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SOPHISTICATION AND PUBLIC-PRIVATE PARTNERSHIPS.

HOW DOES PPP ACTIVITY COMPARE TO LEVEL OF INSTITUTIONAL SOPHISTICATION ?

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PPPs are being used to deliver transportation-based infrastructure all around the world. Currently, Britain is the world leader in transportation PPPs accounting for highest amount of project activity. Britain also has the most sophisticated institutional, regulatory and business structures in place to support the PPP model. This is not to say that other countries are far behind however.  Many other countries (from a variety of continents) including Australia, Spain, South Korea, Canada and China are delivering an ever increasing number of projects, while also making the structural developments necessary to support the PPP model.

 

HOW DOES PPP ACTIVITY COMPARE TO LEVEL OF INSTITUTIONAL SOPHISTICATION ?

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From the previous graphic, it is clear that several countries from a variety of continents are using PPPs to deliver transportation projects. When distinguishing these countries based on country well-being instead of continent, a few more patterns appear. It seems that developed countries although varying in activity level often have more sophisticated institutional, regulatory and business structures to support the PPP model than developing countries such as Russia, Columbia and Brazil. Less developed institutional structure however, has not prevented some of these developing countries from being highly active in this market.

 

HOW DOES PPP ACTIVITY COMPARE TO POPULATION INCOME IN DEVELOPING COUNTRIES?

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A notable emerging trend in transportation-infrastructure PPPs is the growing amount of projects that are being carried out in these emerging economies.  Amongst developing countries there is unevenness in the countries where investment is being made however.  Lower middle and upper middle income countries as classified by the World Bank have attracted the most investment in the first decade of the 21st century. In comparison, the world’s poorest countries, (predominantly located in sub-Saharan Africa and South Asia), continue to attract very little private investment in PPP infrastructure projects.

 

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