Most infrastructure investment plans and government policies rely on the delivery of projects and programs. To achieve these and unlock the real benefits of infrastructure, it is vital that projects and programs are delivered well.
Over the last decade, much has been written about globalisation and how we’re more connected than ever before. In the infrastructure world, we think of connectivity as the “linkages of communities, economies and nations through transport, communications, energy, and water networks across a number of countries” .
In Buenos Aires on 23 March, the G20 Finance Ministers announced that infrastructure would remain a priority for at least the next three years—a very welcome announcement for those in the private sector who have long called for greater global coordination of efforts in this area.
Public-private partnership (PPP) contracts are long-term and they may have a duration of 20 to 30 years or more. Today, where technologies and social priorities (such as views on climate change and sustainability) are changing at an accelerated pace, it perhaps comes as no surprise that changes to PPP contracts through renegotiations are common.
Risks can be hard to define, manage and mitigate. In infrastructure projects that cross regional or national borders and involve multiple parties from both the public and private sector, these risks may be amplified.
The Global Infrastructure Hub’s Outlook shows the United States has one of the largest infrastructure gaps. What can the GI Hub’s InfraCompass tell us about fixing it?
Early termination of a PPP contract can be an expensive process for all parties involved.
As outlined earlier in this blog series, private investors are looking for reliable returns to justify the risks that they are taking. Financing and procurement of cross-border projects will often be more complex than national projects due to the scale of the project and compounded risks, and the financial returns may be more uncertain than for national projects.
Private partner profit motives are frequently cited as a failure of the public-private partnership (PPP) approach. But those profit motives are also part of the fundamental make up of the PPP approach and why it has the potential to deliver better outcomes for the public.
By their very nature as long-term large infrastructure projects, public-private partnership (PPP) projects involve a vast array of interconnecting relationships. Core to any PPP project is the long-term contractual relationship between the government’s procuring authority and the private party (the project company). This is one of many relationships that will affect the success of a PPP.
When we as consumers decide to invest our money—whether through shares, bonds, or other instruments—we look at whether our investment will deliver a solid financial return. It makes sense then that the same risk-return principle is applied to investments in infrastructure.
Contractual disagreements and disputes are common in PPPs during both construction and operational periods.
InfraCompass is an interactive tool that looks at the infrastructure capabilities of 49 countries.
The term of a public-private partnership (PPP) contract can exceed 20 or even 30 years. At the end of the term, the relevant private partner is often obligated to hand back the public asset in question (whether it be a road, an airport or a hospital) in a condition that meets the government procuring authority’s expectations.
Globally, governments are accountable for the development of infrastructure and the delivery of basic services in an affordable and inclusive manner. The ability of governments to nurture a conducive enabling environment for infrastructure investment has often been found to be a key differentiator between countries that successfully scale up infrastructure and those that face challenges in doing so.
The participants of the second Regional Roundtable on Infrastructure Governance held in Côte D’Ivoire last week reinforced the need for good governance across all stages of infrastructure delivery. The Regional Roundtable was the second of its kind, with the first held in South Africa in November 2017.