No. 439 March 2011 - PPPs: Do They Work?

A notable feature of the international landscape over the last two decades has been the increase in the use of public-private partnerships (PPPs). These PPPs typically involve the government using the private sector to build and, in some cases operate and own for a defined period, basic infrastructure facilities. In return for building, managing and/or maintaining the assets, the private partner (or consortium of private firms) receives a regular payment from the government and/or charges for the users.

More than 90 countries are now using PPPs in areas as diverse as designing and building roads and schools, constructing and running prisons, and designing, building and operating water and wastewater treatment facilities. Amongst the most active countries using PPPs have been the United Kingdom, Australia and Canada, countries we have much in common with.

But just because just about everyone else is doing it doesn't necessarily make it right. The real question is do such PPPs work?

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