Uneven outcomes from private infrastructure finance: evidence from two case studies. Issue 7 (3rd October 2021)

• Record Type: Journal Article
• Authors: Bayliss, Kate; Romero, Maria Jose; Waeyenberge, Elisa Van
• Is Part Of: Development in practice. Volume 31:Issue 7(2021)
• Page Start: 934
• Page End: 945
• Publication Date: 2021-10-03
• Subjects: Development finance -- Sustainable Development Goals (SDGs) -- infrastructure -- Public Private Partnerships (PPPs); Technical assistance -- Developing countries -- Periodicals; Economic assistance -- Developing countries -- Periodicals; Developing countries -- Economic conditions -- Periodicals; 338.91091724
• DOI: 10.1080/09614524.2021.1938513
• Languages: English
• ISSNs: 0961-4524

Abstract

ABSTRACT: The Sustainable Development Goals have intensified calls for private finance to address a so-called financing gap. This paper provides a critical assessment of the promotion of private finance in infrastructure, assessing two public–private partnerships (PPPs), celebrated for their success in mobilising private funds: a road in Senegal and a hospital in Brazil. While these projects may have had some positive outcomes, their apparent success relies on extensive support from governments and donors. Our findings question the efficacy of private financing as a response to shortages of infrastructure funds. Rather than plugging the financing gap, private finance risks creating fiscal burdens.