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Rationales and Advantages of Financing Infrastructure Through Public – Private Partnerships : A Systematic Literature Review

Affiliations

  • Lecturer, Jindal Global Business School, O. P. Jindal Global University, Sonipat - 131 001, Haryana, India
  • Principal, Shri Ram College of Commerce, University of Delhi, Maurice Nagar, Delhi - 110 007., India

Abstract


The procurement of infrastructure is a significant concern for developed and developing countries alike. To address the challenges of infrastructure provision, several countries are exploring the possibility of procuring infrastructure through public–private partnerships (PPPs). Against this background, the current study had a primary research objective of identifying the rationale and factors that support the implementation of PPPs as a means to build infrastructure. Further, the study also aimed to discuss the benefits associated with the PPP modality of procuring infrastructure. For this purpose, the present study relied on a comprehensive review of existing studies using systematic literature review method. Based on qualitative analysis of articles published during 2006 – 2020 using Quirkos software, the following four key rationales supporting the implementation of PPPs were identified: low quality of existing infrastructure, widening infrastructure deficits, market and non-market failures, and budgetary constraints of the governments. Further, the results highlighted that PPPs provide several benefits, including access to financial resources and expertise of the private sector, better risk allocation, efficiency gains, enhancement or value for money, cost-effectiveness, reliability, and timely infrastructure development.

Keywords

Public – Private Partnerships (PPPs), Rationales, India, Budgetary Deficits.

JEL Classification Codes : E60, H54, O18, O22.

Paper Submission Date : April 18, 2021 ; Paper Sent Back for Revision : September 30, 2021 ; Paper Acceptance Date : October 5, 2021 ; Paper Published Online : October 15, 2021.


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