Public-private partnerships in developing countries: Factors for successful adoption and implementation

Mounting fiscal constraints and increasing complexity of public services have led governments to search for alternative service delivery mechanisms. The public–private partnership (PPP) is one type of service arrangement in which the public and private sectors enter into a long-term cooperative relationship for the purpose of delivering a public good or service. Despite increasing private sector participation in developing nations, there is a need for more systematic assessment of PPPs in such countries. The purpose of this paper is to explore the factors that affect the adoption and implementation of projects in the context of developing countries.

A multiple case holistic design is employed to analyze 19 select projects across several developing countries to identify and pool clusters of variables that facilitate or impede PPPs.

The results indicate five broad categories of political, economic, legislative, financial and management requisites.

A limitation of this research is that the cases were not selected at random. However, the projects are spread across several areas such as public health, public utilities, public works, transportation and water/wastewater infrastructure in different countries. This allows the authors to examine how the common factors apply across different contextual settings.

This paper seeks to contribute to the literature by examining several developing countries to identify and pool clusters of variables that facilitate or impede the effective implementation of PPP projects in the context of such regions.