To provide policymakers in the Caribbean with a governance framework for improving infrastructure through Public-Private Partnerships (PPPs), while limiting their fiscal costs and risks for the government. And to showcase Canada support to FAD technical assistance in the region and FAD collaboration with CARTAC and the Caribbean Development Bank
This report presents the Caribbean Infrastructure PPP Roadmap by describing why and how PPPs can add value through the lessons learned from 11 countries. It reviews emerging PPP opportunities based on experience within the region to identify possible constraints and sets out concrete actions that Caribbean governments can take—individually, and collectively—to build successful PPP projects and programs.
This FAL Bulletin is part of the reflections on infrastructure and connectivity that have been frequently addressed in documents of the Economic Commission for Latin America and the Caribbean (ECLAC). It contributes to the reflections under the project “Transport and Trade Connectivity in the Age of Pandemics: Contactless, Seamless and Collaborative UN Solutions”. This edition analyzes the possibility of implementing a ferry network in the Eastern Caribbean region through Public Private Partnerships (PPP's) to promote better and more fluid connectivity.This document was prepared by Diogo Aita, Associate Economic Affairs Officer of the Infrastructure Services Unit in the International Trade and Integration Division of ECLAC, based on the Project Document “Evaluación preliminar técnica, económica e institucional para la implementación de un servicio de ferris en el Caribe Oriental”, prepared by Eduardo Lugo, Alberto Undurraga, Ricardo J. Sánchez, and Jorge A. Lupano. This original study was developed within the framework of a technical assistance provided to the Association of Caribbean States (AEC-ACS).
To provide policymakers in the Caribbean with a governance framework for improving infrastructure through Public-Private Partnerships (PPPs), while limiting their fiscal costs and risks for the government. And to showcase Canada support to FAD technical assistance in the region and FAD collaboration with CARTAC and the Caribbean Development Bank
Investment in infrastructure is, admittedly, one of the main forms of economic development. Traditionally, the Public Administration implements infrastructure projects committing taxpayers’ money to finance them. For the past decades, demand for infrastructure has been growing steadily, but public funds for current and future needs are limited and the public finances of many governments have increasingly reached a point where long-term borrowing is not a ready option. In a recent study, GI Hub estimated the cumulative ‘global infrastructure need’ from 2015 to 2040, and the ‘investment gap’ for the period. US$ 94 trillion would be needed in investment and the gap is US$ 15 trillion . This has led the government to accept the growing importance of the private sector participation in the financing and management of infrastructure projects, so it began seeking alternative methods of procurement. One method whose applicability is increasing is the use of public-private partnerships (PPPs) to finance and/or manage infrastructure projects. In this regard, well-prepared infrastructure projects can generate high social rate of returns and improves well-being, whereas inadequate infrastructure represents a barrier to growth and improved quality of life and can lead to unsustainable financial burdens for the government, especially in developing countries. Although not all infrastructure is suitable to follow the PPP route, those policy-makers that choose to shift from public infrastructure financing to private partner have to consider the nature and motivations of long-term investors and the generation of value for money as well, that is, to align the interests of both the public and private sectors. With the participation of a private partner in well-prepared investment projects, there may be larger investments and the population’s life quality improvement. Also, PPPs are a way to introduce private sector technology and innovation into providing better public services through innovative planning and design’ and ‘efficient project management. Building and maintaining infrastructure are essential for economic expansion and social development, if delivered efficiently and effectively, it can translate into economic growth. However, the world is not spending enough on infrastructure to catch up with technological changes, urbanization and shifting demographics. The Inter-American Bank (IDB) and the Global Infrastructure Hub (GIH) decided to analyze and carry out a research on the legal framework for PPPs in Latin America and the Caribbean Region to establish guidelines on PPP law leading practices.
The Economic Development Institute (EDI), in cooperation with the United Nations Development Programme (UNDP) and the Inter-American Foundation, launched the Partnerships for Poverty Reduction program in six countries in Latin America and the Caribbeanas part of the Bank's Mission "to fight poverty with passion and professionalism for lasting results." The program sought to promote the adoption of an approach to poverty reduction that relies on partnerships among local, regional, and central governments, other public sector agencies, nongovernmental organizations, private sector companies and other civic organizations. This publication is a result of these collaborative efforts. It contains a powerful message about partnerships with the state, civil society and business: these partnerships have the potential of becoming the basis of an approach to poverty reduction that replaces old and failed paradigms in the region.
One of the structural problems that hinders fuller development in Latin America is a lack of infrastructure investment. Since the 1980s, when investment in economic infrastructure ceased to be almost entirely public, the private sector has played an important role, at times accounting for about half of the total. Such investments mainly take the form of concession contracts or other forms of public-private partnerships (PPPs).Traditional PPP initiatives for the provision and financing of infrastructure services have had varying success, resulting in contrasting perceptions of their performance and the services they have provided. Given how important PPPs have increasingly become, it is important that the various problems are solved in a way that enables them to make a more effective contribution to development. This article analyses the “people-first” approach when considering the future of PPPs in Latin America and the Caribbean, which can can be done by placing them under the umbrella of the Sustainable Development Goals (SDGs).
