Sustainability in today’s PPPs

After enduring two years of a vicious pandemic, there’s a sense of (cautious) optimism appearing on the horizon, yes you read that right! This piece will shed light on the power and impact of public-private partnerships (PPPs) on environmental, economic, and financial sustainability. So what’s the catch?

For starters, promoting private investment -both foreign and domestic- in this period must be the cornerstone of any pro-growth fiscal policy. Governments at this point are not fully equipped to provide the services and expertise needed, these partnerships are a must especially when the problems we are facing need innovative solutions and expertise.

AVID offers a unique platform supporting well-planned Strategic Development Projects while maintaining the sustainability of assets. We Design, operate, and decommission projects, ensuring economic, environmental, financial, and institutional sustainability over the project’s entire life cycle. Ultimately enhancing Amman’s livability, resilience, competitiveness, and sustainable economic growth.

As an investor, you need to get yourself a cushion against market fluctuation, a transparent framework for investment is a critical determinant of investment decisions and their contribution to environmental development and sustainability. Our framework comes in the form of an investment guide, in order to help investors in making informed choices with their investments.

What does AVID’s sustainable investment framework provide?

• High-quality investments: By having a clear understanding of sustainable infrastructure, investments are designed to support sustainable economic growth and boost productivity, which will result in better-developed projects.

• Identified institutional sustainability opportunities: Identifying institutional (policy, legislation, regulation, and organizations) capacity building leads to quality Strategic Development project pipelines and better delivery of developed services.

• Clarified financing ground rules: Private investors need to have a clear vision of the investments. In order to drive transformation and increase the scale of investment aligning financial systems and incentives.

• Strong Feasibility Studies: Putting the project on a solid foundation and providing an anchor for project success. The documents are adjusted based on changes to the market needs and business environment sustainable development (internal or external).

• Help driving transformational change: Sparking innovative ways of preparing, constructing, operating, and investing in strategic development projects. Developing a creative economy for sustainable development.

Public-private partnerships (PPPs) need to be tailored to the local context to bring greater efficiency and circular economy and sustainability. For investments in Strategic Development Projects to be successful, they need policy guidance and indicators that help measure the strengths and weaknesses of the planned PPP projects.

Let’s see how can the private sector contribute to delivering the Sustainable Development Goals (SDGs):

• Financial contribution: The private sector can start by financing sustainable development projects and redirecting their investments to SDG-oriented projects.

• Project management: Private sector actors are capable of delivering quality projects by offering the technical expertise and past experiences they have.

• Behavior changes: Introducing new technologies into markets, evaluating and addressing environmental and social issues are the best examples of how private sectors can align their company strategies with sustainable economic development objectives.

At AVID, we believe that private actors are the main contributors to achieving the Sustainable Development Goals. Their contribution will significantly influence the development process, by providing resources, knowledge and expertise, implementation and enforcement capacity, and legitimacy.

PPPs are the “secret sauce” in achieving development goals, capacity building, wealth distribution, and sustainable economic growth as an innovative procurement mode. Putting forward the shared engagement and responsibility directly affects user interests by improving project performance.

Prioritizing projects with the potential for enhancing the living conditions of persons and local communities in Amman is AVID’s number one focus. In short, when “putting people first”, both public and private investors can establish a more balanced relation between socioeconomic benefits and financial impacts, and this would result in healthier and more sustainable economic development, more inclusive economies, and higher political stability.