Canada

The federal government encourages PPPs through PPP Canada, which incorporates, among other measures, over CAD 1 billion “P3 Canada Fund”, offering funding for PPP projects undertaken by provinces, territories and local governments. The P3 Canada Fund was created to improve the delivery of public infrastructure and provide better value, timeliness and accountability by increasing the effective use of P3. PPP Canada does not procure investments but rather works to build capacities for PPPs at different levels of government through guidance and incentives to develop high‑quality projects.

Germany

The regional development bank in Brandenburg provides support to the regional and local governments. For innovation and R&D investments, for example, although the Länd’s innovation agency determines the allocation of innovation grants, the ILB manages the application process, especially the financial and technical assessments of the client’s application. It also offers support to municipalities in the areas of PPPs and waste/sewage treatment facilities.  In the case of waste/sewage treatment, poor investment choices in the past led to financial problems for specialised associations of municipalities.  In these instances, the ILB combines consultancy and financing functions when giving grants to help reduce the debts.

France

Agence France Locale was created in December 2013 as a result of a new banking legislation dated 26 July 2013. Agence France Locale is 100% owned by French Local authorities. Its mandate is to raise cost-efficient resources in capital markets by pooling together the funding needs of all member local authorities. It aims to provide French local authorities with alternative funding sources : its target market share is 25%. It will lend 50% maximum of its members’ annual borrowing needs (or 100% if the amount requested is below €1 million). It is a well-recognised model which has already proven successful in various Northern European countries (Sweden, Finland, Denmark, Norway), in the Netherlands and which is currently developing in the United Kingdom (project of creation of a Municipal Bond Agency) and New Zealand.

Ireland

In its Public Service Reform Plan 2014-2016, Ireland is proposing Social Impact Investing (SII). SII involves using private capital to fund initiatives addressing social problems, and funding is linked to results. The state agrees to repay the private investor only if the established outcomes are achieved. A pilot project is underway that seeks private sector investment partners in the housing sector in order to provide long-term, sustainable and stable homes for homeless families in the Dublin region.

New Zealand

Recent changes to the Local Government Act have opened the way for councils to look once again at joint financing approaches with the private sector, particularly in water services. A recent joint local and central government initiative was the establishment of the Local Government Funding Agency, a debt vehicle which raises bonds on the local and international market in order to on-lend to local governments at competitive interest rates.

United Kingdom

Local Enterprise Partnerships (LEPs): the government has shifted focus to functional economic areas by launching the Local Enterprise Partnerships (LEPs). These partnerships between local authorities and businesses decide on local priorities for investment in roads, buildings and facilities.