We have seen increasing recognition of the importance of aligning PPP projects with the SDGs in Serbia
According to UNECE’s Tony Bonnici, what’s required are “PPPs that are ‘fit for purpose’ for the SDGs and that not only create ‘value for money’, but also ‘value for people’ and ‘value for the planet’ in terms of infrastructure and public services”. Speaking in this interview, Bonnici also discusses the UNECE’s mandate, the PIERS methodology and the aligning of projects with the SDGs.
UN Agenda 2030 has set 17 Sustainable Development Goals. What is the significance of PPPs in overcoming challenges to achieve these SDGs?
— Public-Private Partnerships (PPPs) have a central role to play in achieving the 2030 Agenda for Sustainable Development and its 17 SDGs. PPPs can be a mechanism for countries to attract sustainable finance and develop their infrastructure and public services, which are crucial for sustainable development – impacting not just economies, but also communities and the environment.
In order to address this challenge, UNECE developed a new approach to PPPs that ensures they’re “fit for purpose” for the SDGs and not only create “value for money”, but also “value for people” and “value for the planet” in terms of infrastructure and public services.
When we mention PPP projects, we’re usually referring to large infrastructure projects with a substantial financial value. How can PPPs contribute to achieving the SDGs in smaller municipalities where projects don’t reach a significant financial value?
— The critical path to achieving the SDGs is one that emphasises social infrastructure. And small-scale PPP projects provide a critical contribution to achieving the SDGs. Projects should be prioritised in line with sustainable development objectives, aiming for a diverse mix of project scales and not exclusively prioritising large and complex infrastructure projects.
Small-scale PPPs can play a crucial role in achieving the SDGs and can help smaller municipalities with limited financial resources
Small-scale PPPs can thus play a crucial role in achieving the SDGs and can help smaller municipalities with limited financial resources. Small-scale projects can have a substantial impact on local communities with broad social, economic and environmental benefits.
How does UNECE evaluate the aligning of projects with the SDGs; and what is your assessment of the harmonisation of PPP projects with the SDGs in Serbia and around the region?
— To ensure the alignment of PPP and infrastructure projects with the SDGs, UNECE has developed the PPP and Infrastructure Evaluation and Rating System (PIERS). The PIERS methodology ensures that projects are sustainable and contribute to the SDGs and the three pillars of sustainability: economic, social and environmental. This methodology can help governments demonstrate that their infrastructure projects score high in terms of ESG principles, which represent an increasingly critical requirement from creditors and investors.
The PIERS sustainability methodology ensures that PPP and infrastructure projects create “value for people” and “value for the planet”, with a focus on the world’s most vulnerable populations.
We have seen increasing recognition of the importance of aligning PPP projects with the SDGs in Serbia and the broader region. While progress is being made, challenges remain, particularly in building the capacities of the public sector to promote SDG-aligned projects, especially in developing countries. In this regard, UNECE continues to work closely with governments in the region to improve the public sector’s capacity to identify, develop and implement both small and large PPP and infrastructure projects that are aligned with the SDGs, particularly in the areas of digital and green infrastructure, climate action and the circular economy.
The annual UNECE International PPP Forums bring together international experts in the PPP field to improve their knowledge and share experiences. What will be the main theme on the agenda of the next Forum?
— The next edition of the UNECE International PPP Forum is scheduled for May 2025. Several key topics will be addressed at the Forum, including Artificial Intelligence, fiscal sustainability and affordability, small-scale PPPs, innovative financing mechanisms, reconstruction and resilience in infrastructure, among other topical issues.
One of the highlights of next year’s Forum will be the “UNECE PPP and Infrastructure Award 2025”, in which PPP and infrastructure projects that showcase SDG-compliant design, construction and operation elements will compete. A number of projects will be selected by an international jury, with a strong emphasis on their contribution to green and digital characteristics.