Infrastructure is a backbone of development: power lines deliver energy to homes and businesses; pipes provide clean water to drink; roads, railways, and bridges connect communities; and internet connectivity fosters new digital economies. Sustainable infrastructure has the power to bolster the economic growth, resilience, health, and environments of entire nations.

We support our clients – governments, private investors, institutions – to develop inclusive and sustainable infrastructure in emerging markets.

 

 At Dalberg, we:

  • Create strategies for inclusive and sustainable infrastructure. Through rigorous research, analysis, and stakeholder engagement with partners and engineering experts, we help our clients build strategies at regional, national, and local levels that align partner incentives and optimize benefits for both economies and communities.

  • Channel capital into infrastructure development. We develop innovative financing structures and platforms that combine public and private sources of blended capital towards infrastructure projects.

  • Close bankable, inclusive, and sustainable projects. We work with financial investors and project developers to move projects from concepts to investable programs, and to match them with the right investors.

  • Support more efficient use of infrastructure assets. We advise private utility companies and parastatals on organizational change and restructuring to enhance productivity and improve service to customers.

Client Success:

The World Bank’s Private Infrastructure Development Group 

Water and sanitation is often one of the most difficult infrastructure areas to invest in. Viewed as a public good, water and sanitation projects tend to be among the most subsidized, but in countries without the capacity to generate large revenues, funding for WASH (water, sanitation and hygiene) is severely lacking. Dalberg supported the World Bank’s Private Infrastructure Development Group (PIDG) to size the commercial market potential for water and sanitation infrastructure in low and low/middle income countries, identify a pipeline of opportunities, and develop investment strategies for PIDG to increase its portfolio. 

Our Approach

First, our team conducted a market opportunity assessment, including desk research and conversations with a variety of financiers and development institutions that invest in the water and sanitation market. Through the research process, the team identified the current supply and demand for financing water infrastructure and common constraints around private sector investment. We then recommended investment structures and approaches, which included setting up a fund to support project developers to become investment-ready, in alignment with PIDG’s strategic objectives and organizational structure.

Results

We presented PIDG with a detailed pipeline of opportunities worth USD $105 million in 14 developing countries. We also provided PIDG with a list of select internal intervention options to assist the group in making strategic decisions. Since this engagement in 2013, PIDG has increased its portfolio of water and sanitation infrastructure investments, based on recommendations from our team, through a combination of a refined strategic approach and new investment vehicles and approaches.


To learn more about our work, see our insights or contact:

Edwin Macharia, Nairobi
Edwin.Macharia@dalberg.com or

Andrew Sweet, Johannesburg
Andrew.Sweet@dalberg.com

Photo credit: Flickr, Adam Cohn