Public private partnership in infrastructure financing

Abstract

The global financial crisis, which was unique in its magnitude and after effects, has generated significant interest in Public Private Partnership (PPP). Lack of investments and deteriorated infrastructure challenges economic competitiveness of countries in global market and forced governments to look innovative ways to fund the projects. PPP is a successful model in many developed economies. Availability of funding, efficiency, timely completion and regular maintenance in PPPs are main attraction for governments. While misallocated and mismanaged federal funds, inefficiency and trust deficit are key concerns when government build & finance infrastructure projects. This study explores pros and cons of PPP in challenging economic environment, evaluate key success factors and provide review of few case studies.