Use of PPPs Globally
The PPP model has been used in the United Kingdom since the early 1990s15, through the use of Private Finance Initiatives for the procurement of public infrastructure. Since 1992, over 630 PFI projects delivering infrastructure investment of over £63 billion have been signed in the United Kingdom16. The model was seen as a way of overcoming a substantial reduction in public investment in infrastructure projects (relative to GDP) that had caused a backlog of maintenance and repairs, which was hindering the public sector’s ability to deliver high quality services to tax payers17.
In the United Kingdom, a significant proportion of PPPs have been for core Social Infrastructure projects in the Health (21%), Education (13%) and Defence (15%) sectors18.
In Australia, PPPs have increasingly been used to deliver Social Infrastructure Assets. Between 1980 and 2006, over 120 PPP projects delivering infrastructure investment of over A$35 billion have been undertaken in Australia19, including road, rail, water, energy, defence, health, education and prison developments. The model has been used in virtually all levels of Australian Federal Government and all States and Territories and for assets such as the NSW Royal North Shore Hospital, the Melbourne Convention Centre and Victoria’s new desalination plant.
Many other countries have followed the United Kingdom’s lead and are at various stages of the development curve with respect to the use of PPPs. Spain, France, the United States, and Canada are becoming increasingly sophisticated and experienced users of the PPP model.
15 PFI, “Strengthening Long-term Partnerships”, p.12
16 PPP Forum, available at http://www.pppforum.com
17 PFI, “Strengthening Long-term Partnerships”, p.14
18 PPP Forum, available at http://www.pppforum.com/index.asp
19 Irwin, T. and Mokdad, T., “Managing contingent liabilities in public-private partnerships: Practice in Australia, Chile, and South Africa”, Report for the World Bank, 30 June 2009, available at http://www.infrastructureaustralia.gov.au/fi les/Managing_contingent_liabilities_in_PPPs_in_Australia_Chile_and_South_Africa_30_June_2009.pdf