Factors Affecting PPP Projects Outcomes

The benefits of PPPs are many. Realizing them requires good planning, execution, and monitoring. Well-structured PPP projects can deliver dividends over the long term, but these do not materialize by themselves-they have to be drawn out. And even well-structured PPP projects can fail or require expensive restructuring because of unforeseen events or the opportunistic behavior of the contracting parties. Few PPP projects will succeed if they ignore the project, macroeconomic, political, and institutional factors that can affect the project outcomes shown in Figure 3.4. These are not independent of each other, and their influence on outcomes is closely interrelated. The figure shows the causal relationship of these factors, which can affect one or all project partners, and a project's overall progress.

Figure 3.4: Factors Affecting PPP Project Outcomes

MDB = multilateral development bank, PPP = public-private partnership.

Source: Authors.