many, many years. In the 19th century, it was used to build
roads, bridges and canals in Europe and the United States.
More recently, the power purchase agreements in the United
States during the 1980s saw investment in utilities, while the UK
government's private finance initiative of the 1990s was vital in
the building of schools, hospitals and other facilities across the
country.
as Ghana and Lebanon are making legislative change to enable
them to carry out PPP
projects. South Africa
and India have already
used the model,
and in Kenya there are
plans for a major PPP
program. In China and
the Middle East, several
factors are forcing rapid
infrastructure development and the need for PPP models.
referring to the development taking place. "An enormous
potential infrastructure market is emerging," he added.
is multi-lateral finance organizations such as the European
Investment Bank, the World Bank and the African Development
Bank that have stepped up to fund PPP projects.
and an opportunity for companies like Dar. That challenge could
be met, and the opportunity realized, through the same route -
Public Private Partnership (PPP).
that has been around a long time, and every indication is that
its use is on the rise again thanks to a unique combination of
circumstances."
countries across the world. It involves a contract between a
public authority and a private company in which the private
company provides a public service such as a road, school or
hospital, and assumes financial, technical and/or operational risk.
National or local government fund the costs through an agreed
payment schedule, or costs are recouped through charges to
those who use the service.
Government departments don't have to take on the risks
associated with building and/or operating large infrastructure
facilities; they can take advantage of private sector expertise;
and they achieve a degree of flexibility in their annual budgets.
Moreover, instead of having to allocate a great deal of money
to one project, government departments can earmark smaller
amounts for a series of projects.
more opportunities to enter into long-term contracts as well as
make a return on sustained investments.
believes that by the year 2030, $57 trillion will be spent on infrastructure projects
across the world. The World Economic Forum says that global spending on basic
infrastructure is $2.7 trillion a year - but should be $3.7 trillion.