Public Private Partnership Infrastructure Research Articles

Analysis of the Social Capital Financial Characteristics of Public–Private–Partnership Projects in Coastal Areas

Qin, Y. and Guo, X., 2020. Analysis of the social capital financial characteristics of public–private–partnership projects in coastal areas. In: Li, L. and Huang, X. (eds.), Sustainable Development in Coastal Regions: A Perspective of Environment, Economy, and Technology. Journal of Coastal Research, Special Issue No. 112, pp. 252-256. Coconut Creek (Florida), ISSN 0749-0208.This article takes the listed companies that have participated or are participating in coastal infrastructure Public–Private–Partnership projects as the research object, finds matching companies for them through the propensity score matching method, and quantitatively analyzes which financial characteristics of the social capital side affect the participation of coastal infrastructure Public–Private–Partnership projects from the micro level degree. The conclusion is that the two characteristics of corporate solvency and the nature of equity have had a significant negative impact on its participation in coastal infrastructure Public–Private–Partnership projects, and the impact of solvency is particularly important. When the empirical sample size is expanded, the asset management capability index is an influencing factor for companies participating in PPP projects one.

The challenges of access to local finance for PPP infrastructure project delivery in Nigeria

PurposeThis study explores the challenges of access to finance from local financial institutions (LFIs), i.e. local banks, for public–private partnership (PPP) infrastructure project delivery in Nigeria. The aim is to provide useful insights that could inform policy solutions to ease the local funding of PPP infrastructure projects in Nigeria and, by extension, other developing economies.Design/methodology/approachAdopting a qualitative research methodology, the study engaged PPP stakeholders involved in securing funds for PPP infrastructure projects in Nigeria. A total of 15 PPP stakeholders, drawn from the public and private sectors, were purposively selected and their views on the research problem obtained through recorded telephone interviews. The opinions of the research participants were subsequently analyzed and the results discussed with the outcome of the examination of relevant literature.FindingsThe study found that the significant factors affecting access to local finance for PPP infrastructure projects in Nigeria include low capital base by LFIs, weak project viability, lack of capacity to manage PPP-related activities, inconsistent government policy, poor legal framework and public perception of PPP.Research limitations/implicationsInsights from this study are useful for PPP stakeholders in mitigating the barriers that influence access to local finance for PPP infrastructure projects in Nigeria and other developing economies. This study is also useful in enhancing the current policy structure in developing countries as a way of revamping the existing infrastructure framework through LFIs.Originality/valueThis study provides clarity on the peculiar challenges impeding access to finance from LFIs for PPP infrastructure projects in Nigeria and will be useful for debt providers and policymakers in evaluating the bankability of PPP infrastructure projects in Nigeria and other developing countries.

Матрица этапов и процессных инструментов в рамках организационно-управленческого механизма обеспечения услугами в системе долговременного ухода за пожилыми гражданами на основе государственно- частного партнерства

the article describes a matrix of stages and process tools developed on the basis of algorithms of legal, organizational, technical and financial processes, consisting of a set of stages, processes and tools necessary for the implementation of an infrastructure PPP project in the field of social services, the strict implementation of which will lead to the effective functioning of the organizational and managerial mechanism for providing services in the framework of long-term care for elderly citizens on the basis of publicprivate partnership (PPP), reflecting the interaction between public and private parties within the framework of a concession agreement for the object of social or medical infrastructure with the participation of public, insurance and credit institutions.

Production and Securitization of Foregin Infrastucture by “Team Korea”

AbstractThe financialization of infrastructure has emerged as a resolution for alleviating government budget pressures derived from chronic underinvestment in infrastructure and post-global financial crisis recession. Two interrelated phenomena are considered central features of the financialization of infrastructure: the transformation of infrastructure into an alternative asset class and the growth of public–private partnerships (PPPs) in infrastructure development. In particular, the expansion of global PPPs has attracted the attention of various entities, including state-owned enterprises (SOEs). Recently, SOEs have participated in foreign infrastructure PPPs as private sector entities. Unlike conventional private sector involvement in infrastructure PPPs, SOEs aim to achieve public objectives and mobilize both public and private resources to enhance competitiveness within the global PPP market. In this paper, the specificities of SOEs participating in foreign infrastructure PPPs and their implications for the financialization of infrastructure are analyzed using a South Korean SOE: Korean Overseas Infrastructure and Urban Development Corporation (KIND). This reveals why and how SOEs engage in foreign infrastructure PPPs via the drivers and business strategies of KIND. Moreover, it examines infrastructure PPPs managed by KIND to reveal how the business strategies of KIND work in practice. Consequently, this paper suggests that SOEs engaging in foreign infrastructure PPPs attempt to achieve policy objectives through the production and financialization of foreign infrastructure. In the process, SOEs actively take advantage of entities and resources from both the public and private sectors.

Stakeholder perceptions of drivers for, and barriers to, the incorporation of sustainability in PPP infrastructure projects in Nigeria

PurposeAlthough several studies have been undertaken on sustainability within infrastructure projects, limited attention has paid to the drivers for, and the barriers to, the incorporation of sustainability in public–private partnership (PPP) infrastructure projects through empirical study, particularly in Nigeria. Therefore, this study aims to identify and examine the drivers that promote sustainability in Nigerian PPP infrastructure projects and assess the barriers to the full integration of sustainability practices into current Nigerian PPP infrastructure projects.Design/methodology/approachPrimary data were collected using a questionnaire survey. The questionnaire survey was targeted on four different stakeholders’ organizations. They were public sector authorities, concessionaires, consultants and banks already undertaking PPP infrastructure projects in Lagos State, Nigeria. The obtained data were analyzed using frequency, percentage, mean score, standard deviation and the Kruskal–Wallis test.FindingsThe study identified 17 drivers that promote the incorporation of sustainability in PPP infrastructure projects. The analysis of the total ranking of the drivers in Nigeria revealed the top five ranked drivers to be: consideration of long-term performance; contractual arrangements; incentives for new market penetration; award criteria; and selection criteria, respectively. The study further identified 11 barriers to sustainability integration in PPP infrastructure projects and the top five ranked barriers in Nigeria are as follows: comprehensive sustainability procurement guidelines; no enabling environment; education needs; uncertain economic environment; and a lack of clear government policy, respectively. The results of the Kruskal–Wallis test conducted on both the 17 identified drivers for, and the 11 barriers to, the incorporation of sustainability in Nigerian PPP infrastructure projects revealed that there is no significant statistical difference in both rankings from the perceptions of the aforementioned four different respondents’ groups.Research limitations/implicationsThe study provides empirical insights on the knowledge and awareness of drivers which could lead to a greater uptake in sustainability measures by the stakeholders in Nigerian PPP projects; it also identified barriers to overcome.Originality/valueThe importance of the incorporation of sustainability in public procurement cannot be over-emphasized. It is anticipated that the study will be of great value to PPP stakeholders involved in sustainability decision-making processes when delivering sustainable PPP projects.

The Review on Risk Identification and Risk Allocation in PPP Model

Public private partnership (PPP) is the important and effective mechanism to introduce a big project for one country. Because PPP project is a large project, generally it consumes high amount of financial investment and involves with various risks. Risk management in PPP is one of the keys to project success as it needs the most suitable sector to handle every specific kind of risk that may happen through the whole project life. This paper conducts a summary and resume of two significant risk processes, risk identification and risk allocation on PPP infrastructure project. Risk identification part includes the mechanism, procedure and the principle risks that may appear on each PPP project from many countries. Moreover, preferred risk allocation from three different countries, the UK, Nigeria and China, will be summarized and compared whether they should be retained by public sector, allocated to private sector or both of them share it together.

An investigation into the sustainability practices in PPP infrastructure projects: a case of Nigeria

PurposeIn the global construction industry, the concept of sustainability is not new, particularly within building projects. Against this backdrop, several studies have been conducted, mostly in developed countries, on sustainability in construction projects. However, efforts at investigating sustainability practices in public–private partnership (PPP) infrastructure projects in developing countries have received limited attention. Hence, the purpose of this study is to investigate the incorporation of sustainability practices within the context of Nigeria’s PPP infrastructure projects.Design/methodology/approachA questionnaire survey, which targeted four different types of stakeholders, was conducted in this study. These stakeholders included public sector authorities, concessionaires, consultants and banks undertaking PPP infrastructure projects in the Lagos State, Nigeria. The data collected were analyzed using frequency, percentage, mean score, standard deviation (SD) analyses and the Kruskal–Wallis test.FindingsThe findings of this study revealed that all the respondents are very much aware of sustainability principles and the vast majority of the respondents from the public sector authorities and the consultant organizations confirmed that they have incorporated sustainability requirements into their bidding documents for PPP infrastructure projects. The study revealed sustainability features in the three aspects of sustainability, namely, economic, environmental and social factors. Furthermore, the study revealed the top three–ranked economic factors of sustainability (considered to be the most important factors) were low maintenance costs, whole life costing and supporting the local economy, respectively. Similarly, the study revealed the top three–ranked environmental factors of sustainability were biodiversity, energy use during the operation stage and energy use during the construction stage, respectively. Furthermore, the study further revealed that the top three–ranked social factors of sustainability were the educational aspect, equity between stakeholders and health and safety, respectively.Practical implicationsThe study will be of great value to PPP stakeholders involved in sustainability decision-making processes when delivering sustainable PPP projects, particularly in Nigeria. Also, the study’s findings are important as not many empirical studies have been conducted on the sustainability practices of current PPP projects in Nigeria.Originality/valueThe study’s findings would further inform the need for both the public and private sectors to take a more strategic approach to enhance sustainability in PPP projects.

Sustainable Location Selection for Investing in Public–Private Partnership Infrastructure Projects: From a Developing Country’s Perspective

Location selection is one of the most important aspects of feasibility studies in all types of businesses and construction fields. However, poor project location selection is one of the leading causes of project failure, adversely affecting the cost, schedule, and other benefits of investors. This paper proposes an evaluation framework for selecting a sustainable location for investing in public–private partnership (PPP) infrastructure projects in Vietnam. Nine success criteria are identified via a literature review and expert judgments. Then, the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method is applied to compute the success index and rank three alternatives: Southern (A1), Northern (A2), and Mekong Delta (A3) regions. Finally, a sensitivity analysis is conducted to examine the certainty and effectiveness of the model. The result indicates that alternative A1 is the best location for investing in the PPP form with a closeness coefficient (CCi) value of 0.555 and a sensitivity ratio of 11/13. This finding obtained using the proposed framework may be a helpful reference for practitioners and investors in selecting a sustainable location for PPP investment in Vietnam as well as other developing countries.

SUCCESS FACTORS FOR STAKEHOLDER MANAGEMENT FOR PUBLIC-PRIVATE PARTNERSHIPS INFRASTRUCTURE PROJECTS

Public-Private Partnership (PPP) has been identified as a procurement method that brings the public and private sectors together to facilitate the delivery of infrastructure projects and services. PPP manages complex projects and involves multiple stakeholders. Stakeholders in the PPP project need to be properly managed to achieve the project goals, minimising risk and accommodate stakeholder interest. Stakeholder management is about the relationship between organisation and its stakeholders. Poor management of stakeholder could lead to project failure. This paper aims to identify the success factors for stakeholder management in PPP infrastructure projects in Malaysia. A qualitative methodology which involved structured interviews with expert panels in PPP was conducted to validate the stages obtained from the primary and secondary data. The findings highlighted on the four (4) stakeholder management stages which involves stakeholder analysis, stakeholder engagement, stakeholder management action plan and stakeholder management monitoring. The needs for a having a clear understanding of the role of the project among stakeholders is crucial. Good stakeholder engagement is an essential part of project stakeholders’ engagement. It also appears that the regulatory plan would be implication to contribute stakeholder management to achieve the success of PPP project. In addition, stakeholder must monitor the work on site in order to achieve project success. The success factors towards achieving a successful stakeholder management process have been identified. Improvement in these stages will lead towards better presentation and improvement of the success factors of stakeholder management process in PPP infrastructure projects in Malaysia.Keywords: Stakeholder Management; Public-Private Partnerships, Stakeholder Management stages

Risk perception in PPP infrastructure project financing in India

PurposeThe purpose of this paper is to examine the risk perception of project sponsors in financing of public–private partnership (PPP) infrastructure projects in India.Design/methodology/approachThe methodology used is survey questionnaire that seeks the perception of risk managers in PPP projects. Rating and relative ranking of risk at various phases of PPP project have been analyzed and supplemented by unstructured interviews.FindingsThis paper shows that the perception of project sponsors for various levels of project risk categories differ significantly in PPP infrastructure projects. The practices of assessing risk and handling differ among the financing institutions. The ranking of risks shows a disagreement among respondents for relative importance. The project financiers that include major banks and financial institutions funding for the PPP infrastructure projects perceive risks differently, and their disagreement on the relative importance of risks may create a sub-optimality in risk management, and the essence of project sponsorship may be lost.Research limitations/implicationsThis paper examines the perceptions of the various risks involved in PPP infrastructure project financing. The authors emphasize on the infrastructure projects in the transportation and energy sector that are undertaken in the PPPs. This research can further be extended to the other infrastructure sectors such as roads, shipping and communication.Practical implicationsExperiences reveal that risk perception profoundly influence the implementation of infrastructure projects involving PPPs. To ensure smooth implementation and success of PPP infrastructure projects, the project sponsors must align, synchronize and develop consensus on the various funding and non-funding risks into the project curriculum.Social implicationsThe PPP infrastructure projects carry huge investment and are of strategic importance to the nation and society. In order that the provision of infrastructure which can be most economically and efficiently delivered through PPPs, the risk concordance assumes crucial importance.Originality/valueThe authors believe that this research may provide new direction to the visible and invisible misbalances in risk postures of project partners, which has been a cause of concern to the government and policymakers in India in the recent times.

SWOT-АНАЛІЗ СЕРЕДОВИЩА ІННОВАЦІЙНО-ОРІЄНТОВАНОГО ІНФРАСТРУКТУРНОГО ДЕРЖАВНО-ПРИВАТНОГО ПАРТНЕРСТВА

The consolidated SWOT-analysis of the environment of innovation-oriented infrastructure public-private partnership (PPP) proves that the infrastructure of Ukraine (its condition, efficiency and quality of services) significantly loses to the infrastructure of developed countries due to chronic underfunding and inefficient public administration. The traditional form of presenting results has been improved in terms of highlighting additional components in each block (strengths and weaknesses, opportunities and threats). These are the components that are due to four factors: a) the mechanism and nature of PPP economic relations; b) features of the infrastructural sphere of PPP; c) innovative development; d) sustainable development; Each of these factors imposes its own characteristics, so their impact is taken into account and demonstrated by a group of strengths and weaknesses, opportunities and threats on the relevant grounds separately.

Determinants of public–private partnerships: a state-level empirical analysis of India

PurposeIn view of the significance of public–private partnerships (PPPs) as a tool for bridging infrastructure deficits, it becomes imperative to study its determinants. The objective of this paper is to empirically study the determinants of PPPs in India at a subnational level, in terms of both number and value of PPP projects.Design/methodology/approachThis study investigates the determinants of value and number of Indian PPPs at a subnational level for the period 2008–2017. The determinants are analyzed using two-step system generalized method of moments (GMM) and negative binomial regression. Select correlates examined are market size, fiscal compulsions, institutional quality, financial sector development and physical infrastructure.FindingsThe results indicate that fiscal compulsions, financial sector development and physical infrastructure influence PPPs favorably, whereas low institutional quality impacts PPPs adversely. A pertinent finding of this study is that the past value of PPPs lowers the current year's PPP value.Practical implicationsThe findings are expected to assist subnational governments and policymakers in formulating policies that attract more PPP projects (in terms of both value and number).Originality/valueThis is the first study that analyzes the determinants of infrastructure PPPs at a subnational level in India.

Institutional work and infrastructure public–private partnerships (PPPs): the roles of religious symbolic work and power in implementing PPP projects

PurposeExisting public–private partnership (PPP) literature that explicitly adopts neo-institutional theory, tends to elucidate the impact of isomorphic pressures and organizational fields and structuration on PPP projects. This paper advances this literature by presenting the institutional work and micro-level dynamics through which actors initiate and implement a new form of project delivery. The authors show how actors enact responses to institutional structuration in the expansion and transformation of an airport from a public entity into a PPP in Saudi Arabia.Design/methodology/approachThe authors use a single case study design that offers an empirically rich and thick description of events such as the dynamic processes, practices and types of institutional work carried out by actors and organizations to deliver the project under investigation.FindingsReligious symbolic work as social integration triggered system integration work, which expanded the power capabilities of individual actors leading the project. Repair work then followed to alleviate the negative effects of disempowering the agency of actors negatively affected by the PPP model and to streamline the project implementation process.Practical implicationsThis research offers several practical implications. For PPPs to operate successfully in contexts similar to the Gulf region, policymakers should provide strong political support and be willing to bear a considerable risk of losses or minimal outcomes during the early phases of experimentation with PPPs. Also, policymakers should not only focus their attention on technical requirements of PPPs but also associate new meanings with the normative and cultural-cognitive elements that are integral to the success of PPP implementation. In order to design strategies for change that are designed to fit the unique cultural and sociopolitical settings of each country, policymakers should empower capable individual actors and provide them with resources and access to power, which will enable them to enforce changes that diverge from institutionalized practices.Social implicationsThis research connected the PPP literature with theoretical frameworks drawn from neo-institutional theory and power. It would be valuable for further research, however, to connect ideas from the PPP literature with other disciplines such as psychology and social entrepreneurship. PPP research examines a recent phenomenon that can potentially be combined with non-traditional streams of research in analyzing projects. Expanding the realm of PPP research beyond traditional theoretical boundaries could potentially yield exciting insights into how the overall institutional and psychological environments surrounding projects affect their initiation and implementation.Originality/valueThe paper contributes new insights regarding the roles of religious symbolic work, allied with social and system integration of power relations in implementing PPP projects. It suggests a theoretical shift from structures and organizational fields – macro- and meso-levels of analysis – to individuals – micro-level – as triggers of new forms of project delivery that break with the status quo.

How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies

This work analyses how risk transference to the private partner affects the success of public-private partnerships (PPP). For this purpose, a broad sample from the World Bank database of 6,022 PPP infrastructure projects in 59 developing countries in the period 1997 to 2016 is analysed. Using multilevel logistic models our results show that PPPs' success is more likely when the private partner takes more risk and the economic and institutional environments are better. Another interesting finding is that an excessive transference of risks to the private party when certain institutional features show good records could prejudice PPPs’ performance.

Exploring the Risk Factors of Infrastructure PPP Projects for Sustainable Delivery: A Social Network Perspective

Due to the relatively long period and large capital flow of public-private partnership (PPP) projects, PPP participants are faced with a complex risk situation impeding the sustainable project delivery. In recent years, risk management of PPP projects has received increasing attention. In this paper, twenty risk factors associated with infrastructure PPP projects were identified by literature review and in-depth case studies. Relationship data for these twenty typical risk factors were obtained through structured interviews. Based on the obtained data, the risk relationship network within infrastructure PPP projects was identified, and the network structure characteristics were analyzed, including individual node attributes and the influence and cohesion of subgroups. The results indicate that key risk factor nodes can form a reaction chain via bridge nodes that can trigger a risk domino effect within PPP projects. Specifically, the key risk factors of PPP projects are divided into two categories, the first of which include risk factors that have powerful and independent influence, such as delay in government approval, government credit, and imperfect legal and regulatory systems. The second category includes risk factors that are highly vulnerable and easily influenced, such as completion risks, insufficient revenue in the market, and fee change. A key risk factor reaction chain is one in which legal change leads to a decline in government credit rating, triggering a contract risk. Twelve bridge nodes were identified that play an important intermediary role in the network, e.g., legal change, public objection, and financing risk. This paper extends the application of social network analysis in PPP projects management research and identifies the key risk factors and crucial factors influencing chain reactions in PPP projects. The results provide a more in-depth understanding of sustainable PPP project management for government agencies and private enterprises.

When new public management fails: Infrastructure public–private partnerships and political constraints in developing and transitional economies

Amidst calls for more scrutiny of the failure of infrastructure public–private partnerships (PPPs), uncertainty about how we can measure failure remains, and little systematic evidence illuminates its likelihood. Our mixed‐methods design explores the notion of failure and identifies the conditions under which it happens. The first phase of our research employs documentary analysis and semistructured expert interviews, and identifies project cancellation as capturing the most severe occurrences of failure. A second phase statistically analyzes a unique World Bank data set capturing the provisions of over 4,000 infrastructure PPPs launched between 1990 and 2015 in 89 countries. We find robust evidence supporting the theoretical claim that PPPs are less likely to be canceled in countries with more veto points among their political institutions to restrain politicians from intervening in policy implementation. Cancellation is a rare, but valid indicator of failure, and the importance of veto players clarifies how political risk operates in this context.

Public–private partnerships: implications from policy changes for practice in managing risks

PurposeThis paper investigates the policy changes made towards infrastructure public–private partnerships (PPPs). The purpose of this study is to empirically identify the policy risks associated with the development of PPPs and to assess their impacts on the projects.Design/methodology/approachA case study of the policy changes that have been implemented for PPPs in China over the past seven years has been undertaken and is presented in this study. The causal loop diagrams are applied to assess and illustrate the potential impacts of the risks as a result of such changes on PPPs.FindingsA sequence of the policy risks, which relate to PPP risk allocation, contract management and implementation, payment and abatement mechanisms and financing, has been identified. It is also found that the identified risks will generate significant but negative impacts on PPPs, leading to an ineffective project delivery, low revenue, poor service quality and even contract breach.Practical implicationsThis research provides the private-sector entities that will embark on PPPs with an insight into managing and controlling policy risks over the project's lifecycle.Originality/valuePPPs have been critical for infrastructure development worldwide. Nevertheless, they have been a controversy, as many of them were subjected to poor outputs. Consequently, a variety of political mechanisms has been implemented to enhance the governance for PPPs. Policy can bring not only benefits but also risks and, however, policy risks of PPPs with a particular assessment for their potential impacts have received limited attention. Therefore, the study presented in this paper will contribute to the identification and assessment of policy risks within the context of PPPs.

Study on Identification of Spurious Public–Private Partnership Projects in China

Public–private partnership (PPP) is effective in delivering infrastructure projects. In China, PPP has been widely adopted in project finance ever since the government has permitted the private sector to get involved in the investment and operation of urban infrastructure. However, there seem to be many spurious PPP projects emerging in the market, which may bring about losses to the stakeholders and lead PPP away from orderly and standardized development. This paper attempts to address this issue by applying the fuzzy analytic hierarchy process to investigate two infrastructure PPP projects, and analyze the characteristics of genuine and spurious PPP projects in China. Recommendations for mass implementation of PPP and ways of identifying spurious PPP projects are summarized to guide the regulation of infrastructure PPP projects. The paper also provides a reference for project selection and policy-making in the future.

Success Factors for Public-Private Partnership Infrastructure Projects in Vietnam

Infrastructure projects require a great amount of capital investment resulting from their tremendous size, complexity, and risk. Due to the limitation of public finances, the private sector is invited to participate in infrastructure project development. The private sector can entirely or partially invest in an infrastructure project in the form of public-private partnership (PPP) scheme, which has been an attractive option for several developing countries, including Vietnam. Unfortunately, despite the PPP scheme will improve project efficiencies and attract capital investments of private investors, the success of PPP implementation is not guaranteed. This paper investigates the critical success factors (CSFs) of PPP infrastructure projects in Vietnam. Relevant data were collected through in-depth interviews with six PPP experts and questionnaire surveys with 150 interviewees, and then analyzed by the word cloud technique and the one-way analysis of variance (ANOVA) test. The CSFs were ranked based on the viewpoints of the public sector, the private sector, and the PPP consultants. The outcomes show that there was no significant difference in the perceptions of all three parties concerning the success factors for PPP infrastructure projects in Vietnam. The top five critical success factors are (1) timely land acquisition and appropriate compensation, (2) financial capacity of the private sector, (3) effective project management, (4) favorable and complete legal framework and regulations, and (5) financial feasibility and attraction. Recognizing the CSFs is indispensable to ensure the success of PPP infrastructure project implementation.

Hybrid Infrastructure PPPs in India: Costs, Benefits, and Emerging Risks

The performance of infrastructure public-private partnerships (PPPs) in developing countries has been disappointing, as documented by practitioners and academicians. In India, once one of the world’s largest national PPP markets, private sector interest in conventional PPPs has sharply declined since 2012. Across the developing world, governments and development finance institutions have responded by blending more public money into projects to catalyze private sector investment, especially to achieve priority development targets. But how should the public-private financing balance be structured? Should these be private projects, like traditional PPPs, or public projects, owned and managed by governments? India has been exploring these kinds of issues for several years, and hybrid PPP contract models have emerged to optimize this kind of blending. The knowledge gained in that process offers valuable lessons for projects in other developing countries. This article explains the costs, benefits, risks, and wider implications of using these hybrid PPP models. TOPICS:Emerging markets, legal and regulatory issues for structured finance Key Findings • The disappointing performance of infrastructure public-private partnerships (PPPs) in the developing world is now well documented. Governments and development partners have responded by using public money to catalyze private investment, especially to achieve priority development targets. • The best ways of blending public and private money are not yet clear. Should these be private projects, like traditional PPPs, or public projects, owned and managed by governments? India has developed hybrid PPPs to optimize this kind of blending. • India’s experience with hybrid PPP models offers valuable lessons for projects in other developing countries but have not yet attracted much attention outside India. This article reviews the costs, benefits, risks, and implications of these hybrids.