A winning concept for development

From 2016 to 2030, the world needs to invest an average of US$3.3 trillion a year in economic infrastructure just to support expected rates of growth.To achieve this, the Public Private Partnership (PPP) formula is a winning concept, says Sir Michael Bear, a British expert in this field.Emerging economies, he emphasises, account for some 60% of these developmental needs.From London Bear – born in Kenya – said he is absolutely delighted to be invited to address the third Annual PPP Conference, which will be hosted by the Ministry of Finance, Pricewaterhouse Coopers Namibia and Standard Bank Namibia in Windhoek on 9 November 2017.His topic will be “Learning from UK infrastructure financing and PPP experience”.Bear has over four decades of experience in design engineering, construction, financing and operation of capital projects, mainly in the infrastructure sector covering PPPs around the world. He will be able to draw on this experience which includes senior roles with Balfour Beatty (the UK’s largest construction company) as a former director of Arup, a consulting services group, a former Lord Mayor of the City of London 2010-11) and most recently, five years’ experience working with UK Trade and Investment.THE WHY AND HOW“There is without doubt substantial scope to increase public infrastructure investment and PPPs are an important procurement method in this respect,” explains Bear, “providing they can demonstrate value for money and affordability.“The reason is quite simple: well formed partnerships with the private sector can deliver clear benefits by driving forward efficiencies, building projects to time and to budget and creating the correct disciplines and incentives on the private sector to manage risk effectively. But it is crucially important to select the correct PPP model for any particular project.“These vary from simple outsourcing partnerships (where services are provided on short or medium term contracts) to longer term private finance partnerships.“There is a huge appetite from international capital markets to fund investment grade infrastructure projects and successful partnerships with government depend on an alignment of interest, namely a common agenda,” Bear points out.Private sources of capital according to him require robust governance, predictable rates of return and above all an investible proposition. “Governments can increase funding streams by raising user charges, capturing property value or selling existing assets and recycling the proceeds for new infrastructure.”LOADS OF POTENTIALMarket Watch wanted to know from Bear whether PPPs have globally and especially in Africa reached its full potential.“In my view, there is an enormous untapped potential for PPPs globally considering there is a predicted shortfall of US$350 billion per year of investment in infrastructure,” Bear argues. “Infrastructure delivery through PPPs in Africa represents a significant proportion of this shortfall.”Beard will be meeting with senior decision makers and decision influencers whilst he is in Namibia to see how UK companies with the support of UK government can assist in the delivery of local infrastructure programmes.Bear has in his roles with Balfour Beatty, Arup and the UK government been personally involved with a number of PPP projects, ranging from street lighting in Northamptonshire in – a £230 million contract with a 25 year concession to design, install and maintain 46,000 street lights, 11,000 signs and bollards; a new section of A1 road with payments via shadow toll; and building a new hospital at Dryburn and re-developing the existing site for residential and commercial use. This was a £200 million contract through a 25 year concession period.The company was also involved in the delivery of prisons, schools and military housing through PPPs. During Beard’s time at Arup, the company was also involved in a number of airport, toll roads and water projects, including the current Thames Tidal Tunnel. * Sir Michael D Bear (BSc, MBA, CEng, Hon FREng, Hon FICE, FRICS) over the last 40 years has worked in the international construction industry, including in the US, Europe, China, the Far East, West Africa and South Africa.Sir Michael was amongst others a member of Lord Green’s Ministerial Strategic Advisory Group and worked for UKTI setting up the Regeneration Investment Organisation and held the role of Chairman until March 2016. He was Co-Chair of the CEO Forum for UK/China Infrastructure and Chairman of the High Value Opportunities Supervisory Board.He was appointed as UK Special Envoy for Sustainable Urbanisation – China by the Chancellor in September 2014 and is currently a Non-Executive Director of Future Cities Catapult. Sir Michael has recently been appointed as Professor for Sustainable Urbanisation at Sheffield University.He was knighted during the 2012 New Year Honours for services to regeneration, charity and the City of London.

A winning concept for development

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Republikein 2025-04-21

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A winning concept for development

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