On February 28, the Islamic Development Bank (IsDB) hosted the Public-Private Partnerships Forum 2019: Shared Efforts for Shared Goals under the High Patronage of His Highness King Mohammed VI of Morocco in Rabat.
The event brought together a powerful coalition of leaders across the public and private sectors to discuss how greater collaboration and private financing is key to tackling the world’s most pressing global development challenges.
The event saw internationally renowned experts, Government officials and business leaders discuss the opportunities and challenges to create the best enabling environment for PPP projects, particularly on the African continent, as the traditional model of government-financing is no longer sustainable.
As the development financing gap widens to US$ 2.5 billion per year, the IsDB is advocating for a new global development model which enables all economic agents in the market – both public and private – to play a role in development. PPPs are a core focus area for the bank, as they enable higher socioeconomic returns compared to the traditional model of public procurement and help alleviate the burden on state budgets.
In a speech delivered at the Forum, President of the IsDB, H.E. Dr. Bandar M.H. Hajjar said:
“The IsDB is responding to the significant development challenges facing its Member Countries by putting forward a new business model that directs resources to enhancing countries’ competitiveness in strategic sectors in which they have and can build, a global comparative advantage.
“The biggest potential driver for short and long-term development is now the private sector. Governments, with severe budget constraints, must seek to establish regulations that enable all economic agents in the market to play a role in development throughout the value chain. And the wider global development community must work harder to engage the private sector in recognition of its vital role as an engine of growth and investment.”
Morocco was chosen to host the PPP Forum, in recognition of its success with PPPs and co-financed projects, including the expansion and rehabilitation of the Jorf Lasfar Port project, the Tangier-Casablanca high-speed rail line, and the Noor Solar Power Complex.
Since its inception, the IsDB has supported PPP projects in its 57 Member Countries with an amount of US$3.93 billion where co-financing was in excess of US$45 billion, in the areas of utilities, financial services, minerals, energy, and healthcare.
Original source: IsDB
Published on 28 February 2019
