Presentation delivered by S. Brian Samuel, Head of Regional Public-Private Partnerships (PPPs), CDB on the experiences, challenges and opportunities for PPPs in the Caribbean during a webinar on the Caribbean PPP Toolkit on June 28, 2017.

1. The Caribbean PPP
Environment
S. Brian Samuel
Head of Regional PPPs
Caribbean Development Bank
Webinar on the Caribbean PPP Toolkit
28th June, 2017

2. AGENDA
1 Pressing Investment Needs
2 Review of PPP Experience
3 Caribbean PPP Opportunities
4 CDB and PPPs

3. Pressing
Investment
Needs
 A 2014 study by CDB estimated that
our 19 Member Countries need about
US$21 billion in infrastructure
investments over the next 10 years:
26%
18%
56%
Required Investment
Water & Sanitation Transport Electricity
Source: Public-Private Partnerships in the Caribbean, CDB, 2014

4. Countries
Increasingly
Turning to
PPPs
Policies in place
or being drafted:
• Grenada
• Haiti
• Jamaica
• St. Lucia
• Trinidad & Tobago
• Guyana
PPP Units in
place:
• Jamaica
(Development
Bank, and Min Fin)
• Trinidad & Tobago
(Min Fin)
• Haiti (Min Fin)

5. Jamaica
Leads the
Way
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000 $4,564
$794
$552 $441
$208 $184 $131 $111 $60 $30
Caribbean PPI Investments 1990-2015
(US$000 Million)

6. Sobering
Lessons
Endless Delays
• Flawed transaction processes
• Gaps in due diligence and preparation
• Lack of capacity
Failure to Close
• Insufficient project preparation
• Lack of awareness of PPP potential
• Lack of Regional support mechanisms
Post-closing fiscal
surprises:
• Inappropriate risk allocation
• Inadequate due diligence and preparation
• Insufficient fiscal oversight

7. “Many
Rivers to
Cross”
Major sector reform required
• Need for stable legal, regulatory and policy
environments
Lack of political support
• Policy history of state-directed investment
• “Dragged kicking and screaming to the altar of PPPs?”
Lack of trained staff
Ad hoc project selection
• Too many unsolicited proposals
Limited marketability of smaller PPPs

8. The
Inverse
Pipeline
Pyramid
Most PPP projects in the Caribbean pipeline
never get past the drawing board:
Concept
Stage
Feasibility
Study Stage
Tender
Stage
25 Projects
10 Projects
9 Projects
=
=
=

9. Top 10 PPP
Opportunities
in the
Caribbean
1
2
3
4
5
6
7
8
9
10
Conventional energy
Renewable energy
Water & sanitation
Ports
ICT
Cruise ship terminals
Airports
Roads & bridges
Government facilities
Tourism

10. CDB is
Moving into
the PPP
Financing
Arena
 With IDB and WB, CDB
launched the Regional Support
Mechanism (RSM):
– PPP Boot Camps
– PPP Toolkit
– PPP Helpdesk
 New phase deepens CDB’s
support for PPPs, by providing
technical assistance to develop
early stage PPP projects
 CDB seeking to provide long-
term finance to infrastructure
PPPs, either:
– Public sector; or
– Private sector

11. Thank you:
S. Brian Samuel
Head of Regional PPPs
Caribbean Development Bank
Samuels@caribank.org