This chapter analyzes and compares the public-private partnership (PPP) systems in the Republic of Korea, the Philippines, and Indonesia to identify the requirements for making this modality an effective catalyst for infrastructure's contribution to sustainable development. The Economist Intelligence Unit's 2014 Infrascope, in its assessment of the environment for PPPs in Asia and the Pacific, classified the Republic of Korea and the Philippines as developed markets in terms of their PPP readiness and Indonesia as an emerging PPP market (EIU 2015). All three countries recognize the vital role of the private sector to provide infrastructure investments to help meet their financing needs, and to use the increased capacity of the private sector and its transactional experience in handling these partnerships to develop their PPP markets. All three governments have also undertaken reforms to strengthen their institutional frameworks for these partnerships and improve risk-sharing mechanisms to increase the use of PPPs to provide infrastructure services.
This chapter also examines the legal and institutional frameworks, implementation processes for solicited and unsolicited project proposals, the types of government support for infrastructure PPPs, and the main agencies and supporting organizations working on these partnerships in the three countries. A comparative analysis draws lessons for other countries in developing Asia seeking to improve the efficiency and effectiveness of their PPPs. The comparative analysis underscores how strong institutions, unified procurement frameworks, and effective dispute resolution mechanisms can improve the implementation of infrastructure PPPs. Appendix A12.1 summarizes the institutional and financial aspects of PPPs in the three countries, their treatment of land and buildings for these partnerships, project selection processes, and main infrastructure types eligible for PPPs.