IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v51y2014i4p335-354.html
   My bibliography  Save this article

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 search 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. 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.
    4. Vivien Foster & Cecilia Briceno-Garmendia, 2010. "Africa's Infrastructure : A Time for Transformation [Infrastructures africaines]," World Bank Publications - Books, The World Bank Group, number 2692.
    5. 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.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, Minsoo & Han, Xuehui & Quising, Pilipinas & Villaruel, Mai Lin, 2018. "Hazard Analysis on Public–Private Partnership Projects in Developing Asia," ADB Economics Working Paper Series 548, Asian Development Bank.
    2. Lena Brogaard & Ole Helby Petersen, 2018. "Public‐private partnerships (PPPs) in development policy: Exploring the concept and practice," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 729-747, September.
    3. Miranda Sarmento, J. & Renneboog, L.D.R., 2014. "Anatomy of Public-Private Partnerships : Their Creation, Financing, and Renegotiations," Discussion Paper 2014-017, Tilburg University, Center for Economic Research.
    4. Tharun Dolla & Boeing Laishram, 2019. "Bundling in public–private partnership projects – a conceptual framework," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 69(6), pages 1177-1203, December.
    5. Duncan Melville, 2016. "Public–Private Partnerships in Developing Countries," Review of Market Integration, India Development Foundation, vol. 8(3), pages 152-169, December.
    6. Yorela Yenifer Esperilla-Niño-de-Guzmán & María de los Ángeles Baeza-Muñoz & Francisco Jesús Gálvez-Sánchez & Valentín Molina-Moreno, 2024. "Public–Private Partnership (PPP) in Road Infrastructure Projects: A Review of Evolution, Approaches, and Prospects," Sustainability, MDPI, vol. 16(4), pages 1-24, February.
    7. Daniel Danau & Annalisa Vinella, 2017. "From fixed to state‐dependent duration in public‐private partnerships," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(3), pages 636-660, September.
    8. Miranda Sarmento, J.J. & Renneboog, Luc, 2016. "Anatomy of public-private partnerships : Creation, financing, and renegotiations," Other publications TiSEM dc944be7-8594-4439-90da-6, Tilburg University, School of Economics and Management.
    9. Nizkorodov, Evgenia, 2021. "Evaluating risk allocation and project impacts of sustainability-oriented water public–private partnerships in Southern California: A comparative case analysis," World Development, Elsevier, vol. 140(C).
    10. Sietze Vellema & Greetje Schouten & Rob Van Tulder, 2020. "Partnering capacities for inclusive development in food provisioning," Development Policy Review, Overseas Development Institute, vol. 38(6), pages 710-727, November.
    11. Jingfeng Yuan & Wei Li & Jiyue Guo & Xianbo Zhao & Mirosław J. Skibniewski, 2018. "Social Risk Factors of Transportation PPP Projects in China: A Sustainable Development Perspective," IJERPH, MDPI, vol. 15(7), pages 1-25, June.
    12. Daniel Danau & Annalisa Vinella, 2021. "Under/Over‐Investment and Early Renegotiation in Public‐Private Partnerships," Journal of Industrial Economics, Wiley Blackwell, vol. 69(4), pages 923-966, December.
    13. Tancrède Voituriez, 2017. "Financing the 2030 Agenda for Sustainable Development," Post-Print hal-02567998, HAL.
    14. Naoki Fujiwara, 2019. "International City Network and Public-Private Cooperation for Urban Water-Environment Management: A Study of Japanese Public Water Services’ Overseas Expansion," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 18(2), pages 19-29, December.
    15. Larry Dwyer, 2022. "Productivity, Destination Performance, and Stakeholder Well-Being," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-16, July.
    16. Ram Singh, 2018. "Public–private partnerships vs. traditional contracts for highways," Indian Economic Review, Springer, vol. 53(1), pages 29-63, December.
    17. Joseph Mawejje, 2024. "Private sector participation in infrastructure in emerging market and developing economies: Evolution, constraints, and policies," Global Policy, London School of Economics and Political Science, vol. 15(2), pages 465-474, May.
    18. A S M Abdul Quium, 2019. "Transport Corridors for Wider Socio–Economic Development," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    19. Bonifaz, José L. & Saavedra, Eduardo H., 2023. "Aggressive bidding and the renegotiation of concession contracts: Empirical evidence from Peru," Utilities Policy, Elsevier, vol. 85(C).

    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. Calderon, Cesar & Serven, Luis, 2010. "Infrastructure in Latin America," Policy Research Working Paper Series 5317, The World Bank.
    2. 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.
    3. Rao, Narasimha D., 2013. "Does (better) electricity supply increase household enterprise income in India?," Energy Policy, Elsevier, vol. 57(C), pages 532-541.
    4. 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.
    5. 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.
    6. 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.
    7. Minsoo Lee & Xuehui Han & Raymond Gaspar & Emmanuel Alano, 2018. "Deriving Macroeconomic Benefits from Public–Private Partnerships in Developing Asia," Working Papers id:12888, eSocialSciences.
    8. 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.
    9. Marcelo Selowsky & Claudio Loser, 2015. "Improving Microeconomic Efficiency of Latin American Economies," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 7(2), pages 121-149, May.
    10. Geddes, R. Richard & Wagner, Benjamin L., 2013. "Why do U.S. states adopt public–private partnership enabling legislation?," Journal of Urban Economics, Elsevier, vol. 78(C), pages 30-41.
    11. Takuji Komatsuzaki, 2019. "Improving Public Infrastructure in the Philippines," Asian Development Review, MIT Press, vol. 36(2), pages 159-184, September.
    12. Galilea, Patricia & Medda, Francesca, 2010. "Does the political and economic context influence the success of a transport project? An analysis of transport public-private partnerships," Research in Transportation Economics, Elsevier, vol. 30(1), pages 102-109.
    13. Jacome, Veronica & Ray, Isha, 2018. "The prepaid electric meter: Rights, relationships and reification in Unguja, Tanzania," World Development, Elsevier, vol. 105(C), pages 262-272.
    14. Demierre, Jonathan & Bazilian, Morgan & Carbajal, Jonathan & Sherpa, Shaky & Modi, Vijay, 2015. "Potential for regional use of East Africa’s natural gas," Applied Energy, Elsevier, vol. 143(C), pages 414-436.
    15. J. David Brown & Gustavo A. Crespi & Leonardo Iacovone & Luca Marcolin, 2018. "Decomposing firm-level productivity growth and assessing its determinants: evidence from the Americas," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1571-1606, December.
    16. Kennedy, Ryan & Mahajan, Aseem & Urpelainen, Johannes, 2019. "Quality of service predicts willingness to pay for household electricity connections in rural India," Energy Policy, Elsevier, vol. 129(C), pages 319-326.
    17. Ioannis N. Kessides, 2012. "Regionalising Infrastructure for Deepening Market Integration: The Case of East Africa," Journal of Infrastructure Development, India Development Foundation, vol. 4(2), pages 115-138, December.
    18. Elodie Blanc & Eric Strobl, 2014. "Is Small Better? A Comparison of the Effect of Large and Small Dams on Cropland Productivity in South Africa," The World Bank Economic Review, World Bank, vol. 28(3), pages 545-576.
    19. Torsten Ehlers, 2014. "Understanding the challenges for infrastructure finance," BIS Working Papers 454, Bank for International Settlements.
    20. Buso, Marco & Marty, Frederic & Tran, Phuong Tra, 2017. "Public-private partnerships from budget constraints: Looking for debt hiding?," International Journal of Industrial Organization, Elsevier, vol. 51(C), pages 56-84.

    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.