Ensuring effective governance of Public-Private Partnerships

Ana Maria Ruiz Rivadeneira, Ludger Schuknecht

Article ID: 1148
Vol 3, Issue 2, 2019

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Public-Private Partnerships (PPPs) can be an effective way of delivering infrastructure. However, achieving value for money can be difficult if government agencies are not equipped to manage them effectively. Experience from OECD countries shows that the availability of finance is not the main obstacle in delivering infrastructure. Governance—effective decision-making—is the most influential aspect on the quality of an investment, including PPP investments. In 2012, the OECD together with its member countries developed principles to ensure that PPPs deliver value for money transparently and prudently, supported by the right institutional capacities and processes to harness the upside of PPPs without jeopardizing fiscal sustainability. Survey results from OECD countries show that some dimensions of the recommended practices are well applied and past and ongoing reforms show progress. However, other principles have not been well implemented, reflecting the continuing need for improving public governance of PPPs across countries.


Public-Private Partnerships; infrastructure governance; institutional framework; consultation; value for money; fiscal risks

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DOI: https://doi.org/10.24294/jipd.v3i2.1148


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