Achieving Affordability in the Delivery of PPP-Based Services

Abstract

Public–private partnerships (PPPs) have been demonstrated to be an effective (although not universally successful) tool for the delivery of infrastructure and infrastructure-based services. For PPPs to achieve optimum results, the service outputs should be inclusive, i.e., they should be available to as wide a spectrum of society as possible, regardless of income level, gender or ethnic background. In developing countries, many PPPs are reliant upon user fees to create the revenue streams that enable private parties to provide such basic services as power, water, wastewater and transport. When these user fees act as barriers to service access (i.e., they are unaffordable to potential recipients of the service), what are the policy and contractual options which may make the services more universally accessible? This chapter examines three PPP projects from different sectors which have utilized creative mechanisms to enhance affordability and expand the user base: the Pamir Power project in eastern Tajikistan; the urban water PPP in Dakar, Senegal and the East Coast Toll Road in Tamil Nadu, India. Based upon these examples, the chapter will draw conclusions on how this experience can be more broadly applied and made a part of the PPP planning process in developing countries to achieve more affordable and sustainable growth.

Citation

Smith, A.L. (2017), "Achieving Affordability in the Delivery of PPP-Based Services", Leitão, J., de Morais Sarmento, E. and Aleluia, J. (Ed.) The Emerald Handbook of Public–Private Partnerships in Developing and Emerging Economies, Emerald Publishing Limited, Leeds, pp. 363-384. https://doi.org/10.1108/978-1-78714-493-420171013