The case for public-private partnerships in infrastructure capital budgeting

Abstract

Civil Infrastructure is needed both in the developed world and in developing countries. However, governments alone can no longer deliver the much needed projects mainly because of lack of money, but also due to the lack of technical skills and a changing type of citizenry. In today’s world, governments have to consult the market place to efficiently and optimally deliver the much needed infrastructure. The case for Public-Private Partnerships being better than the options of government run projects or fully privatized projects is that Public-Private Partnerships offer real advantages in three major areas: 1) risk benefits (financial, legal and project related benefits), 2) management and communication benefits (within the partnership but also importantly between both partners and the general public), and 3) the value addition to the public common good.