1. Renegotiation Lessons learned from Infrastructure Jeff Delmon
Infrastructure, Economics and Finance
World Bank

2. Renegotiated Concession Average Time to Renegotiation
Incidence of Renegotiation of Infrastructure Concessions in Latin America and Average Time to Renegotiation (updated to 2005)
Renegotiated Concession
Average Time to Renegotiation
All Sectors
42% (59%)
2.1 years (2.7)
Electricity
10 % (21%)
2.3 years
Transport
57% (67%)
3.1 years
Water
75% (82%)
1.7 years
Source: Guasch (2004)

3. 2,485 48 Composition 19 toll roads 9 energy 7 water & sanitation
Very Low Incidence of Cancelled Concession
Total World Infrastructure PPI Projects
Cancelled
Percentage
2,485 48
Composition
19 toll roads
9 energy
7 water & sanitation
8 telecom
2.1%
By Sector
5.8%
3.5%
Source: Harris (2002)

5. Lessons Learned Renegotiation is
… part of the process, NOT necessarily a sign of failure or a bad deal.
… an opportunity to improve the deal and address change proactively.
… a different kind of challenge, requiring transactional and dispute resolution skills – creative innovation.
… an opportunity to provide our clients with critical, strategic support.

6. The Role of the Bank Good offices – interested but neutral
Opening communications
Encouraging process/focus on issues
Providing experts/facilitators
Intervention – interested, resourced and neutral
Provide facilitation
Create incentives for resolution
Programmatic assistance

7. The Role of the Bank Is the Bank the right party to facilitate:
Bolivia – not perceived as neutral
Cape Verde – process successful
Indonesia – perceived to have capacity
Timing of intervention:
Tanzania - process failed
Columbia – early intervention

8. Renegotiation Lessons learned from Infrastructure Jeff Delmon
Infrastructure, Economics and Finance
World Bank