According to World Bank President Jim Yong Kim, “Today, the developing world spends about $1 trillion on infrastructure, and only a small share of those projects involves private actors. Overall, private investments and public-private partnerships in developing countries totaled $150 billion in 2013, down from $186 billion in 2012. So it will take the commitment of all of us to help low- and middle-income countries bridge the massive infrastructure divide.”
Public-private partnerships (PPPs) can be an important way for governments to help supplement the role of the public sector in meeting the infrastructure deficit. But PPPs are controversial – there have been some high profile, expensive failures, and some stakeholders feel the private sector should not be involved in providing basic infrastructure services like water.
On the flip side, many have over optimistic expectations for PPPs. PPPs are often not easy to do or to get right and governments need to make sure they are choosing projects suitable for the PPP approach. Through a variety of initiatives and collaboration with partners – including the world’s main multilateral lending institutions – we are helping clients better understand both the potential and limitations of PPPs, including helping them assess when a PPP is the right option and when it is not, and how to procure and manage these projects effectively.