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The Private Sector

Public-Private Partnerships in Infrastructure

Discussions with potential private investors and operators in the infrastructure of the poorer developing countries suggests that major constraints to investment include:

  • an inappropriate enabling environment
  • the high up-front cost of project development
  • a shortage of long-term debt, both in hard and local currencies
  • high and uninsurable country risks
  • the need for subsidies if many projects targeted on the poor are to be financially viable at the outset.
  • the need to strengthen public capacity to negotiate and implement private infrastructure projects

In partnership with other like-minded donors, DFID has taken a lead in trying to tackle these issues through a series of international programmes of support.

More detailed information on these can be obtained in the DFID publication  Public private partnerships in infrastructurepdf(280 kb) and from the web-site addresses or e-mail contacts given in this document