The International Financial Corporation (IFC), a member of the World Bank Group, has signed a memorandum of understanding (MOU) with the Caribbean Development Bank (CDB) to support public-private partnerships that are crucial to building better infrastructure in the Caribbean.
Well structured public-private partnerships – agreements between governments and firms to provide infrastructure and public services – leverage the expertise and capital of the private sector to enhance the quality and efficiency of the public sector. The MOU between IFC and CDB establishes close cooperation between these two institutions to advise Caribbean governments at the national and sub-national levels in the development of new infrastructure projects with private participation.
“In the face of fiscal challenges, public-private partnerships have become an important tool to help governments work with the private sector to meet the needs of their communities,” said Kirk Ifill, IFC resident representative for the Southern Caribbean.
“This collaboration between IFC and CDB opens up exciting opportunities and allows IFC to share its considerable international experience.”
CDB president Dr Warren Smith said the bank was “pleased to collaborate with IFC on this initiative. By encouraging and supporting cooperative ventures between the public and private sectors, we are also promoting a strategic response to economic growth and job creation – two major development concerns for this region”.
Under the memorandum, IFC and CDB would collaborate in a variety of areas, including helping to conduct due diligence, identify suitable private sector partners and structure projects with government authorities to ensure a transparent and competitive bidding process.
Renewable energy, education, transportation, and water and sanitation projects are the focus of cooperation, though the memorandum does not exclude other potential sectors. (PRSC)
