Countries are increasingly focused on closing infrastructure gaps in energy, transport, water, and telecommunications, essential for enhancing productivity, reducing costs, and improving access to services and resilience to natural hazards. Given current fiscal and capacity constraints, attracting and sustaining private investment is essential, but there are also limits to what private participation can achieve and it is important to determine when and how private engagement can be a better choice to alternative public infrastructure delivery and operation governance models. Notably, not all infrastructure undertakings are prone to private investment but there are certain conditions, for example, market characteristics, that would make PPPs more likely to deliver value-for-money. Furthermore, the challenges faced in the Latin American countries, such as uncertainty at the bidding stage and credible commitment to contracts, differ from those across OECD countries. Taking advantage of the ongoing process to review the OECD Recommendation on Principles for Public Governance of Public-Private Partnerships, this session will examine the critical governance conditions to consider in determining the convenience of delivery models involving private participation, particularly PPP, and how to increase the capacities of infrastructure buyers to manage private participation in infrastructure solutions, while also reflecting on lessons learned from past PPP and concession experiences in the region.
.png)
