Another key feature of a more advanced PPP environment is the application of the concept to multiple infrastructure sectors. Countries that have reached the second and third stages of maturity typically employ partnerships in more than one or two infrastructure areas. These partnerships exist across both economic infrastructure (multi-user facilities and services that are direct inputs in the chain of production, including water, waste and transport facilities) and social infrastructure (large-scale multi-user services and facilities that are not direct inputs in the chain of economic production, including health care, education, and public housing).
Governments that have multiple, successful partnerships recognize that each sector carries with it different challenges across each phase of the PPP life cycle. PPP policies, approaches, and political strategies therefore must be tailored to the unique characteristics of each individual sector. Take education, for example. Fluctuating (or declining) birthrates could make a new school obsolete in 15 to 20 years, creating considerable some certainty about the efficacy of funding school construction.
Advanced governments also recognize that some sectors may not be appropriate for PPPs in their countries or in certain situations. For example, the United Kingdom has learned that large information technology (IT) and telecommunications projects are not especially suited for PPPs - particularly highly innovative and risky IT initiatives.
This section describes some of the principal PPP infrastructure sector opportunities, outlines the challenges particular to each sector, and then provides guidance on how the framework presented in the previous section can help governments better execute partnerships in the individual sectors (see table 1).