Additional support

PIDG provides financial additionality by investing where others will not, as well as support that can increase the development impact and sustainability of an infrastructure project

Because PIDG uses public funds to mobilise private capital, it is important to ensure that its inputs and services complement, rather than substitute, that which others are willing or able to provide. This means that PIDG companies must clearly identify the market failures which they aim to address as well as the unique inputs and services which they can provide in addition to those already existing in the market.

This principle is critical to the rationale behind PIDG, and its companies are required to disclose their expected role and additionality for each project. There are different types of financial, as well as non-financial, additionality. PIDG activities can be additional in terms of their scope, scale, quality or timing, among other aspects. As such, additionality is recognised as being both difficult to conceptualise and to assess. In 2016 PIDG companies scored projects on a forecast basis for their additionality using specific definitions and grading systems relevant to their business and stage of the project development cycle at which they operate.

PIDG companies demonstrated significant additionality in their financial structuring, mobilisation of finance, improved project design, raising standards, improvement of regulatory environments and efficient allocation of risk. In 2017 PIDG companies will increase their focus on monitoring and reporting in more detail on these elements of additionality. The evaluations programme is also commissioning studies to investigate PIDG’s additionality in more depth.

"My role is to provide advice to the government of Sierra Leone as it develops the country’s first public-private energy project for its people."

Cyril Grant, Embedded Adviser, Bumbuna hydropower,

Sierra Leone

TAF

pidg data

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Annual Report 2016

Annual Report 2016

Annual Report 2016

Annual Report 2016