IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v51y2014i4p335-354.html

Infrastructure Public-Private Partnerships in the Developing World: Lessons from Recent Experience

Author

Listed:
  • Michael Trebilcock
  • Michael Rosenstock

Abstract

Seeking to address inefficient and costly infrastructure delivery, governments over the past two decades have turned to public-private partnerships (PPPs) to build and operate infrastructure. The key characteristic of PPPs is the outsourcing and 'bundling' of project delivery components (for example, design, build, finance, operate), structured to incentivise the builder-operator to incorporate long-term operating cost considerations in the design and construction phases of a project and reduce coordination costs. This article reviews the benefits and drawbacks of PPPs and the experience to date, focusing in particular on developing economies. Relative to traditional procurement, PPPs are complex, and require governments to anticipate and plan for contingencies and conduct monitoring and enforcement of long-term contracts. We argue that institutional capacity is a key determinant of PPP success and in mitigating potentially welfare-reducing contract renegotiations evident in the Latin American experience.

Suggested Citation

  • Michael Trebilcock & Michael Rosenstock, 2015. "Infrastructure Public-Private Partnerships in the Developing World: Lessons from Recent Experience," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 335-354, April.
    • Handle: RePEc:taf:jdevst:v:51:y:2014:i:4:p:335-354
    DOI: 10.1080/00220388.2014.959935
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220388.2014.959935
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220388.2014.959935?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2009. "Soft Budgets and Renegotiations in Public-Private Partnerships," Cowles Foundation Discussion Papers 1723, Cowles Foundation for Research in Economics, Yale University.
    2. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    3. Daniele Calabrese, 2008. "Strategic Communication for Privatization, Public-Private Partnerships, and Private Participation in Infrastructure Projects," World Bank Publications - Books, The World Bank Group, number 6522, April.
    4. Mr. Etienne B Yehoue & Miss Mona Hammami & Jean-François Ruhashyankiko, 2006. "Determinants of Public-Private Partnerships in Infrastructure," IMF Working Papers 2006/099, International Monetary Fund.
    5. Yepes, Tito & Pierce, Justin & Foster, Vivien, 2009. "Making sense of Africa's infrastructure endowment : a benchmarking approach," Policy Research Working Paper Series 4912, The World Bank.
    6. Cecilia Briceno-Garmendia & Vivien Foster, 2010. "Africa's Infrastructure : A Time for Transformation [Infrastructures africaines]," World Bank Publications - Books, The World Bank Group, number 2692, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amedanou, Yawovi Mawussé Isaac, 2023. "Financing the economy in debt times: The crucial role of public–private partnerships," Research in Economics, Elsevier, vol. 77(3), pages 295-309.
    2. Araya, Gonzalo & Schwartz, Jordan & Andres, Luis, 2013. "The effects of country risk and conflict on infrastructure PPPs," Policy Research Working Paper Series 6569, The World Bank.
    3. Andrés Rodríguez-Pose & Callum Wilkie, 2018. "Strategies of gain and strategies of waste: What determines the success of development intervention?," Papers in Evolutionary Economic Geography (PEEG) 1826, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2018.
    4. Calderon, Cesar & Serven, Luis, 2010. "Infrastructure in Latin America," Policy Research Working Paper Series 5317, The World Bank.
    5. Giuseppe Liddo & Alessandro Rubino & Ernesto Somma, 2019. "Determinants of PPP in infrastructure investments in MENA countries: a focus on energy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(4), pages 523-580, December.
    6. Rao, Narasimha D., 2013. "Does (better) electricity supply increase household enterprise income in India?," Energy Policy, Elsevier, vol. 57(C), pages 532-541.
    7. David Martimort & Flavio Menezes & Myrna Wooders & ELISABETTA IOSSA & DAVID MARTIMORT, 2015. "The Simple Microeconomics of Public-Private Partnerships," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(1), pages 4-48, February.
    8. Torsten Ehlers, 2014. "Understanding the challenges for infrastructure finance," BIS Working Papers 454, Bank for International Settlements.
    9. Jana Hönke & Ivan Cuesta-Fernandez, 2018. "Mobilising security and logistics through an African port: A controversies approach to infrastructure," Mobilities, Taylor & Francis Journals, vol. 13(2), pages 246-260, March.
    10. Lucia de Strasser, "undated". "Calling for Nexus Thinking in Africa’s Energy Planning," ESP: Energy Scenarios and Policy 263161, Fondazione Eni Enrico Mattei (FEEM).
    11. Ronit Mukherji, 2023. "Risk Sharing in Public-Private Partnerships," SN Operations Research Forum, Springer, vol. 4(4), pages 1-17, December.
    12. Sangaralingam Ramesh, 2012. "Infrastructure, Knowledge and Economic Growth in China: 1953–2004," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 5(1), pages 23-50, April.
    13. Xiao Ke & Yuanke Yan, 2021. "Can proactive fiscal policy achieve the goal of “Beyond Keynesianism”?," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1078-1103, May.
    14. Chali Nondo, 2018. "Is There a Relationship between Information and Communication Technologies Infrastructure, Electricity Consumption and Total Factor Productivity? Evidence from a Panel of African Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 207-218.
    15. Vorisek,Dana Lauren & Yu,Shu, 2020. "Understanding the Cost of Achieving the Sustainable Development Goals," Policy Research Working Paper Series 9164, The World Bank.
    16. Parikh, Priti & Fu, Kun & Parikh, Himanshu & McRobie, Allan & George, Gerard, 2015. "Infrastructure Provision, Gender, and Poverty in Indian Slums," World Development, Elsevier, vol. 66(C), pages 468-486.
    17. Ruiz Díaz, Gonzalo, 2019. "Opportunism and third-party influence on long-term public contracts," Utilities Policy, Elsevier, vol. 61(C).
    18. Mause, Karsten, 2019. "Governing Public-Private Partnerships: The Problem of Low-Cost Decisions," EconStor Preprints 209582, ZBW - Leibniz Information Centre for Economics.
    19. Straub, Stephane & Vellutini, Charles & Warlters, Michael, 2008. "Infrastructure and economic growth in East Asia," Policy Research Working Paper Series 4589, The World Bank.
    20. Fagundes, Thalita Salgado & Cunha Marques, Rui & Malheiros, Tadeu Fabrício, 2024. "Are Brazilian water auction prices affordable for vulnerable families?," Utilities Policy, Elsevier, vol. 88(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:51:y:2014:i:4:p:335-354. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.