Sample Essay on Public Private Partnership in Infrastructure

Sample Essay on Public Private Partnership in Infrastructure

Good and high-quality infrastructure is the basic constituent for sustainable development. Each country needs efficient transport, energy, sanitation, and communication systems. All these facilities offer a great way to a proper and decent standard of living. For many developing countries, lack of good infrastructure has been one of the key challenges which hamper their growth and ability to trade effectively around the globe. Fortunately, through public-private partnerships [PPPs] many countries these days have the matchless infrastructure and many other substantial facilities.

PPPs are a great means of enabling the development or improvement of energy telecommunication, transport, and information technology. The participation of private and government entities has made it easy for many developing countries to follow the same development trend that developed countries have been reveling in for many years. In the case of aging infrastructure, a partnership between the government and the private sector has been a great way to improve the state of many countries. PPPs have helped foster new solutions in most developing countries.

Public private partnerships work exceptionally well because they combine the skills and resources of both the public and the private sectors in unique ways whereby they share risks and responsibilities. This enables the government to benefit from the great expertise that defines private sectors. The private sector also allows the government to focus on policy planning and regulation through the delegation of important day-to-day operations. It is not that easy to achieve a successful partnership, but with a careful analysis of the long-term development objectives all can be a success. The legal framework also plays a great role in the establishment of PPPs as it must support these new models of services available. It must adequately support, monitor, and regulate how this partnership works. A well-designed public private partnership agreement should work in accord with the set laws of a country and international best practices. Governments depend on the private sector to easily deliver infrastructure for a number of reasons;

  • Incentivizing the private sector to deliver service within the set duration and within budgets.
  • Using PPPs also act as a way of gradually exposing state-owned business and government to increase the level of private sector participation and structuring the PPPs has a way of transferring skills leading to incapacitated entities.
  • PPPs also help in creating diversification in the economy by making the country more competitive when it comes to facilitating infrastructure.
  • Supplementing partial public sector capacities to meet the growing demand for infrastructure development.

Despite the high demand for good infrastructure, the PPPs are facing new and bigger challenges mainly due to global financial crisis, increased regulation and lack of funding from banks and other money lenders. Multilateral development banks have been of great help when it comes to public private partnerships as they help the government find the finest PPPs structure and mobilize commercial funding. For those countries that find it hard to implement PPPs, it is a great idea to learn from developed countries and gather essential details to use and develop infrastructure within a short duration.

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