Investment mobilised

For every $1 of PIDG member funding, projects PIDG has supported have mobilised $23, of which $17 comes from private sector financing

A key part of PIDG’s mission is to mobilise private sector funding; PIDG companies leverage donor funding, blending it with private sector investment (PSI) from local, regional and international sources, and debt or equity from Development Finance Institutions (DFIs).

Since 2002, for every dollar of PIDG member funding, projects PIDG has supported have mobilised $23, of which $17 comes from the private sector. This method also accounts for funds reinvested and raised by PIDG companies, and is compared to the 2017 mobilisation per dollar of PIDG commitments. PIDG’s focus on frontier countries is evident from the fact that 53% of total funding mobilised was in DAC I and II countries and 52% in Fragile and Conflict-Affected States.

There is a need to mobilise trillions of dollars of private sector money alongside the billions invested by public sector institutions. Donors and other stakeholders need a clear picture of how Private Sector Investment (PSI) is mobilised.

To avoid double-counting, the amounts raised on each transaction need to be attributed to the DFIs involved. The OECD has been developing a methodology for this and PIDG provides the relevant numbers to them. When the methodology has been extended to all funding instruments, and agreed with other public sector funders, PIDG will report in line with it.

During 2017, PIDG-supported projects mobilised private sector funding in various ways, including:

  • EAIF participated in a B loan on Central Termica de Ressano Garcia (CTRG) which raised PSI of $79m in equity and debt, while its participation in a bond issue for Helios Towers Africa led to $540m of investment from the private sector.
  • GuarantCo provided guarantees to projects which will raise $641m of PSI, including $301m from domestic sources.
  • DevCo’s work to enable Myanmar’s first internationally competitively-tendered IPP for a combined-cycle power plant in Myingyan led to a project raising $325m in private sector debt and equity.
  • InfraCo Asia sold its interests in the Pakistan and Gul Ahmed wind power projects to Daelim Energy, a Korea-based private sector company

Annual Report
2017