Private Participation in Infrastructure in Developing Countries

Abstract

No AccessWorld Bank Working Papers12 Aug 2013Private Participation in Infrastructure in Developing CountriesTrends, Impacts, and Policy LessonsAuthors/Editors: Harris CliveHarris Clivehttps://doi.org/10.1596/0-8213-5512-0SectionsAboutPDF (0.3 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:Over the last decade, governments around the world pursued policies to involve the private sector in the delivery and financing of infrastructure services. The scale of this move away from the hitherto dominant public sector model was far more rapid than had been anticipated at the start of the 1990s. By the end of 2001, developing countries had seen over $755 bn of investment flows in nearly 2500 private infrastructure projects. But investment flows peaked in 1997 and have since dropped by more than half. Macroeconomic crises have severely tested the robustness of this new paradigm. Problems with individual projects related to cancellation or renegotiation have made the headlines. Critics of the private provision of infrastructure argue that it has made services less affordable, and adversely affected access by the poor to modern infrastructure services. The decline in public opinions of private provision is matched by the reduced enthusiasm of many investors in developing country infrastructure, driven in part by some disappointing experiences.Many of the problems we have seen relate to difficulties in sustaining cost-covering user fees for these sectors, which have a tradition of pricing below costs. They have also highlighted the challenges involved in the regulation of these sectors. This report aims to distill the experience with the private provision of infrastructure over the last 15 years. It looks at the growth that occurred during the mid 1990s, and the subsequent declines. The main factors driving this are examined. The report assesses the impact that the private provision of infrastructure has had on service delivery, and what the consequences for other important goals have been. Finally, it looks at the main policy lessons that can be drawn, and what governments have to do moving forward if they are to ensure that the supply of infrastructure services does not become a bottleneck to growth. Previous bookNext book FiguresreferencesRecommendeddetailsCited byDeterminants of public–private partnership policiesPublic Management Review, Vol.22, No.831 May 2019A Simple Mediation Model for Public–Private Partnership Implementation in Developing Countries: A Case of TanzaniaSAGE Open, Vol.10, No.26 June 2020Hazard Analysis on Public–Private Partnership Projects in Developing AsiaSSRN Electronic JournalThe Determinant of Private Sector Participation in Infrastructure Development: A Study of the Region of Asia-PacificSSRN Electronic JournalFast-Track Institution Building in Conflict-Affected Countries? Insights from Recent Field ExperimentsWorld Development, Vol.64A Review of Key Factors for Implementing Sustainable Public Private Partnership in the Brazilian Road SectorProcedia - Social and Behavioral Sciences, Vol.53The International Experience with Privatization: Its Rapid Rise, Partial Fall and Uncertain FutureSSRN Electronic JournalAid for Trade and the Liberalization of TradeSSRN Electronic JournalPublic Provision for Urban Water: Getting Prices and Governance RightGovernance, Vol.21, No.422 September 2008Privatization in Latin AmericaSSRN Electronic JournalSeeking Sustainability: Cities, Countryside, WildernessPopulation and Development Review, Vol.32, No.S120 January 2011Delegation of Contracting in the Private Provision of Public ServicesReview of Industrial Organization, Vol.29, No.1-217 October 2006Privatization: A Summary AssessmentSSRN Electronic JournalCorruption & Bureaucratic Structure in a Developing EconomySSRN Electronic JournalElectric Power Grid Interconnection in Northeast AsiaSSRN Electronic JournalPublic Infrastructure and Private Investment in the Middle East and North AfricaSSRN Electronic JournalMechanisms to Mitigate Regulatory Risk in Private Infrastructure Investment: A Survey of the LiteratureSSRN Electronic Journal View Published: April 2003ISBN: 978-0-8213-5512-1 Copyright & Permissions Related RegionsAfricaLatin America & CaribbeanRelated CountriesArgentinaBoliviaRelated TopicsInfrastructure Economics and FinancePrivate Sector Development KeywordsINFRASTRUCTUREPRIVATE PARTICIPATIONINVESTMENT FLOWSINFRASTRUCTURE SERVICESELECTRICITYLICENSESPRIVATE SECTORPRIVATE SECTOR PARTICIPATIONPROVISION OF INFRASTRUCTUREPUBLICPUBLIC FINANCEPUBLIC SECTORPUBLIC UTILITIESTRANSPARENCY PDF DownloadLoading ...

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