Transferring responsibility to the private sector for mobilizing finance for infrastructure investment is one of the major differences between PPPs and conventional procurement. Where this is the case, the private party to the PPP is therefore responsible for identifying investors and developing the finance structure for the project. However, it is important for public sector practitioners to understand private financing structures for infrastructure and also to consider the potential implications for government. This section:
• Provides a brief introduction to how private finance of PPP projects can be structured (Section 1.4.1).
• Highlights points that governments need to bear in mind when procuring a privately-financed PPP-that is, ways in which the government might need to enable or control how the private party raises finance, to help ensure the project is implemented successfully (Section 1.4.2).
• Describes different roles for public finance in PPPs-that is, why and how governments may be directly involved in the financing of PPPs (Section 1.4.3).
The chapter on PPP Financing in Farquharson et al's book on PPPs in emerging markets [#95, Chapter 5], provides a helpful overview of some of the topics covered in this section. Public-Private Partnerships: Principles of Policy and Finance by E. R. Yescombe [#295], and Private Sector Investment in Infrastructure: Project Finance, PPP Projects, and Risk by Jeffrey Delmon [#58] are more comprehensive resources that cover a wide range of topics on PPP financing. The relevant sections of these books, as well as links to additional resources, are provided throughout the section for more information on specific points.