engaging the private sector world bank. extensive private sector engagement ppps: bank group trust...
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Engaging the Private Sector
WORLD BANK
Extensive private sector engagement
• PPPs: Bank Group trust fund contributions from foundations and corporations small but growing ($218 and $31 million, 2002-8)
• Global Financial Solutions. Innovative approaches to:
• address government and market failures for global public goods
• monetize investor willingness to support socially sustainable projects and climate-related initiatives
• GEF portfolio: WB secured high levels of cofinancing from private sector – in all focal areas
Innovative financial instruments: Some examples
• Leverage private resources from investors and philanthropic organizations to support expanding public spending in developing countries
• Facilitate deployment of public resources in ways that reduce the risks of entry in developing country markets (leverage private investment through guarantees, risk sharing facilities, and transactional support for public-private partnerships)
• Better manage the costs of crises through ex ante insurance schemes (rather than ex post recovery financing)
• Provide incentives for performance and implementation
GEF Earth Fund: WB/CI Platform Engage the private sector in
conservation 1.Streamline product sourcing agreements
between companies and communities2.Develop conservation partnerships between
private sector actors and communities that produce social and environmental results to meet corporate responsibility commitments
3.Build capacity of SMEs through loan financing -increased participation in product/service supply chains that benefit conservation and economic development
Conservation Agreement
ConservationActions
BenefitsThreats to
BiodiversityOpportunity
cost
Patrolling Reforestation
Demarcation No hunting
No deforestation
Teachers salariesMedicinesAgricultural servicesWages for conservation actions
Financial Tools
Private sector
High biodiversity
sites
Social results
Environmental results
GEF
Donor communit
y
Results for the investors
Value from demonstrati
ng social and
environmental
contributions
modelp
hila
nth
rop
ic
governance strengthened
Micro-lending
mechanisms
Private sector
Natural product source areas
Social results
Environmental results
GEF
Results for the investors
modelso
urc
ing
Entrepreneurship fostered
Verde Ventures
Natural ingredients
Traceable supply chains
Complement conservation agreements with SME investments
• CI's Verde Ventures Fund invests in SMEs: provides debt financing of $30,000–$500,000 to strategic businesses that benefit conservation
• Verde Ventures business partners also employ over 15,000 local people in 13 countries
• Verde Ventures support has helped protect and restore more than 300,000 hectares of habitat
Platform: 3 types of funding• Feasibility analysis grants. 3-9 months, up to
$20,000. To assess the feasibility of implementing conservation agreements as a tool for conserving the proposed area.
• Grant for implementing conservation agreements. Up to 3 years; up to $500,000. To implement conservation agreements (assessed as viable above)
• Non-grant mechanisms, such as loans, guarantees, and others to support streamlining product sourcing agreements and building the capacity of small- and medium-sized enterprises. Used in combination with conservation agreements to ensure conservation outcomes or provision and maintenance of ecosystem services.
SoS – Save our SpeciesWHY BE A BUSINESS PARTNER?
• Stand Out in a Competitive Market
• Make the Most of a Wealth of Marketing Material
• Be at the core of a Highly Credible Project
• Gain Significant Visibility
• Delegate to SOS -Assurance of Effective use of Funds
SUPPORTED BY 8,000 OF THE WORLD BEST EXPERTS
• Build on momentum
• Protect your logo –Address a specific issue
Lessons Learned for private partnerships
• Focus on substance (not on resources)
• Early engagement
• Long-term perspective
• Senior management involvement
• Risk management
• Be more “user friendly”
Issues for consideration
Role. Private sector as:
• Recipient of support or funds (beneficiary)
• Provider of funds and support (donor)
• Provider of expertise (contractor)
• Partner - ?
Level of private sector :
• International corporations (or foundations)
• National private sector or SMEs
• Local community initiatives, NGO, CSO
►Role and support of GEF or Agency? ►Instruments?
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