TYPES OF PROJECTS WE SUPPORT
GIF-supported projects may be implemented by privately-operated entities (as under a PPP modality), or by public sector entities operating on a commercial basis—provided in either case that they are providing infrastructure as a public service, and that the project has strong potential to achieve financial viability and sustainability and to attract long-term private capital. Eligible projects that meet these selection criteria may be brought to the GIF for support irrespective of the stage of project development.
SECTORS AND AREAS WE WORK ON
The GIF can support projects across the following sectors and sub-sectors:
- Energy: electricity generation; electricity transmission or distribution; natural gas transmission or distribution.
- Water and sanitation: water supply; wastewater and sewerage; irrigation and drainage; solid waste management.
- Transport: airports; ports; railways; mass transit; highways.
- Telecommunications: landlines; undersea cable.
Within these eligible sectors, the GIF focuses on projects that are aligned with two thematic focus areas:
- Climate-smart projects that are low carbon-emitting, encourage energy or carbon efficiency in the provision of infrastructure services, or strengthen climate resilience, such as low-emissions power generation; power or gas transmission projects that bring efficiency to energy markets; loss-reducing power distribution projects; mass transit projects (i.e. metro, passenger rail, bus rapid transport, etc.); and water projects which address scarcity, security, flood management and other aspects of climate resilience.
- Trade-enabling projects that facilitate or enhance interconnectivity and trade. These include freight rail networks, seaports and inland terminals, airports, and toll roads.
Projects are expected to support the GIF’s goals of poverty reduction and inclusive and sustainable growth in emerging markets and developing economies through improved delivery of infrastructure services. This is defined by higher numbers of people covered, better quality services, lower cost through improved efficiency, and/or more climate-smart modes of service provision.
ALIGNMENT WITH COUNTRY PRIORITIES
Projects should address a priority investment need and have demonstrable government commitment, including the availability of adequate fiscal resources to develop and implement the project and intention to seek private financing.
VIABILITY, SUSTAINABILITY AND VALUE FOR MONEY
Projects must be economically, technically, socially, environmentally, and fiscally viable, and represent value for money for the recipient country government and end users. This will be assessed in terms of social and economic returns for the project as well as its proposed mode of implementation (e.g. PPP).
MOBILIZATION OF PRIVATE CAPITAL
Projects need to have significant potential to leverage public funds by attracting sizeable capital investment from the private sector.
Projects that require multiple parties to work together to structure, arrange and provide financial support, and/or projects that require a blend of financial or risk mitigation instruments to attract commercial finance—these are the projects where the value-added of preparing the project through the GIF platform is expected to be the highest.
Complexity could take several forms, including projects with multiple discrete operating units (e.g. pipeline and plant, or facility and supporting infrastructure) in one or more sectors; multi-country or regional projects; or those that envisage new applications of financing mechanisms in a given context—whether the first instance of private financing in a reforming sector, or an effort by a government to expand the range of investors engaged in financing infrastructure investment in a more well-established market.