Financing Sustainable Public- Private Partnerships

Public infrastructure deficits afflict both developed and developing countries, and are compelling governments to bring in private sector capital and management efficiency through arrangements known as public-private partnerships (PPPs).

While PPPs have the potential to deliver high-quality public goods and services they are not a panacea for tight government budgets, as private partners must ultimately be compensated from the public purse in the long term. This briefing looks towards the third pillar of sustainable development, namely economic sustainability, and non-exhaustively outlines the features that make PPPs financially sustainable both internally and within the wider economy. The companion briefing to this document, Public-Private Partnership Health Check: Managing partnerships during their lifetime, looks at the potential to enhance the economic, environmental and social sustainability of PPPs that are already operational.