Benchmarking Public-Private Partnerships Procurement 2015 : A Pilot in 10 Economies
Inadequate infrastructure in developing countries is a major constraint on growth. Many governments face the challenge of low quality or non-existent infrastructure, often deriving from insufficient funding, poor planning, or ineffective delivery a...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/443361522432207015/Benchmarking-Public-Private-Partnerships-Procurement-2015 http://hdl.handle.net/10986/32499 |
| Summary: | Inadequate infrastructure in developing
countries is a major constraint on growth. Many governments
face the challenge of low quality or non-existent
infrastructure, often deriving from insufficient funding,
poor planning, or ineffective delivery and maintenance.
Public-Private Partnerships (PPPs) can help improve the
quality of infrastructure "by vesting control rights
with the private sector, bundling into one contract the
design, construction, operation, and maintenance of the
facility, and by transferring the risk of cost and time
overruns to the private partner". Well-structured PPPs
create the right incentives to maintain high performance
records. They also tend to realign incentives in long-term
service contracts so that responsibility for service
delivery is transferred to the party with most to gain from
sustained high performance. An appropriate PPP preparation
and bidding process leads to a more efficient use of
resources because the private partner will have a stake in
the long-term implications of the cost of the
infrastructure. In addition to these benefits, PPPs offer an
opportunity to conduct "more informed and realistic
selection procedures" by assessing long-term
commitments and risk and shifting the focus from inputs to
outputs (and even outcomes) |
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