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Subnational Public-Private Partnerships

Meeting Infrastructure Challenges

image of Subnational Public-Private Partnerships

This report focuses on the challenges of governing infrastructure investment and public-private partnerships (PPPs) at the subnational level. Subnational governments – cities and regions – play a vital role in the infrastructure landscape. Infrastructure needs in energy, transport, water and telecommunications are substantial, estimated at USD 6.3 trillion per year between 2016 and 2030. In a tight fiscal environment, it is critical to diversify sources of financing for infrastructure investment and PPPs represent an alternative to traditional government procurement with the potential to improve value for money. However, PPPs are complex and sometimes risky arrangements that require capacity that is not always readily available in government, in particular at the subnational level. This report examines the challenges of using PPPs at the subnational level and ways to address them. It does so by focusing on three case studies: subnational PPPs in France, local Private Finance Initiative (PFI) projects in the United Kingdom, and PPPs in Virginia (United States).

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Public-private partnerships for infrastructure at the subnational level of government: Opportunities and challenges in France

This chapter presents a case study of public-private partnerships (PPPs) for infrastructure development in France. The first part of this chapter presents briefly the context for PPPs in France. In the second part, the challenges associated with the development of subnational PPPs are explored by looking at the cases of the city of Caen and Paris. The last section highlights the main findings, challenges and recommendations for foming forward. In particular, it suggests the creation of a a national observatory in charge of collecting data, informing and training local public authorities not only for PPPs, but more broadly for public-private complex infrastructure contracts.

English

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