SDIP partners with PIDG to close the infrastructure gap

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New strategic partnership will develop and expand innovative public-private financing tools

SDIP is partnering with the Private Infrastructure Development Group (PIDG) to increase public-private finance for infrastructure projects in low-income countries.

Working jointly with SDIP, PIDG will hold a series of investor workshops designed to develop and expand its innovative financial products and initiatives.

PIDG mobilizes private sector investment to assist developing countries in providing infrastructure vital to boosting their economic growth, and combating poverty.

PIDG CEO Philippe Valahu said: “Blending public and private finance is one of the most effective ways to catalyse funding for infrastructure on the huge scale that is needed”.

“Working with SDIP will help us to mobilize greater levels of investment in the most challenging markets, closing the infrastructure gap and promoting economic development” he added.

SDIP and PIDG began their work together with a local currency guarantee roundtable. The event, attended by public and private investors, focused on expanding the pioneering work of the PIDG-supported InfraCredit initiative, which is designed to unlock infrastructure investment from Nigerian pension funds on a scale not previously seen.

Richard Samans, Head of the Centre for the Global Agenda and Member of the Managing Board at the World Economic Forum said:

“PIDG’s work in helping to address the financing challenges faced by infrastructure projects fits extremely well with SDIP’s goal of mobilizing blended finance for US $100 billion of sustainable and climate resilient infrastructure projects, so we are extremely excited about this partnership.

“SDIP, its members and the projects we support will benefit tremendously from PIDG’s wide range of facilities and expertise built over 15 years, and we look forward to broadening our collaborative effort.”

Cambodia and Côte d'Ivoire are first countries to join SDIP

Blended Finance in Africa and Asia took a step forward today when the Republic of Côte d’Ivoire and the Kingdom of Cambodia became the first two countries to formally announce their participation in the Sustainable Development Investment Partnership (SDIP). Blended Finance enables countries to advance national infrastructure priorities while alleviating pressure on sovereign balance sheets and refocusing national and donor funding into key social sectors.

SDIP members are working collaboratively with national governments, regional institutions, and local and international commercial financiers across all stages of project development to accelerate emerging market infrastructure.

In its membership letter, Cote d’Ivoire pointed to SDIP as an opportunity to “work for sustainable and inclusive economic growth, to improve the living conditions of the people, to reduce dramatically the poverty rate in the country, and to contribute to the preservation of the environment.” 

Cambodia’s membership letter noted that, “sustainable development is achieved by involving the various stakeholders – from the North and South, national and local, public and private and associations – in processes.”

The announcement of these two new members follows the announcement of the SDIP Africa Hub in May 2016 at the World Economic Forum on Africa 2016 and the launch of the Hub that July; plans are underway for a similar hub in the ASEAN region. These hubs are designed to address financing challenges from a regional perspective to strengthen project pipelines, mobilize capital for infrastructure projects, and contribute to local capacity building.   

SDIP’s membership has grown from 20 institutions when it began in September 2015 to 34 today. Worldwide, SDIP has reviewed projects representing more than $30 billion in value and supports the sharing of best practices across its network.