In countries with limited experience in PPPs, and in sectors involving complex policy issues, sound advice is key. Often this advice can be provided by the private sector; but in high-risk, complex cases IFC can provide fee-based advice, contracting directly with the government.
As IFC’s position in the world market is unique, it has adopted guidelines which place limits on the manner in which it offers its advisory services. To avoid displacing private providers, it does not compete for assignments and must be sole-sourced.
For the same reason, IFC charges market rates. Nevertheless, fees are structured to suit client needs, keeping upfront monthly retainers low and sharing the risks of the transaction with the client through a success fee at transaction closing.
In addition, several donors have entrusted IFC with grants to support its work. In many projects, these funds can be used to support the work of external consultants, such as legal and technical experts. Thus, services can be offered for smaller transactions or in countries where the reform process may be lengthy, thereby extending the frontiers of private participation in emerging markets.