Public-private partnerships (PPPs) address the World Bank Group’s twin goals – eliminating extreme poverty and boosting shared prosperity – by enhancing the reach and quality of the delivery of basic services. When designed well and implemented in a balanced regulatory environment, PPPs can bring greater efficiency and sustainability to the provision of such public services as water, sanitation, energy, transport, telecommunications, health care and education.
PPPs also allow for the better allocation of risk between public and private entities, taking into account their capacity to manage those risks. PPPs help make the most of scarce public funding and introduce private-sector technology and innovation to provide better-quality public services through improved operational efficiency. It is also important to recognize that PPPs are just one tool available for governments. Every country has its own unique challenges, priorities, and financial constraints. In some cases, PPPs can bring great benefit by leveraging the management capacity, innovation and expertise of the private sector, but other times a traditional public sector approach could be more appropriate.
PPPs also allow for the better allocation of risk between public and private entities, taking into account their capacity to manage those risks. PPPs help make the most of scarce public funding and introduce private-sector technology and innovation to provide better-quality public services through improved operational efficiency. It is also important to recognize that PPPs are just one tool available for governments. Every country has its own unique challenges, priorities, and financial constraints. In some cases, PPPs can bring great benefit by leveraging the management capacity, innovation and expertise of the private sector, but other times a traditional public sector approach could be more appropriate.