IsDB is one of the Multi-National Development Banks (MDB) supporting the APMG Public-Private Partnerships Certification Program, as well as a major contributor to the PPP Certification Program Guide. We speak with IsDB's Fida Rana, from its Public Private Partnership Division to discuss its involvement in the APMG PPP Certification Program.
What is IsDB’s history with PPPs?
IsDB has supported PPP projects in its 56 member countries across various sectors such as transport (sea port, toll roads, airports etc), energy (both conventional and renewable), social infrastructure (hospital). Through Islamic modes of financing, the bank has provided funding to many PPP projects along with other conventional commercial banks and MDBs. IsDB has also been active in upstream PPP space, such as assisting governments in the MENA region in PPP project preparation. Recently the bank has started offering PPP capacity development support by organising case based PPP workshops for its member country institutions and governments, in order to enhance their understanding of PPP projects and to disseminate the knowledge of PPP deals.
What excited IsDB to support the APMG PPP Certification Program?
The APMG PPP Certification Program is an excellent initiative by the MDBs to create standard body of knowledge that can become a global reference when it comes to PPP practice. We are glad to see that the body of knowledge includes Islamic finance and its application in PPP. Islamic finance is growing rapidly, experts estimate that it has crossed USD 2 trillion marks in 2014. That’s roughly equal to the size of Canada’s economy. For more than a decade, the Islamic finance industry has been experiencing a double digit growth, starting from a mere USD 200 billion in 2003. As the certification will feature Islamic finance module, the participants will be able to have a grasp on this topic.
How will the PPP Certification benefit PPPs worldwide?
The major beneficiary group of the certification would be those who are involved in PPP project preparation, mainly government officials of line ministries and PPP units. By understanding the PPP project cycle, risk and mitigation features better, the certification will help them to prepare bankable PPP projects.
