PPPs have been used in a wide range of sectors, to provide many different kinds of assets and services. As noted in the introduction to this Reference Guide, there are two primary defining characteristics of the sectors and services for which PPPs are used: first, that the project constitutes or contributes to provision of public assets and services, and second, the project involves long-life assets concomitant with the term of the PPP contract.
In practice the definition of 'public services' may vary from country to country, and over time. The material presented in this Reference Guide is neutral to this definition; considering as 'public services' any service that the relevant government considers its responsibility to provide or ensure is provided. The focus on long-term assets reflects the long-term nature of a PPP contract. For the most part this means PPPs deal with fixed assets; but may also include related long-life assets that are somewhat purpose or site-specific, such as train rolling stock. Table 1.2: PPPs by Sector-Examples and Resources below provides just a few examples, and overview resources, to give readers an idea of the range of worldwide experience with PPPs.
Some countries choose to focus their use of PPPs to certain sectors within this broad definition, as described in Section 2.1 PPP Policy. This can reflect priorities for investment or for improvement in service performance, or prioritize sectors in which PPPs are expected to be most successful.
Conversely, some countries also define certain sectors, or services within sectors, for which PPPs will not be used. These are sometimes called 'core' services-that is, services that should be provided exclusively by the government, and so should not be delegated to the private sector through a PPP. In practice, definitions of 'core' services vary depending on local preferences and perceptions. For example, in the healthcare sector in the United Kingdom, PPPs have been used to construct hospitals and provide ancillary services, but the 'core' medical services remain publicly-run [#178]. On the other hand, the pioneering PPP hospital project in Lesotho included the provision by the private operator of the full range of health services [#155].
Useful resources providing cross-sector overviews of PPP experience in developing countries include:
• Farquharson et al's book on PPPs in emerging markets [#95] includes case studies of PPPs for a new hospital in Mexico, an upgraded hospital in South Africa, a water concession in the Philippines, a water and electricity services concession in Gabon, a new metro line in Sao Paulo, Brazil, an airport expansion in Jordan, and a review of the PPP program in national highways in India
• Yong's [#296, pages 87-104] chapter on recent PPP experience in Commonwealth developing countries includes case studies of 11 PPP projects, in the water, transport, power, and health sectors in Africa, Asia, and the Caribbean
• A paper by Farlam on PPP experience in Africa [#93] presents and draws lessons from eight PPPs in the transport, prisons, telecommunications, water, power, and tourism sectors
• The World Bank's review of lessons learned from Output-Based Aid projects [#187] reviews experience with private participation in infrastructure-including PPP projects-supported by output-based aid, in the communications, roads, energy, water, health, and education sectors
• Asian Development Bank's scoping study on irrigation and drainage [#9] identifies the areas where private sector participation can be envisaged in consonance with India's policy framework
• The International Finance Corporation (IFC)'s Handshake series [#155] comprises quarterly publications, each focusing on the use of PPPs in a different sector or context
• The PPIAF website [#209] includes further reviews of PPP experience in several developing countries. For more information on how PPPs have been used in developed markets, see the European Investment Bank's European PPP reports [#80], which provide a detailed review of country experience and list of PPP projects throughout the region.
Table 1.2: PPPs by Sector-Examples and Resources
Sector | Project Types | Overview Sources |
Transport | Roads, tunnels, and bridges Rail Mass transit systems Ports Airports | The USDOT Case Studies of Transportation PPPs reviews international PPP experience with PPPs in transport, including case studies on bridges and highways from the United Kingdom, Europe, Australia, China, India, Israel, and Argentina [#265] Menzies and Mandri-Perrott's publication on private sector participation in light rail [#183, Annex 1] includes detailed case studies of PPPs for 12 light rail systems in the United Kingdom, Malaysia, the Philippines, Thailand, Canada, and South Africa |
Water and waste | Bulk water treatment Water distribution and sewerage systems Solid waste management services | Marin [#180]reviews in detail experience with PPPs for urban water utilities in developing countries, drawing from over 65 PPPs |
Power | Generation assets Distribution systems | Eberhard and Gratwick [#65] describes the experience with Independent Power Producers (IPP) in Sub-Saharan Africa |
Social and Government infrastructure | Education-school facilities and services Health-hospitals and other health facilities and services Prisons Urban regeneration and social housing projects | A Deloitte report on how PPPs can help "close the infrastructure gap" [#68, pages 19-28] provides a helpful overview of PPP experience in a wide range of sectors, particularly social infrastructure. IFC's Handshake [#155] publication presents examples and cases on healthcare and other economic and social infrastructure PPPs LaRocque's paper on contracting for the delivery of education services [#174] includes examples of PPPs in the education sector. A Business News Americas report on social infrastructure concessions [#41] describes recent experience in Latin America with PPPs across social sectors |
Key References: How PPPs are Used | |
Reference | Description |
Farquharson, Torres de Mästle, and Yescombe, with Encinas (2011) How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets, World Bank/PPIAF | Chapter 2 "Defining Public-Private Partnerships" focuses on how PPPs differ from privatization and management contracts; and describes user-fee and availability-based PPPs. Several case studies throughout the book provide examples of PPPs in developing countries |
Yong, H. K. (ed.) (2010) Public-Private Partnerships Policy and Practice: A Reference Guide, London, UK: Commonwealth Secretariat | Section 7 reviews recent PPP experience in Commonwealth developing countries. Annex 5 presents case studies of 11 PPP projects in the water, transport, power, and health sectors in Africa, Asia and the Caribbean |
Farlam, P. (2005) Working Together: Assessing Public-Private Partnerships in Africa (Nepad Policy Focus Report No. 2), Johannesburg, South African Institute of International Affairs | Reviews PPP experience in Africa, with detailed case studies of eight projects in the transport, prisons, telecommunications, water, power, and tourism sectors |
Mumssen, Y., L. Johannes & G. Kumar (2010) Output-Based Aid: Lessons Learned and Best Practices, World Bank | Reviews experience with private participation in infrastructure projects supported by output-based aid, in the communications, roads, energy, water, health, and education sectors |
DLA Piper (ed.) (2009) European PPP Report 2009 | Provides an overview of the status and direction of PPP in Europe, detailed reviews by country, and a list of projects in the pipeline and implementation in the report year |
United States Department of Transportation (Federal Highway Administration) (2007) Case Studies of Transportation PPPs around the World (Final Report Work Order 05-002) Washington, DC | Reviews international PPP experience with PPPs in transport, including case studies on bridges and highways from the United Kingdom, Europe, Australia, China, India, Israel, and Argentina |
Menzies, Iain & Cledan Mandri-Perrott (2010) 'Private Sector Participation in Urban Rail', Gridlines, 54, World Bank/PPIAF | Annex 1 provides case studies of light rail PPP projects from the United Kingdom, Malaysia, the Philippines, Thailand, Canada, and South Africa |
Marin, P. (2009) Public-Private Partnerships for Urban Water Utilities: A Review of Experiences in Developing Countries (Trends and Policy Options No. 8), World Bank | Reviews the experience of 65 PPPs in the water sector in developing countries, finding consistent improvements in efficiency and service quality |
Anton Eberhard & Katharine Nawal Gratwick (2010) IPPs in Sub-Saharan Africa: Determinants of Success, Update of paper published in Development Policy Review 2008 | Reviews experiences of Independent Power Producers (IPP) in Sub-Saharan Africa, including a comprehensive list and details of all IPP projects in the region |
Eggers, W. D. & T. Startup (2006) Closing the Infrastructure Gap: The Role of Public-Private Partnerships, New York: Deloitte | Page 5 provides a succinct description of different PPP contract types. The report also briefly reviews international PPP experience in transport, water and waste, education, housing, hospitals, defense, and prisons |
International Finance Corporation, IFC's Quarterly Journal on PPPs, thematic issues, for instance: Healthcare | The issue on Healthcare examines international experience in healthcare PPPs, particularly in developing countries, and draws lessons for how successes can be replicated. Features the Lesotho Hospital PPP, and also reviews experience in Ghana, India, and Mexico |
LaRoque, N. (2006) Contracting for the Delivery of Education Services: A Typology and International Examples, Fraser Forum, September, 6-8 | Describes the different ways in which the private sector is engaged in education, including through PPPs. Pages 20-24 focus on international PPP experience in schools |
Business News Americas (2011) Social Infrastructure: The New Frontier for Concessions, Infrastructure Intelligence Series | Describes recent experience with PPP in social infrastructure sectors in Chile, Mexico, Peru, and Brazil |