PPP for Investment and Delivery of Affordable Housing in Emerging Markets Economies
Oct 26, 2020
The role of the public sector in housing delivery in many developed economies evolved from “government as builder” in the post-War era in the 1950s, to “government as enabler and regulator” in the 1980s and 90s when governments retreated from direct provision but started to focus on facilitating the private sector to deliver housing effectively, and to assist the poorest segment of the population. However, challenges persist for low-income households to find affordable accommodation in locations that work for them. Such shortages of affordable housing are most pronounced in developing countries, which in recent decades have seen rapid urbanization and the proliferation of informal settlements, which are increasingly challenging for the public sector to address. As the private sector and public sector fail to provide adequate and affordable housing for the lower-end of the market segment at the pace and scale that is needed, governments have since the late 2000’s repositioned themselves as partners, and increasingly as entrepreneurs, to catalyze – and reduce the risk for – the private sector’s entry into the affordable housing markets.
In this context, Public-Private Partnerships (PPPs) have been posited as a possible mechanism to draw the private sector into the affordable housing markets. PPPs have been used for affordable (social) housing provision in several developed countries but are relatively nascent in emerging economies, and initial attempts have shown mixed results. Documentation of these housing related PPPs is limited; the definition of what qualify as a “PPP” is questionable, and the data pertaining to actual outcomes in emerging economies are patchy and not independently verified.
It is within this context that the World Bank initiated a scoping study to (i) take stock of the knowledge base and experiences with affordable housing PPPs globally; (ii) develop a working definition of housing PPPs; (iii) begin establishing the basic parameters of a housing PPP decision-making framework in emerging economies; and (iv) lay the groundwork for further research and eventually, the development of a guidebook on Affordable Housing PPPs for World Bank task teams as well as housing practitioners engaged in designing affordable housing projects and programs that require private sector participation and investment.
Sameh Wahba, Global Director, SURDR
Yan Zhang, Senior Urban Specialist, SSAU1
Larry English, Director, Planning, Urbuntu
Angelica Nunez, Senior Operations Officer, OPSIL
Marja Hoek-Smit, Director/Founder, the International Housing Finance Program, the Wharton School Zell/Lurie Real Estate Center, the University of Pennsylvania
Sumeet Shukla, Investment Officer, IFC
Hadija Kamayo, Sr Financial Sector Specialist, FCI
Judy Baker and Dean Cira, Global Leads, Urban Poverty, Inclusive Cities and Housing GSG
An event brought to you by the Urban Poverty, Inclusive Cities and Housing GSG, the Global Platform for Sustainable Cities, and Affordable Housing KSB