Article – Integra LLC

USAID Asia Emerging Opportunities (AEO) Contract Completion

In June 2024, Integra closed out the USAID Asia Emerging Opportunities (AEO) Contract after an impactful five years. AEO was awarded to Integra to provide analytical services to the USAID Asia Bureau and its missions. It offered data and analysis to respond to development opportunities and challenges, support policy and program development, and enhance collaboration and capacity building across various sectors. These objectives collectively supported USAID’s efforts to promote sustainable development and address emerging Asian challenges. Given the flexible nature of AEO, the team was uniquely suited to respond to the evolving bureau needs, rapidly responding to COVID-19 and changing United States Government interests represented by new policies such as the Indo-Pacific and Digital Strategies.

Integra delivered 23 activities encompassing many practice areas, including development analytics, innovations, and blended learning. Those activities reached Missions in 35 countries, and some resulted in long-term technical engagements. Program evaluation and data analysis were key underlying components of the activities. Equally relevant and important was an emphasis on and requirement for learning, knowledge management, and dissemination of evaluation and research results. Beyond analysis, Integra built capacity and disseminated knowledge and evidence through learning initiatives across the Asia Bureau and numerous Missions. The AEO team provided diverse technical skills and exceptional project management, emphasizing transparency and responsiveness to client needs. Task orders developed at the activity level were staffed with experienced experts, logistics coordinators, and facilitators. Integra also provided outstanding project schedule, financial, and logistical management and support (for example, virtual solutions to COVID-19 restrictions, procurement, data management, and travel coordination), demonstrated through consistent, successful service delivery.

July 31, 2024/by jschur

Article, Uncategorized

Integra Examines Disinformation’s Impact on Destabilizing Democracy in Asia

Democracy has been declining across Asia and the Pacific for more than ten years. Many believe information disorder or “disinformation”—a term in which distorted and manipulated information is ubiquitous—is playing a role in destabilizing democracy across the region. The USAID/Asia Bureau wanted to understand how distorted information contributes to unchecked and unaccountable power in Asia and the Pacific. They engaged Integra (under the Asia Emerging Opportunities contract) to analyze how information disorder may be affirming authoritarianism in Asia and the Pacific. Integra is a small business known for its capacity to rapidly assemble expert teams and produce actionable reports, assessments, and strategies for complex international development issue.

Integra approached this question through a series of in-depth country studies identifying supply- and demand-side factors contributing to information disorder at the national and sub-national levels. The study countries included the Kyrgyz Republic, Nepal, Papua New Guinea, and Thailand—representing regime types ranging from relatively democratic political systems to de facto military dictatorships. Five regional experts conducted desk-based research, consulting open-source documents (academic books and peer-reviewed journal articles), think tank reports, publicly available government documents, and broadcast, print, and social media publications. In addition, the experts accessed and explored grey literature, unofficial documents, and other materials not readily available but drawn from their experience and local networks. Integra’s experts supplemented collected research and data with key informant interviews sourced from on the ground networks.

The analysis confirmed an extensive history and growing impact of information manipulation for political ends in Asia and the Pacific, focused almost exclusively on influencing operations by states in other states. The most sophisticated disinformation campaigns identify cleavages and rifts unique to a society. Constructed around local fears and anxieties, they can insert themselves into a political arena. China and Russia, in particular, are often singled out as dominant sources of information manipulation across the region, while actors in the United States and Western Europe also play roles in the region’s information disorder. The ultimate analysis revealed a more complex picture of current information disorder compared to historical trends.

In recent years, Integra identified that the disinformation landscape has seen an outward and downward shift of power. For example, politically motivated players with no direct links to regional governments and actors manipulating information for purely financial reasons play increasingly important roles in distorting information. Furthermore, information disorder varies among countries based on mediation from national contexts. This suggests that mitigation strategies to contain and counter information disorder must be tailored to specific local contexts. There are no silver bullets.

Study findings also identified that information disorder may be as much a consequence as a cause of the democratic decline. Focusing on improving the institutions and socio-economic structures on which democracies in Asia and the Pacific rest, rather than on technology, may yield the most effective mitigation strategies in the long term.
Integra’s assessment identified the need for mitigation strategies must be multi-faceted. To be effective, efforts should pursue holistic approaches that consider the many interconnected dimensions of information disorder. Mitigation strategies also need to focus on political and economic conditions rather than just the technical aspects of information disorder. Finally, they should be tailored to the local contexts to contain and counter-information disorder. This localization may also effectively respond to the challenge put forward by the USAID Administrator Samantha Power to engage with small partner organizations in each country.

These findings helped USAID to understand the causes and consequences of information disorder in Asia and the Pacific, identify strategies to effectively address the issues in the region, and adapt and replicate these solutions worldwide.

June 16, 2022/by actualize

Article, News

USAID Examining Technology’s Role in Improving Access to Food for the Most Vulnerable

The United States Agency for International Development (USAID) Bureau for Humanitarian Assistance (BHA) assists the world’s most vulnerable and hardest-to-reach people. As U.S.-sourced commodities move along the supply chain to these people, stakeholders and partners use their information technology (IT) systems for sending, validating, and reconciling food aid deliveries. In this effort, an estimated 13,400 MT of food–enough to feed 67,080 people for one year–will be lost to poor supply chain management within 15 years.

Opportunity

Currently, commodities are sent from suppliers to transport points or warehouse facilities at different logistical nodes of the supply chain, including U.S. ports, foreign discharge ports, and U.S. and international USAID prepositioning warehouses (PREPO). At some point in the process, the food commodities are transferred to partner organizations responsible for distributing them using their transport and distribution partner networks and information tracking systems (see Figure 1 below). As U.S.-sourced commodities move along the supply chain, stakeholders use their own IT systems for sending, validating, and reconciling food aid deliveries. The result is a supply chain structure in which fragmented information flows impede the full potential of effectively managing and tracking food aid commodities.

Figure 1. Existing U.S.-Sourced Food Commodity Supply Chain

Integra assisted USAID/BHA in assessing the economic feasibility of implementing a new AIDC system. Integra estimated that an initial investment cost of $2 million and $350,000 in annual maintenance would be sufficient to cover the scope of the project’s scope—including printing QR codes and establishing an AIDC system. The team also estimated that the new system would pay for itself in roughly six years.

Integra also assessed the technical and operational feasibility of implementing an AIDC and QR system. Integra believes this goal can be achieved by implementing the IT solutions over three phases. Phase one would focus on developing the project scope by a cross-functional team of supply chain stakeholders. Phase two would include investing in the systems needed to print, collect, and store QR codes. The final phase would involve partners’ adoption of the AIDC system.

Additionally, the team made recommendations to ensure implementation success, including:

USAID and other stakeholders should agree on a well-coordinated, holistic approach for rolling out new technologies, such as common IT requirements and realistic timelines for adoption.
The initiative will need the active support of senior leaders, such as division chiefs, directors, and administrators, to implement the IT solutions successfully.
USAID should implement QR codes (Phase II) over three cycles to provide ample time for identifying the packaging requirements and printing processes for adding QR codes to certain commodities.
USAID should use custom QR codes in its initial rollout for a limited set of food categories without integration requirements or complexity.
USAID officials with strong technical and leadership skills should lead the AIDC process to increase the likelihood of success.
The AIDC solution design and implementation plan should be socialized with stakeholders.
The rollout of any IT solutions should be combined with a robust training program customized for each stakeholder group.

USAID/BHA has implemented Integra’s recommendations and has said, “Thank you again for all your support. Know that we are really listening to your suggestions with the work we are doing with MIT LL (MIT Lincoln Lab)” and “The supply chain management division is already implementing some of their study recommendations in [the] pilot program.”

Impact

To mitigate food waste, USAID/BHA is assessing the impacts of upgrading their tracking system from paper forms, spreadsheets, and emails to an Automatic Identification and Data Capture (AIDC) system that uses Quick Response (QR) codes. QR codes are two-dimensional barcodes that hold data in a compact format and can be instantly read by scanners or mobile phones. The system outlined in Figure 2 would reduce time and errors associated with manual entry by collecting data at key supply chain points. USAID/BHA’s monitoring and evaluation system would also be enhanced through improved food aid management, beneficiary targeting, and product traceability.

Figure 2. Implementing the QR Code and AIDC Solutions Across BHA’s Supply Chain

USAID and other stakeholders should agree on a well-coordinated, holistic approach for rolling out new technologies, such as common IT requirements and realistic timelines for adoption.
The initiative will need the active support of senior leaders, such as division chiefs, directors, and administrators, to implement the IT solutions successfully.
USAID should implement QR codes (Phase II) over three cycles to provide ample time for identifying the packaging requirements and printing processes for adding QR codes to certain commodities.
USAID should use custom QR codes in its initial rollout for a limited set of food categories without integration requirements or complexity.
USAID officials with strong technical and leadership skills should lead the AIDC process to increase the likelihood of success.
The AIDC solution design and implementation plan should be socialized with stakeholders.
The rollout of any IT solutions should be combined with a robust training program customized for each stakeholder group.

February 7, 2022/by actualize

Article, Blog

Integra Named USAID Small Business of the Year 2021

June 10, 2021. Integra Government Services International, an international development firm based in Washington D.C., announced today that it was named the US Agency for International Development (USAID) Small Business of the Year. This award acknowledges not only the contributions of Integra but also the many small businesses that supported USAID providing timely and effective humanitarian response amidst the Covid-19 pandemic.

“Making an impact and transforming our opportunities into opportunities for the beneficiaries and stakeholders of the work we do is core to our Mission. For me and our staff, this award is recognition that we are delivering on our Mission,” said Timothy Schur, CEO of Integra, who accepted the award at the USAID Annual Small Business Conference on Thursday.

USAID’s Office of Small and Disadvantaged Business Utilization uses this award as an opportunity to highlight and celebrate the impact of outstanding small businesses’ innovation and support USAID’s small business program. This award recognizes the creative, unique, and extraordinary performance of a small business that has significantly impacted core USAID mission objectives and requirements.

“OSDBU’s Awards Committee reviewed the nominations and selected Integra based on your consistent support of our agency’s Small Business Program and record of performance in support of USAID’s Programs and Missions,” said John Watsons, Office Director (acting), USAID Office of Small and Disadvantaged Business Utilization. “Your contributions and support are greatly appreciated by the OSDBU team.”
As a small business, Integra has delivered large-scale impact for 11 years, working across more than 50 different countries, impacting millions of stakeholders, and leveraging over $1.2 billion in public and private investment for development reforms. The team is proud to “deliver impact from opportunity“ and for being recognized for providing high–quality services that support USAID in their mission to promote a path to recipient self-reliance and resilience.

Integra’s Chief Technical Officer, Mr. David Quinn, noted “After more than a decade of partnership with USAID, we are proud that Integra has been selected as small business of the year. Integra has a focused mission to utilize high-quality analytics and private sector engagement to provide large-scale impact for the development community. We are thrilled to accept this award not only as an acknowledgement of our efforts, but also as recognition of the key role that the small business community plays in supporting USAID. While representing an enormous challenge, the COVID-19 pandemic has provided small businesses the opportunity to quickly pivot and provide creative and innovative solutions to real time development challenges.”

About Integra
Integra is a small-business international development firm dedicated to results-oriented programming that promotes economic growth and improves livelihoods throughout the developing world. Through rigorous analytical tools and private sector engagement, Integra promotes self-reliance in emerging economies.

About USAID
USAID is the world’s premier international development agency and a catalytic actor driving development results. USAID’s work advances U.S. national security and economic prosperity, demonstrates American generosity, and promotes a path to recipient self-reliance and resilience.

June 10, 2021/by actualize

Article, News

Female Entrepreneurship and Empowerment in the Middle East and North Africa (MENA) Region

Photo by USAID/CGutierrez

The average share of women-owned small and medium enterprises (SMEs) is 34 percent globally, but only 14 percent in the MENA region.[1] The labor force participation rate among females in MENA aged 15+ is only 20 percent[2] and despite a 73 percent literacy rate among adult women,[3] women have the lowest rates of Total Entrepreneurial Activity (TEA).[4] Access to finance for female entrepreneurs is a critical component to this reality. The credit gap is high in MENA and women frequently experience issues with gender biases, financial institutions’ perception of risk, the ability to provide adequate collateral, and unfavorable lending policies like high interest rates and short repayment periods. Enhanced female entrepreneurship and workforce participation creates a huge opportunity for growth, in the MENA Region and beyond. As stated in USAID’s 2018 Private Sector Engagement Policy, “Recent estimates suggest that closing the global gender gap in workforce participation by 25 percent by the year 2025 could grow the world’s Gross Domestic Product (GDP) by $5.3 trillion and generate increased tax revenues of up to $1.4 trillion . . . addressing the unmet financial needs of women-led businesses—a gap estimated at $260-$320 billion a year—represents an opportunity for women entrepreneurs, financial investors, families and communities, and the global economy.”[5]

On November 17, 2020, Integra hosted a virtual webinar on private sector engagement (PSE) for the USAID/Middle East Bureau titled “Female Entrepreneurship and Empowerment in the MENA Region.” The webinar, part of a monthly training series under the LEAP III contract, focused on the entrepreneurship and innovation ecosystem in MENA; the role USAID can take in building out this ecosystem; where efforts have come up short in the past; the role of venture capital, particularly from a MENA-centric point of view, and what needs to change to make venture capital critical to the development of the entrepreneurial ecosystem in MENA. The event was moderated by Allison Salyer, the Senior Women, Peace, and Security Advisor within the Bureau, and featured founders, co-founders, CEOs, COOs, and managing directors of five women-led businesses in the region.[6]

Currently, USAID supports female entrepreneurship and empowerment in the MENA region in many ways. These include, but are not limited to, capacity building events and workshops, collaboration with accelerators and incubators, and tools such as grants to support pilots and testing to demonstrate proof of concept for business models.

However, there is more that can be done to empower women in the MENA Region in the entrepreneurial space. Our panelists shared that common entrepreneurial concerns include not necessarily a lack of innovative ideas or appropriate skills—like how to register a business, develop a business plan, or market a product—but rather scaling and exporting of products, reaching new markets, improving supply chains, paying with hard currency internationally, and finding financing that is appropriate in size and structure, particularly once businesses have surpassed the startup phase. They noted that business mentors are readily available, even free and online in some places, but that financial and legal technical advisory is lacking and directly impacts the success or failure of a startup. De-regulation and modernization of the legal system would modernize the entrepreneurship ecosystem as well.

Multiple panelists also highlighted the value of networking, particularly for learning of new opportunities and fundraising. They shared that the vast majority of decision makers in investment organizations are men, and described difficulties building the appropriate relationships that are needed to build trust, camaraderie, and good-will. Although the culture in the region is maturing, male investors were characterized as often asking female entrepreneurs unique questions in comparison to their male counterparts, such as whether their marriage status would impact their ability to run the business. Greater impact can be realized by encouraging and supporting more female investors, and then connecting women-led businesses with these female investors.

Panelists also noted the importance of understanding the appropriate types of interventions for each entrepreneur, based on their unique background and growth stage. Time should be invested speaking with people on the ground to gain an understanding of the problems before designing an intervention. Implementers should keep an experimental mindset as well as reduce the number of capacity building events held, unless they are action-oriented. A female entrepreneurs’ time is valuable, and they need to spend as much time as possible growing their businesses.

Lastly, support to female entrepreneurs should include the development of a technology strategy for the business, as well as support for increased civic participation and advocacy. Job fairs, meet ups, and broadcasting of success stories and lessons learned are also incredibly helpful. Where possible, USAID should prioritize funding private sector organizations directly, rather than using governmental or other third-party entities.

Female entrepreneurship is important to spurring job creation and economic growth, bolstering growth and inclusion, increasing global trade, reducing poverty, and improving livelihoods. For example, the featured female entrepreneurs shared that their women-led businesses hired more female employees, included more women-led businesses in their supply chains, and increased income at the local level. Integra is excited to have the opportunity to elevate female voices for the USAID Middle East Bureau and Mission staff and to disseminate important lessons learned from entrepreneurs on the ground to improve USAID programming moving forward.

________________________

[1] IMF, 2019. Enhancing the Role of SMES in the Arab World—Some Key Considerations.

[2] https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?locations=ZQ

[3] https://data.worldbank.org/indicator/SE.ADT.LITR.FE.ZS?locations=ZQ

[4] https://www.ecomena.org/women-entrepreneurship-in-mena/

[5] USAID Private Sector Engagement Policy. 2018. (pg.13)

[6] Dr. Rasha Rady, Co-founder and COO, Chefaa; Dr. Ghita Mezzour, Founder and CEO, Data in Seconds (DASEC); Muna Haddad, Founder and Managing Director, Baraka Destinations; Vanessa Zuabi, Co-founder and CEO, Mint Basil Market; Ameni Mansouri, Co-founder and CEO, Dabchy.com.

March 25, 2021/by jschur

Article, Blog

Integra: Celebrating International Women’s Day 2021

March 8, 2021/by jschur

Article, News

USAID’s New Economic Growth Policy Highlights the Importance of Reducing Dependency

At a virtual event on January 14^th, 2021 the United States Agency for International Development (USAID) launched a new Economic Growth Policy. This policy demonstrates both a belief in and commitment to supporting developing countries in gaining sustainable economic growth that is both inclusive and resilient. With an aim of increasing impact, the new policy opens the door of opportunity for developing countries to make progress on the path to becoming self-reliant, while providing USAID staff and their partners a unifying economic development framework—based on the most recent thinking and best practices.

According to USAID Acting Deputy Administrator John Barsa, “We stand ready to work with committed partners to seek market-based solutions that promote enterprise-driven development. Success depends not just on economic capacity, but on the commitment of governments, civil society, and the private sector in our partner countries to create an enabling environment that unlocks private enterprise as the force that drives self-reliance. While the journey will look different in the countries in which we work, a common thread is the spirit of people everywhere to be self-reliant. We invite our partners and other donors to join us in promoting economic growth as an indispensable step along the way.”

Through this new policy, USAID is clearly signaling that the path to self-reliance for developing countries is paved with economic growth. USAID’s new policy closely ties economic growth to reducing poverty and therefore the dependency on foreign aid and encourages more transparent and accountable governance. It outlines how economic growth that is inclusive and resilient, and that includes the private sector, will aid in increasing incomes and domestic resources.

USAID’s policy also outlines a plan to increase the impact of economic growth through addressing both how activities are approached, and how decisions are made by (1) investing in enterprise-driven development, (2) employing economic analysis, (3) measuring impact with an exit strategy, and (4) producing shared benefits for the economies of both developing countries and the United States.

To be both efficient and effective in their efforts, the inspiring USAID policy outlines key principles deemed as “central” to programs aimed at enhancing economic growth in partner countries. These principles include aiming for partners becoming self-financing, prioritizing benefits for the marginalized, striving for systemic impact, showing evidence of cost effectiveness, and shifting and adapting based on lessons learned.

Through investing in existing partnerships, while forging new affiliations, USAID will help propel developing countries towards lasting economic growth. This effort will require inclusive strategies that reach beyond current models of enterprise-driven initiatives, collaborating with and leveraging the private sector.

The team at Integra proudly provided copy-editing and design support for the delivery of this new policy, and is both excited and inspired by the development leadership and direction from USAID. Visit www.USAID.gov for more information about the Economic Growth Policy.

February 24, 2021/by jschur

Article, News

Enabling Adaptive Management for Women’s Economic Empowerment and Equality

Photo Credit: Jeremy Green, USAID

In support of the United States Agency for International Development’s (USAID) Office of Gender Equality and Women’s Empowerment, Integra is conducting a portfolio performance evaluation of 45 activities under the White House-led Women’s Global Development and Prosperity Initiative (W-GDP). The initiative, established in February 2019, is the first whole-of-government effort to advance women’s economic empowerment globally, with a goal of reaching 500 million women in the developing world by 2025. A variety of private sector partners and ten government agencies are supporting the initiative including USAID and the Millennium Challenge Corporation (MCC), among others. Private sector partners include major companies like Mars, Inc., Microsoft, and VISA, which are working to support women in a variety of ways, such as more directly including women in PepsiCo’s potato supply chain in India, and developing policies and mechanisms that increase women’s safety in Levi Strauss apparel factories in Lesotho.

Gender inequalities are costly to economies on a social and monetary scale. It is estimated that if women were able to participate in the economy identically to men, they could add as much as $28 trillion to annual global GDP by 2025. However, women face many challenges to both entering and receiving fair treatment in the workforce, despite the immense value they add. Such barriers span across legal and regulatory frameworks, workforce policies and practices, and cultural norms, undermining women in both formal and informal economies. For example, unequal access to capital and credit can severely hinder female entrepreneurs’ ability to start and sustain businesses. Other regulations restrict women’s ability to sign legal documents and own or manage property, while workplace policies – or lack thereof – can put women’s health and safety at risk, disincentivizing or directly limiting their ability to generate income. To overcome these barriers, W-GDP focuses on three pillars: (1) women prospering in the workforce, (2) women succeeding as entrepreneurs, and (3) women enabled in the economy. Every W-GDP activity addresses some element or a combination of improving women’s workforce development, skills training and education, increasing access to capital, markets, networks, and mentorship, and removing restrictive legal, regulatory, and cultural barriers.

As a result of W-GDP, the U.S. White House reports significant impacts in countries such as Columbia, Cote d’Ivoire, and Morocco, where commitments to expand women’s access to credit, property rights, and land have been put in place. It also reports that W-GDP has reached 12 million women to date. The Integra-led evaluation will provide invaluable insights into how these activities are progressing, whom they benefit, and how partners, including USAID offices that support W-GDP, might adapt to further maximize results for women. The evaluation will also address the sustainability of these efforts and produce four case studies on specific in-country activities, to be selected by USAID.

Due to the global reach of W-GDP and the wide range of partners involved, Integra is taking a three-pronged approach to answer the evaluation questions, which broadly assess each activity’s relevance, effectiveness, and sustainability:

Overcoming challenges presented by the COVID-19 pandemic, an electronic survey will be disseminated to W-GDP staff across all 45 activities, with tailored questions for different cohorts, for example, USAID staff, an implementing partners’ Chief of Party, and local partners;
Building on insights gained from the survey, Integra will conduct remote key informant interviews (KIIs) with select W-GDP staff, partners, and beneficiaries;
Diving deep into four activities, case studies will be developed using remote and in-person KIIs to be conducted by locally based teams, with oversight from Integra staff using a set of country-specific COVID-19 protocols.

Through the collection and analysis of this data, Integra will provide valuable insight and recommendations to USAID and partners for increasing women’s economic empowerment. A final evaluation will also be conducted in early 2023. Beyond this effort, Integra looks forward to incorporating insights gained from this evaluation and the W-GDP and this evaluation activities into the design and implementation of other activities client projects moving forward, to support women’s economic empowerment globally.

October 5, 2020/by actualize

Article, News

Delivers Phase 1 of Evaluation Services for MCC’s Green Prosperity Project in Indonesia

In late July 2019, Integra’s evaluation team made the first of three trips to Indonesia to collect data, speak with stakeholders, and design three separate performance evaluations for the Millennium Challenge Corporation’s (MCC) Green Prosperity Project.

Impact

Totaling $313 million over five years, the Green Prosperity Project was designed to increase productivity, reduce reliance on fossil fuels by expanding renewable energy, and reduce land-based greenhouse gas (GHG) emissions. Under the project, this was to be done through the improvement of land use practices and better management of natural resources. Particularly in Indonesia, a country with a large forest-dwelling population, developing alternative land-use mechanisms is an essential part of safeguarding the future wellbeing of the diverse population. Divided into five portfolios – partnership grants; community-based natural resources management; renewable energy; technical assistance and project preparation; and the Green Knowledge activity (a knowledge-sharing component) – the Green Prosperity Project developed and implemented solutions for some of Indonesia’s key environmental issues. This included the development of participatory land use and planning mechanisms as well as a grant financing facility aimed at funding renewable energy initiatives throughout the country.

Opportunity

Integra is currently in the process of evaluating the successes and impact of facility grants within the renewable energy and community-based natural resources management portfolios. Our on-grid renewable energy team, led by Matthew Addison, is focused on the impact made by on-grid renewable energy projects financed by the GP Grant Facility. Our social forestry team, led by Scott Bode, is conducting an evaluability assessment of the project’s efforts in developing community-engaged forest management (‘social forestry’) processes. Finally, our peatlands rehabilitation team, led by Corey Nelson, is assessing the performance of peatland rehabilitation efforts. These efforts will continue through submission of the final report, estimated for completion in January 2020.

Integra is conducting this evaluation on behalf of the Millennium Challenge Corporation. For more information about this assignment, please visit the project page here.

September 1, 2020/by actualize

Article, News

Assisting the Government Of Vietnam In Developing New Law On Public Private Partnerships (PPPs)

Integra has been instrumental in advising USAID Vietnam and guiding the Government of Vietnam (GVN) Ministry of Planning and Investment (MPI), the National Assembly (NA), and the Vietnam Chamber of Commerce and Industry (VCCI) through the process of addressing the policy and legal constraints to Public Private Partnerships (PPP). Core to the engagement is expanding the understanding of PPPs among Government Officials and the Private Sector, guiding updates to the PPP Law to align with international standards and best practices, and building policy consensus.

Infrastructure is one of the most important development-related interventions that one can make in a society. It is not only a tool that accelerates and increases the standard of living of the people, but is also one of the most important inputs the public sector can provide to support the economy and private entrepreneurship. In order to sustain current growth levels and achieve sustainable growth standards, the country recognized their need to double their infrastructure investment to $20 billion annually between 2017-2022. Given current public budget constraints, it is estimated that over 50 percent of the funding required will need to come from the private sector. The GVN sought support from USAID Vietnam to address the barriers to Financing Self Reliance.

Impact

Integra was engaged by the USAID Vietnam Mission through the Learning, Evaluation, and Analysis Project (LEAP III), to provide the GVN with the technical assistance to address these challenges. The engagement initially focused on convening stakeholders, capacity building, and gathering feedback on behalf of the MPI. From that context, a draft PPP Law was composed by the MPI with guidance from Integra. The draft PPP Law represents a vital opportunity to create a consistent and sustainable platform for partnership between the public and private sectors, directly responding to the Government’s priority for effective mobilization of private sector investment for infrastructure.

Integra mobilized the international expertise of both Dr. Vũ Thành Tự Anh, Dean of the Fulbright School of Public Policy and Management and Professor Akash Deep, a global authority on PPPs and faculty chair of the Infrastructure in a Market Economy Executive Program at Harvard University. Professor Deep shared his international experience on PPPs with Vietnamese senior leadership to help the current PPP draft law more closely align with international standards. Professor Akash Deep worked closely with Dr. Vũ Thành Tự Anh, to ensure his recommendations fit within the Vietnam context.

Based on the recommendations from the experts and Integra’s own case study analyses and findings, MPI and the National Assembly are finalizing the law. Integra has been further engaged to provide targeted technical expertise on eight key outstanding issues. The law is expected to be passed in May 2020.

Opportunity

Since 2010, the Government of Vietnam (GVN) has tried to mobilize private sector engagement in infrastructure via public private partnerships (PPPs). According to the Ministry of Planning and Investment (MPI), as of this year, 336 infrastructure projects have been implemented as PPPs (with $70 billion in private finance), of which 220 were in transportation, 18 in power, and 18 in water supply, wastewater treatment, and the environment.

There have been challenges in the implementation of these PPPs. Weaknesses in the legal and institutional framework have led to non-transparent and uncompetitive procurement processes. Case studies of infrastructure investment, such as Vinh Tan 3 Coal-Fired Thermal Power Plant and Thang Long Thermal Power Plant, show that the Authorized State Agencies (ASAs) often utilize PPPs through sole source procurement. In the Vinh Tan 3 example, the investor conducted the feasibility study only after it had been selected. The Vinh Tan 3 Power Project documents were mainly prepared by international lawyers hired by the investors. The Ministry of Industry and Trade did not have a draft contract or key contract terms available before appointing the investor. As a result, contract negotiation has lingered for over 10 years because the parties cannot agree on key provisions.

Inconsistencies among current Vietnamese laws have destabilized the investment environment and led to the failure of some PPP projects. In the Cam Pha hospital project, for example, the relevant legal regulations were not in place to allow for the transfer of public assets (land, in this case) to the private party in the project company, forcing the project to be cancelled.