Within emerging markets, the link between economic and social and "hard", and "soft", infrastructure are even more pronounced and intertwined. This is frequently the arena of NGOs (non-governmental organizations), which are also quasi-PPPs.
The World Bank and the United Nations[xxxv] both have centers for public-private partnerships. One program highlighted by the United Nations is the India Solar Loan Programme to support finance of solar home systems in India.
PPPs in emerging markets have potential commercial and social rewards and are generally concentrated in the transportation, energy, and defense sectors.[xxxvi] Some benefits include:
• Financing not reliant on public debt
• Technology transfer
• Formation/reforming of public sector to accommodate PPP model
• "Cherry", picking projects to maximize competition and market-based strengths.
However, working with the public sector in undeveloped countries can have additional risks[xxxvii] such as:
• Availability of cost-effective financing
• Limited financial flexibility of the public sector
• More complex and time-consuming transaction costs (primarily in the initial stages)
• Absence of reliable commercial and legal framework.