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In Africa, the public sector is very often not able per se to deliver the resources needed to assure access to basic public goods and services. The African Development Bank (AfDB) has heavily invested in infrastructure to help overcome these long enduring bottlenecks, which have hampered economic growth in the continent. Given the AfDB’s ambitious objectives of contributing significantly to development and poverty reduction, and its continued thrust into infrastructure development through New Partnership for Africa’s Development, Africa50, and a range of collaborations to leverage resources for the continent, it is useful to consider the nature of the Bank’s involvement in Public–Private partnerships (PPPs) and identify lessons learned and recommendations for improvement. The methodology employs mixed methods, with desk reviews, staff consultations and analytical analysis of project data from 2006 to 2014 in 18 countries. Lessons and recommendations are drawn from the ‘Evaluation Results Database’, covering the period 2001–2012 from projects in 12 countries and six sectors. Overall, 64.4% of the PPP volume of the AfDB’s portfolio was allocated to lower middle-income countries, with low-income countries receiving about a quarter. The energy sector accounted for over 78% of the total PPP volume. A pragmatic account of what was done and learned from PPP implementation processes over a decade in the African continent is provided in this chapter, together with successes and failures from the AfDB’s experience, as the Bank itself and a range of other Multilateral Development Banks and donors continue to scale up infrastructure financing in Africa.

This article suggests that given the fulfilment of a number of preconditions Public–Private Partnerships (PPPs) may be attractive instruments for countries in Africa seeking to improve the quality and competitiveness of their services base, particularly the so-called infrastructure services. This article builds, in addition to a selective review of the vast literature on PPPs, on first-hand practical experience on the ground and a number of pilot projects. This methodological approach provides a non-exhaustive PPP mapping in Africa, which in turn leads to a discussion of some of the challenges and risks to PPPs in Africa. It also covers a discussion of the recent trends in the approach to improving the enabling environment upon which are based a few policy recommendations, respectively: establishing an institutional framework for PPPs; designing a realistic and efficient strategy for enabling environment improvement; and finally moving from national-level initiatives to intergovernmental initiatives. This article takes the position that a series of pitfalls and shortcomings, many of which are associated with the enabling institutional environment and the governance framework, need to be addressed if PPPs are to deliver their full potential in Africa. It is believed that the national and intergovernmental PPP initiatives could lend significant support to achieving the 2030 Agenda for Sustainable Development in Africa. In addition to the reviewing and discussing primarily the most recent literature on PPPs, the main value addition of our chapter brings to the literature is derived from the presentation of recent PPP cases, which draw directly from the authors own practical experience on the ground.

This chapter is a case study on Public–Private Partnerships (PPPs) in Colombia. The choice is justified by the significant progress of the country in this field and its ambitious plans to provide infrastructure and services through PPPs in the coming years. The infrastructure deficit and the evolution and current status of PPPs in Latin America frame the theme of the chapter. The case study itself explains the adoption of the PPP model in Colombia, describes the new legal and institutional framework and presents the most relevant PPP programmes and projects. The review carried out allows us to conclude that, despite the developments in recent years, PPP schemes continue to be very concentrated in the transport sector. For the effective development of the PPP model in the country, Colombia should extend such schemes to other fields, including the provision of social infrastructure and services. It should also improve some institutional aspects and project attractiveness to investors in order to increase the private capital required to finance PPP projects that currently are in the government portfolio. This chapter offers a general perspective on Colombian PPP, gathering and analyzing information for a better understanding of the current situation and the prospects for the future.

Partnerships with business involvement became a key trend in development cooperation since the late 1980s. Partnerships emerged as promising governance mechanism; however, governing partnerships in practice remained challenging – promise and reality seem to diverge. This chapter scrutinizes the tension between the promises of partnerships as governance arrangements and their actual governance challenges. It disentangles the complexity of governing partnerships by developing a framework based on a continuum between efficiency- and participation-orientation. This chapter identifies partnering approaches and their governance orientations based on an extensive review of literature in diverse academic fields and grey literature on the emergence and evolution of partnerships in development cooperation since the 1980s. Examples from the Dutch development cooperation provide illustrations for each partnership approach. Efficiency- and participation-orientation highlight competing governance rationales, logics and partnership characteristics. Partnership approaches that aim to embrace both perspectives have to deal with the inherent governance paradox between control and collaboration. This chapter identifies three key implications for research and practice: exploring new governance approaches and practices, adapting development agencies towards partnering and coordinating partnership approaches at international level. Understanding the tension between the promises of partnerships as governance arrangements and their actual governance challenges does not only contribute to more nuanced conceptualizations of partnering approaches for development but has also implications on how to govern partnerships for development in practice.

This chapter examines the potential of public–private partnerships (PPPs) to contribute to the achievement of rural transformation objectives in the agriculture sector of developing countries. The chapter draws on the findings from a recent publication by the United Nations Food and Agriculture Organization (FAO, 2016) that analysed 70 case studies of agri-PPP projects from 15 developing countries in Africa, Latin America and Asia. A typology of four common project types was identified: (i) partnerships that aim to develop agricultural value chains; (ii) partnerships for joint agricultural research, innovation and technology transfer (ITT); (iii) partnerships for building and upgrading market infrastructure; and (iv) partnerships for the delivery of business development services (BDS) to farmers and small enterprises. Findings suggest that while positive contributions to agricultural transformation objectives exist, there remain several outstanding issues associated with the impact of agri-PPPs on poverty reduction and inclusion which still need to be addressed. Weaknesses were also identified in the governance mechanisms that support these partnerships, with limited assessment of value-for-money versus opportunity cost when considering the public benefits delivered. Interest in and support of agri-PPPs is growing in many developing countries, however, there remain many unanswered questions about the practicalities of designing and implementing such projects. The findings from this study make a contribution towards closing this knowledge gap by documenting useful insights for policy-makers on the potential benefits and limitations of agri-PPPs and differences in approach when compared to traditional PPPs.

The purpose of this chapter is to analyse the procurement of public–private partnerships (PPPs) through unsolicited proposals (USPs). This chapter compares the policy framework and economic data of USPs in Brazil and Chile and provides some economic insights based on this analysis. In line with the existing literature, empirical evidence shows that non-proponents rarely win the tender for a project based on a USP. Differently from the existing literature, data analysis suggests that USPs may result on successful projects only in very specific conditions. USPs may work better in sectors where the government has developed higher in-house expertise to manage infrastructure projects. Also, USPs are more fit to projects that are clearly economically viable ex ante. However, even in these cases, USPs might generate a higher transaction cost to the government and less competitive tenders in comparison to solicited proposals. The analysis focuses on countries that have a very rich experience in USPs. Nonetheless, given the different legal and regulatory environments around the globe, it is difficult to provide a one-size fits-all USP policy. This chapter aims to provide some insights into how to manage a USP in order to improve the public policy framework of this procurement tool. This chapter contributes to the literature as it provides an economic analysis of the conditions in which the USP mechanism could result in a successful project.

The goal of this chapter is to respond to the theoretical inquiries by scholars who are interested in how the public–private partnership (PPP) models adapt to China’s context where political power dictates economic strategies. We also want to provide suggestions to policy designers who aim to promote a sustainable investment environment for domestic and international investors. We review the literature that explains the upside and downside of PPP projects in contemporary China. (1) We classify the trajectory of PPP evolution into four phases, i.e., emergence, growth, recession and revival. (2) We note that private companies take a disadvantageous position in the partnership compared with governments and state-owned enterprises because of a lack of specialized legislation, unequal competition between private companies and state-owned enterprises and the opposition from the civic society. (3) We identify political risks as the most influential risks. Political risks also lead to the misallocation of other risks between public and private parties that contributes to the high failure rate of China’s PPP projects. Based on these findings, we recommend governments to draft specialized legislation, stabilize the political environment and provide favourable subsidies to local governments to limit the risks involved in PPP projects. We also advise private enterprises and state-owned enterprises to focus on negotiating over task and risk division with governments when they make decisions to participate in PPP projects. This full review of studies on PPP development in China provides reliable recommendations to scholars, governments and enterprises.

This chapter seeks to examine the legal development of Public–Private Partnerships (PPPs) in Kosovo and to assess their role in economic development in Kosovo, as well as PPPs’ function to Kosovo in achieve the Copenhagen criteria to access the European Union (EU). This chapter analyses the theoretical arguments behind PPPs as a mean of narrowing the infrastructure-financing gap and assess the evolution of PPPs’ jurisdiction on Kosovo and EU’s position on PPPs. This chapter includes a detailed critical analysis of the present legal framework on PPPs in Kosovo and a case study of Pristina International Airport. This chapter concludes that PPPs could be the only alternative that Kosovo has, till date, to achieve economic growth. Indeed, it can help the country to be closer to European standards, when it cuts out corruption from these partnerships. This chapter contributes to the debate on the use of PPPs in Kosovo for the construction of major infrastructures, although they are still in a very embryonic process. This chapter presents a comprehensive analysis of the benefits and risks that PPPs could offer to Kosovo as a newly formed state, contributing to the academic debate on PPPs in Balkan countries and providing useful tools for policy-makers in the decision-making process, providing a clear description of new PPPs legislation in Kosovo.

To recognize and investigate the hypotheses that opportunistic behaviour of project participants in infrastructure public–private partnerships (PPPs) changes over the project’s life cycle. Case study methodology is adopted. The first Indian highway PPP project, awarded with negative grant, is used as the case context. Opportunistic behaviour is a continuous game played by the project stakeholders. Its manifestation depends on the vulnerability of the other party at that point in time in the project life cycle and the past display of opportunism. Because the study is limited to a highway project in an emerging economy, the findings may lack generalizability for which further research is recommended. PPP is increasingly popular. Stakeholders recognize that the existing ex-ante contractual arrangements that seek to mitigate opportunism are not enough for project success. This study addresses this difficulty by providing a closer understanding of how opportunistic behaviours evolve over projects’ life cycle and what steps are necessary to negotiate. Failure to address the antecedents of opportunistic behaviour in time leads to a competition to be more opportunistic, in which the common public gets short changed. This study is an attempt to advance understanding of stakeholders’ behaviour outside the ambit of contract. The extant literature is largely silent on the timing and vulnerability of opportunistic behaviour, viewing it as a static concept. The study demonstrates the changing nature of opportunism that manifests in different forms over the projects life cycle.