While public budgets are extremely tight failing to invest could jeopardise future tax revenues, as investment in infrastructure in both developed and emerging markets underpins national economies and has the potential to stimulate economic growth. Consequently, governments are looking to find other ways of financing infrastructure. An approach that has attracted much attention in recent years is for public authorities to come together with a private sector party as a public private partnership (PPP). There is no universal definition of a PPP. Often it refers to an arrangement that expands beyond financing and also leverages private sector resources, expertise and management practices. The private sector party takes the responsibility for building new infrastructure, including relevant risks. In some cases, the private sector party also manages the operation and maintenance of the asset over the long term. The private sector party is expected to arrange the necessary financing, while the public sector will pay for the availability and operation of the asset. The PPP approach has been applied to a wide range of infrastructure including roads, airports and light rail.
On PPPs our work for the public and private sector includes: