Variable profits between economic and social infrastructure

The difference in the annual rate of return between economic and social infrastructure projects is marginal, 37.0% compared to 38.6% respectively, although the social infrastructure sample was three times larger than the economic sample - Table 16. Transactions that included a mix of economic and social projects were excluded, as were criminal justice projects. The analysis does reveal that specifically economic and social project transactions have a higher than average annual rate of return compared to the 29% average for all transactions.

Table 16: Profit differential between economic and social infrastructure

Economic

Transport, utilities, communications and renewable energy

No of projects in transactions

Average rate of return (%)

Social

Education, health, leisure

No of projects in transactions

Average rate of return (%)

Transactions with profits data directly attributed to project

25

37.0

Transactions with profits data directly attributed to project

83

38.6

Source: European Services Strategy Unit PPP Equity Database 2012