Overseas Aid: Private Sector

International Development written question – answered at on 31 January 2011.

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Photo of Rushanara Ali Rushanara Ali Shadow Minister (International Development)

To ask the Secretary of State for International Development what plans he has for the future use of public-private partnerships in his Department.

Photo of Stephen O'Brien Stephen O'Brien The Parliamentary Under-Secretary of State for International Development

Governments in developing countries lack sufficient funds to meet infrastructure spending needs, with Africa alone having an annual US$31 billion shortfall in investment. Globally, 1.6 billion people lack electricity, 0.9 billion are without safe water and 2.6 billion are without basic sanitation.

The Department for International Development (DFID) plans to work with the Private Infrastructure Development Group (PIDG) and other facilities to attract private investment and management into innovative projects to improve the lives of the poor and the economic prospects of their countries.

One example of the type of project supported is Bugoye, a 13 MW hydro-electric power station in Uganda. The lack of power in Uganda is causing severe constraints on economic development. PIDG is investing $35 million in this project which will help improve the situation.

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