PIDG in action: Infrastructure transforming economies changing lives

20 projects
reached financial close
7
in Fragile and Conflict-Affected States

10 projects
became commercially operational

$2.5bn
mobilised from private sector investors and development financial institutions

Infrastructure: Transforming economies, changing lives

9.2m people
with access to new or improved infrastructure

10,335
long-term jobs created

6,235
short-term jobs created

A message from PIDG's CEO

PIDG plays a unique role in delivering innovative infrastructure solutions.

Our projects are transformative, they drive change and improve people’s daily lives

Philippe Valahu

A message from PIDG's CEO

PIDG plays a unique role in delivering innovative infrastructure solutions.

Our strength relies on our ability to adapt and continue to fill market gaps as they evolve, and to create development impact. We operate at the frontier, where others cannot or will not.

Our projects are transformative, they drive change and improve people’s daily lives. However, this alone is not enough, they must also achieve scale and replicability to deliver a demonstration effect not just in-country but across other countries as well. They must also be delivered cost effectively while achieving a high developmental impact, thereby demonstrating to our owners and private sector partners the good business sense it makes to invest in the regions in which we operate.

While our structure may be changing, our ground-breaking approach continues. What sets us apart is our ability to move swiftly to take advantage of new technologies and develop new products that are suited to the local conditions.

In 2017, we achieved many firsts. In response to Mali’s power deficit, PIDG companies provided innovative finance to support the first private sector solar power project. The 50MW Akuo Kita solar farm will be the largest of its kind in West Africa. Power generated at the site will be fed into the national grid and will serve up to 730,000 people. This will help to reduce reliance on the environmentally damaging burning of wood and charcoal for power, which currently provides nearly 80% of energy supplies.

Our projects are transformative, they drive change and improve people’s daily lives

Infrastructure: Transforming economies, changing lives1.27m

Our projects are transformative, they drive change and improve people’s daily lives.

In Rwanda, PIDG companies helped finance the Kigali bulk water treatment plant which will provide a reliable supply of clean water for up to 500,000 people. Based at Kanzenze, it will produce 40,000m³ of water per day, the equivalent to one third of Kigali’s total supply. As such, it is one of the first projects of its kind to be developed using a public-private partnership model in sub-Saharan Africa.

PIDG helped establish InfraCredit in Nigeria with the Nigerian Sovereign Investment Authority to overcome some of the challenges facing infrastructure finance. InfraCredit now provides local currency guarantees to enhance the credit quality of infrastructure bonds, with the aim of attracting pension and insurance fund investors in Nigeria. This will also allow InfraCredit to open up infrastructure bonds as an asset class to pension funds, insurance companies and other investors. Plans are already underway to replicate the model in other countries, including Pakistan.

Our PIDG companies operate collaboratively across the capital structure and along all stages of the project cycle, from upstream project preparation to the provision of equity and debt instruments. Together, we provide holistic and innovative infrastructure finance solutions. We are building on strong foundations to drive the next stage of PIDG’s evolution, allowing us to do more, better.

Looking to 2018 and beyond, we will continue to lead the way in opening domestic capital markets to mobilise local pension funds, insurance companies and other investors. We will drive innovative investments, pushing the boundaries of what is possible for infrastructure finance in emerging and frontier markets. We have the funding and capability to catalyse greater private sector participation and deliver investor-ready, life changing infrastructure in the parts of the world that need it the most.

I look forward to 2018 and beyond with confidence and a sense of excitement of what we can achieve.

Philippe Valahu
Philippe ValahuChief Executive Officer, Private Infrastructure Development Group
A message from PIDG's CEO|37 KB

PIDG 2017

Our mission is to mobilise private investment with public funds to help developing countries provide infrastructure vital to boosting their economic growth and combating poverty.

In 2017, PIDG committed $487m to projects, facilitating $2.5bn of additional investment, benefiting more than 9 million people in some of the world’s lowest-income countries.

It achieved many firsts and has made significant strides towards delivering a new governance structure, while continuing to deliver new infrastructure that supports economic development and poverty reduction where it is most needed.

While its structure may be changing, its ground breaking approach continues. Building on strong foundations to drive the next stage of its evolution, PIDG will do more, better.

A message from PIDG's Chair

Scaling up our unique approach to deliver greater impact.

Our pioneering approach is outstanding. We change lives.

Andrew Bainbridge

A message from PIDG's Chair

Scaling up our unique approach to deliver greater impact.

I am honoured and delighted to be appointed Chair of PIDG, an organisation that has been fundamental to changing people’s lives. We are a catalyst for changing how frontier markets evolve. Last year we created more than 10,000 permanent jobs and improved access to infrastructure for more than 9 million people.

PIDG is unique. We identify and address market failures and accelerate development impact in the world’s lowest-income and most fragile countries. We mobilise private sector infrastructure investment in frontier and emerging markets across Africa and Asia in a way that no-one else does.

Over the last year we have made significant strides towards delivering a new governance structure. One which embeds collaborative working across our organisation, creating a single board and committee structure which unifies our organisation and oversees development and investment decisions across the Group. With a unified Executive Committee, this new structure creates better alignment, greater impact and cost efficiencies to improve value for money for our owners.

Our pioneering approach is outstanding. We change lives.

In 2017, we committed $487m to projects, facilitating $2.5bn of incremental investment, benefiting more than 9 million people in some of the world’s lowest-income countries. For every $1 of public funding invested since 2002, $17 of private sector funding has been mobilised by projects we have supported. This is something we are hugely proud of. We have forged innovative partnerships with private sector investors, including a $110m commitment from Allianz, a leading European insurer, to PIDG company, EAIF. This first-of-a-kind long-term commitment reflects another milestone in our work to mobilise new sources of private sector investment into infrastructure projects.

PIDG will advance gender equality and women’s empowerment. We will do this through our work in low-income countries and at a corporate level, recognising that change must happen at every level of our organisation. World Economic Forum research says that it will take until 2133 to achieve gender parity. We believe that this is unacceptable. We will set targets for gender equality at a corporate and project level over the coming year. We will measure ourselves on this and we expect to be held to account.

We have now begun the next stage of PIDG’s evolution. All of these changes are additive to building a sustainable business over time. Working with our owners and private sector partners, we will continue to innovate. That is our mandate. As a consequence of the commitment of our owners, our people and our other stakeholders, all of whom I am very grateful to, we are now better organised to deliver against our mandate than we have ever been.

Andrew Bainbridge
Andrew BainbridgeChair, Private Infrastructure Development Group
A message from PIDG's Chair|41 KB

Infrastructure Transforming Economies Changing Lives

The PIDG Annual Review 2017 online expands on the print Annual Review.

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