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Transferring risk to the private sector in a PPP contract is frequently referred to as a key part of a PPP arrangement, as well as a key reason why governments use such an approach to procure infrastructure.
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.
Contractual disagreements and disputes are common in PPPs during both construction and operational periods.
How can governments deliver quality infrastructure outcomes?
Tackling the global infrastructure gap remains a priority for governments to drive inclusive growth and deliver quality infrastructure projects for their citizens.
The Infrastructure Knowledge Exchange (IKE) is Global infrastructure Hubs' (GI Hub) database of categorised infrastructure resources. The tool has been created to help Infrastructure professionals globally, to easily find resources that pertain to infrastructure tools, data, publications, organisations, reports and, news.
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.
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.
Communication throughout infrastructure project preparation should be recognised as a strategic activity. It should factor in the importance of all key stakeholder groups towards the project, tailor communicative actions to engage and inform them and foster a supportive environment.
Ambitions Beyond Growth- Economic and Social Survey of Asia-Pacific Region” by UN ESCAP 2019 reveals that achieving the Sustainable Development Goals by 2030 would require an annual additional investment of $1.5 trillion for Asia-Pacific developing countries – equivalent to five per cent of their combined GDP in 2018, or about four per cent in terms of the annual average GDP for the period 2016-2030.
Increasingly, infrastructure leaders, investors and developers are recognising the need to not only increase the quantity of infrastructure investment globally to drive economic growth, but also the quality of infrastructure investment, to ensure that that growth and development is inclusive and sustainable.
The Global Infrastructure Hub (GI Hub) has collaborated on this blog with Seungbeum Rho, a Specialist at the Korea Development Institute (KDI). This blog outlines some of the lessons learned in Korea on the topic of project preparation, which can be found in more detail in the GI Hub’s Reference Tool on Governmental Processes Facilitating Infrastructure Project Preparation.
Project Preparation Tool
Introduction: Laying the foundations and charting a way forward
Enabling environment: what are the prerequisites required to facilitate the preparation of quality infrastructure projects?
Financing project preparation: how can governments effectively utilise project preparation financing sources?
What are the benefits of well-planned and prioritised infrastructure investment?
How do you translate a concept into a bankable project?
How should governments communicate projects?
Project Preparation in Indonesia – how has the government attracted private participation?
Project Preparation in India – how specialised institutional structures help in planning complex projects
Insights into the The Schuphol-Amsterdam-Almere (SAA) program, which has been the largest PPP program in the Netherlands in the last decade.
How can cities absorb the influx of people without developing new and more efficient ways of building, transporting, and consuming resources? Without significant disruption across urban infrastructure, the cities of the future will struggle to keep up, much less make progress toward things like mitigating climate change or providing quality education to every student.
MIT Solve
The circular economy is now core policy for a growing number of countries with leadership from Finland, the European Union and Canada, but it is also taking a strong hold in Asia as Japan and China implement circular economic policies to transition them to a sustainable inclusive future.
In keeping with our mission to support the G20 to drive an ambitious infrastructure agenda, InfraCompass 2020 harnesses data from leading organisations around the world - including the World Bank, World Economic Forum, and the OECD - to assist countries to identify reforms that lead to better infrastructure investment.
View Report (PDF)
Is ESG investment just a passing fad? What is the future of China’s Belt and Road Initiative? And does the Covid-19 pandemic mean we must reassess climate change targets? Our CEO Marie Lam-Frendo answers questions on the future of infrastructure.
The world is changing, and collectively we are underprepared for many of the challenges ahead. The Global Infrastructure Hub’s vision for the ideal future is a world where sustainable, resilient and inclusive infrastructure works for all people.
InfraTech has changed from a nice to have to a critical element in the ability to deliver sustainable, inclusive and resilient infrastructure.
