By providing a financing mechanism that can mobilize private funds into infrastructure development and harness the private sector innovation capabilities, PPPs aligned with the SDGs can improve people’s lives and create value for society. However, not all PPP projects are aligned with the SDGs, and some may even have negative economic, social and environmental impacts. Furthermore, with infrastructure being responsible for 79 per cent of all greenhouse gas emissions and 2023 set to be the warmest year on record and greenhouse gas levels continuing to increase, it is essential to evaluate PPP and infrastructure projects against the SDGs and ensure that they contribute to the three pillars of sustainable development: environmental, social and economic.
While traditional PPPs present challenges and limitations to implement the 2030 Agenda, the five outcomes of the UNECE “PPP for the SDGs” approach go beyond the mere “value for money” criteria to focus infrastructure in delivering “value for people” and “value for the planet”. These outcomes are:
Through this approach and its pioneering tool, the PPP and Infrastructure Evaluation and Rating System (PIERS), UNECE is addressing these challenges and the need for significant investments in infrastructure that is of high quality, reliable, sustainable and resilient. The PIERS methodology provides a set of criteria and indicators to evaluate infrastructure projects against these outcomes throughout the stages of the PPP process. It is an evaluation methodology that uses a scoring system based on these criteria to assess PPP and infrastructure projects against the SDGs. It also provides feedback on how to improve project performance in terms of sustainability.
The main objective of this evaluation methodology is to assist Governments in particular – but also businesses, lenders, and debt providers – in how they identify, design and implement infrastructure projects and deliver public services that comply with the SDGs. To help Governments and all stakeholders use this methodology effectively, UNECE has also developed an online platform for PIERS. This online platform enhances the accessibility and facilitates the usage of the PIERS methodology by providing guidance on how to apply the criteria and indicators in different contexts and sectors.
Since its launch in 2022, the PIERS methodology has been used for evaluating over 200 infrastructure projects in 35 developed and developing countries belonging to the UNECE region and beyond. These projects range from large-scale infrastructure such as bridges, metro rails and power stations, to small-scale community projects such as charging stations for electric vehicles, medical facilities, and school infrastructure. Many of these were submitted to the 7th edition to the UNECE International PPP Forum where 49 projects from 33 countries were presented and evaluated using the PIERS methodology, for a total capital expenditure of 38.7 billion United States dollars of investment. Some examples of these projects are:
the 1915 Çanakkale Bridge project, the longest suspended bridge in the world across the Dardanelles in Türkiye, which improved the livelihoods of the affected communities through an extensive stakeholder engagement process and the creation of local jobs;
an energy renovation project for public buildings in Ljubljana, Slovenia, that reduced greenhouse gas emissions by significantly reducing the energy consumption and increasing the share of renewable energy sources in public buildings; and
a school reconstruction project in Kaunas district, Lithuania, that reduced energy consumption and CO2 emissions by renovating old buildings and increased access to education to more than 500 children by building new schools in compliance with the nearly-zero emission building (NZEB) standard.
By using the PIERS methodology, these projects demonstrate how PPPs can be an effective tool to achieve the SDGs, if they are designed and implemented with people’s interest at their core. The UNECE methodology also helps these projects showcase their achievements and best practices and inspire others to follow their example.
In this regard, the PIERS methodology is best suited for projects at the early stages of development, when changes and improvements are mostly possible and less costly. By using the PIERS methodology at the onset of the project development lifecycle, Governments, at local or subnational level, can gain valuable insights into the strengths and weaknesses of their PPP and infrastructure projects, and in terms of creating value for people and value for planet.
As part of its PIERS programme, UNECE is providing support to its member States in assessing their PPP and infrastructure projects using the PIERS methodology. They receive recommendations from UNECE on how to improve their performance or align better with the SDGs. These recommendations help Government identify projects that are aligned with the SDGs. They could also help these projects improve their quality, efficiency and impact, as well as attract more investors, donors, or partners who are more and more committed to support the SDGs.
For example, in Ukraine, where the reconstruction and recovery needs were estimated in 2023 by the World Bank at about 411 billion United States dollars, the UNECE has been supporting the Government in applying the PIERS methodology to develop and implement reconstruction projects that are aligned with the SDGs. Kyrgyzstan has also benefited from UNECE support, where several PPP projects at the early stages of development have been evaluated using the PIERS methodology, especially small-scale PPP projects with important development impacts.
Against the backdrop of the triple planetary crisis – climate change, pollution and biodiversity loss – and with the increase in man-made and natural disasters, sustainable PPPs and infrastructure with people as the main beneficiaries are key to accelerate progress towards the SDGs halfway to the 2030 Agenda for Sustainable Development.
UNECE is scaling up the implementation of the PIERS methodology in its member States and beyond through cooperation with other UN regional commissions.
United Nations Economic Commission for Europe
Palais des Nations, Geneva
