Context

Local authorities in the Middle East and Turkey are still bearing the brunt of the COVID-19 pandemic socio-economic consequences, which added to their struggle to manage the additional social and economic pressure of hosting refugees and displaced. With rising unemployment and an increase in vulnerable households, public authorities are now trying to find ways to support the economic pitfall that will emerge.

Solutions could come by involving the private sector in local development responses while supporting local businesses facing the crisis. With investment plummeting, and associated job destructions and losses, public authorities can play a role in ensuring a strong recovery by engaging the private sector broadly. Local authorities, who know best the potential of their area and the needs of their residents, can attract the private sector to take part in development projects and can provide support to local businesses. This can benefit local and displaced populations directly (through job creation) and indirectly (as a spillover to the local growth), ultimately benefitting the local economy. A strong private sector also benefits host local governments in return, bringing taxes, an attractive economic environment, and stimulating more investments. 

Local authorities lack knowledge and know-how on partnering with the private sector. Public-Private partnerships often require not only the capacity to approach and dialogue with the private sector, but also to design business plans, and follow existing regulations and administrative steps. Local authorities members of the Mediterranean Host Municipalities Learning Network (HMLN) expressed their increased need for support for continuing to provide a livable local economic environment to all residents and asked for more guidance on how to engage the private sector for the benefit of their populations, including refugees.

As a follow up of the online training (June 2021) on “Approaches, Methods, and Tools for Host Municipalities to Engage with the Private Sector”, which led to the draft of 22 private sector engagement strategies by municipalities, this event series will focus on country regulations and processes for public-private partnerships. The first session was dedicated to Lebanon. The second session is dedicated to Palestine. 

Target audience and participation in the event

This specific event was training for local government representatives from Palestine.

Agenda and Speakers

The event provides participants with technical presentations on country regulations for public-private partnership (PPP), practical steps that municipalities have to take to partner with private companies, sign and implement PPPs, and practical examples. Technical presentations will be followed by a moderated discussion around the main issues encountered by municipalities in PPPs. The agenda was as follows (times are GMT+2, Jerusalem time) : 

11:00- 11:10 am: Introduction

11: 10 – 11:55 am: Technical presentations and Examples

Ashar Raza, Associate Investment Officer, International Finance Corporation (IFC): “Introduction to PPPs and existing challenges in the Mashreq and global examples”

H.E. Dr. Tawfiq Budeiri, Deputy Minister, Ministry of Local Governments, Palestine: “Palestinian regulations and procedures for PPPs & Current practices in PPPs at the municipal level”

A.F. & R. Shehadeh Law Firm, Palestine: “Palestinian regulations and procedures for PPPs”.

Ahmad Sokar, Executive Director, Joint Service Council of Solid Waste Management For Hebron & Bethlehem

Discussants : Aziz and Nadeem Shehadeh, A.F. & R. Shehadeh Law Firm, Palestine

11:55 am – 12:30 pm: Q&A and Open discussion: “How to overcome the main issues faced by Palestinian municipalities in PPPs”.

Partners

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. IFC’s strategy focuses on “creating markets”

through mobilizing private investment. For more information, please visit www.ifc.org

IFC’s Public-Private Partnerships Transactions Advisory Services department provides sell-side financial advisory services to client governments with the purpose to increase access to basic infrastructure and social services by facilitating private investments in these sectors. Specifically, the team acts as Lead Transaction Advisor to governments to structure and implement public-private partnerships (PPP) transactions across all infrastructure sectors, e.g. power, water, transportation, and telecommunications, as well as social sectors such as health and education, with a particular focus on energy and transport, and for the following types of transactions:

• Public-Private Partnerships e.g. BOT type concessions
• Management and lease contracts
• Restructuring and privatization of state-owned enterprises.

Resources

Watch the session's recording