Demonstration effect

PIDG’s aim is to develop proof of concept projects that demonstrate the viability of investing in pioneering initiatives and higher risk environments

PIDG’s development impact can extend well beyond the direct effects of new or improved infrastructure. PIDG helps overcome financial, technical or environmental challenges, creating blueprints which can be replicated by the private sector. Examples of this include the introduction of effective new technologies or processes, the employment of new financing mechanisms, improvement of the regulatory environment, or proving the credit-worthiness of borrowers. Lessons learned in one project make it easier for others to achieve successful close, and PIDG can demonstrate to governments the potential value of private sector participation in infrastructure development or encourage a ‘critical mass’ of private capital mobilisation within a given sector.

By contributing to increased private sector participation and greater willingness to invest and take on risk, these effects can transform a sector. One critical element of PIDG’s intervention logic is that once the market becomes self-sustaining following this crowd-in effect, its companies will stop working in that particular sector or geography and seek new challenges at the frontier.

"Encouraged by the successful outcome of the Odisha rooftop solar project we have begun to replicate this across 10 more cities. We will also put in place a system that will allow individual building owners to generate power by installing solar panels on their rooftops. This will help create jobs and business opportunities for several vendors."

Hemant Sharma, Secretary Energy, Government of Odisha, Odisha rooftop solar, India

 

DevCo

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Annual Report 2016

Annual Report 2016

Annual Report 2016

Annual Report 2016