proximityto
tothe
thegrid
grid
Participation
Participation ofofnational
national electric
electriccompany
company(EEU)(EEU)
Involvement
Involvement ofofGovernmental
Governmental Agency
Agencyfor
forRefugees
Refugees(ARRA)(ARRA)

In
In otherother refugee
refugee camps
camps
••
••
••
••
••

Involvement
Involvement ofofUNHCR
UNHCR
Need
Needofofcharacterization
characterization before
beforedesign
designofofsolutions
solutions
Relevant
Relevant implementing
implementing partners/Operators
partners/Operators withwithpresence
presencein
inthe
thecamps
campslike
likeNRC
NRC
Possibility
Possibility ofofany
anykindkindofofenergy
energyintervention
intervention due
dueto
tothe
thebackgroundbackgroundof
ofthe
thecompanies:
companies:
grid,
grid, windwindpower,
power, hydrohydropower,
power,lighting,lighting, solar
solarandandbusinessbusinessmodels
modelsOther
Other sectors
sectors
••
••
••
••

Water:
Water: solar
solarpumping
pumping
Livelihoods:
Livelihoods: energy
energy forforprivate
private businesses
businesses
Creation
Creation ofofbusinessbusinessmodels:models:biogas,
biogas, solar
solarcharge
chargecenter,
center,etc.
etc.
Shelter:
Shelter: Private
Private connections
connectionswith
withintelligent/pre-pay
intelligent/pre-pay electric
electric meters
metersUNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehinde) Engage all stakeholders
Beneficiaries: refugees and host community: Participation in the characterization, training, implementation and monitoring of the activities
University: itdUPM, broker/facilitator of the partnership: coordination of all stakeholders; promotion of the systematization and dissemination of the knowledge

Local Authorities••

ARRA (Ethiopian Agency for Refugees and Returnees Affairs): facilitation of the surveillance of the Ethiopian regulations, knowledge of the context andsecurity issues inside the camps
EEU (Ethiopian Electric Utility), involved in design, training and facilitating of the works in the national grid since the beginning of the projectInternational Organizations: UNHCR (United Nations High Commissioner for Refugees), collaborating partner

Civil Society Organizations••••

NRC (Norwegian Refugee Council): implementing/operator partner, supporting with the logistic and implementation issues
Ayuda en Acción-Jesuit Refugee Service: implementing/operator partner, supporting with the logistic and implementation issues
IRC (International Rescue Committee): support with gender and protection issues
NRDEP (National Rural Development and Environment Programme): support with environment issues

Private companies•••

Iberdrola: Technical support related to the installation and operation of the electricity grid
Philips Lighting Spain: Technical support regarding street and indoor lighting technologies
Fundación Acciona Microenergía: Technical support in solar technologies and business model

Public Agency: AECID, funding the project and supporting through the Humanitarian Aid Office and the Technical Cooperation Office in Ethiopia
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind35

Case 8Ethiopia
Transport Sector
Ethiopia Light Railway Project36

Project:

Ethiopia Light Railway Project

Project Proponent:

the AALRT Operation and Maintenance Management Service

Project Organization:

Ethiopian Government

Public Organization:

Shenzhen Municipal Government, Ethiopian government

Private Organization:
Railways Corporation

China Railways Engineering Group (CREC), Shenzhen Metro Group Co.Ltd. (SZMC), Ethiopian

Capital Providers:

China Railways Engineering Group (CREC), Shenzhen Metro Group Co.Ltd. (SZMC)

Why is this project a Case Study for People First PPPs:

This project connects Chinese urban railway transit construction service functions, technical standards, reliability,
operation and management documents with overseas urban railway transit projects, and operates and cultivates
local talents in urban railway transit construction, operation and management (win-win cooperation in Belt and Road
Initiative).
Place a picture emblematic of yourproject

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

This project is in Ethiopia. The planned lines are 75km in the overall length, and the lines in the Addis Ababa E-W & N-S (Phase I) Project
to be executed currently approximate 31.048km in length.

Why:

In May 2014, Premier Li paid an official visit to Ethiopia and stated that the cooperation between China and Ethiopia would focus on theinfrastructure construction and energy resources development and expand the win-win collaboration between our two countries onlight railway and highway projects. China would like to share all the related experience with Ethiopia and transfer the competitive
industries and technology to Ethiopia.

What:

With the experience and top-rank service brand in urban railway transit industry, SZMC will bring the operation management
technology to the global market.

Who:

AALRT staff composition includes three parties. The Management Contract composed of SZMC and CREC is in charge of operation
organization. And ERC sent staff to learn from the management contract. The management authority will be transferred to ERC on the
expiry of the contract.

When:

In May 2014, the consortium of SZMC and CREGC bid for the AALRT Operation and Maintenance Management Service and signed acontract with ERC in December,2014. The contract period is 41 months. After 3 years of operation, the local staff will take over all theoperation and maintenance work.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind37a)a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity
equityAALRTAALRTprojectprojectincludes
includes two
two lines,
lines,which
which areareN-S
N-SLineLine andandE-W
E-WLine.
Line. As
Asforforthisthis E-W
E-Wlineline ofofLRT
LRTprojectproject(Phase(PhaseI),I),thethetotal
total length
lengthofofthe
the subgrade
subgrade section
section isis13.09km
13.09km andand thethe total
total length
length ofofelevatedelevated station
station isis3.92km.
3.92km. There
There areare aatotal
total ofof22
22stations,
stations,
includingincluding 66elevatedelevated stations
stations ,,22semi-undergroundsemi-underground stations
stations andand14
14groundground stations
stations with
with thethe average
averagestation
station intervalinterval ofof794m.
794m.
The
The N-S
N-Slineline subgrade
subgrade length
length isis10.06km
10.06km andandthethelength
length ofofelevatedelevated section
sectionisis5.907km
5.907km andandthethe undergroundunderground section
sectionisis0.66km.
0.66km.
There
There areareaatotal
total ofof22
22stations,
stations, including
including 88elevatedelevated stations,
stations, 11undergroundunderground station
stationand
and13
13groundgroundstations
stationswith
withthetheaverage
averagestationstation intervalinterval ofof772m.
772m.
The
The N-S
N-SLineLine waswasputput into
into official
officialoperation
operation on
onSep.
Sep.20th,
20th, 2015.
2015. By
ByNov.
Nov.20th,
20th, thethe total
total ridership
ridership had
hadreachedreached 6.5
6.5million,
million, withwiththethe average
average daily
daily ridership
ridership ofof60
60thousand.
thousand. E-W
E-WLineLinewaswas put
putintointo official
officialoperation
operation on
onNov.
Nov.10th,
10th, 2015,
2015, bybyNov.
Nov.20th,
20th, thethe total
total
ridershipridership had
hadreachedreached2.8
2.8million,
million, with
with thethe average
averagedaily
daily ridership
ridership ofof66thousand.
thousand. Currently,
Currently, thethetwotwo lines
lines areare ininfullfulloperation.
operation.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb) Develop a resilient infrastructure and improve environmental sustainability
Ethiopian government invited Shenzhen Municipal Government to finalize the Safety and Trial Operation Conditions
Assessment. Therefore, Shenzhen Urban Railway Transit Association accomplished Safety and Trial Operation Conditions
Assessment for AALRT (Phase 1). The experts team prepared the documents auditing and on-site inspection of operation
preparation, light railway construction and equipment system. Then the experts team formulated the Safety and Operation
Conditions Assessment Report for AALRT(Phase 1) and put forward the issues and recommendations for modification.
In the semi-annual operation management KPI evaluation of AALRT, as the operation supervisor, the consulting company of
Italian National Railway Group gave a high score of 99.95 to the operation of AALRT by SZMC, fully affirming the operation andmanagement level of SZMC.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind38c)c) Demonstrate
Demonstrate thethe economic
economic andand financial
financial effectivenesseffectiveness ofof thethe projectprojectAs
As ofof February
February 28,
28, 2017,
2017, thethe passenger
passenger flow
flow volume
volume ofof thethe network
network isis 52.9
52.9 million,
million, maximum
maximum daily
daily passenger
passenger volume
volume isis
185,000,
185,000, total
total Fare
Fare revenue
revenue isis 160
160 million
million Birr
Birr (approximately(approximately 6.95
6.95 million
million US
US dollars),dollars), with
with thethe strict
strict control
control ofof thethe operation
operationandandhighhighattention
attention forforthetheoperation
operation safety
safety,the,the ridership
ridership maintains
maintains steadysteady growth.
growth.
In
In September
September 2016,
2016, Shenzhen
Shenzhen Metro
Metro signed
signed thethe contract
contract ofof thethe advertising
advertising resources
resources inin 99 stations,
stations, which
which can
can increase
increase thetheincomeincome byby 24
24 million
million Birr
Birr (approximately(approximately 1.04
1.04 million
million US
US dollars).
dollars). At
At thethe samesame time,
time, Shenzhen
Shenzhen Metro
Metro Launched
Launched thethe public
publicbidding
bidding work
work ofof thethe rest
rest ofof thethe advertising
advertising resources
resources inin thethe otherother 3030 stations,
stations, which
which will
will increase
increase thethe revenue
revenue byby nearly
nearly 100
100
millionmillion Birr
Birr(approximately(approximately 4.35
4.35million
million US
USdollars)
dollars) every
everyyear
year forforthethe light
light rail
railcompany
company..

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd) Be replicable and scalable
The project can be replicated in other countries in Africa and other continents.
Shenzhen Metro launched AALRT staff training course, which includes the local training course and the training in Shenzhen.
AALRT has completed theoretical training of 20523 persons/3289 class hours totally, including19010 persons/2833 class hours
for Ethiopian staff, 1628 persons/453 class hours and 774 persons/76 class hours for local staff.
Shenzhen Metro believes that training is a crucial part of replicability and scalability of projects.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind39e) Engage all stakeholders
For Ethiopian people, Ethiopia light rail is the first urban rail transit line. It has not only greatly improved the traffic mode
for local residents who always travel by taxi or by bus, and also brought the great convenience to local residents.
For the government of Ethiopia, Chinese government has provided loans, which solve the financial difficulties for
Ethiopia's government in the large infrastructure projects.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind40Case 9MoroccoEnergy Sector
Noor II and III Solar Power Plants

41

Project:
Project:

Noor
Noor IIII andand III
III solar
solar power
power plants
plants (Morocco)(Morocco)

Project
ProjectProponent:
Proponent:

Thibaut
Thibaut Mourgues
Mourgues (tmourgues@4ipgroup.org)(tmourgues@4ipgroup.org)

Project
ProjectOrganization:
Organization:

4IP
4IPGroupGroup

PublicPublicOrganization:
Organization:

MoroccoMoroccoAgency
Agencyfor
forSolar
SolarEnergy
Energy (MASEN)(MASEN)PrivatePrivate Organization:
Organization:

Investor
InvestorandandOperator:
Operator:ACWA
ACWAPower
Power (Saudi(SaudiArabia)
Arabia)Contractors:
Contractors: Sener
Sener(Spain),(Spain),Sepco
SepcoIII
III(China)(China)CapitalCapitalProviders:
Providers:Equity:Equity: consortium
consortiumled
ledbybyAcwaAcwaPower
Power(75%),(75%),MASEN
MASEN(25%)
(25%)
Debt:
Debt:MASEN,
MASEN,throughthrough IFIS
IFIS(African(AfricanDevelopment
Development Bank,
Bank,thethe Agence
AgenceFrançaise
FrançaisededeDéveloppement,
Développement, thethe Clean
CleanTechnology
Technology Fund,Fund, thetheEuropean
European Commission,Commission,thethe European
EuropeanInvestment
Investment Bank,
Bank, Kreditanstalt
Kreditanstalt fürfürWiederaufbau
Wiederaufbau andandthethe World
WorldBank).
Bank).

Photo
Photoofofthe
thepresenter
presenter

Why
Whyisisthis
thisprojectprojectaaCase
CaseStudy
Studyfor
forPeople
PeopleFirstFirst PPPs:
PPPs:
-----

Renewable
Renewable energy
energy generation
generation contributing
contributing totoreorientation
reorientation ofofenergy
energy mix
mixtoward
toward improved
improved sustainability
sustainability
Affordable
Affordable tariff
tariff throughthrough innovative
innovative blending
blending financing
financing
Industrial
Industrial integration
integration (35%(35%local
localcontent)
content) ensuring
ensuring know-how
know-howtransfer
transferMarketMarketrate
rate equity
equity return
return (competitive(competitive tender)
tender) for
forthetheinvestors
investors

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindWhere:

Draa-Tafilalet region, 10 km from Ouarzazate (Morocco), in a sparsely populated area. Power will be connected to the national grid,
thus having a national impact.

Why:

fossil fuel represented 94% of energy consumption in 2008. Renewable energy plan aims to reach 42% renewable energy by 2020.
Solar energy should represent 25% of installed capacity by 2020 (over 2000 MW). Noor will be the major component of the plan,with respectively 160 MW for Noor I, 200 MW for Noor II and 150 MW for Noor III.; PPP chosen to involve private sector fortechnical skills and equity finance.

What:

ensure clean and affordable power generation to cope with expected consumption growth and limit reliance on imported fuel.

Who:

MASEN: public authority (preparation, land owner, debt financing, tendering, contractual counterpart, equity shareholder);Government of Moroccco (debt guarantee); ONE public utility (power purchaser); Private party (designing, equity financing,
construction, operation and maintenance); Public party: takes full risk on debt; private party: takes full risk on dent and equity.

When:

Project prepared from 2010 onwards (originally intiated by Desertec); Tender: 2014; Start of construction: 2015 ;Start ofoperations: late 2017/2018; Contract ends: 2042.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind42a)a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity
equityOver
Over99%99%ofofpopulation
population has
hasaccessaccesstotoelectricity.
electricity. Challenges
Challenges ahead
aheadlieliein
inensuring
ensuring affordable
affordable andand reliable
reliable power
power generation.
generation.
The
The totality
totality ofofthe
theprojectprojectproduction
production will
will bebepurchased
purchased bybythe
thepublic
public utility
utility (ONE)(ONE)under
underaaPPA
PPAcontract.
contract.Thus
Thus thethe Government
Government
remainsremains inincharge
chargeof
ofdistribution
distribution issues
issues(connecting(connecting rural
rural areas,
areas, determining
determining tariffs,
tariffs, etc.)etc.)andandhashas fullfull control
controlover
overdistribution
distributionsocialsocialpolicy.
policy.
The
The projectprojecttariff
tariff isisset
setat
at1.42
1.42 MAD/kWh
MAD/kWh for
forNoor
NoorIII,
III,i.e.
i.e. 0.15
0.15USD/kWh.
USD/kWh. Its
Itsincrease
increase isislimited
limited bybyananindexationindexation formula
formula forforthethe duration
duration ofofthe
the contract.
contract.
Therefore
Therefore ONE
ONEisisnot
notfinanciallyfinancially constrained
constrained bybyexpensive
expensive commitments
commitments which
whichwould
would limit
limit its
itscapacity
capacity totoimplement
implement affordable
affordable
tariffs
tariffs forforthethepoorpoorororfor
forbusinesses.
businesses.
In
Inaddition
addition thethe projectprojectincludes
includes industrial
industrial integration
integration forfor35%,
35%, know-how
know-howtransfer,transfer,and
anddirectly
directly andandindirectly
indirectly createscreates job.
job.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb) Develop a resilient infrastructure and improve environmental sustainability
Noor II is CSP using parabolic trough and with 7 hours energy storage
Noor III is CSP using solar power tower with 8 hours energy storage
Both plants use dry-cooling systems. All necessary water is produced through the local Mansour Edabbhi damn with anegligible impact on overall quantity available (less than 1%).
The environmental impact lies in the reduction of CO2 emissions. Noor II and III save around 0.5 mt CO2 per year, or 13 mt
during the 25 years operating period.
No adverse significant environmental or social impact is expected from project construction and operation.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind43c)c) Demonstrate
Demonstrate thethe economic
economic andand financial
financial effectivenesseffectiveness ofof thethe projectproject
Project
ProjectIRR:
IRR: 4%4%
EquityEquity IRR:
IRR: 7%
7%
Financing
Financing plan
plan(in(inM
MEuros):Euros):
IFIs:
1
392
IFIs:
1 392
EU
90
EUgrant:
grant:
90
Sponsors:
270
Sponsors:
270
Total:
11752
Total:
752
Project
Projectdebt
debtisisraised
raisedby
byMASENMASENandandpassed
passed throughthrough (same(sameconditions)conditions) totothe
the projectprojectcompany.
company.
Masen
Masenwill
willacquireacquire allallthethe power
powerproduced
produced throughthrough aaPowerPowerPurchase
Purchase Agreement
Agreement andandpass
passititthroughthrough to
toONE,
ONE, thethepublic
publicutility.
utility.
The
The projectprojectwill
willsupport
support ::•• local
localeconomy:
economy:jobs
jobscreation,
creation, industrial
industrial integration,
integration, spillover
spillover effecteffect•• Moroccan
Moroccaneconomy:
economy:fuelfuelimportimport savings
savings ‘estimated‘estimated to
to0.3%
0.3%GDP),GDP),affordable
affordable energy
energy totosustain
sustain development
development (power(powerconsumption
consumption growth
growth rate
rate ofof5%/year)
5%/year)UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd) Be replicable and scalable
The success of the project has inspired similar project in wind power generation in Morocco.
Other countries can replicate the project by taking a few steps:• Developing a national strategy to increase renewable energy share in energy mix• Creating a specialized agency with the required flexibility and expertise• Securing Debt concessional funding from donors and IFIs
• Organizing a well prepared and highly competitive tender resulting in an affordable tariff• Imposing industrial integration constraints to benefit local industry
The economic and social impact of the project is evident:• locally, it will boost the job market (200 to 1200 jobs during construction). A Recruitment Policy is incorporated into the
EPC’s Construction Environmental and Social Management Plan (CESMP), which sets out the proposed measures tomaximise the benefits to the local population and economy. The number of local population employed by the project andthe training provided to the workforce is monitored. The employment of women and vulnerable groups is specificallytargeted and monitored.
• It will foster the renewable energy industry in Morocco, with a view to export regionally the know-how• Nationally, it will contribute to providing affordable energy required by economic development and households
consumption.
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

44e) Engage all stakeholders
The project was highly consensual. Masen organized public consultations from 2010 in accordance with Moroccan law andinternational standards. A public enquiry was held in September 2011.
The project was presented in 2015 to a mix of local inhabitants, Government and administrative bodies, local private offices
and associations. Concerns raised involved:• Consumption of water during the operation phases• Solar flux/rays from the tower on neighbouring communities• Employment• Role of the project in the development of the local population
The mitigation measures set in place include:• Minimal water use,
• Zero wastewater discharges,• Water treatment for reuse onsite,• Inclusion of provisions in the Environmental and Social Management Plan to promote the employment of the local populationand the provision of training.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind45Case 10Myanmar
Energy Sector
People First PPP in Post Sanction Myanmar

46

Project:

PEOPLE FIRST PPP IN POST SANCTION MYANMAR

Project Proponent

ANGLO EURO DEVELOPERS (S) LTD

Project Organization:

ANGLO EURO ENERGY MYANMAR

Public Organization:
Private Organization:
Capital Providers:

Directorate of Investment and Company Administration, Myanmar Investment Commission.
Anglo Euro Developers (S) Ltd
Private Investors with support from Multilateral Development Agencies & Commercial Banks

Why is this project a Case Study for People First PPPs:
•
•
•
•
•

Myanmar is post-sanction economy, sanction was lifted less than a year ago.
Majority of population are low income and low middle income group. High middle income group is minimal.
Direct Social Impact on each of SDGs from Poverty Eradication, to improvement of Quality of Life, Basic Amenities,
Jobs creation, and Democratic institutions and Parliamentary procedures are evolving in place.
Myanmar has opted for Clean Energy options in LNG and Renewables instead of Coal (there are existing coal mines),hence Government decisions and policies have direct Environment Impact and greenhouse carbon emissions.
PPP policies and regulations are being formulated including provision of Government Guarantees for PPP projects.
This is a step in the right direction to attract foreign investments for much needed infrastructure projects. PPP cancertainly play a very important role in Myanmar as it has been a closed economy for many decades.
Our projects have a direct impact on most of the SDGs.
Job Creation (No 8) Poverty Eradication (1) Improving Quality of Life (2,3,4) Clean Energy, Climate Action (6,7,9,13 & 15) and
PPP impacts on SDG 16 & 17

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:
Where:

Myanmar
Myanmarhas
has aapopulation
population ofof55
55million.
million.Our
OurRenewables
Renewables projects
projectsin
inSolar
Solarand
andIntegrated
Integrated Waste
Waste Water
Water Treatment
Treatment &&Biogas
BiogasEnergy
EnergySolutions
Solutions areare locatedlocated near
nearhighhighloadloadcenter
center ofofYangon
Yangonandandnearby
nearby Mon
Monandand Ayeyarwady
Ayeyarwady States,
States, withwithaarapidly
rapidlygrowing
growingpopulation
population ofof10
10
million.
million.Key
KeyEconomic
Economicand
andInvestment
Investment Sectors:
Sectors: Oil
Oil&&Gas
Gas34%,
34%, ElectricalElectrical PowerPower 30%,
30%,Manufacturing
Manufacturing 12%,12%, Telecommunication
Telecommunication 8%,8%,RealReal
EstateEstate 5%.
5%.

Why:
Why:

1.
1.Due
Dueto
todecades
decades ofofclosed
closed economy
economyandandsanctions,sanctions, basic
basicinfrastructure
infrastructure such
suchasaspower
powergeneration
generation andandtransmission,transmission,
telecommunications
infrastructure,refineries,
andmanufacturing
areseriously
lacking
or
in
need
of
telecommunications infrastructure, refineries, and manufacturing are seriously lacking or in need ofmaintenance.
maintenance. The
Thecountry
country has
has thetheadvantageadvantage totoadopt
adoptsustainable
sustainable policies
policies andandprojects
projects withwithdirect
directcontribution
contribution to
toSDGs.
SDGs.
2.
2.Private
Private sector
sector isisstill
still developing,developing, withwithaafew
fewlocal
localprominentprominent companies
companies withwithinternational
international operations.
operations. From
Fromriskriskmitigation
mitigation
viewpoint
viewpoint PPP
PPPisisaaviableviable approach.
approach.

What:
What:

In
Inaddition
addition to
tojob
jobcreation,
creation, Biogas
Biogas Energy
EnergyandandRenewable
Renewable Solutions,
Solutions, provide
providetransfer
transfer ofoftechnology
technology inincleanclean energy
energy generation
generation
promoting
ClimateAction.
Myanmar
needs
badly
a
growing
middleincomepopulationtofosterinternal
economic
promoting Climate Action. Myanmar needs badly a growing middle income population to foster internal economic growth.
growth.
The
Theconsumption
consumptiondemand
demand andandgrowth
growthcatalyst
catalyst areare certainly
certainly there,
there, thetheeconomic
economicand
andlegal
legal structures,
structures, institutional
institutional governancegovernance andandregulations,
regulations, industrial
industrial andandfinancial
financial innovations
innovations have
have totobe
be putputin
inplace.
place.

Who:
Who:

The
TheDirectorate
Directorate ofofInvestment
Investment andandCompany
CompanyAdministration
Administration (DICA)(DICA) under
underMinistry
Ministry ofofFinance
Financesupports
supportsour
ourbusinessbusiness andandtechnological
technologicalapproach.
approach. At
Atthisthisstagestage Public
Public sector
sector isisin
inurgent
urgent need
need forforcapacity
capacity buildingbuildingand
andPrivate
Private partners
partners likelikeourselves
ourselves areare playing
playing aamuch
much
neededneeded rolerole ininpromoting
promotingPPP
PPP awarenessawareness andandweweshall
shallbebepartnering
partnering National
National University
University to
torun
runProfessional
Professional PPP
PPP courses
courses (CP3P)(CP3P) anan
innovation
innovation ofofthe
theAsian
Asian Development
Development Bank
Bank (ADB),(ADB),thethe European
European Bank
BankforforReconstruction
Reconstruction andandDevelopment
Development (EBRD),(EBRD), thethe Inter-American
Inter-American
Development
Development Bank
Bank(IDB),(IDB), thetheIslamic
Islamic Development
Development Bank
Bank(IsDB),(IsDB), thetheMultilateralMultilateral Investment
Investment Fund
Fund(MIF),(MIF), andandthetheWorld
WorldBankBankGroup
Group(WBG).
(WBG).

When:
When:

Government
Government approval
approval forforourourprojects
projectsshall
shall bebewithin
withinsix
sixmonths.
months. By
ByOctober
October 20172017thetheMyanmar
MyanmarParliament
Parliament shall
shall finalize
finalize their
theirregulations
regulations on
onapproval
approval processprocess andandlegal
legal framework
frameworkfor
forGovernment
Government Guarantees
Guarantees for
forPPP
PPPProjects.
Projects.
Review
Reviewof
ofregulation
regulation under
underPublic
Public Debt
DebtManagement
Management Law
Lawshallshall bebefinalized
finalized ininsamesameperiod.
period.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty,protect
protectthe
the planet
planet while
while leaving
leaving nono oneone behindbehind47a) Increase access to essential services and promote equity
A1. INTEGRATED WASTE WATER TREATMENT & BIOGAS ENERGY PLANT
Patented German technology 2013, Waste Water Treatment built capacity ranges from 8,000 to 100,000 m3 designed to comply with German
industrial WW standards and regulations. Well over 10 plants in full commercial operation in China since 2006
Integrated Solution: Waste Water Treatment + Biogas Energy Production Enhanced energy efficiency,
Increased biogas yield and energy production (+30 to 50% or more) Greatly reduced WW discharge (from 10% to 40%)
Fertiliser sales: Adds new and potentially significant revenue stream
Potential benefits from carbon offsets. Zero Carbon emissions (CO2)
Direct Impact on SDGs 9 Industry, Innovation, Infrastructure, SDG 7 Affordable Clean Energy, SDG 6 Clean Water Sanitation, SDG 12 Responsible
Consumption and Production.
A2. SOLAR POWER PROJECTSWe are supported technically by Canadian Solar Inc who has developed and installed 1.8GW solar power plants globally. Canadian Solar is a global
leader in solar project development, construction and installation.

Presently selection sites under PPP structure with Provincial Governments.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
INTEGRATED WASTE WATER TREATMENT & BIOGAS ENERGY PLANT
•
•
•
•
•
•
•
•
•
•

Can be modular or large-scale configuration. Modular units use 40 ft. Containers
Tailored design for large-scale units (e.g., 200,000 m3 per day)Containers incorporate durable stainless steel fabrication
Movable/portable
Suitable for remote/off-grid locations
Modular design significantly reduces construction cost
Minimum lifespan of 20 years for each installation (using stainless steel fabrication)
Containerized design means plant can be located closer to sources of waste, resulting in reduced
transportation and storage costs.
Innovative & robust technology significantly reduces operation and maintenance (O&M) cost

ENVIRONMENT IMPACT•••

Zero Carbon Emissions (CO2)
Production of biologically valuable Fertilizer
Sale or owner-use of the generated Electrical Energy & HeatUNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind48c) Demonstrate the economic and financial effectiveness of the project
DEBT 70%
Project Funding from Multilateral Development & Commercial Banks

Mezzanine

EQUITY 30%
Equity by Private Investors

Based on Waste Water Affluent of 3,500 m3 per day.

Payback Period 3.5 years

IRR 24% pa

RoE 14% pa

Note: Including return from Biogas Energy sales (150,000 kW/day) and Organic Fertiliser sales (200 MT/day).
Guarantees shall be provided by Government for approved PPP Projects (waiting for Parliamentary approval).

Availability Payments shall be from Government through Multilateral Development Bank loans and Credit and Commercial Bank syndicated loans.
Contingent Liabilities are covered by underwriting of Risk mainly construction risks.
Project Contribution to local economy is the Sales of Biogas Energy as clean energy to local authorities and Organic Fertilizer sales, which is locally
produced. This benefits local farmers and contributes to local economy and at the same time Biomass Projects impact directly on SDG 7 Clean Energy,
SDG 9 Industry and Innovation and SDG 12 Responsible Production.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
•
•
•
•
•
•

Modular design facilitates scalability and replicable in other locations or country.
Units can be combined to make an integrated waste/waste water treatment & power plant
Decentralized design of modular plants reduces demand on electrical networks
Excess power can be sold to private clients or the grid
Energy self-sufficient (can be operated fully off-grid)
Potentially significant revenue from surplus energy (electricity or gas) sales

HUMAN CAPITAL DEVELOPMENT
•
•
•
•
•
•

Anglo Euro Developers Specialist Team shall train local workers and employees at site including operations and maintenance. This includes Public
operations and management teams.
There shall be transfer of skills and know-how to local workers in order to upgrade their vocational skills.
Project/Asset Development and Management
Training shall be given at different phases of the Project, pre-construction training and safety induction,
on-site training on construction and assembly, ISO standards, work to order, and post construction training.
Operations & Maintenance Training and Skill Upgrading.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind49e) Engage all stakeholders
PPP GOVERNANCE MODEL AND
PROCESS BETWEEN GOVERNMENT,STAKEHOLDERS AND LENDERS.

MULTILATERALDEVELOPMENT BANKS /EXPORT CREDIT AGENCIES /INSTITUTIONAL AND
COMMERCIAL LENDERSGOVERNMENTMINISTRIES /STATE OWNEDENTERPRISES /STATE ORPROVINICIAL
GOVERNMENTS

PLANNING,
PREPARATION, &APPRAISAL

IMPLEMENTATION& PROCUREMENTENVIRONMENTORGANIZATIONSNGOs / CIVIL
SOCIETIES /ACADEMICS /HUMAN RIGHTGROUPSMINISTRY OF
FINANCEPPP UNITMINISTERIAL CABINET& PARLIAMENTLEGAL - AGO
APPROVAL & IMPLEMENTATION

THE PPP PROCESSINPUTSPRIVATE SECTOR
AND PROJECTSPONSORSPPP ADVISORYTEAM &
WORKINGCOMMITTEEMOF ISSUESGOVERNMENTGUARANTEEFOR PPPPROJECTSPUBLIC DEBT
MANAGEMENTLAW GOVERNING
PPP GUARANTEESTENDERING AND
AWARDING
MANAGING
CONTRACT &COMMISSIONINGOPERATIONS &MAINTENANCEUNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind50Case 11
Philippines
Health Sector
Total Laboratory Automation of Clinical Laboratory

51

Project:

Total Laboratory Automation of Clinical Laboratory

Project Proponent:

Dr. Januario D. Veloso

Project Organization:

National Kidney and Transplant Institute (NKTI)

Public Organization:

National Kidney and Transplant Institute (NKTI) is a government-owned tertiary specialty
center under the supervision of the Department of Health. The NKTI Medical Laboratory
caters to both private and service patients, offering over 500 quality and accurate clinicaldiagnostic tests. It is the first ISO 15189-accredited clinical laboratory in the Philippines in2009, and was granted re-accreditation in 2014.

Private Organization:

Sysmex Philippines, one of the branches of Sysmex Corporation in the Asia Pacific, supplies
the platform for Hematology and Clinical Microscopy. Siemens, on the other hand, provides
the platform for Clinical Chemistry. They have long been partners of NKTI Medical
Laboratory, rendering comprehensive diagnostic services in terms of machines, reagents, aswell as after-sales support.

Capital Providers:

Department of Health

Why is this project a Case Study for People First PPPs:
Total Laboratory Automation (TLA) is a lease agreement-type set-up which allows FULL AUTOMATION fromsample reception to storage, including AUTOVALIDATION of results. This allows consistently quick turn-around-timefor each result, while at the same time maintaining accuracy by minimizing operator-dependent errors. This has
also effectively reduced the number of staff needed to man each section, allowing them to be redistributed toareas where they are needed most. Hence, more patients are better served daily.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Hematology, Clinical Microscopy, and Clinical Chemistry Sections are now fully automated.

Why:

In 2015 when the laboratory was only semi-automated, it took 3 hours for routine specimens and 90 minutes for outpatient STAT
samples to be processed. Turn around time (TAT) for in-patient STAT samples was 45 minutes. In cases of emergency when time is of theessence, this was simply unacceptable. Also, because of rash specimen handling, processing, and release, errors were frequently
encountered.

What:

Improved patient care
Laboratory errors minimized
Shorter turn-around time

Who:

Stakeholders: Ensure availability of quality services for all through provision of funds
Suppliers: Provide state-of-art healthcare services including preventive maintenance and calibration of machines
Pathologists: Cross-checks when results are doubtful
Clinicians: Request services that are of quality for the benefit of patients
Patients: Avail of healthcare services with corresponding fees for sustenance of services

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind

52

2016
2013
2009
2009
2004

1983
1st automatedchemistry
analyser

Installed
Centralized
Laboratory
Information
system

1st total

Achieved ISO
15189:2007
accreditation

Autovalidation in
Hematology

Auto-validationin Clinical
Chemistry andClinicalMicroscopy

End of Contract:

2019

Siemens Aptio
automation
withautomatedinventory
management
systemlaboratory
automation
system in PH

1st
integrated
HIS/LIS in PH

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behinda) Increase access to essential services and promote equity

PAY PATIENTSNO stratification whether
pay or service patients.
ALL samples processed
equally and ALL services
are of GOOD QUALITY.
ROUTINE: 2 hours TAT.
STAT (in & outpatient): 45
minutes TAT.

SERVICE PATIENTSUNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind53b) Develop a resilient infrastructure and improve environmental sustainability• Quality control – courtesy of end user (conducted daily by the medical
technologists)• Preventive Maintenance – courtesy of supplier (bi-annually)• Calibration Recall System – courtesy of supplier (once a year)*Supplier can also be called to report to the laboratory as needed

Lean Approach Eliminates Unnecessary Waste
 Aliquote only when required.
 Eliminate unnecessary material waste and labor time.
 Save costs (material and labor) and time.
 Employs third party agency to collect infectious wastematerials (blood and other body fluids).
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindc) Demonstrate the economic and financial effectiveness of the project

SECTIONSTOTALSERVICERENDERED(2015)

ClinicalMicroscopy•

52,721

ClinicalChemistry

742,392

Hematology

132,895

Medical•technologists
double checksamples prior toloadingTOTAL%
SERVICE INCREASERENDEREDIN(2016)SERVICE

9%57,219740,427
147,460

Samples can beloaded byregularpersonnel

•

0%
11 %
Unique designs
increase staff
efficiency andproductivity

INCOME(2015)

INCOME(2016)%
INCREASE
IN INCOME

ClinicalMicroscopy

13,870,325.00

14,859,291.25

7%

ClinicalChemistry

253,927,830.00

245,568,432.50-3 %Hematology

71,003,606.25

79,811,670.00

12 %SECTIONSTOTAL FOR 2016:
3% increase in income
5% increase in service

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind54d) Be replicable and scalable

Replicable•••

At present, several institutions are already making use of TLA (i.e. Makati Medical Center, St.
Luke’s Medical Center).
Many other hospitals also want to have their own TLA set up.
NKTI was invited to speak on several occasions, earning positive feedback from interested
parties on:
 Autovalidation with NKTI as the prototype, entitled “Transcending Laboratories with
Proven Laboratory Management Validation” (Marriott Hotel Manila, August 2016)
 Total Laboratory Automation, entitled “Chemistry Total Laboratory Automation – Ourjourney” (Singapore, April 2016)

Scalable• Staff from each section underwent supplier-sponsored in-housetrainings for one week upon installation of machines.
• Staff were trained to familiarize oneself with the machines including
simple troubleshooting.
• Section heads were also briefed on the management aspect.

This project promotes
quality healthcare for all
patients by creatingstrong partnerships withkey stakeholders,providing exceptional
solutions, and employing
efficient systems for the
benefit of ALL.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behinde) Engage all stakeholders

ROLES OF STAKEHOLDERS/ ADMINISTRATORS







Understand the business needs of NKTI
Understand the current lab processes/workflows
Acknowledge best demonstrated practices in the lab
Identify gaps/challenges such as nonconformity of patients orinefficiency of staff
Call for regular strategic planning to address challenges and toensure that external regulation requirements for a clinicallaboratory are met.

ChairmanDivision Head
Department
Chief MedTech

Division Chief
Med Techs
Section Chiefs

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind55

Case 12
Philippines
Regional Development
Butuan City Regional Development Programme

56

Name
NameofofProject:
Project:

ButuanButuanCity
CityRegional
RegionalDevelopment
DevelopmentProgramme
Programme(Butuan(ButuanCity,
City,Mindanao,
Mindanao,Philippines)
Philippines)

Name
NameofofSpeaker:
Speaker:Sam
SamTabuchi
Tabuchi(kstabuchi@toyo.jp)(kstabuchi@toyo.jp)
SatoshiSatoshiKato
Kato(katou-sa@chodai.co.jp)(katou-sa@chodai.co.jp)

PublicPublicOrganization:
Organization:

ButuanButuanCity
Cityandanditsitsaffiliatedaffiliatedagencies
agencies

PrivatePrivateOrganization:
Organization:

Chodai
ChodaiCo.,
Co.,Ltd.,Ltd.,Equi-Parco
Equi-ParcoConstruction
ConstructionCompany
Company&&Twinpeak
TwinpeakHydro
HydroResources
ResourcesCorp.
Corp.

Philippines
Philippines

Area
Area：
300,000 km2
km2：300,000
Population
Population：
100million
million：100

Surigao
SurigaodeldelNorte
Norte

Luzon
Luzon
ManilaManilaAgusanAgusandeldelNorte
Norte
Surigao
SurigaodeldelSur
Sur

Cebu
Cebu

Sam
SamTabuchi
TabuchiSatoshiSatoshiKato
Kato

AgusanAgusandel
delSurSur

Mindanao
Mindanao

ButuanButuanButuanCity
CityButuan

Mindanao
Mindanao

Area
Area：
100,000 km2
km2：100,000
Population
Population：
22million
million：22

Source：Source：Wikipedia
Wikipedia

Area
Area：
817km2
km2：817
Population
Population：
337kk
：337

TwinpeakTwinpeakHydro
HydroResources
ResourcesCorporation
CorporationUNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty,protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindBackground

Main Industry

Agriculture
Aquaculture(Prawn Farming)

Forestry
Enactment oflaw to forbid
cutting trees

Construction (ODA)

Spread of
diseaseEnd ofODA
projects
2nd Magsaysay Bridge

1960’s1980’s2000

New Industrial Field(S)to be made⇒ What? And How?

PPP Study by Toyo University

2010

2011

2017

Proposals in PPP Study Report: “Lemon” into “Lemonade” through PPP
Water

Agriculture

Forest Resources

Etc...

Hydro Power Generation
Biomass Power
Generation

Agricultural Product
Processing
Export of Wood
PelletEtc...

・PPP Promotion Committee - Organization to promote PPP (Mar 2012, Executive Order No. 51)

PPP Possibilities

for the future of Butuan City・PPP Code of Butuan City - First local PPP code in the Philippines（Aug 2012）UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind57Concept/
Concept/Target
Target

Phase
Phase

33rdrd Phase
Phase

Goal/
Goal/Target
TargetRegional
RegionalDevelopment
Developmentby
byTaking
Taking“step“stepbybystep”
step”Approach
Approach Employment
EmploymentCreation,
Creation, WageWageIncrease
Increase
Industrial
Industrial ParkPark

nd Phase
22nd
Phase

11stst Phase
Phase

 Stable
StableSupply
Supply ofofHighHighValued
Commodities,
Valued Commodities,
while
whileIncreasing
Increasing
Productivity
Productivity

Industrial
Industrial Park
Park

Industrial
Industrial Park
Park

Rice
RiceFarming
Farming

Prawn
PrawnFarming
Farming

Prawn
PrawnFarming
Farming

Eel
EelFarming
Farming

Hydro
HydroPower
Power

Hydro
HydroPower
Power

Wind
WindPower
Power

Bulk
BulkWater
WaterSupply
Supply Development
Developmentof
ofBasic
Basic
Infrastructure
Infrastructuresuch
such asasElectricity
Electricityand
and Water
Water
etc
etc

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindFeatureFeatures of Butuan Projectsa) Increase access toessential services andpromote equity

 Access to stable power supply and clean water, trying to be establishedthrough the Phase-1 projects
 Stable supply of basic infrastructure to increase QOL as well as to bring inother industries, achieving more employment creationb) Develop a resilient
infrastructure and improve
environmental sustainability

 Renewable energy project(s) being priotized Involvement of Japanese companies with high eco-consciousness andadvanced technology along a Japanese gov’t policy of “High quality infra”c) Demonstrate theeconomic and financial
effectiveness of the project Support from Japanese gov’t such as JICA, METI, JBIC etc for feasibility
study and loan provision, improving project economics
 Portfolio effect, with less risk, brought by several bundled projects
conducted simultaneously All projects promoted under private sector initiative (profit-driven andthen self-supported): sustainable without rely on supportd) Be replicable and scalable All projects on region level (local gov’t level): project size is relatively small
for many players to join
 Target: Regional development by job creation for & with local communitiese) Engage all stakeholders

 MOUs signed among parties across countries (Japan-Phil) and acrosssectors (public, private and academic)
 All stakeholders, especially private, with long term commitment
 Good circulation of “many stakeholders bring more stakeholders”

SDGs

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind58

Structure
Structure

P

ublic
ublic

Philippines
Philippines

Barangay
Barangay

FatherFatherSaturnino
Saturnino
Urios
UriosUniv.
Univ.

Provincial
Provincial
Governments
Governments
Departments/
Departments/
Agencies
Agencies

FatherFatherSaturnino
Saturnino
CaragaUrios
Univ.
CaragaState
Univ.
UriosState
Univ.Univ.

ButuanButuanCity
City

PPAP
PPAP

PPP
PPP

P

rivaterivateMOU
MOUforforcomprehensive
comprehensivepartnershippartnershipforforregional
regionaldevelopment
developmentinin
Mindanao
Mindanaosigned
signedin
inMay
May2015
2015

TwinpeakTwinpeakHydro
Hydro
Recources
Recources
Equi-Parco
Equi-Parco
Construction
Construction

JICA
JICA

Japan
Japan

METI
METI

Chodai
ChodaiCo.,
Co.,Ltd.
Ltd.
(Chodai(ChodaiGroup)Group)

ToyamaToyamaCity
City

JBIC
JBIC

MOU
MOU forfor collaboration
collaboration aiming
aiming low-carbon
low-carbon based
based
regional
regional development
development signed
signed inin OctOct 2016
2016

Toyo
ToyoUniversity
University

A

cademiccademic

PrivatePrivateCompany
Company
PrivatePrivateCompany
Company
PrivatePrivateCompany
Company

PPP
PPP
PrivatePrivateCompany
Company
PrivatePrivateCompany
Company
PrivatePrivateCompany
Company

MOU
MOU forforacademic
academic cooperationcooperationsigned
signedinin Nov
Nov2011,2011,andand
three
threeday
dayPPP
PPPworkshop
workshop conductedconductedin
in DecDec20122012

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thetheplanetplanet while
while leaving
leaving nono oneone behindbehindPartnership across Country & Sector

30 Jun 2016: Mr. Lagnada inaugurated as Mayor

11 – 13 Aug 2016: Toyama city official visited Butuan

10 Priority Impact Projects
1) Bright Butuan;2) Clean Butuan;
3) Orderly Butuan;
4) Progressive Barangays;5) People-friendly City Hall;
6) Excellent-Driven City Hall;
7) Clean Water;
8) Fast and Efficient Licensing in Butuan;
9) Transparent City Hall;
10)Save Butuan.

In Oct 2016: Toyama and Butuan Inter-city
Cooperation commenced
Toyama and Butuan entered into an MoU, together
with private companies, for inter-city cooperationand exchange in the "UN CoE Local Governments
Network Event" held by Toyo University.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind59

Investment
Investment

Project
Project

11stst Phase
Phase

nd Phase
22nd
Phase

33rdrd Phase
Phase

Overview
Overview

PJ
PJCostCost (PHP)(PHP)

StatusStatusAsiga
Asigariver
river Hydro
Hydro
Taguibo
Taguiboriver
river Hydro
Hydro

8MW/
8MW/Run-of-river
Run-of-river type
type
5MW/
5MW/Run-of-river
Run-of-river type
type

1,200
1,200 MilMil750
750 MilMil

Under
UnderConstruction
Construction

Wawa
Wawariver
river Hydro
Hydro
Biomass
BiomassPower
Power

23MW/
23MW/Run-of-river
Run-of-river type
type
2MW/
2MW/Rice
Rice husk
husktype
type

4,000
4,000 MilMil
429
429 MilMil

FS
FSdonedone

WindWind Power
Power
Bulk
BulkWater
WaterSupply
Supply150MW150MW(2MW×75)(2MW×75)
Capacity
Capacity upgrade
upgrade toto80k
80km3/day
m3/day13,64813,648MilMil
565
565 MilMil

Agriculture
Agriculture

Rice
Rice Farming
Farming&&Milling
Milling
Prawn
PrawnFarming
Farming

Non
Non public
publicNon
Non public
publicUnder
UnderOperation
Operation

Eel
EelFarming
Farming
Development
Development area:
area: 140ha
140ha

Non
Non public
public
3,562
3,562 Mil
Mil

Under
UnderOperation
Operation

Aquaculture
Aquaculture
Industrial
IndustrialPark
Park(SEZ)
(SEZ)
Total
Total

Pre-FS
Pre-FSdone
done

Pre-FS
Pre-FSdone
done
Pre-FS
Pre-FSdone
done
Under
UnderOperation
Operation

Pre-FS
Pre-FSdone
done

Pre-FS
Pre-FSdone
done

Php
Php24,154
24,154Mil
Mil (USD(USD503503Mil)Mil)

AnnualAnnualbudget
budgetlevel
level in
inButuan
Butuan City:
City: Php
Php1,500
1,500MilMil⇒⇒EstimatedEstimated budget
budgetfor
for public
publicworks
works **== Php
Php300300 Mil
Mil(USD(USD6.24
6.24 Mil)
Mil)**On
Onnational
nationallevel,
level,approx.
approx.20%
20%ofof thethetotal
totalbudget
budgetisisspent
spentforforpublic
publicworks
worksininthe
thePhilippines
Philippines

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindSignificance – Replicability & Contribution to Regional Development

Level 4: Evacuate and Avoid all travel
Level 3: Avoid all travel
Level 2: Avoid Non-essential travel
Level 1: Exercise caution
Source: MOFA's "Overseas Travel Safety Information“

 FDI (Private investment) into Mindanao has been weak, given the relatively high security level, as rated by Ministry of Foreign Affairs of Japan
 International assistance/ aid to Mindanao is limited, so more private investment therein should be inevitable for sustainable development
 If this Butuan project goes well, then this could be spread out across other cities in Mindanao as a “model for regional development”
Feature of Butuan project model

1) “Same partners” work together for “multiple projects” simultaneously in the “same area”

2) Local based partner(s), well motivated for development of their area, is involved“People-First PPP”

3) All the stakeholders share a common goal of “regional development” upon a base of “long term.
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind60

Case 13
PolandUrban Development
Development of Urban Adaptation Plans for Cities with more than
100,000 Inhabitants in Poland

61

Project:

Development of Urban Adaptation Plans for cities with morethan 100,000 inhabitants in Poland (MPA Project)

Project Proponent:

Ministry of the Environment

Project Organization:

PublicPublic Organization:

Ministry of the Environment – beneficient & coordinator, Ministry of Finance – State Budget- provides national contribution to the Project budget (the rest of Project budget isprovided by EU-Funds).

Private Organization:

Environment Protection Institute — National Research Institute (leader), Institute ofMeteorology and Water Management — National Research Institute, Institute for Ecology ofIndustrial Areas and a consulting and engineering company ARCADIS, as well as a
subcontractor responsible for project communications — Deloitte Poland.

Capital Providers:

EU Funds: Operational Programme Infrastructure and Environment 2014 – 2020 (85%);
National Funds (15%)

Why is this project a Case Study for People First PPPs:
Project aims at the vulnerability and risk assessment of each city to climate change and at planning adaptation
solutions, inluding soft and hard measures with respect to the identified hazards. All Urban Adaptation Plans will be
developed in accordance with one methodology. The project will contribute to the improvement of the safety andquality of life of the citizens. It will also support the local authorities in accessing financial resources for theinvestments.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Project is located in Poland, on the basis of the partnership with 44 cities, mostly with more than 100 000 inhabitants, almost 30% of
Polish population will be covered by Urban Adaptation Plans.

Why:

Cities are particularly sensitive areas where the most urgent, topical challenges are concentrated, from the shortage of water and poor
air quality, flood risks and hazards, heat waves/island to economic disturbances and social instability. The project is the first step toadapt urban areas to climate changes, a role-model for other areas and a reference point for further works in the field of adaptation in
Poland.

What:

The major objective vulnerability assessment to climate changes of 44 largest Polish cities and planning relevant and effective
adaptation measures appropriate for the identified threats.

Who:

Ministry of the Environment with support of external Contractor - Consorcium and 44 partner cities. Partners are resposnible andobliged for cooperating with the Contractor, have to establish the city-interdisciplinary team, including the leader - the contact person.

When:

January 2017 – signing the agreement, Contract lasts 24 months - for Urban adaptation plans devlopment process (including public
consultations, SEA etc). Project terminates in 2019UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind62a) Increase access to essential services and promote equity
Urban Adaptation Plan for the city means resilient and climate proof infrastructure and society

Main goals:• Determination of vulnerability of the largest cities to climate change• Planning for adaptation actions at the local level• Raising awareness of the need for adaptation to climate change at the local level
Project and its outcomes will be accessible to all without restriction on any grounds.
Outcomes will result in meaningfull improvements and resilience to climate change impacts for most important essential
services such as water sources, energy infrastrucutre, health and well-being of the citizens.
The participation of stakeholders and city dwellers in MPA development will facilitate implementation of activities stipulated in
MPA in the future (approval of the suggested options to adapt to climate changes). At each project stage, the documents will
be consulted with the appropriate urban team and stakeholders.
As part of the project, a large-scale information and educational campaign is planned, aimed at raising citizens’ awareness inthe field of climate change and of the need for adaptation to its effects.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
Developing climate adaptation strategies (plans) is the first step aimed at strengthening resistance and adaptation to changing
climate conditions. Due to its scale, this is an innovative and unique project. The result of the project, which means next stepin this context, i.e. implementing adaptation measures will enhance cities’ resilience to climate change, and consequently, theentire country.

MPA implementation will change the everyday life of city inhabitants. For instance, the modernized flood-protection system,
effective rain water management procedures, green and blue, ecosystem-based solutions or the development of theinformation and alarm systems in case of hazard will make the inhabitants feel safer.
Aesthetic changes in the urban infrastructure and vegetated areas, reduced thermal hazard, improved living and investment
conditions thanks to the MPA relations to urban spacial development plans shall improve the comfort of living in the cities andreduce the risk resulting from the climate change effects.
Strategic Environmental Assessment of the MPA Project will be undertaken and also Environmental Impact Assesments will be
carried out for the actions implemented as a result of the project.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind63c) Demonstrate the economic and financial effectiveness of the project
Every city copes with the climate hazards specific to its structure and conditions. Poland is highly diversified in this respect. The
extreme weather phenomena found in Poland include e.g. high temperatures or heavy rainfall. Floods, inundations or droughts
are the immediate hazards for the inhabitants’ safety, their housing situation and urban infrastructure.
Implemented on the basis of the urban plans adaptation actions will avoid losses, so these actions will certainly pay off. Every1€ invested for adaptation to climate change represents 4€ - 7€ savngs that would need to be invested into actions after
climate related events.
Implementation of the urban adaptation plans will involve engaging local businesses and creating jobs.
For the non-invesment project such KPIs was not counted, but cost-benefit analysis will be carried out during the project
implementation to analyze adaptation options for every city.
For Poland the probable consequence of failure to take adaptation actions in all sectors will be losses at around PLN 86 billion
in the perspective of 2020, which in the years 2021-2030 could amount to up to PLN 120 billion.
MPA Project has Non-investment and Non-return character.
Project is funded by EU Funds: Operational Programme Infrastructure and Environment 2014 – 2020 (85%) and National Funds(15%)
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
Project develops methodology for other cities, also middle and small ones. The stages of the process can be replicable for any
local government unit or region.

Project engages actors on different levels such as: central governments, local governments, researchers, institutes, experts.
Moreover as an effect of the project outcomes also private sector will be involved for the execution of the adaptation
measures and actions selected for implementation in each cities urban adaptation plan
One methodology and one scope of the plans for all partners plays an important role at the implementation phase of the
documents. Due to this solution easy exchange of the solutions, good practices and project ideas will be possible. Anotherpositive aspect of one methodology is the ease of comparability and completeness of cities vulnerabilities, climate impacts andconditions as well as indicators for the future evaluation process of the project.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind64e) Engage all stakeholders
Project engages actors on different levels such as: central governments, local governments, researchers, institutes, experts.
Moreover private sector will be involved for the execution of the adaptation measures and actions selected for
implementation in each city as an outcome and result of the Project.
Awareness among decision makers and society is a key to successful and effective adaptation to climate change process. It’s
crucial to be sure that the problem of the climate-related impacts and the significance of climate change adaptation is properly
highlighted at every level. It was a very important issue considred at the stage of signing the partnership agreement between
cities and Ministry of the Environment.
An important component is also the participation and involvment of stakeholders and MPA beneficiaries (cities) and publc
consultations of the Project, includind consultations of proposed adaptation measures and solutions. City inhabitants are more
and more active and aware of the changes and due to to involvement in the MPA development process they will obtain further
knowledge and experience and influence over the local government later decisions on the selection and implementation ofadaptation measures elaborated in MPAs

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind65Case 14
Portugal
Business Incubator
Mafra & Ericeira Business Factory66

Project:

Mafra & Ericeira Business Factory

Project Proponent:

Teresa Preta

Project Organization:

Territórios Criativos

Public Organization:
Municipality of Mafra that owns the business incubator M&EBF - Mafra & Ericeira Business
Factory, accredited by IAPMEI - Portuguese Agency for Competitiveness and Innovation, and member of RNI - National
Incubators Network – both under the Ministry of Economy.
Private Organization:
Territórios Criativos is the operator, specialized in entrepreneurial activities and training, businessincubators management and incubators community management. It is the hired entity that fosters the local
entrepreneurial ecosystem.
Capital Providers:Operationalization: Municipality of Mafra, entrepreneurs’ monthly fees, rooms renting andsponsorship of a local bank. We are developing a sustainability model which also includes progressive fees to newcomers,
and the possibility of bigger local companies to “sponsor” some rooms. Infrastructure: funds from PORL, QREN, PORLISBOA.
Why is this project a Case Study for People First PPPs: This PPP is a win-win solution: Public infrastructure/ equipment +hired private experts = more agility, great social and environmental impact, more employment. Social impact: The
possibility of running a proximity infrastructure, in small villages, that offers the same services/ facilities of any incubator ofreference situated in a large urban centre (inclusive growth); The contribution to the national economic growth andemployment in an OECD country with the highest unemployment rates - slightly above 10%; Equal opportunities for all,based on the fact that 51% of our entrepreneurs are women and the average age of all entrepreneurs is over 45; The agile
implementation of the strategic goals of the Municipality (creation of employment and settlement of people in the
territory) in the business incubator, keeping in mind the particularities of each new company/ startup/ project/entrepreneur; The exchange of expertise in the field of entrepreneurship between the hired experts and the local
municipal staff; The implementation of the best practices in terms of training and support to entrepreneurs that want toestablish their new companies or startups in a territory away from the large urban centres.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Municipality of Mafra, namely the villages of Mafra (17 986 inhabitants) and Ericeira (10 260 inhabitants).
Area: 291 Km2. Population: 76 685; working age population: 37 144. The key economic sectors: Tourism, Blue Economy, Agriculture.

Why:

the municipality of Mafra had no infrastructures available for entrepreneurs / startups 2 years ago. There was a need for a new
approach for this brand new economic framework. Since Municipality of Mafra did not have the expertise to built and develop an
entrepreneurial ecosystem, opted for a PPP solution, outsourcing this service to Territórios Criativos. Now, there is consistent networkthat connects all local players of entrepreneurship: M&EBF, GAE, CLDS, A2S, AIP, ACISM, local schools, local Business Angels, local
authorities, etc.), which provides all necessary information and infrastructures to local and immigrant entrepreneurs . We now have 60
projects in the business incubator, distributed by its two poles (Mafra and Ericeira).

What:

we already give support to 60 projetcs in M&EBF and our goal is to have an answer to all local/ immigrant entrepreneurs that live in the
Mafra region.

Who:

Municipality of Mafra: financial and macro-management of the incubator. Territórios Criativos: micro-management andoperationalization of the incubator. Key partners: IAPMEI, RNI – national network of incubators, CMIM – Portuguese chamber ofcommerce, local and national Business Angels Clubs, local and national consulting enterprises, Secretary of State of Industry, mentors
and Advisory Board.

When:

Start: April 2015. The transformation process: began from day 1, when the first keys of the incubator were handed to the first
entrepreneurs. The contract as well as the operations started in April 2015. Other milestones: October 2015: first postgraduate studies
program in the municipality of Mafra took place in EBF; Abril 2016: 32 projects, 46 working places, occupancy rate exceeded the 50%.
September 2016 - opening of the second pole of the Business Factory, in Mafra. October 2016: accreditation of the incubator by IAPMEI– national agency for competitiveness and innovation; January 2016: creation of “Clube Business Angels do Oeste” in the Business
Factory, with local investors; February 2016 and February 2017: organization of the international event Startup Europe Week thatgathered all local players to discuss the local opportunities for entrepreneurs.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind67a) Increase access to essential services and promote equity- This project definitely promotes equity in terms of access to employment and entrepreneurial activities, since Mafra &Ericeira Business Factory provides its services to everybody without restrictions. Interesting facts: 50% of our entrepreneurs
are women, the average age of our entrepreneurs is over 40 years. Their backgrounds are very different from entrepreneur toentrepreneur. We have people from various different countries (Britain, France, Holland, Italy, Germany).
- The services are also accessible to socially and economically vulnerable people: the fees are very low compared to the market(50€/ month per working place). This price includes: the working place, access to internet, mentoring, business bootcamps,
consulting in various areas of expertise (law, etc), training programmes in business models, marketing, leadership (etc) among
others.
- Also the younger people up to 29 years old, living in the region of Mafra, benefit from a 50% discount.
M&EBF provides the inhabitants of small villages the same services/ facilities of any incubator of reference situated in a large
urban centre. Local people, migrants or immigrants have the opportunity to run their business/ create their own job near theirplace of living. They don’t have to leave the territory to do so.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
The building of Ericeira Business Factory is from the time of the dictatorship period in Portugal. It was a primary school andafter local authorities had built a bigger school, this building was 6 years without being used: from many of the different uses
discussed for the building (parking lot, shopping centre, etc), it was finally decided by the Municipality of Mafra that it would
be a business incubator in order to create employment and fix/ attract people in/to the territory.
The management of this incubator will last after the contract, since Territórios Criativos developed and implemented acollaborative process of capacitation and training of the municipality staff (training on the go) in order not to threaten thecontinuity of the project, in case the municipality does not renew the contract.
Regarding the environmental sustainability, if only half of our projects (30 out of 60) would have to go to an incubator in Lisbon
by car, they would have to travel at least 100 Km each per day (return trip), which means this project considerably contributes
to the reduction of the carbon footprint.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind68c) Demonstrate the economic and financial effectiveness of the project
The incomes are: entrepreneurs’ monthly fees, rooms renting and the sponsorship of a local bank (Caixa de Crédito Agrícola).
We are developing a sustainability model which also includes progressive fees to newcomers, and the possibility of bigger local
companies to “sponsor” some rooms.
Two of the main strategic goals of the municipality of Mafra are: to create employment and incentivize people to remain in
the territory. This way, this infrastructure is seen as an investment in the local territory and in the local people. Creating theperfect conditions for the fostering of businesses will result in a huge impact on the territory and in people’s quality of life.
One of Mafra & Ericeira Business Factory’s main purpose is to leverage entrepreneurs’ businesses, but also of the local
companies. We contribute to the growth of local economy, since we enhance partnerships between the Business Factorycommunity and the local suppliers, we promote local businesses and jobs. We accept trainees from local schools and don’t
charge their working place.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
Our project has a multiplier effect: we step in - share our expertise and prepare the locals - to step out afterwards.
It is already being replicated in other regions of Portugal (away from the great urban centres, namely in villages or small
towns), due to the partnerships that Territórios Criativos have with other municipalities.
This PPP can be replicable in all sectors of economy, since the incubators can be generalist or directed to specific sectors ofactivity (like Ericeira Business Factory – Blue Economy and Tourism/ Mafra Business Factory – Agriculture and Technology).
Moreover, this project is also replicable and scalable since Territórios Criativos offer two different solutions:- One with a resident team of experts (like in Mafra & Ericeira Business Factory);- The other, where we prepare, train and provide tools to the municipal/ local staff for a shorter period of time without aresident team.
It can also be replicated in other countries, since the team of Territórios Criativos is willing to travel abroad to “implement theoperation”, have already studied, worked and lived abroad.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind69e) Engage all stakeholders
From the very beginning, Mafra & Ericeira Business Factory engaged the local and national players, and created fruitfulpartnerships. Regarding the local players, most of them are all settled in the incubator (identified with *), in order to integrate
the local entrepreneurial ecosystem:
GAE*: provides technical support for the entrepreneur in its “phase zero”, when the entrepreneur is still deciding whether tomove forward with his/ her idea or not.
CLDS*: promotes entrepreneurship in the secondary schools and offers social solutions to local unemployed people;
A2S*: manages national and European funds and helps entrepreneurs with the eligibility of their projetcs;
Clube Business Angels do Oeste*: group of local investors that are willing to invest in local businesses;
Local Schools: partnerships in order to provide in loco workshops of entrepreneurship and also to accept trainees in M&EBF
without charging the working place;
CCIP: Portuguese chamber of commerce provides all its services to our entrepreneurs for free under the programme AUP;
ACISM: Association of commerce, industry and services of Mafra provides its services to our entrepreneurs for free;
IAPMEI and Startup Portugal are partners in the promotion of entrepreneurship and sharing of best practices;
RNI: national network of incubators;
Consulting companies: Moneris, Conceito, Tibness provide consulting to our entrepreneurs as well as workshops;
Law firms: Isabel Neves & Associados, Gastão Cunha Ferreira provide consulting to our entrepreneurs;
Advisory Board: help to define the strategy goals of the incubator;
Mentors: provide individual mentoring sessions to the entrepreneurs;
Caixa de Crédito Agrícola: mains sponsor of M&EBF;
Turismo de Portugal : protocol “fostering Innovation In Tourism”.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind70Case 15
RussiaEducation Sector
Public Private Partnership Department

71

Project:Public Private Partnership Department

Project Proponent:

The Bank for Development and Foreign Economic Affairs (Vnesheconombank) State
Corporation

Project Organization:

Financial University under government of Russian Federation

Capital Providers: Fund of financial University, investments made by the partners of Department andincome from business activities of department.

Why is this project a Case Study for People First PPPs:
Across the world in the last thirty years, public private partnerships (PPP), project finance and private
finance have played key roles in infrastructure development and service innovation.

In Russia the market of PPP projects actively developing in the last 7-10 years.
PPP department is devoted to one of the most important mechanisms for the development of public
infrastructure – public-private partnership (PPP) and is aimed at the development of the market for
PPP projects in Russia.

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Moscow, Financial University under the Government of Russian Federation, the University has 65 000 students studying various topics
of financial industry;

Why:

the Department goals are to train experts in the PPP project development and management, and offer advanced training to PPP project
participants and to be engaged in fundamental and applied research in order to address pressing issues related to public infrastructuredevelopment backed by the use of PPP mechanisms;

What:

the Department is implementing several educational programs: MSc program in PPP management (full-time and part-time) and
executive course for regional public officials. Also new MSc program in infrastructure finance will be launched in 2018.

Who:

Dr. VLADIMIR DMITRIEV, Head of Department
Dr. SERGEI KELBAKH, First Deputy Department Head for research work
Dr. ALEXANDER BAZHENOV, Codirector of master's program
Dr. IRINA PEROVA, Deputy Department HeadWhen:

The Department was formed on 26 October 2010 by the Bank for Development and Foreign Economic Affairs (Vnesheconombank) State
Corporation.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind72a) Increase access to essential services and promote equity
The Department actually pioneered the development of the PPP projects market in Russia.

PPP Department focuses on offering PPP fully specialized programs/courses.
Practice-oriented nature of the programs makes it a good option not only for those who areapproaching the topic for the first time, but also for professionals who need to advance in theircareer and enhance skills developed on the field.
Programs consider PPPs in both network infrastructure, such as roads, bridges, tunnels, and water
systems, as well as social infrastructure including schools, hospitals, and courthouses.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
The department has strong academic background of the faculty with professional experience in PPPs and project finance indifferent sectors. It consists of staff members of Vnesheconombank, Avtodor, Federal Center for project finance, Institute of
Economics of Russian Academy of Science, etc.

INNOKENTIY
ALAFINOVSVETLANAKOZLOVAKIRILLRATNIKOVSERGEYSIVAEVKIRILLMALYUTINNATALIACHERNYSHOVAVIKTORNORBU

In addition to the academic staff, the lectures and seminars are supplemented by guest lectures delivered by senior officials
from the international financial institutions and experienced professionals from various firms and organizations (both public
and private sector) that are actively involved to expose participants to the most significant cases and experiences.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind73c) Demonstrate the economic and financial effectiveness of the project
MSc in PPP
management

The department has running MSc program in PPP Management for 5 years with 15-20 new students
every year.
About 60-70% of them are recent bachelors graduated from different universities. Remaining part arepractitioners with scholarships supported by Vnesheconombank (Russian development bank), or
Avtodor, Russian toll road development and operating company.

Graduates have joined Central Governments and Agencies, regional and local Authorities, development
institutions, public and private companies, consultancy firms and investment companies, industrial
operators, etc.

MSc in Infrastructure
finance(launch in 2018)

Executive course forregional officials

Demand for this educational program is significant and expected to grow. This is the only program which
is designed to produce professionals in this sphere.
The target job market for this program are commercial banks, asset management companies, private
pension funds, Central bank of Russia, Ministry of finance, etc.

The Program was designed to help develop the capabilities public and private sector leaders need tosuccessfully plan, create, and operate infrastructure PPPs.
The program has graduated about 300 representatives from public and private sectors.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
It may be reproduced in any region of Russia and any country in the world where there is an urgent need of PPP specialists.
Programs, provided by the PPP Department, is a unique opportunity to learn the complex dynamics of PPP and project financetransactions. Such knowledge plays a key role in successful design and implementation of such complex contracts for current andfuture public and private sector professionals alike.
The programs are designed to provide participants the opportunity to learn from successful and critical case selected to cover all the
program’s contents and prepared in the way to facilitate and optimize the learning process.
Due to the strong academic background of the faculty and their professional experience the Department has a chance to transfer
actual knowledge.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind74e) Engage all stakeholders
3 December 2014 was signed an agreement on joint activities in the field of training of specialists PPP• Avtodor• Bank of Development• Federal Center for Project Finance• Financial University

Partners of Department:• Ernst & Young• Herbert Smith Freehills• Internacional Finance Corporation

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind75Case 16
RussiaHealth Sector
Construction of Water Sports Complexes

76Project:

Construction of water sports complexes

Project Proponent:

The government of the Rostov region, Ministry of Sport of Rostov region
The project is developed by Vnesheconombank

Project Organization:

No information

Public Organization:

the government of the Rostov region

Private Organization:
potential investors/contractors/operators: “inzhtrans-stroy-SPb” (OJSC); Sports andRecreational Association "Don pools“; HOCHTIEF Russia; Citic Construction Co. Ltd.; China Civil Engineering
Construction; VINCI Construction; Bouygues Batiment International;
potential financial organizations/investors: Sberbank of Russia; Gazprombank; VTB Bank;Management company "Leader“.

Capital Providers:
Total investment – 4,8 bill. RUB. Investor’s share– 20%, loan financing organizations’ share– 80%. Possible to provide subsidies in the form of capital grant in the amount of 1 billion RUB.
Why is this project a Case Study for People First PPPs:
Physical culture and sports in the country are engaged in only 32% of the population. Existing facilities don’t meetmodern standards and requirements. One of the priorities of social and economic development policy for the period
until 2020 is the formation of a new social development mechanism and dissemination of a healthy lifestyle.
The aim of the project is the sport infrastructure development, improving availability of sport and wellness
swimming, promotion of healthy lifestyle, improving the competitiveness of Russian sport and the creation of new
jobs.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Rostov region, population – 4,2 million people, the key economic sectors: agricultural industry,food-processing industry, engineering industry, coal industry, automobile industry

Why:

Low level of sport activity of the population caused by the low level of sports facilities availability. The coefficient of sports facilities
utilization is around 40%. More than 60% of the sports facilities are built in the second half of the 20th century and no longer meetmodern standards and requirements. Undoubtedly there is a need to construct water sports facilities, and gradually forming stable
solvent demand which attracts potential investors, allows to use the PPP mechanism

What:

The construction and operation of 30 water sports and wellness complexes (appropriating standards) on the territory of 27
municipalities of the Rostov region applying PPP mechanisms; the increase of complexes utilization coefficient: the increase of thenumber of habitants, who go swimming constantly, on 50%; the creation of more than 2.5 thousand new jobs

Who:

Governor of Rostov region is supporting this project. Responsibilities of a public partner: transfers land plots on the right of lease;
undertakes to pay the operating fees to the concessionaire; Responsibilities of a private partner: design, construction, operation of theplant, attraction of investments, provision of fee-based services of appropriate quality

When:

The project is at the stage of preparation for competitive procedures

Risks:

Risk associated with non-attraction of an investor; impossibility of financial closing;construction risks, risk of commercial revenue loss (demand risk)

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind77a) Increase access to essential services and promote equity

The main goal of the projectIncrease the accessibility of sport and healthswimming among different age groups of the
population, people with different income levels ,and also for people with disabilities

Accompanying goal
Instillation of love for sports and healthy lifestyle
from early childhood

Accompanying goal
Creation of good conditions for both
beginners and current champions

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
 The project is divided into 6 subprojects.
 At the moment the technical concept of the project has been formed. These will be objects of three types: amultifunctional gym with a swimming pool, a swimming pool for settlements with a small population and a swimming
pool for cities. The inspection of the land plots for compliance with the requirements for the facilities location and forthe availability of all necessary communications has been carried out.
 The analysis of the objects operational capabilities has been carried out.

 The analysis of the technical, technological and environmental risks of the project has been carried out.
.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind78c) Demonstrate the economic and financial effectiveness of the project

ReturnPayback event
IRR:16-21%

Discount rate+-

The Project
implementation has a positive social and economic effect:
The Project implementation has a positive social and economic effect:
Creation of new jobs and increase of the availability of sport and wellness
swimming among different age groups of the Rostov Region population. The
project implies a double increase in the number of schoolchildren who
annually go swimming - up to 36,000. In addition, more than 2.5 thousand
new jobs will be created in sport complexes

Years

Payback period = 12 years

According to the concessionagreement, the private partner receives the grantor’s payment from the budget
and at the same time retains the right to provide paid services.
3 843 092

1 390

7 901 262

local budget
4 056 780
regional budget
tax revenues to the budgets of
all levels amount to 7,901,262 thousand rubles
federal budget

Sum of adding
budget revenues

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
Share the experience

Creation of PPP working group

The Russian regions are recommended touse the positive experience of the Rostov
region in the construction of sport facilities
on the basis of the public-private
partnership model. The State DumaCommittee on Physical Culture, Sport andYouth Affairs came to this decision as theresult of the meeting held in the Don
region. The governor of the Rostov region
supported the decision and also suggested
replicating this practice in other regions of
Russia.

An interdepartmental working group was set
up in March 2016 on behalf of A. Dvorkovich
to adapt and implement the mechanism of
public-private partnership in the sport sector.
The interim results of its activities were thedevelopment of about 30 proposals to amend
the current legislation, which will be sent to all
the regions of Russia for thorough study.

PPP

Amendments to the Federal Program
In the near future the program "Development of PhysicalCulture and Sport in the Russian Federation for 2016-2020
years" will be amended. This will allow regions, building
sport objects under the PPP model, to apply for subsidies
from the federal budget. A number of regions intends totake advantage of the new opportunity.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind79e) Engage all stakeholders

The Sports and Recreation Association "Don Pools" takes an active partin the promotion of the project. The founder of the association is theregional sports public organization “The Swimming Federation of the
Rostov Region", whose president is the Rostov businessman Igor Gorin(co-owner of the company "Don Plaza").
“The Swimming Federation of the Rostov Region” has developed andcoordinated with the Ministry of Physical Culture and Sport of the
Rostov Region “The Program for the Development of Swimming in the
Rostov Region for 2015-2020“.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind80Case 17
RussiaHealth Sector
Public Utility Infrastructure Systems

81

Project:Public utility infrastructure systems (Water and Sanitation)

Project Proponent:

Volgograd (Municipality)

Project Organization:

LLC «Koncessiya vodosnabzheniya»

Public Organization: Municipal unitary enterprise «Gorvodokanal»
Private Organization: Operator, developer: LLC «Koncessiya vodosnabzheniya», investor: CJSC Managementcompany «Lider»
Capital Providers: CJSC Management company «Lider» is the private financing arranger of the project in terms ofequityWhy is this project a Case Study for People First PPPs:
The project is intended to solve the problem with the quality of water supply and sanitation in Russia.
The absence of enough investments in plumbing infrastructure has become inadequate to satisfy the growing
market, quality service discrepancy in water supply and water disposal systems. In this case, in Russia in 2014, 256
accidents happened in the system of water supply on a per 100 km of web that is on average 2,6 times more than incountries with developed plumbing. In case of water sanitation, the share of grey unpurified water, thrown off into
the natural waters is almost 7 times more than, for example, in Poland.
Win win solution for the public sector: improved quality of services provided, solved the problem with budget
shortages and efficiency of operating, fulfilled social responsibility.
Win win solution for the private sector: guaranteed minimum level of required return, gained reliable long-term
investment opportunities, created positive social image.

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:Why:
What:

Volgograd, Russian Federation, population is 1,02 mln, fast growing area, key economic sector is agriculture
Critical level of deterioration of water supply networks - 80%, low efficiency of replacement carried out by Municipal
Unitary Enterprise "Gorvodokanal", the lack of budget resources for a huge project – all this became the precondition for
the PPP solution
Improvement of the quality of public and municipal services, reduction of the burden on regional and local budgets, aswell as enhancement of social responsibility and improvement of quality of life of the population of the Volgograd region

Who:

Municipal administration of Volgograd, Concessor, is the initiator that undertakes to provide to the Concessionaire thenecessary conditions for execution of works on construction and reconstruction of the assets of the Organization; LLC«Koncessiya vodosnabzheniya», Concessioner, is obliged to invest in the creation and reconstruction of objects, performthe construction and reconstruction; CJSC Management company «Lider» is the Investor, Municipal Unitary Enterprise«Gorvodokanal» is the Organization, that supplies and discharges water in Volgograd

When:

Start of the project – 2014, governmental approval – November 2014, process launched – June of 2015, project ends –December 2044

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind82a) Increase access to essential services and promote equity
Current situation
300
250

Proposal in project

Accidents per
100 km of web

270

256

6000
5419

200

4282
3554

100

2000

50

0

The lack of contractual incentives
for tariff increases, which provides
high level access services

5099

4000

187

150

5882

Social effect
Quantity accidents on
web

A significant reduction of losses ofdrinking water

66

0
CanadaEngland

Russia2014

Vologograd

Water loss of current
web

46%

2015

2016

2017

2018

Percent of water
loses

50

Improving the quality of drinking
water of inhabitants of Volgograd,
regardless of gender, race andincome4030
20

94 557 054
Separate and ineffective system ofmaking managerial decisions; "manual
management"; lack of an effective
feedback mechanism

Control from the side of population
over the quality of services in real
time

10
0

2014

2015

2016

2017

2018

Introduction of automated digital system«Digital Vodocanal», covering main
management tools, digital customer
service center, reception, processing andstorage of big data

Reduction of terms of elimination of
emergency damages in the networks
after the modernization

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability

Current situation

Expected situation (5 years later)

Regular discharge of untreated sewage into the relief andsurface water bodies in the rather big settlements of Volgograd
Region, which led to a significant deterioration in the quality oflife of inhabitants of these settlements

720
th.

Untreated sewage is annuallydischarged into the territory of
the Volgograd Region

2229kmThe length of sewage network
1142
km

The length of water supply network

80

Elimination of the branch ofdischarge of untreated sewage
into the relief in most of thesettlements region andmodernization of the existingworn out infrastructure

Critically high level of wearout of
Volgograd's water supply% network

42
km
193
km

The length of the planned todevelop and reconstruct sewer
networks

The length of the planned watersupply networks under development
and reconstruction

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind83c) Economic and financial effectiveness of the project
The total amount of investments is RUB 58 bln (approximately 1.02 billion US dollars) for the whole project andRUB 7 bln (approximately 120 million US dollars) for the first 3 years of realization. Main KPI’s of the project are
the following:
RETURN

Payback
event

IRR: 15%NPV

CUMULATIVE CASHFLOWPAYBACK PERIOD

1

3

5

7

9

11

13

15

17

19

21

Years

Discount rate

Initial stages of the project were financed by CJSC Management company «Lider». Revenue is generated fromtariffs on water supply and sanitation. Business model is constructed in a way that from one hand provides highreturns and optimal payback period, and from the other hand presents better tariff in Russia, that is affordable
for citizens.
For the reconstruction there have been attracted Russian suppliers and companies. Moreover, in scope of the
project workplaces were created, that in turn boosted local economy.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
This design may be reproduced in any region of
Russia and any country in the world where an
urgent need to upgrade the basic infrastructure islimited to a meager budget.
Also, this design is worthy of the fact that it could be
replicated because the return on investment comesat the cost of improving management efficiency

In Russia there is a relatively young institution,
having a sufficiently ample opportunities fortraining public representatives free of charge.
Similar educational programs conducted by the "PPP
Development Center"

External effects✓✓

Replication
Successful implementation of this project may serve
as a useful externality. In this case, the Concessor
will receive a proven tool to attract a private partner
to the public sector, where the state is least effective
as a Manager.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind84e) Engage all stakeholders
The project was supported by representativesof federal and regional authorities.

Prepared and submitted
analytical materials of
the PPP market, as
well as conducted
research

Also the project was fully supported by the citizens of the city Volgograd

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind85Case 18
RussiaHealth Sector
Medical Industrial Park86

Project:

Medical industrial park

Project Proponent:

Ministry of Health of the Russian Federation
Government of the Novosibirsk Region

Project Organization:

JSC "Innovative Medical Technology Center (Medical Technopark)"

Public Organization:

Ministry of Health of the Russian Federation
Government of the Novosibirsk Region

Private Organization:
The project management company is JSC "Innovative Medical Technology Center (Medical
Technopark)", companies - manufacturers of medical products are the residents of the medical industrial park
Capital Providers:Share of state financing (federal and regional budgets) - 30%,
Private sector investment - 70% .
Why is this project a Case Study for People First PPPs:
Medical technopark is a unique project for Russia, combining medicine, innovation and science. It was built with theactive participation of the Novosibirsk Research Institute of Traumatology and Orthopedics. The project is the first at
the federal level, not only in the health sector, but also in the social sphere. The project is aimed at creatingproduction facilities for the manufacture of medical devices in the field of trauma, orthopedics, neurosurgery andother areas of health protection.
The project has high economic and social significance for 12 regions of the Russian Federation. The project
implementation will create new jobs in the Novosibirsk region and provide tax revenues to the budgets of various
levels.

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Novosibirsk Region with population 2,7 billon people and 178 th. km² area, key industry: industrial production, agriculture, science,technology, incl. medical;

Why:

due to the lack of industrial infrastructure, the Novosibirsk Scientific Research Institute could not produce medical devices, although it
owns 230 patents for innovative medical products. The regional budget could not allocate a necessary amount of funds. It was madedecision to build a medical park in the form of PPP.

What:

creation of the competitive production facilities complex for the manufacture of medical devices in the field of traumatology,
orthopedics, neurosurgery and other areas of health protection, including for import substitution purposes; The main activities: theproduction of prostheses, devices for the rehabilitation of patients with the musculoskeletal and nervous system pathology, theproduction of metal structures for traumatology and orthopedics.

Who:

the Government of the Novosibirsk Region supported this project at all stages of its implementation. The project takes into account theinterests of business, academic community and the regional government.

When:the project terms: 2015-2018. The commissioning of the first phase of the project - June 2016.
The commissioning of the entire complex - 2018

Main project’s risks:
1administrative risks

2

the risk of choosing an
unscrupulous investor

3

the risk of non-targeted
use of the object

4

the demand risk

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind87a) Increase access to essential services and promote equity«The main goal of the project is the creation of products and technologies that could be integrated into medical practice afternecessary approbations and studies, so that our developments start helping all the people without restriction on any grounds,
e.g. race, creed etc. as soon as possible»

The Innovative Medical Technology Center CEO Ekaterina Mamonova

The Innovative Medical Technology Center (IMTC) is created to turn scientificideas into specific medical technologies and products and bring them to themarket - not only domestic, but also foreign.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
The medical park is divided into four zones - diagnostic, clinical, research and rehabilitation, 12 places in intensive care and 8 in operating rooms. The area of the medical park is 3200 square meters.

Since 2018, the production capacity will be not less than 53,000 units of medical devices (including components and knots forthe production of medical devices)

Production capacity

Units of devices per year

Endoprostheses and their components

Not less than 20 000

Systems of structures and their components fortraumatology, orthopedics and neurosurgery

Not less than 9 500

Exoprostheses and their components

Not less than 22 500

Hardware-software complexes

Not less than 1000

40% of themarket in the
RussianFederation

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind88c) Demonstrate the economic and financial effectiveness of the project
The total amount of investments under the concession agreement (associated with the creation of the industrial park) is 685
million rubles.
The project recoupment is achieved through the implementation of manufactured medical devices, as well as the rental ofpremises for the medical park residents.
The project investment attractiveness: the net present value (NPV) is positive (91,897 million rubles).
Internal rate of return (IRR) – 19%, weighted average cost of capital (WACC) – 16%.
The discounted payback period is 12 years.
The medical technopark has attracted more than 1.6 billion rubles to its projects and infrastructure. By 2020 the company
plans to increase the volume of innovative medical services, products and technologies to 8 billion rubles.

Socio-economic effect:1

by 2020 the volume of production of innovative
medical services, devices and technologies by
the companies- residents of the Medical
Industrial Park will be 2 billion rubles.

2

creation of import-substituting
industries will ensure thecreation of at least 143 jobs.

3

after commissioning of thewhole complex tax revenues tothe budgets of various levels
will be 2,629 billion rubles.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable The scheme of implementation of this project can be replicated in many regions with analogous problems of not using(idle) production capacity.

 The project is aimed not only at the production of medical devices, but also can promote the technology development andthe production of innovative medical devices, which will stimulate the development of engineering, education and healthtechnologies.
 In the Innovative Medical Technology Center structure there is a training business center in which scientific practicalactivities and educational programs are constantly held. The center is a scientific discussion platform, which has alreadybeen visited by more than 200 leading specialists and scientists from Russia, Kazakhstan, Belarus, Ukraine, Germany,
France, Switzerland, England, Japan, Luxembourg, Korea.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind89e) Engage all stakeholders
The project was supported by representatives of federal and regional authorities.

April 29, 2016 JSC "Innovative Medical Technology Center (Medical Technopark)" was included in the Association of Clusters andTechnoparks, which consists of more than 45 organizations in particular: Technopolis "Moscow", Technopark "Skolkovo".

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind90Case 19
RussiaWaste Management Sector
Construction and Operation of Waste Recycling Plant

91

Project:

Construction and operation of waste recycling plant (Soliddomestic waste management)

Project Proponent:

The government of St.Petersburg

Project Organization:

LLC ”Levashovo. Waste recycling. Project”

Public Organization:

The government of St.Petersburg

Private Organization:

Helector S.A.-Actor Concessions S.A.-Actor S.A. - industrial sponsor;
VTB "Capital“ – financial sponsor

Capital Providers:

Total investment – 300 mil.€About 73 mil.€ the consortium intends to invest from its own funds
Greatest bulk of financing came in the form of loan – 130 mil.€

Why is this project a Case Study for People First PPPs:
Waste disposal is one of the most urgent problems in Russia. According to the Auditing Chamber, there are a lot of
unauthorized landfills and waste disposal sites in Russia. It has less than 400 companies for solid waste sorting andrecycling. This number is more than three times lower than required for the country. In the region, no more than 12% of
the total volume of solid household waste goes for processing, the rest is exported to polygons, the resource of which
has been long exhausted.
Waste sorting and processing allows to reduce the load on the Earth ecosystem and creates an infrastructure for saving
resources; utilization allows to reduce the level of toxic agents impact on the environment and human health, reduces
the risk of the most dangerous diseases (tetanus, botulism, gas gangrene, etc.)
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Levashovo, the Leningrad region; population of the region – 1,8 million people; key economic sectors: manufacturing, transport andcommunications, agriculture, construction

Why:

Only about 7-8% of collected solid waste are involved in economic circulation, the rest of their volume is sent for burial, which leads toenvironmental pollution; the majority of existing polygons have fulfilled their resources. Annually in St. Petersburg about 1.8 million tons of
SHW is formed. According to forecasts, in 2020 it will grow to 2 million tons. The Leningrad region produces 1.2 million tons of SHW per year. The
sufficient volume of the SHW market in the region, the availability of a regional program in the solid waste management sphere, theavailability of the validity of tariff and budgetary funds for the private partner expenses compensation allow to structure the project in the formof PPP

What:

Reduction of the level of the toxic agents impact on the environment and human health, reduction of the most dangerous diseases risk;
rationalization of waste management; saving resources; ensuring the quality standard of public services, public education and awareness inthe sphere of solid waste management

Who:

Governor of St. Petersburg Georgy Poltavchenko supported this project. Responsibilities of a public partner: provision of land, plant loading,compensation for lost income. Responsibilities of a private partner: design, construction, operation of the plant, attraction of investments

When:2010 - The Regional Target Program for Solid Household and Industrial Waste Management in St. Petersburg for the period 2012-2020 isapproved; 2011 - Competition for the construction of a garbage processing plant; 2011 – Signing of a PPP agreement; 2014 – Entering the VTB
Capital project as a financial partner.
Construction – 4 years; operation – 26 years.
The project is in construction phase

Main project’s risks:
2

1
land purchase and site risk

3
risk of commercial revenue
loss (demand risk)

dependence of return on
investment from the tariff
regulation body4

excessive budgetaryburden, risk of negative
reaction of the region
inhabitants, currency risk

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind92a) Increase access to essential services and promote equity

QUALITY FIRSTOne of the main objectives of the project is theprovision of qualitative (established by standards)
public services.

COVERAGE OF USERS
The user of a public good (service) is everyone wholives in the region, without restriction on any
grounds, e.g. race, creed etc.

ACCOMPANYING OBJECTIVES
The project is aimed at forming the ecologicalawareness of the population, the education andinforming of the population in the sphere of solid
waste management.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability

30
years

The conclusion of the agreement on the construction of a waste recycling plant actually means that the city iscommitted to supply wastes to the plant and ensure the payment of recycling thereof for 30 years. In case ofdefault of the contract, the city will have to pay a penalty. The fee for waste recycling at the plant will be about
4-5 times higher than the average price set in the city.

80%

The plant is scheduled to process at least 350 thousand tons of solid waste per year. At the same time
the recycling depth should be at least 80%.

Prohibitionof usewaste-burning
practices

It was assumed that the plant will be a waste-burning one. However, the city Vladimir Lavlentsev decided
that the company should not use the waste-burning practices. The non-hazardous waste when burningtransforms into a dangerous substance (the 4-5 danger class 'morphies' to the 1st and 2nd class). This
brings, for example, dioxins - toxic, carcinogenic substances that have the ability to bioaccumulate (build up
in the body), can cause cancer and infertility and lead to genetic changes.

The project makes a great contribution to the preservation of the environment and natural resources of
the country for future generations. Nevertheless, in accordance with the environmental impact
assessment, there are some shortcomings.
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind93c) Demonstrate the economic and financial effectiveness of the project
The planned cost of the project amounted to 300 million euros, out of which about 73 million euros the consortium intends
to invest from its own funds and 130 million euros - through loans.
Source of return on investment - tariff revenue, revenue from the sale of the plant's products, compensation payments fromthe budget of the region.

IRR = about 15%.
Payback period – 15 years.

Number of new workplaces - 400 (approximately)
The involvement of the city administration makes the project economic and financially sustainable. The waste processing plantalso can not be paid back due to the tariff: in Russia the share of consumer payments for the collection, waste removal andespecially for disposal is negligible (lower than in Europe). If we build a modern production with a low cost of processing, theprofit can be quite large, provided that the city administration undertakes to supply garbage to the plant constantly.
Such a stable business is a good opportunity to place long money.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
The task of efficient resources circulation through the transition to a new technological structure is
relevant for all the regions of Russian Federation.

From
Inefficient scheme
Russian regions are recommended to use
the positive experience of the Leningrad
region in creating waste-processing plants
based on the model of public private
partnership.
Nevertheless, it is worth noting that a more
efficient investment scheme is theconstruction of several waste transfer
stations and garbage processing facilities
alongside with the construction of one
inter-municipal solid waste polygon thanthe construction of individual polygons ineach municipal district. Thanks to the use ofsuch scheme, it is possible to reduce therate of growth of the tariff for the solid
waste utilization

To
Contemporary, ecological scheme
This scheme does not provide forwithdrawal the large amount of land fromcirculation. In addition, the organization ofenvironmental monitoring, conducted by
the supervisory bodies, is greatly
simplified. The recycling service starts fromthe waste transfer station, which is close to
the place of solid waste formation. The
costs for solid waste collecting andtransporting are decreasing.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind94e) Engage all stakeholders
Adversary ofincineration

Greenpeace Russia
environmental
activists

citizensregional media
users ofsocial networks

Local Administration

The impact on the project implementation wasprovided by “Greenpeace Russia” andenvironmental activists who are against
incineration. Citizens expressed dissatisfaction as
well. The regional media became the channels of
information dissemination, also,.
citizens created communities in social networks
Public hearings on the project were held.
As a result of numerous protests, the enterpriseabandoned incineration practice. Also, thelocation of the garbage recycling plant waschanged (Initially the plant was scheduled to belocated in the Yanino township, the Leningrad
region).

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind95Case 20
SenegalTransport Sector
Dakar Toll Road

96

Project:Dakar toll road

Project Proponent:

Thibaut Mourgues

Project Organization:

4IP Group

Public Organization:authority)

APIX (delegated public authority), Ministry of Finance and Transport Ministry (public

Private Organization:

Eiffage group (sponsor, contractor, operator)

Capital Providers:Private part - Equity: Eiffage; debt: IFC, African Development Bank, BOAD, CBAO
Public part - GoS, AFD, World BankWhy is this project a Case Study for People First PPPs:••••

The road reduces traffic jams, thus reducing pollution and creating economic gains
Affordable tariffs ensured via viability gap financed by GoS
Improved urban planning (easier access to social services, spatial integration, classified forest preservation)
Social dimension was granted priority with restructuring of poor urban areas and resettlement plan.

UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Dakar, capital of Senegal. Tranche 1 involves 25 km from Dakar (Patte d’Oie) to Diamnidio. Extension to airport (17 km)
represents tranche 2. it runs through a densely populated mostly impoverished area.

Why:

2 million inhabitants in the zone covered by the road, many of them poor. Difficulties in commuting caused by existing roadcongestion reduce quality of life, economic opportunities and access to social services. PPP favored for private sector skills andprivate finance.

What:

40 000 vehicle/day traffic (including minibuses and buses); reducing commuting time, congestion and pollution, improving
urban planning, favoring spatial integration.

Who:

APIX (Senegal PPP unit) was in charge of project preparation and implementation. Private partner takes private financing,
construction, operational and traffic risk.

When:project start 2004, tendering 2007, PPP contract signature 2009, commissioning 2013, extension contract negotiation andsignature 2014, financial close extension 2014, completion 2017, end of contract 2039.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind97a) Increase access to essential services and promote equity- The road is designed to be affordable to the public through viability gap financed by Government. Real traffic higher than
anticipated proves the affordability.

-

The social dimension includes:• Resettlement of 2000 families in a living area (Keur Massar / Tivouane Peulh) offering modern conditions (social
infrastructure includes school, primary health care and mosque)• Urban restructuring of the Pikine Irregular South area where 250 000 inhabitants were exposed to flooding risk
• Social responsibility of the operator during operations (community support e.g. school, agricultural)• Creation of 300 permanent local jobs (2000 during construction)

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
The private party guarantees the availability of the equipment. Swelling risk of clay ground handled with elevation of roadsurface by 2.5 m upon a laterite layer (not forecasted during feasibility study). Water drainage works reconstructed.

Average traffic time reduced from 2 hours to 30 minutes, thus reducing CO2 emissions and congestion.
Improved traffic safety
Preservation of 700 hectares of Mbao classified forest
Closing of irregular landfill of Mbeubeuss
Resettlement area provided with all modern amenities

Densely populated area upgraded to protect from flooding, ensure drainage and improve social infrastructure

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind98c) Demonstrate the economic and financial effectiveness of the project
Project IRR: 12% (base case)
Economic VAN (mln Euros):Financing (mln euros)
Public part:- Senegal- World Bank
- AFD
- AfDB

SenegalGovernment (47) Users
Investors

472
293
79
60
50

Private part:98- Eiffage equity- Boad senior debt
- IFC senior debt
- AfDB senior debt
- CBAO senior debt

77
125
16

32
23
20
10
8

Eiffage local subsidiary (Eiffage Senegal, present in Senegal since 1926) in charge of the project together with mother company
Eiffage, creating 300 permanent local jobs (2000 during construction).

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable•

The project allows for the economic development and integration of a whole area, easing access to base services such as educationand health. As the first toll road in SubSaharan Africa outside of South Africa, it could be used as a model for other developing
countries congested capitals.

•

Scalability: successful implementation of first phase paved the way for extension of the road until new international airport. Planned
extension to neighboring countries (transport corridors)•

Human capital:- Eiffage Senegal trained to assume responsibility for operational management of the equipment.
- Government bodies such as APIX supported to prepare and implement PPP projects (in particular through a PPIAF grant)

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind99e) Engage all stakeholders
Because of its obvious advantages, the project benefited from a large consensus strengthened by a careful outreach to all
stakeholders (including advertising campaigns)

Project steering committee established with participation of all Ministries involved.
Feasibility studies involved several rounds of public consultations. Detailed work was carried to determine the level ofaffordable tariff.

Each affected party was supported by a social component :- Resettlement of 2000 families (nearly 20 000 individuals) to a new fully equipped area (70% chose the proposed new areaand 30% the monetary compensation)- Urban improvement and restructuring of a flooding-prone area with 250 000 inhabitants- Environment protection (closing of landfill, forest classification)
NGO hired as mediators for resettlement issues. Conciliation commission established to handle disagreements oncompensation. Residents organized themselves by forming local associations to discuss compensation or amenities in the newarea.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind100Case 21
Spain
Energy Sector
Barcelona Districlima

101Project:

Districlima

Project Proponent:

Barcelona City council

Project Organization:

Districlima

Public Organization:
The project is legally carried out on the basis of 2 contracts signed with both competent
Public Authorities: Administrative Contract of Consorci del Besòs (Barcelona City Council + Aj. Sant Adrià City Council)
and Administrative Contract of 22@BCN (Municipal company 100% Barcelona City Council)
Private Organization:
Investor & developer: Districlima. Contractor: Engie for the production plants and several
other contractors for network execution. Operator: Engie
Capital Providers:

The stakeholders of Districlima S.A. are:Engie (50,8%); Tersa (20%) – Urban waste-to-energy plant; Agbar (19,2%); IDAE (5%) –Spanish Energy Agency; ICAEN (5%) – Catalan Energy Agency

Why is this project a Case Study for People First PPPs:
Districlima approaches sustainable energy to people, helps to improve air quality, reduces primary energy
dependence, reduces the consumption of power, water, refrigerants and fossil fuels, and helps to reduce the heatisland effect. Districlima also integrates fatal energy from the waste-to-energy plant (Tersa), reinforcing energy
independence, circular economy. A PPP was used to build a waste-to-energy plant that brings sustainable energy todegraded areas. The administration benefited from the private know-how and capital investment while the private
firms participated in a milestone profitable and sustainable project.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Districlima is located in the area of Forum of the Cultures 2004 (inSant Adrià de Besòs) and in the 22@ area, the technological districtof Barcelona City. Districlima supplies heating and cooling to a surfaceof more than 970 000 m2, in a high populated area (more than 60
000 people living) and with high density of enterprises, universities
and public buildings (museums, hospitals, public housing for people
with special social needs…)

Why:

Both areas (22@ and Forum) were highly degraded areas, after the
XIXth century industries disappeared in the 60’s. Most of thebuildings located there were abandoned, becoming a focus of filthand delinquency. Public Administration decided in early 2000’s tourbanize both areas, under innovation and sustainability criteria,
including therefore the execution of a DHC network in the project.

What:

Districlima approaches sustainable energy to people, helps toimprove air quality, reduces primary energy dependence, reduces theconsumption of power, water, refrigerants and fossil fuels, and helps
to reduce the heat island effect. Districlima also integrates fatalenergy from the waste-to-energy plant (Tersa), reinforcing energy
independence, circular economy.

Who:

Local Administration has catalyzed de DHC energy deployment andforemost in its role as planner and regulator.

When:

Forum Area - Consorci del Besòs
January 2002: Consorci del Besòs tender bit for the executionof a DHC system in the Forum area
July 2002: Award to the joint venture Elyo-Axima-Aigües deBarcelona
September 2002: signing of the Administrative Contract
Construction of the Plant and network
March 2004: Constitution of Districlima who assumes the
exploitation of the system
June 2004: Service supply beginning
2027: Contract End
22@ Area – 22@BCN
March 2001: 22@BCN launches an Ideas Competition for the
execution of a DHC system in the 22@ area
November 2004: 22@BCN’s tender bit for the execution of a
DHC system
March 2005: Award to Districlima
July 2005: Signing of the Administrative Contract
2008-2010: Tanger Plant Construction
2032: Contract End

2

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind102a) Increase access to essential services and promote equity
The project contributes to the equity between the old and degraded areas at the Besòs side with de ongoing transformation
under a new economic conception in 22@ technological district. So the integration of social housing and public facilities in the
middle of a private economic initiative helps a model of social lift in which the citizens can in the live, access to education andwork in the same area and with equal opportunities. Therefore the competiveness of the system has a great strength in the
success of the sustainability and competiveness provided.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
THE TECNOLOGYINTEGRATED IN
DISTRICLIMA
PROJECT IS
CUTTING ABOUT
20,000 Tn CO2emissions per
year in
BARCELONA.

The development of district heating and cooling systems,
based on renewable sources help communities on saving, notonly CO2 emissions, moreover reduces acoustic pollution andthe cities global warming produced heating/cooling systems.
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind103c) Demonstrate the economic and financial effectiveness of the project

Economic KPI*
• TURNOVER:
12.769k€• EBIT: 2.973k€• PyG : 2.129 k€

Financial SourcesCountry Economy

Local Economy• Public Funding's:
20M€• Private Funding’s:
77M€*• Other Funding’s:
0,9M€• Country companies• Engineering
suppliers• Energetic Leader• Energy Branding• Constructed byusing local
companies• Operation andmaintenance• Promoting local
employment*Values year 2017.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
DHC Technologies• High temperature DH• Low temperature DH• Cooling district networks• Cooling and heating networks

Potential costumers• Industries• Residential buildings, neighborhoods.
• Hospitals, Universities, Hotels,…

Renewable energies/ Sources• Geothermal• Biomass• Solar Thermal• Waste Heat or RES• Co-generation

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

104e) Engage all stakeholders
For the success of this type of project one of the main success keys is obtaining the “social license”, meaning that to engage
the growth of the project it’s essential to have the acceptance and recognition of public opinion, specially the influencers inthe specific area. To involve the local associations, civil platforms, etc. it’s necessary a great effort in organizing seminars, visits,
publications…, otherwise only the economic logic is not enough to guarantee the sustainability and success of the initiative.

From the public side, it’s important to create a project with its own life with no dependence on the different political trends
throughout the project, so it can offer an answer to different sensibilities that could appear (focus on smart city topics, social
equity, urban development, companies competitiveness…)

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind105

Case 22
Spain
Transport Sector
Barcelona’s Highway Maintenance – ‘Las Rondas’106Project:

Barcelona’s Highway Maintenance – ‘Las Rondas’

Project Proponent:

Consell Comarcal del Barcelonès and Metropolitan Area of Barcelona

Project Organization:

Matinsa and Indra

Public Organization:
Metropolitan Area of Barcelona (Área Metropolitana de Barcelona) and Consell
Comarcal del Barcelonès

Private Organization:
Sistemas (30 %)Special Purpose Vehicle between Mantenimiento de Infraestructuras (70%) and Indra

Capital Providers:
The different municipalities of the metropolitan region: Barcelona, Sant Adrià de Besòs
and Santa Coloma de Gramenet.
Why is this project a Case Study for People First PPPs:
Las Rondas are one of the main arteries for the entrance of traffic into the city of Barcelona from othermunicipalities in the metropolitan region. With over 1.2 million people passing through them every day, lasRondas present themselves as a key infrastructure for the proper functioning of traffic and transport at themetropolitan level. Without decent maintenance, traffic accidents could surge significantly, causing an increasein levels of pollution, and having a negative impact in the economic activity of the city at large.
Through a public-private collaboration, the metropolitan public institution of Barcelona is ensuring that thesehighways offer an adequate level of maintenance. As the level of traffic continues to increase, roadmaintenance is key to achieving a sustainable transport infrastructure both at the city and metropolitan level.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Metropolitan Area of Barcelona. This includes the municipalities of Barcelona, Sant Adrià de Besòs and Santa Coloma de Gramenet.

Why:

Proper maintenance of roads is key to avoid potential road accidents, and thus ensure low levels of traffic and the adequate conditions
for economic activity to prosper. In this sense, incentivizing the creation of an effective transport network in a city and metropolitan
area goes beyond building infrastructure – the maintenance of infrastructure is of great importance as well. Creating a PPP brought anumber of benefits to the project, ranging from private know-how and innovation, to economic efficiency.

What:

The maintenance of the PPP included cleaning, paving the road, signaling and other additional operations that result from accidents or
unforeseen eventsWho:

The contracting authority (Área Metropolitana de Barcelona), the council of the different municipalities (Barcelona, Santa Coloma deGramenet and Sant Adrià de Besòs) and the Consell Comarcal del Barcelonès. Public institutions were assigned risks such as financial
risks, demand risk and political risks, among others. The private sector, in this case the Special Purpose Vehicle (SPV) integrated by
Matinsa and Indra, was assigned the risks of inflation and certain risks on non-completion of contract.

When:

Many contracts, renewed every four years. For the 2011 call, the timings were: (2011) contract notice, (2012) start of operations, (2014)
end of formal contract, (2014) local authorities decide to extend the contract for two additional years, (2016) end of contract. This is apattern found in all the contracts, except the 2016 call, which foresees four formal years of contract.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind107a) Increase access to essential services and promote equity
Inadequate road maintenance can lead to high levels of road accidents, traffic, pollution and health problems for citizens. The metropolitan institution ofBarcelona decided to create a PPP for the maintenance of roads in the main metropolitan highways.
The maintenance of highways included:• All those systematic operations undertaken regularly to ensure that roads are in adequate conditions, such as cleaning and road checking.
• All those operations that might arise due to unforeseen events, such as accidents and bad weather conditions, among others.
• All those operations related to security and data management
Ensuring such activities through a PPP will increase access to transport services to people and bring other benefits to the urban area of Barcelona.
Specifically, this project helps:• Decrease the number of accidents• Decrease the number of injured people or deaths resulting from road accidents• Decrease the traffic level both in the highways and within the city of Barcelona and its surrounding municipalities, having an effect in the number ofpeople that can have access to these roads, public transport (via buses), and public services at large (movement of the ill between hospitals,
commuting to school/universities, etc.)• Decrease the pollution level resulting from traffic congestions and a better flow of cars both through las Rondas and within the city of Barcelona• Decrease the number of deaths resulting from air pollution in the metropolitan area of Barcelona, especially in the surrounding areas• Increase quality of life of citizens, with a better air-quality and less traffic noise
Such improvements will be experienced by every citizen, and thus promote better quality of life and health, among others, to every person regardless ofbackground, income level and race.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Resilient infrastructure and improvement in environmental sustainability
The know-how of the private sector for road maintenance brought both innovation and economic efficiency for the supply of this service. By setting
a number of conditions and systematic operations to carry out, local authorities ensured that the adequate maintenance conditions were met.
The number of road accidents in Las Rondas has been decreasing since the construction of the highways, indicating that, among others, themaintenance has been successfully implemented. Moreover, the air-quality in the city of Barcelona has been increasing over time due to theincorporation of effective public transport within Barcelona and between the different municipalities of the metropolitan region and fewer traffic in
the city. Although it is certainly hard to disentangle the causal effects of such results, the proper functioning of las Rondas has been a key part in theprocess, as they are the key artery of traffic for the entrance and exit of people to the city.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind108c) Economic and financial effectiveness of the project
The financing of the project is carried out by the Consell Comarcal del Barcelonès, which is in charge of paying the private company for giving themaintenance service. The money, however, is provided by the local authorities, namely the councils of Barcelona, Sant Adrià de Besòs and Santa
Coloma de Gramenet, and the regional authority, the Generalitat de Catalunya. The money is transferred to the metropolitan institution, the Area
Metropolitana de Barcelona, which in turn gives the money to the Conselll Comarcal del Barcelonès.
The payment is given to the private company by monthly payments depending on the specific maintenance activities that the company had to do inthat specific month. The price of such activities was arranged in the contract prior to the signing, implying that the private company is subject to any
inflation risk that might arise during the contractual period.

The amount paid by public institutions every year has been lower than what it was expected. This indicates that this public-private partnership hasdelivered the services needed at a lower cost than what public institutions forecasted. The payments also included a salary for all the workers incharge of the project, ensuring that local workers get a decent pay.
Moreover, this public-private partnership presented a number of monetary warranties that incentivizes the delivery of adequate maintenance.
Indeed, if the company does not comply with the standards put forward in the contract, they will have to pay a fine of roughly 5% of the estimatedproject cost in the form of a warranty that local authorities keep.
Finally, the local authorities in charge of this PPP hired an independent institution for the supervision of the project, which ensured that all theconditions followed for the maintenance of the road were objective and had the prime goal of delivering the best service possible.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Replicability and scalability
The case of the maintenance of the metropolitan highways, Las Rondas, provides a number of valuable lessons, in particular with
infrastructure maintenance PPPs. These are:
1. The creation of a public and opened competitive tender process that operates under an established legal framework
2. Presence of independent companies/institutions in the monitoring of the service quality given, namely whether the
maintenance given by the PPP complies with all the standards set out in the contract
3. Existence of innovation incentives for choosing companies in the tender process
4. Creation of risk-mitigating mechanisms such as warranties that incentivizes private companies to provide a good service, andgives public companies certainty that the company will provide the service successfully
5. Moreover, in terms of timing, local authorities extended the contract period to four years in the last call in order to avoid
political cycles and ensure the most objective tender process possible and stability in the provision of the service.
We find that the lessons set out above can be applied to any other infrastructure maintenance project.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind109e) Stakeholders engagement
As an urban project, the maintenance of metropolitan highways, Las Rondas, involved many different stakeholders:• Local councils: Barcelona, Santa Coloma de Gramenet and Sant Adrià de Besòs
• Metropolitan bodies: Metropolitan Area of Barcelona (Área Metropolitana de Barcelona)• Regional governments: Generalitat de Catalunya• Independent public bodies: Consell Comarcal del Barcelonès• Independent private bodies: SGS Tecnos which, through a different public tender, was assigned to monitor the maintenance of the highways• Firms: Matinsa and Indra• Citizens, neighbor associations

Public institutions were in charge of the design of the tender process and the conditions of the Public Private Partnership. Moreover, they were also incharge of paying private companies for the maintenance of the service.
The existence of private bodies to design the conditions for the PPP and ensure its completion was an important part of ensuring an independent andgood-quality provision of the service at all times. The awarding of such role was given to private companies through a different tender process, also
designed by public authorities.
The firms in this process were the ones that won the competitive tender process. These were Matinsa and Indra.
In terms of governance bodies, the awarding of the public tender was decided by the so-called ‘contracting roundtable’ (mesa de contratación), which
integrated a member of each of the public bodies responsible of this project. By integrating each of the stakeholders involved in the tender process,local authorities ensured that the process was as objective and independent as possible, integrating everyone’s views and opinions.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind110Case 23
Spain
Sustainable Cities
Maintenance and Conservation of the Furniture and Equipment in the Beaches
Cleaning of the Beaches in the Metropolitan Area of Barcelona

111

Project:(1) Maintenance and conservation of the furniture and equipment in the beaches(2) Cleaning of the beaches in the metropolitan area of Barcelona

Project Proponent:

Area Metropolitana de Barcelona (AMB) – Barcelona metropolitan area authority

Project Organization:(1) Coptalia SAU & (2) FCC

Public Organizations:
Metropolitan Area of Barcelona (AMB) and 8 City Councils (Sant Adrià de Besòs, Gavà,
Badalona, Viladecans, Castelldefels , El Prat de Llobregat, Montgat, Barcelona)
Private Organizations:

Stachys SA (bankruptcy), Coptalia SAU & FCC

Capital Providers:Private capital needed to finance machinery, vehicles, tools, training, and wages payment was
initially provided by the concessionaires.
Why is this project a Case Study for People First PPPs:
The first contract included the maintenance and conservation of the furniture and equipment in beaches such as
showers, benches, bins, handrails, and public bathrooms among others. That had direct effects on people’s good
health and safety (Goal 3) when using the beaches of the metropolitan area of Barcelona.
The second one, consisted on the cleaning of the beaches, specially the sand area and the garbage generated in thearea. That had a direct impact on sanitation (Goal 6) and users wellbeing.
Thanks to the integration of the contracts of several municipalities public administrations benefited from economies ofPlace a picture emblematic of yourscale that led to a reduction cost of the service for municipalities , and ultimately for taxpayers. Both contracts had aprojectstrong impact on life on land (Goal 15) and on environment by reducing garbage dumped in natural areas. All thesefactors allow us to define these contracts as People First PPPs based on the SDGs.
The role of private firms is to provide services adapting them to the necessities of citizens.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Project is located in the beaches of the metropolitan area of Barcelona, that covers 41 beaches, more than 2 million square meters ofsand, and receive more than 8,5 million visitors per year. The AMB includes 36 municipalities with a total of 3,2 million inhabitants.

Why:

Before the projects started each of the municipalities had their own service of maintenance of equipment and cleaning of beaches. The
integration led to an homogenization of services in the municipalities, overall cost reduction and improvement of quality in the results
due to higher professionalization of the services. That had a clear positive impact on the quality of life of beach users and theenvironment. The homogeneity of the geography and easy access to the beaches benefited the integration of the contracts existing indifferent cities. The benefits derived from the PPP contract are: integration of 8 different contracts, economies of scale, competition forthe contract, and certain degree of risk transfer.

What:

The project improves safety on land and in the environment promoting overall a higher standard in the quality of life of citizens.

Who:

The AMB is the public institution in charge of the works on behalf of the 8 city councils that have beaches in the metropolitan area ofBarcelona. Two private companies were in charge of providing the services with the quality standards agreed in the two contracts. In
both contracts tasks were assigned to the concessionaires while main risks were assigned to the contracting authority, AMB .

When:

The AMB signed the agreements with the 8 City Councils on 2011 in order to homogenize the services that it was already providing to
the municipalities in the metropolitan area (in 2015 for Barcelona). The analyzed contracts started on 2009 (equipment maintenance)and 2013 (cleaning beaches), respectively. Operations started one month after the contracts were awarded. Duration were of 8 years intotal (6+2 & 6+1+1, respectively).

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind112a) Increase access to essential services and promote equity
The services associated to the contracts increased the access of people to a safe and clean natural areas such as beaches.
The services consisted on improving the maintenance of the equipment and beach cleaning. That resulted on a healthierenvironment particularly for beach users. The equipment includes things such as showers, toilets, benches, vigilance towers,that make the citizens experience more pleasant and safe. Additionally, it also provided clean water and sanitation availability(Goal 6), making more sustainable cities and communities (Goal 11), and life on land (Goal 15).
The better existing conditions resulted in an increase of the number of people going to these common areas of themetropolitan area fostering communities development. Finally, it helped to improve social justice as it is an area accessible forall citizens without restriction.
Sanitation & community development
SafetySafetyUNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Resilient infrastructure and improve environmental sustainability
The contract of maintenance of equipment tackles one of the main problems public administrations face, the public
infrastructure management. Public administrations sometimes wait to do maintenance works until it is too late. The
inadequate maintenance can led to situations when the level of degradation force to replace the existing infrastructure, at amuch higher cost for the taxpayer.
The service associated to the contract helps to develop a resilient infrastructure that can last over years reducing themaintenance cost during the whole lifecycle of the equipment favoring responsible consumption of public goods (Goal 12) byreducing the residues generation and ultimately improving life on land (Goal 15).
The second contract, the cleaning of the beaches had a direct impact on the improvement of the environment and ecosystemin the beaches (Goal 15).

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind113c) Economic and financial effectiveness of the project
The projects are funded with monthly payments to the concessionaire for the works specified in the contract: maintenance and cleaning.
The contracts also specified the quality level that needed to be achieved in any of the areas. The contracting authority, AMB, is in charge ofthe quality control of the works. The contract includes penalties associated to the non-compliance of the requirements to guarantee theproper accomplishment of the quality targets by the concessionaires.
The private companies finance the payment of the wages and the machinery to be used to clean the beaches, recovering the amounts onmonthly payment by the contracting authority.

The first concessionaire of the contract of maintenance of equipment due to internal financial problems filed for bankruptcy less than one
year after being awarded the contract. The contracting authority awarded then the contract to the company ranked second in the tender tokeep providing the service of maintenance to the municipalities.
None of the two contracts required large investments besides the purchase of machinery needed to clean the sand and vehicles to pick up
the garbage. For that reason no SPV was created in any of the cases.
The outsourcing of the service allowed to generate competition for the contract in the tender and ultimately reduce the cost for the taxpayer
for a given service quality.

Both concessionaires were either large construction corporations (FCC) or subsidiaries (Coptalia of Copcisa) with enough financial resources
to provide the service in a solvent way.
The contracts provided stable and regular jobs to citizens, and as a result of better cleaning conditions, more people were attracted to thebeaches fostering economic activity in the metropolitan area of Barcelona.
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Replicable and scalability
Economies of scale often allow the reduction of provision of the service cost and creation of synergies that result in efficiency gains.
In this particular case the integration in 8 different municipalities of the maintenance of infrastructure and beach cleaning in two
separate contracts (not bundling activities themselves) allowed to achieve economies of scale and a reduction in the provision costof the two different activities.
That was possible due to the fact that the coast in the metropolitan area of Barcelona has similar morphology and shape making
easy to clean the beaches in a continuous way.

In some cases only an invisible line separates the beaches of two different municipalities. By integrating into a single contract it waspossible to homogenize the service of all municipalities.
The project can be replicated in all those municipalities where the beaches are close enough or easily accessible that scaleeconomies are possible.
Another interesting feature is the integration of services in different municipalities under a single metropolitan authority tosomehow overcome limits to integration of services in Spanish legislation (in Spain municipal public companies cannot offer
services outside their area, but private firms can). Many other services or sectors such as health care services or public transport
can benefit from economies of scale if being provided by AMB as contracting authority.
Next step for the project would be the bundling of the maintenance of the equipment and equipment procurement, that could
include the management of the bills in order to align interest of agents looking for a life cycle approach management system that
reduces overall cost. Additionally, the cleaning of beaches could be also integrated.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

114e) Engagement of stakeholders
The project is an example of People First PPPs as it involves the public metropolitan authority (AMB), the firms providing theservices, and finally all of those that benefit from better and safer public spaces such as kids, parents and beach users.

The AMB adopted a leading role in order to align the 8 municipalities interest and provide the best possible service to thesemunicipalities citizens at the smallest cost.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind115Case 24
UkrainePort Sector
PPP Kherson Port & Lower Dnieper River116

Project:
Project:

PPP
PPP Kherson
KhersonPort
Port && Lower
Lower Dnieper
DnieperRiverRiver

Project
ProjectProponent:
Proponent:

KhersonKhersonSea
SeaCommercial
CommercialPort
Port (KSCP)(KSCP)

Project
ProjectOrganization:
Organization:

Administration
Administrationof
ofSea
SeaPorts
PortsofofUkraine
UkrainePublicPublicOrganization:
Organization:thetheMinistry
Ministryof
ofInfrastructure
Infrastructureof
ofUkraine
Ukrainewith
withsupport
supportof
ofthe
theWorld
Worldbankbank

PrivatePrivateOrganization:
Organization:

Developer
Developerof
ofthe
theProject
Project––RoyalRoyalHaskoning
HaskoningDHV
DHVCapitalCapitalProviders:
Providers:PrivatePrivateInvestor
Investor && Global
GlobalInfrastructure
InfrastructureFacility
Facility

Why
WhythetheProject
ProjectisisaaCase
CaseStudy
Studyfor
forPeople
PeopleFirstFirstPPPs:
PPPs:
Port
Portshipping
shippingisisan
animportant
importantcomponent
componentof
ofphysicalphysicalinfrastructure.
infrastructure.The
TheProject
Projectwill
willallow
allowdeveloping
developingaahighhighquality,
quality,reliable,reliable,sustainable
sustainableandandresilient
resilientcargo
cargotransportationtransportationin
inUkraine.
Ukraine.Modernization
Modernizationof
ofSea
SeaPort
PortofofKherson
Khersonwill
willresult
resultinin
development
developmentregional
regionalandandtranstransborderborderinfrastructure,
infrastructure,economic
economicdevelopment
developmentand
andhuman
humanwell-being
well-beingas
asin
inKherson
Khersoncity
cityandandin
inotherothercities
citiesofofUkraine,
Ukraine,facilitation
facilitationofof export
exportof
ofgrain,grain,metals,
metals,break
breakbulk
bulketc.
etc.
The
Themainmainsocialsocialimpact
impactof
ofthe
theProject
Projectisiscreating
creatingopportunities
opportunitiesfor
fordevelopment
developmentof
of agricultural
agriculturalbusinessbusinessininUkraine
Ukraineand,and,asasresult,
result,increasing
increasingemployment
employmentin
inthisthisfield.
field.
The
TheProject
Projectwill
willhave
havesignificant
significantecologicalecologicaleffecteffectasasaaresults
resultsof
ofenergy
energyefficiency,
efficiency,transitiontransitionto
tothe
theuseuseof
ofelectricity
electricity
insteadinsteadof
ofdieseldieselfuel,fuel,providing
providingsafety
safetytransportationtransportationof
ofgraingrainand
andotherotherfood
foodproducts
products
UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thetheSDGs…
SDGs… our
our way
way toto endend poverty,
poverty,protect
protectthe
the planet
planet while
while leaving
leaving nono oneone behindbehindWhere:

Kherson city, Ukraine, 135.7 sq.km, 300 thousand population, the key economic sectors: mechanical engineering, food production

Why:

Ukraine has a high potential for export of grain and other crops. The current throughput of Kherson Sea Commercial Port (KSCP) is 1.7
million tons. As a result of the Project implementation the throughput could increase in 1.8 – 2.9 times.
Strengths of the Project: good location (connection to river and Black Sea; largely ice-free navigation, spare capacity available,
established port infrastructure & services, easy to remove bottlenecks (lack of storages etc.), opportunities to improve efficiencies. PPP
solution is considered as a mechanism of attracting financial resources and knowledge transfer.

What:

the Project will create opportunities to increase Ukrainian export of grain and other crops as well as employment in agricultural andtransport sectors of Ukraine by using local supplies, and local companies and promoting local jobs

Who:

Initiator of the Project is the Ministry of Infrastructure of Ukraine. The Project preparation is supported by the World Bank via Global
Infrastructure Facility. It is being discussed with representatives of the Ministry of Economic Development and Trade, Association
Ukrainian Logistics Alliance, Administration of River Ports, Ukrainian Sea Port Authority, Kherson City and Kherson Regional
Administration, representatives of private business and their associations.

When:

Final decision regarding the Project implementation is planned to be taken at the beginning of 2018.
Construction start date is planned for 01.01.2019.
Operation start date - 01.01.2020.
Term of concession – 15 years.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind

117

a)
a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity
equitySocialSocialimpact
impactof
ofthe
theProject
Project
Creating
Creating access
accessto
totransporttransport infrastructure
infrastructure inin Ukraine,
Ukraine, developing
developing agricultural
agricultural andand otherother local
local
products
products export,
export,increasing
increasing employment,
employment, improving
improving thethequality
quality ofoflifelife
SocialSocialrisks:
risks:•• Staff
Staffredundancy
redundancy•• Traffic
Trafficin
inKherson
Khersoncity
city•• LandLanduseuse(future)(future)In
Inthetheframework
frameworkof
ofthe
theProject
Projectititwould
wouldbebenecessary
necessaryto
toprovide
providesocialsocialcompensationcompensation ofof
KSCP
KSCPstaff
staffredundancy
redundancy through:through:•• professional
professionaltraining
training•• financial
financial compensations
compensations
UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb) Develop a resilient infrastructure and improve environmental sustainability
KSCP handles a mix of cargoes: grain, metals, break bulk, etc.
Cargo flows could increase for all commodities – in accordance with different scenarios in 1.8 – 2.9 times.
Grain is a very promising commodity – a lot of various stakeholders in Ukraine are interested in the Project
implementation.
The Project will create sustainable long term infrastructure ensuring environmentally friendly and safe
transportation of grain and other food products.
Scenarios:
A. Mixed cargo port: Grain high + other cargo medium
B. Mixed cargo port: Grain high + metal high + other cargo low
C. Specialized port: Grain only
For all scenarios it is necessary to metigate the key risks concerning air & water quality and to increase energy
efficiency through:• Proper design• Adequate construction practices• Introduction of ‘’state of the art’’ techniques

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind

118

c)
c) Demonstrate
Demonstrate thethe economic
economic andand financial
financial effectivenesseffectiveness ofof thethe projectproject
Preliminary
Preliminary Economic
Economic Evaluation:
Evaluation: Summary
Summaryof
ofresults
results

Preliminary
PreliminaryFinancial
FinancialEvaluation:
Evaluation: Assumptions
Assumptionsof
ofthe
thefinancial
financialmodel
model
Operations
Operationsstart
startdate:date:1.01.2020
1.01.2020
Duration
Durationof
ofconcession:concession:15
15years
years
Financing(mixedwith
MDB)
Financing (mixed with MDB)financing:financing:
Gearing:
Terminal
Gearing:50%
50%
Terminalhandling
handlingfees:
fees:
Loan
Cereals:
Loantenure:tenure:88years
years
Cereals:5.50
5.50USD/ton
USD/tonInterest
Building
Interestrate:
rate:10%
10%
Buildingmaterials:
materials:5.17
5.17
USD/ton
USD/tonCorporate
Fertilizers:
Corporatetax
taxrate:rate:18%
18%
Fertilizers:7.08
7.08USD/ton
USD/tonCAPEX
CAPEXphasing:phasing:
Year
Year0:0:70%
70%
YearYear5:5:20%
20%
Year
Year10:
10:10%
10%

Preliminary
Preliminaryconclusions
conclusions

Indexation:
Indexation:
CAPEX
CAPEX&&tariffs:
tariffs:5%
5%
OPEX:
OPEX:3.75%
3.75%

••

SourceSourceof
ofthe
theProject
ProjectFinancing:
Financing:Private
Private Partner
Partner equity,
equity, EBRD,
EBRD,EIB,
EIB,WB
WB
Business
BusinessModel:
Model: Most
Mostappropriate
appropriatecontractual
contractualmodel
model==BOT/Concession
BOT/Concessionagreement;
agreement;“Demand-Risk”“Demand-Risk”based
basedcontract
contractfor
forprivate
privatebidder;bidder;Freedom
Freedomfor
forprivate
privatesector
sectorto
todefine
definethethenaturenatureof
ofterminal
terminalbusiness;business;The
Theuseuseof
ofthe
theberth/quay
berth/quaywall
wallisisincluded
includedininthe
theconcession
concession

••

••

Each
Each scenario
scenario isis aa
viableviable proposition;
proposition;No
No scenario
scenario stands
standsout
out
SlightSlight preference
preference for
for
Scenario
Scenario AA(mixed(mixedcargo
cargo port)port) based
based on
on
NPV.
NPV.

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd) Be replicable and scalable
One of the tasks of the Project implementation is piloting anddeveloping a methodology of implementing PPP based port
projects in Ukraine
The Project is less expensive and less complicated than otherpotential port projects (Odessa, Mykolayev, Chernomorsk,
Yuzhnyi).
The World Bank and European Bank of Reconstruction andDevelopment actively participate in the Project preparation andcapacity building activities (by conducting trainings for local publicauthorities and promoting PPP mechanism in the society).
The team involved in the Project preparation process consists ofrepresentatives of IFI, the Ministry of Infrastructure of Ukraine, theMinistry of Regional Development and Trade of Ukraine, local
authorities, foreign & local consultants

Regional impact
The Project could be very useful for other developing economies.
The methodology to be applied in the framework of implementation of the Project could be replicated in the countries with low institutional capacityof public authorities, lack of trust to private business participation in infrastructure modernization among the population, especially poor people.
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

119e) Engage all stakeholders
Central Governments: the Ministry of Infrastructure, the Ministry of Economic Development and Trade
Local Governments: Kherson City Administration, Kherson Oblast Administration
IFI / Capital Providers: World bank, European Bank of Reconstruction and Development, Global Infrastructure Facility
Project Developers: Royal Haskoning DHV, INFORMAL, JURIMEX, REBEL, CTS (Center for Transport Strategies)
Private sector: Cargo owners, Freight forwarding companies, Private transport operators, Stevedoring companies, Container liners
Industry associations: Ukrainian Logistic Alliance,
Universities / Academies: Academy of Public-Private Partnership

Professional Unions: Port Professional Union
Civil Society: Local NGOs

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind120Case 25
UkraineWaste Water Sector
Mechanical Biological Treatment Plant in Khmelnitsky as the First
Waste PPP in Ukraine

121Project:Mechanical biological treatment plant in Khmelnitsky as thefirst Waste PPP in Ukraine

Project Proponent:

Khmelnitsky City Administration (Ukraine)

Project Organization:

State Agency on Energy Efficiency and Energy Saving of Ukraine

Public Organization:

Khmelnitsky City Administration (Ukraine) with the support of the Ministry of Economic
Development and Trade of Ukraine & the State Agency on Energy Efficiency and Energy
SavingPrivate Organization:

Project Coordinator - Alan Young, US Peace Corps Volunteer. Project Promoter – PPP
Academy & Ukrainian PPP Center

Capital Providers:Private Investor & IFIs

Why the Project is a Case Study for People First PPPs:
The City of Khmelnitsky is faced with a number of significant municipal solid waste (MSW) issues that directly affectits 265,000 residents. The city’s landfill is over 60 years old and far beyond its capacity. It is an environmental hazard
and its current life expectancy is projected to be just 5-6 more years. In addition, the city, like Ukraine as a whole, isseeking to improve air quality and substantially reduce municipal and other waste through reduction, recycling andreuse.
One of the task of the Project is to reduce the MSW sent to the landfill by 87 percent beginning from 2019 that will
extend the life of the landfill by 25 years, till the year 2042.
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Khmelnitsky City, Ukraine, 90 sq.km, with a population of 269,000, the key economic sectors: mechanical engineering, foodproduction.

Why:

Absence of Waste Treatment Facilities is one of the main problems in Ukraine. Only about 5.93% of household waste is treated,
including 2.73% - burned and 3.2% - used as recyclable materials and for waste recycling plants. Annually in the country there areabout 500 million tons of domestic and industrial waste. According to the latest information, 12.5 billion tons have been
accumulated at the landfills in Ukraine. The area of the city waste landfill is 13.6 hectares. Over the years the operation has
accumulated more than 4.6 million tons of waste. Annually about 80 thousands tons of waste is transported to the landfill in
Khmelnitsky.

What:

the Project will implement in the city higher landfill and waste management standards, consistent with those in other parts ofEurope; improve environment in Khmelnitsky and increase quality of life of the people.

Who:

Initiator of the Project is the Mayor and the City Administration. The Project is being implemented in the framework of Smart
Environment Plan 2017 and City Development Strategy for 2017-2025. Both these documents have been prepared in a transparent
and inclusive way and are being discussed with different city stakeholders (city administration, city council, private business, NGOs,
universities etc.). The State Agency on Energy Efficiency and Energy Saving & the Ministry of Economic Development and Trade aresupporting this project as a first PPP waste management project in Ukraine.

When:

Final decision regarding the Project implementation is planned to be taken at the end of 2017.
Construction start date is planned for 2018.
Term of PPP – 15 years

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind122a) Increase access to essential services and promote equity
Social impact of the Project• Elimination of the main source of chemical pollution• Reduction of CO2 emissions• Establishment of a holistic, integrated system of waste management that engages citizens andcreates environment friendly solutions.
• Improving the quality of life of the residents in Khmelnitsky
Environment and quality of life in the city has been recognized as the first priority goal of citizens
based on result of a survey conducted in 2016, in which more than 2,000 residents in Khmelnitsky
took part.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
The heart of the Project is a 4,000 square meter Mechanical Biological Treatment (MBT) plant that will sortmunicipal waste, treat the organic fraction through anaerobic digestion (AD) and convert the non-organic
fraction to solid recovered fuel (SRF) or refuse derived fuel (RDF).
Heat from the generators will be used to process the high calorific value content to create
densified refuse derived fuel (d-RDF) pellets for use in the city’s 19 district heating boilers thatcurrently use 6,000 tons of wood pellets annually
SRF could be used for production into pellets to be burned in the city’s 19 wood pellet district
heating plants. Khmelnitsky's large amount of waste from sewing factories is excellent feedstock for SRF.
The Project will allow maximum exploitation of MSW to generate as much energy as possible andthus contribute to Ukraine’s renewable power needs.
Additionally with the Project preparation and implementation:• A special programme should be established to prevent used batteries from entering the MSW
stream. About 90 percent of batteries are magnetic and can be sorted by magnetic
separators.
• An introduction of separate collection of garbage is being implemented in schools.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind123c) Demonstrate the economic and financial effectiveness of the project

Source of the Project Financing: Private Partner equity, EBRD, EIB, WB
Business Model: PPP mix agreement with the municipal support (providing waste)

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
One of the tasks of the Project implementation is piloting and developing a methodology of
implementing PPP based Waste projects in Ukraine
According to the data of the Ministry of Ecology and Natural Resources there are about 10 thousandof such landfills, which accumulated more than 12.5 billion tons of waste. Annually about 500 million
tons of solid and industrial waste is produced. The country has no modern industry of solid waste
disposal.
At the same time Ukraine has a modern and attractive PPP legislation that was developed with theassistance of the World Bank and EBRD. This process continues – preparation of the new Concession
Law is being finalized.
Cities in Ukraine are looking for approaches to implement their Waste Treatment Projects andrequire knowledge on attracting private business for resolving this task. To assist them the State
Agency on Energy Efficiency and Energy Saving had established a Working Group with theparticipation of the Ministry of Economic Development and Trade, Khmelnitsky City Administration,
PPP Academy and other experts for piloting this project and disseminating the information about itin Ukraine.
Regional impact
The Project could be very useful for other developing economies in the region.
The methodology to be applied in the framework of implementation of the Project could be
replicated in countries with low institutional capacity of public authorities, and a lack of trust
in private sector participation in infrastructure among the population.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

124e) Engage all stakeholders
Central Governments: the State Agency on Energy Efficiency and Energy Saving,the Ministry of Economic Development and Trade of Ukraine
Local Governments: Khmelnitsky City Administration and City Council,
Khmelnitskyi Oblast Administration

IFI:

GIZ, US Peace Corps

Project Developers: Alan Young, US Peace Corps Volunteer jointly with the
Kmelnitskiy City Administration and Communal Enterprise“Spetscomuntrans”
Private sector:
more then 10 industrial enterprises of the city
Associations:

Khmelnitsky Trade Chamber of Commerce & private
entrepreneurs

Universities / Academies: Khmelnitsky National University, Khmelnitsky
University of Management & Law, Ukrainian - Japan Center
under University, Academy of Public-Private Partnership
Civil Society:8 local NGOs in different fields of activity

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind125Case 26
United States of America
Disaster Recovery
PPP for Temporary-to-Permanent Housing in Disaster Recovery

126

Project:
Project:

PPP
PPP forfor Temporary-to-Permanent
Temporary-to-PermanentHousing
Housing inin Disaster
Disaster Recovery
Recovery

Project
ProjectProponent:
Proponent:International
International PPP
PPPin
inResilience
ResilienceSpecialist
SpecialistCentre,
Centre, Inc.
Inc.

Project
ProjectOrganization:
Organization:

PrivatePrivate Non-Profit
Non-Profit

PublicPublic Organization:
Organization:

U.S.
U.S.Department
Departmentof
ofHousing
Housingand
andUrbanUrbanDevelopment,
Development, Texas
TexasGeneral
GeneralLand
LandOffice
OfficePrivatePrivate Organization:
Organization:

AApartnershippartnershipof
ofthe
theCommunity
CommunityDevelopment
Development Corporation
Corporationof
ofBrownsville,
Brownsville, thetheBuilding
Building
Communities
Communities Workshop,
Workshop,TexasHousers,
TexasHousers,Hazard
Hazard Reduction
Reduction andand Recovery
Recovery Center
Center at
at
A&M
A&M University,
University, La
La Unión
Unión deldel Pueblo
Pueblo Entero,Entero, andand A
AResource
Resource In
In Serving
Serving

Texas
Texas
Equality
Equality (ARISE)(ARISE)

CapitalCapitalProviders:
Providers:

The
TheFordFordFoundation
Foundationalso
alsoproided
proidedaagrant
grantforforassistanceassistance inindeveloping
developing thethemodelmodel

Community
CommunityDevelopment
Development Financial
FinancialInstitutions,
Institutions, Commercial
Commercial Banks
Banks

Why
Whyisisthis
this projectprojectaaCase
CaseStudy
Studyfor
forPeople
PeopleFirstFirstPPPs:
PPPs:AABest
BestPractice
Practicein
inDisaster
Disaster Recovery/Resilience
Recovery/Resilience utilizing
utilizing PPP
PPPTheTheRAPIDORAPIDOprogram
program offers
offerssolutions
solutions totodisasterdisaster recovery
recoveryand
andresilience,
resilience, creating
creating aabottom-up
bottom-up community
communitybased
based
approachapproachthatthat isiscenteredcentered on
onthe
the families
familiesititintends
intends totosupport.
support.The
The design
design processprocessexamines
examines notnotonly
onlyarchitectural
architecturalissues,issues,but
buteveryevery level
level ofofprocess,process,specificallyspecificallythe
the social,social,economic,
economic,and
andpoliticalpoliticalcontexts
contextsthat
thatmakemakeupupaadisasterdisasterscenario.
scenario.RAPIDORAPIDOevaluates
evaluates andandredesigns
redesigns thetheentire
entire processprocesswith
with thethe people
peoplethatthat areareimpacted
impacted most.
most.
RAPIDORAPIDOaddresses
addresses thethefollowing
following Sustainable
Sustainable Development
Development Goals:
Goals:
Goal
Goal#3#3(heathy(heathy lives)
lives)
Goal
Goal#9#9(resilient(resilient infrastructure)
infrastructure)
Goal
Goal#11#11(resilient(resilient cities)
cities)Goal
Goal#13#13(combat(combatclimate
climate changechangeimpact)
impact)
UNECE
__#16
500
People
PPPs
for
SDGs…
Goal
access,effective
institutions)
UNECE
500(inclusive,
People First
First
PPPs
for thethe
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindGoal#16(inclusive,
access,effective
institutions)

Where:The pilot project was developed in the Rio Grande Valley in the U.S State of Texas, an impoverished region on the border with Mexico.

Why:

Hurricane Dolly, a category 2 cyclone/typhoon, caused widespread flooding, particularly in low-to-moderate income neighborhoods,
where pre-disaster housing was already inadequate. A group of concerned civic leaders and non-profit organizations worked withaffected citizens to develop a new approach based on a temporary shelter (core) that could be easily expanded into a quality affordable
home. Utilizing pre-assembled components for the core provided significant cost savings, proved very resilient (can withstand hurricane
strength winds) and allows additional rooms to be added in converting the shelter into a quality affordable home. The PPP solution waschosen because the U.S. Federal Governent’s policy is not to fund permanent home construction for temporary shelter. The core unit is
not considered a permanent home; however, utilizing a case management system to provide private financing and construction, theunits were able to be converted into permanent homes.

What:

Applying this successful concept to flood-ravaged Louisiana, which lost an estimated 60,000 affordable homes in 2016, could provide asignificant improvement in quality of life for low-income survivors. This is critical in the context that, 10 years prior to the floods,
Louisiana lost 250,000 affordable homes to storms and decay.

Who:

Private: A partnership of non-profit organizations led by Better Communities Design Center, Texas Housing and the Community
Development Corporation of Brownsville, both organizations dedicated to providing decent housing for low income citizens. Other
members include labor rights organization La Union del Pueblo Entero, latino assistance organization ARISE, the Hazard Reduction andRecovery Center at Texas &M University, and the Texas Low Income Housing Information Service. Public: U.S. Department of Housing
and Urban Development and Texas General Land Office.

When:

On April 19, The Texas State Senate Committee on Intergovernmental Relations approved a bill to expand the program statewide, andthe State of Louisiana is considering adopting the program in partnership with private philanthropic organizations for ongoing recovery
from August 2016 floods.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind

127

a)
a) Increase
Increase access
access toto essential
essential services
services andand promote
promote equity
equityThe
The project,
project,applied
applied ininLouisiana,
Louisiana, will
will increase
increase access
accessto
toaffordable
affordable quality
quality housing
housing forforvictims
victims ofofthe
the 2016
2016 Louisiana
Louisiana Floods.
Floods. OverOver 200,000
200,000 homes
homeswere
weredestroyed,
destroyed, approximately
approximately 30%
30%ofofwhichwhichwere
were classifiedclassified as
as“affordable”,“affordable”, ororpricedpriced atatlesslessthanthan US$100,000.
US$100,000. These
These60,000
60,000 homes
homes added
added totothe
the250,000
250,000
lost
lostwithin
within thethe tentenyears
years priorpriortotothe
the floods
floodshave
have createdcreated aacrisis
crisisin
inaffordable
affordable housing.
housing. Many
Manyhomes
homesdestroyed
destroyed were
were sub-standard,
sub-standard, unhealthy,
unhealthy, andanddangerous,
particularly
mobilehomes
thatcannotwithstandstrongwinds.
The
RAPIDOmodel
providesastrong,decenttemporary
dangerous, particularly mobile homes that cannot withstand strong winds. The RAPIDO model provides a strong, decent temporary shelter,
shelter, priced
pricedat
at
approximately
approximately US$25,000,
US$25,000, assembled
assembled on
onsite,site,thatthat cancanlaterlater bebeconverted
converted either
either on
onsitesite orordisassembled
disassembled andandmoved
moved totoaanew
newsite,site, thatthat maymaybe
beexpanded
expanded totocreate
create aahigh-quality
high-quality affordable
affordable home
homeforforless
lessthanthanaatotal,
total, including
including thethe temporary
temporary unit,
unit, ofoflesslessthan
than$100,000$100,000 (the(theaverage
average costcostininpilot
pilot
project
conversion
totaledUS$86,000
includingthecore).
After
use
as
a
temporary
shelter,
the
core
unit
may
be
donatedtoanon-profit
that,
project conversion totaled US $86,000 including the core). After use as a temporary shelter, the core unit may be donated to a non-profit that, in
inturn,turn,
donatesdonates thethe unit
unit totosurvivors.
survivors. Using
Using aacase
casemanagement
management system,
system, families
families will
will work
work with
with design
design andand buildingbuilding professionals
professionals toto createcreate their
their own
ownhomehome
using
using thethecorecoreunit
unit asasaabase,base,learn
learnabout
about credit
credit andandmortgage
mortgage financing
financing ififthey
they had
hadnevernever owned
owned aahome,
home, andand work
workwithwith Community
Community Development
Development
Financial
FinancialInstitutions
Institutions totoobtainobtain financing
financing forforthethe conversion.
conversion. ThoseThosewho
who cannot
cannotobtainobtain financing
financing may
maychoosechooseto
to rent,
rent, and
andagreements
agreements may
maybe
bestructured
structured to
toapply
apply aaportion
portion ofoftheir
their rent
rent totoeventual
eventual ownership.
ownership. Providing
Providing access
accessto
to safe,safe,affordable
affordable housing
housing thatthat maymaybe
be raised
raisedififin
inflood-prone
flood-prone
areas,
areas,isisresilient,resilient, andand provides
provides families
families with
with better
better health,health, including
including overcoming
overcoming thethe trauma
trauma associatedassociated with
with disaster,
disaster, andand promotes
promotes socialsocialjusticejusticethroughthrough providing
providing ananopportunity
opportunity totoimprove
improve their
their financial
financialstanding
standing with
with aatransferable
transferable asset
assetandandaasafe,
safe,welcoming
welcoming environment.
environment. Utilizing
Utilizing thethePublic
Publicsectorsectorin
inPPP
PPPprovides
provides thethe basis
basisforforsocialsocialjusticejustice andandmakemakeessential
essential services
servicesaccessible
accessibleto
toall
allwithout
without restriction
restriction on
onany
any grounds
grounds such
suchasasrace,race,ethnicity,
ethnicity,religion,
religion, orororientation,orientation, asasthosethoserequirements
requirements cancanbebebuilt
built into
into thethe donation
donation process.
process.

UNECE
UNECE __ 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs
SDGs …
… ourour way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindb) Develop a resilient infrastructure and improve environmental sustainability
This project develops a resilient infrastructure in three ways:
1.
2.
3.

The design of RAPIDO housing, which allows inexpensive elevation in flood-prone areas, can help prevent urban sprawl.
The core unit is able to withstand hurricane force winds, and all construction techinques were developed to provide resilience (for example,“hurricane clips” are used to prevent roof damage)Utilizes wood, a renewable resource, rather than steel or concrete lowers the carbon footprint and may allow the use of local wood products(soft-wood trees which grow much faster-no rainforest wood)

RAPIDO emphasizes redefining the recovery system to make it more efficient and effective. Policy changes to encourage more sustainable recovery
options are encouaged, such as redevelopment of impacted neighborhoods and rural areas rather than new “greenfield” development and the fiscal
and environmental costs associated with new development.
The RAPIDO design allows for assembly of components in 4 days, and construction of the core unit from those components in 3 days. The rapido
model can shorten time to put families back in their home from years to months, even weeks. Flexibility, choice, and empowerment are hallmarks of
the RAPIDO model. It is truly a PEOPLE FIRST PPP initiative.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

128

c)
c) Demonstrate
Demonstrate thethe economic
economic andand financial
financial effectivenesseffectiveness of the project
The
The projectprojectisisfinanciallyfinancially sustainable,
sustainable, andand private
private sector
sector financing
financing entities
entities will
will bebe provided
provided with
with aa fair
fair market
market rate
rate ofof return
return condsummeratecondsummerate with
with thetherisk
risktaken.
taken. In
Inthe
the United
United States,
States, aa specificspecific type
type ofof institution,
institution, Community
Community Development
Development Financial
Financial Institutions,
Institutions, areare non-banknon-bank lenders
lenders who
whoraiseraisecapitalcapital based
based onontheir
their ability
ability toto successfully
successfully lend
lend toto low-to-moderate
low-to-moderate income
incomepopulations
populations and/or
and/orareas.
areas. These
These institutions
institutions will
will bebeutilized
utilized totoprovide
providefunding
funding forforpermanent
permanent conversions
conversions inin Louisiana.
Louisiana. Thanks
Thanks toto thethe casecase manager
manager “navigators”,“navigators”, who
who themselves
themselves areare trusted
trusted members
members ofofthe
the community,community,
familiesfamilies were
were informed
informed inin how
how toto financefinance aa home,
home, makemake familyfamily budgets,budgets, andand otherother knowledge
knowledge toto lessen
lessen risk
risk forfor them,
them, andand thethe institutions
institutions that
that
provideprovide financing
financing toto them.
them.
Using
Using local
locallabor
labor andand supplies
supplies will
will benefit
benefit private
private sector
sector partners
partners inin affectedaffected communities.
communities. Funding
Funding used
used forfor construction
construction andandassembly
assembly of
ofbothbothcorecoreunits
units andand permanent
permanent homes
homes will
will stay
stay inin thethe communities,
communities, versus
versus manufactured
manufactured homes
homes thatthat areare usuallyusually shippedshipped inin fromfrom other
other places.
places. Private
Privatelandowners
landowners may
may benefit
benefit ifif their
their properties
properties areare used
used asas sitessites forfor temporary-to-permanent
temporary-to-permanent development
development forforfamilies
families who
who did
did not
not have
have aahome
homeprior
prior
to
the
disaster,or
whodecidenottorebuildon
disaster-vunerable
property.
Pre-procurement
arrangements
with
local
suppliers
will
greatly
to the disaster, or who decide not to rebuild on disaster-vunerable property. Pre-procurement arrangements with local suppliers will greatly aid
aidin
in
the
the ability
ability toto “scale”“scale”thethe systemsystem inin casecaseofofwidespreadwidespread home
home damage.
damage. In
In addition,
addition, thethe model
model isis also
also being
being considered
considered forfor smallsmallbusinesses
businesses andandcommunitycommunity organizationsorganizations thatthat may
may sustain
sustain buildingbuilding losses.
losses.

UNECE
UNECE 500
500 People
People FirstFirst PPPs
PPPs forfor thethe SDGs…
SDGs… our
our way
way toto endend poverty,
poverty, protect
protect thethe planet
planet while
while leaving
leaving nono oneone behindbehindd) Be replicable and scalable
The RAPIDO process can be replicated in any country. The primary issues to enable replication are funding for conversion from temporary topermanent conversion, capacity to produce components, and development of an effective case management system

It is transferable to other sectors. Discussions are underway to utilize the same model for temporary-to-permanent structures for small businesses,
non-profit organizations, and local/provincial public entities. In addition, construction of components for and assembly of the core units andexpansions to permanent housing will create jobs and utilize a value-added renewable resource, wood, that will stay in the country where grown
rather than be exported wholesale, using sustainable forest practices.
The project is scalable, and assuming the Louisiana project is implemented, will be scaled to eventually enable the production of thousands ofunits for both ongoing recovery and in preparation for inevitable future weather-related events.
Management of the pilot project have openly and freely shared their process, held a day-long training session with those working on Louisiana
recovery, and a webinar on specific issues. They are willing to share their designs and specifications upon commitment that they will not be
exploited for profit at the expense of vulnerable people and that core units will always be converted to permanent homes, even if the unit itself is
not expanded.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

129e) Engage all stakeholders
The partnership approach, including advocacy organizations such as labor rights organization La Union del Pueblo Entero and latino assistanceorganization ARISE assured stakeholder involvement, and the case management system ensured that all stakeholders were not only heard, but
accommodated as much as possible.
Each organization and agency filled a necessary role in ensuring the success of the pilot Project.
1.
2.
3.
4.
5.
6.
7.
8.

Builing Communities (bc) workshop, a Texas non-profit, provided overall leadership of the pilot project
The Community Development Corporation of Brownsville served as a liason with local officials and neighborhood groups
Texas Low Income Housing Information Service worked with bc worshop on design and development of the RAPIDO model
Hazard Reduction and Recovery Center at Texas A&M University advised on resilient design and served as a
La Unión del Pueblo Entero worked to ensure fair and equtable treatment of workers involved in the program
A Resource In Serving Equality (ARISE) served as an advocate for families and individuals throughout the projectU.S Housing and Urban Development provided funding to the state of Texas General Land Office through the Community Development Block Grant
Disaster Recovery Program
Texas General Land Office Community Development and Revitalization Program allocated Communiuty Development Block Grant Disaster Recovery
Program funds for the RAPIDO pilot project

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind130Case 27
United States of America
Health Sector
Harbor-UCLA Medical Center Expansion and Surgery and Emergency
Facility Replacement131

Project:

Harbor-UCLA Medical Center Expansion and Surgery and Emergency Facility
Replacement

Project Proponent:

Harbor-UCLA Medical Center

Project Organization:

ADEC Innovations

Public Organization:

County of Los Angeles Department of Public Works

Private Organization:

FirstCarbon Solutions (FCS), a company which provides environment management
solutions under ADEC Innovations provided Harbor–UCLA Medical Center with expert
environment consulting services and California Environmental Quality Act (CEQA)
documentation in the form of a Mitigated Negative Declaration (MND) and guidance on
construction placement to minimize environmental and residential impacts.

Capital Providers:

The Hospital’s Board of Supervisors unanimously approved the budget for the project lastSeptember 2010, with initial financing from tax-exempt commercial paper and federal
stimulus funds. Pierre Sprinkler & Landscape also partnered up for the first time with
Hensel Phelps Construction Co. on the $332 million emergency room expansion project.

Presented by:
Mr. James Donovan
CEO, ADEC
Innovations

Why is this project a Case Study for People First PPPs: The hospital expansion project sought to increase thecapacity of the Medical Center by expanding and optimizing medical facilities. FCS was called upon to assist withenvironmental clearance and preparation of an air quality, noise and traffic/parking technical report, which helped
the Medical Center balance the goals of enhancing patient care through new facilities while complying withenvironmental regulations. The collaboration of FCS with Harbor-UCLA Medical Center turned out to be profitable(through consulting services) and at the same time sustainable (saving lives through the expansion of the facility).
UNECE _ 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind

Where:

Harbor–UCLA Medical Center is a 570-bed public teaching hospital located at 1000 West Carson Street in Torrance, California within Los Angeles
County, United States. The Surgery/Emergency Replacement Project increased the size of the existing emergency room from 25,000 square feetwith 42 surgery bays to about 75,000 square feet with 80 surgery bays. The project also added 190,300 square feet of new hospital facilities
housing 16 surgery suites, adult and pediatric triage and a new entrance, lobby and waiting area. Other features include a new heliport and 544vehicle parking structure.

Why:

Before construction of the project, patient wait times have stretched into days, averaging about 14 hours for care in the emergency room inside
the main hospital building, which was constructed in 1963. Moreover, Harbor-UCLA was the only county hospital without a parking structure.
Surface parking was scarce, with cars filling every space of pavement inside the rambling campus between Normandie and Vermont avenues.
Outpatient clinics and some administrative offices were housed in portable mobile units that dot the property.

What:

The new building additions of Harbor-UCLA Medical Center expansion project provides greater efficiencies through a more organized layout andseparation of inpatient and outpatient services, resulting in a better patient experience and enhanced level of care. Currently, the Medical Centerhas the ability to perform more patient procedures with the expanded Surgery and Emergency. Additionally, there are two standalone canopies, afree-standing heliport and a new parking structure that can accommodate approximately 544 vehicles.

Who:

Three key players were involved for the project to be possible. First is the County of Los Angeles who supported the project and currently funds
the Harbor-UCLA Medical. Second is Pierre Sprinkler & Landscape who partnered with Hensel Phelps Construction Co. on the $332 million
emergency room expansion project. To complete the project, Pierre did multiple move-ons, one of which involved converting a grassy knoll into aparking lot as well as removing existing trees for reuse. In order to convert the knoll, Pierre crews removed the existing irrigation system and cap
any valves that remain. Once Hensel Phelps constructed the parking structure, Pierre crews moved on site again to replant the trees among otherlandscape and install necessary irrigation. Lastly, FirstCarbon Solutions (FCS) provided the hospital with expert CEQA Guideline, timely preconstruction environmental consulting services, and guidance on construction placement to minimize environmental and residential impacts.

When:

The county Board of Supervisors, which oversees four public hospitals, began planning for the expansion project in 1990. It was approved in
1994, but bureaucratic issues and funding held up construction. After more than 20 years of planning and celebration, the construction began in
February 2010 and was completed in 2013. The completion of the new campus plan will all be finished by 2030 which includes more parking inabove-ground structures, more patient beds, lots of open grassy areas, and retail stores.
108

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behind132a) Increase access to essential services and promote equity
The purpose of Harbor-UCLA’s Expansion Project is to increase the capacity of the Medical Center by expanding
and optimizing existing facilities. With the relocation of the Surgery, Emergency and Central Sterile Processing
Departments to the new building, approximately 45,600 square feet of space within the existing hospital will bevacated. This vacated space will be remodeled and used to consolidate and expand other departments.
The new building additions would provide greater efficiencies through a more organized layout and separation of
inpatient and outpatient services. More patient procedures can be done which can result in a better patient
experience and enhanced level of care.
As the healthcare industry transitions to a more standardized, collaborative, and preventative care model ofhealth care delivery, and away from reliance on acute‐care inpatient treatment, Harbor-UCLA anticipated that
there will be an increasing need for them to enhance their outpatient programs and other patient support
services for all and without any restriction. Harbor‐UCLA sees a clear need to invest in its facilities and programs
to continue to fulfill its role as a strategic piece of the healthcare “safety net” of Los Angeles County in generaland for South Bay communities in particular.

UNECE _ 500 People First PPPs for the SDGs … our way to end poverty, protect the planet while leaving no one behindb) Develop a resilient infrastructure and improve environmental sustainability
One of the master plans for Harbor-UCLA is to develop it as a “total healthenvironment” so it can actualize its role as a central community resource that
focuses on health management and care. The campus master plan expands
current thinking beyond systems that “do less harm” through reducing
negative resource impacts to create a campus that “heals.” Sustainability andgreen building techniques would be integrated from the beginning of design,
through construction, to building occupancy and daily use. Green building
techniques in buildings will be intended to be integrated with campus
infrastructure such as integrated stormwater and wastewater treatment.
Together, all of these elements will effectively lower resource and energy
requirements, reduce greenhouse gas emissions, and enhance long-termsustainability.
FirstCarbon Solutions helped Harbor-HCLA Medical Center balance the goalsof enhancing patient care through new facilities while complying withenvironmental regulations that apply to new construction. FCS’
environmental planning services allowed Harbor-UCLA Medical Center toproceed with the best development plan that fully complied with regulatory
and environmental requirements in a seamless and cost-effective manner,
while improving the patient experience.

Existing zone
UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind133c) Demonstrate the economic and financial effectiveness of the project
Harbor-UCLA has a significant economic impact on surrounding jurisdictions and the County as a whole as a result of the spending by
campus tenants and their employees in the regional economy.

According to Harbor-UCLA’s master plan in February 2012, specifically, the Harbor-UCLA tenants spend about $307 million on goods
and services, about 85 percent of which is capture in the County, and $451 million on wages and salaries. This activity generates anestimated 5,500 direct and 8,700 indirect and induced jobs in the County (a total of about 14,200 jobs). If 100 percent of the spending
by HarborUCLA tenants were captured locally, its economic impact in the County would increase by about 2,200 additional jobs.
The Harbor-UCLA expansion project alone, along with construction at Martin Luther King Jr.-Harbor Hospital in Willowbrook, created
upward of 10,000 construction jobs. Contractors were Pierre Sprinkler & Landscape who partnered with Hensel Phelps Construction.
With bond financing available through the federal stimulus package passed in 2009, the country Board of Supervisors approved plans
and the work began for the initial site.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behindd) Be replicable and scalable
The plans to build a new hospital tower so it will be a main
focal point and new center of the campus, facilitatedoutpatient facilities, new open spaces for the enhancementof patient, visitor, and staff experience, realigned patient andvisitor vehicular entrances and parking, spatial programs,
research facilities focused on wellness, and retail/commercial
services – all of which encompass the expansion project thathas been proven to work in the community of Los Angeles
county due to the jobs it create. Despite the big budget tocomplete all of these by 2030, the project can be replicatedin another country since all of them are possible to constructespecially in countries where hospitals are scarce, provided
that they have the right partnership with the public sector
like Los Angeles County, the right environmental consultant
like FCS, and the right contractor like Pierre Sprinkler &Landscape and Hensel Phelps Construction.

The planning team of Harbor-UCLA’s master plan studied how its market will
likely evolve over the next 10-15 years resulting in the following key
conclusions:

Population Growth and Changing - Harbor UCLA will see anincreasing demand for healthcare services in the future due topopulation growth and aging and already low healthcare
utilization rates today.
Workforce Changes - Future physician and nursing shortages in
The County of Los Angeles will compel Harbor-UCLA to rethink
how it provides care in the community moving forward .
Funding - Harbor-UCLA will likely benefit from the expansion of
Medicaid beneficiaries resulting from Health Reform, however,this reimbursement stream will continue to pay below cost,and other reimbursement streams will see declines in growth
rates
Harbor-UCLA Response - Harbor-UCLA will need to (1) enhance
its operating performance – near-term and long term, (2)define new care models, (3) lead in activities to better manage
the health of the residents of the County of Los Angeles, and(4) grow intelligently in order to remain a viable and successful
safety net provider.

UNECE 500 People First PPPs for the SDGs… our way to end poverty, protect the planet while leaving no one behind134e) Engage all stakeholders

Harbor-UCLA
Expansion
Project
involved different sectors . Aside fromthe public sector (County, Regional
Agencies and Organization) and theprivate companies like FCS, Pierre
Sprinkler & Landscape, and Hensel
Phelps, they also involved the HarvardUCLA academe. These stakeholders
developed such a master plan which
enhanced the unique and highlyinteractive relationship between theclinical, educational, and researchcomponents of the Harbor-UCLA
Medical Center .

In the US, public consultation specifically for a hospital expansion and/or renovation project
engages stakeholders. In an article released by Becker’s Hospital Review, there are 6 out of 34
most expensive hospital expansion renovation who were voted by a local or state government
body to be approved took place in 2016.
1.

2.

3.

4.
5.

6.

The Massachusetts Department of Public Health's Public Health Council voted Oct. 20 toapprove Boston Children's Hospital's proposal to begin construction on a $1 billion
expansion project.
City, state and federal officials held a ribbon-cutting ceremony Nov. 18 to mark the longawaited opening of the Veterans Affairs hospital in New Orleans. Although it was projected
to cost about $625 million, a U.S. Government Accountability Office report said the actual
cost of the new hospital came closer to $1 billion.
The Georgia Department of Community Health on Dec. 12 approved a request by Atlantabased Piedmont Hospital to build a $603 million, 16-story patient tower next to its main
campus.
The local city board in early September approved Washington, D.C.-based MedStar
Georgetown University Hospital's proposal to construct a new $567 million hospital.
Tacoma, Wash.-based CHI Franciscan Health in late August submitted a letter of intent to
the Washington State Department of Health requesting regulatory approval to invest in a
new, $530 million hospital at Harrison Medical Center-Silverdale (Wash.).
The Delaware Health Resources Board in May approved Dover, Del.-based Bayhealth
Medical Center's $277 million expansion plan.

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