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Submitted by Ed Bourque on

This is a useful point of clarification.

Although this will do little to appease the large segment of the population that sees PPPs as monolithic and is ideologically opposed to them (full stop!), just the massive shortage in investment in infrastructure sectors suggests that there will likely always be a role for the private sector in service delivery. (Perhaps, in the long term, tax collection and targeted spending will catch up to need, but, in the mean time, the gaps persist.)

When the demand risk on the investor is at least poorly estimated, that can be catastrophic. I am thinking of a few water utility PPPs where the estimate of billable connections was vastly overstated during the contractual arrangements, and the ultimate inability for the utility's business model to work doomed the PPP.

By the way, I am currently about to start the APMG PPP certification course. Could you point me to other similar training resources?

http://www.edbourqueconsulting.com/
Ed Bourque