PPP Program Objectives

Governments pursue PPP programs for different reasons. Some countries begin using PPPs to resolve a crisis or remove bottlenecks in a particular sector. For example, PPPs were first used in South Africa in the roads sector to build more highways. In the Philippines, many of the first PPPs were in the power sector, where the state-owned power company contracted with independent power producers to solve a power crisis. In both cases, the use of PPPs subsequently extended into other sectors.

Most governments define broad PPP program objectives when formulating and documenting their PPP policies. The choice and relative priority of these objectives cascade from the government's other policies and priorities. They can include:

• Enabling more investment in infrastructure, by accessing private finance
• Encouraging a whole-life-cost approach to infrastructure
• Putting a greater focus on the quality of service to the end-user
• Accessing additional management capacity through private operation of infrastructure
• Achieving value for money in the provision of infrastructure and public services
• Improving accountability in the provision of infrastructure and public services
• Harnessing private sector innovation and efficiency
• Stimulating growth and development in the country

Example PPP Program Objectives provides examples of PPP program objectives in countries' PPP policy statement or law.

Example PPP Program Objectives