Climate Resilient PPP

Oshani Perera

David Uzsoki

Losses from natural catastrophes 2014

Insured catastrophe losses in 2014

Severe connective storm-related insured losses as a % of all

weather event insured losses

https://twitter.com/intent/tweet?text=investment+poured+into+many+small+renewable+energy+projects,+especially+solar&url=http://tinyurl.com/hapr5o9&via=WBG_PPP

Top 10 metropolitans areas effected by climate-perils

The policy levers ...

• Intended Nationally Determined Contributions (INDCs)

• National adaptation plans

• National infrastructure resilience plans (to protect from freak weather damage)

• Sustainable Development Goals

• Infrastructure project pipelines

The risk-based approach ...

• Higher project preparation costs?

• Increase uncertainties related to political and legal risks?

• Increase uncertainties and expenditure on safeguards?

• Design and technology risks will be higher?

• Demand and revenues risks ???

Which solutions is more bankable

across the life cycle?

Which solutions is more bankable

across the life cycle?

Greening Credit Enhancement

First loss provision

Viability gap funds

Partial risk guarantees

Political risk guarantees

Syndication Project

development funds

Viability gap funds

Contingent loans

B-loans

How widely used are credit enhancement instruments?

Procurement

•Value for money assessment

•Market consultations

•Design competitions

•Output-based specifications

•Competitive dialogue

•Competitive negociations

Thank you

Oshani Perera, operera@iisd.org

David Uzsoki, duzsoki@iisd.org