Private Participation in Infrastructure in Developing Countries : Trends, Impacts, and Policy Lessons

by Harris, Clive

• ISBN13: 9780821355121
• ISBN10: 0821355120
• Format: Paperback
• Copyright: 2003-04-01
• Publisher: World Bank

Summary

The rapid growth of private participation in infrastructure (PPI) in developing countries during the 1990s was followed by a subsequent decline in investments and the re-negotiation and cancellation of some prominent projects. This has lead to controversy as to the impact and the future of PPI.This report attempts to explain the factors behind the growth and decline of PPI, its impact and the policy lessons that have been learnt from this experience. It concentrates on the experience with the private provision of infrastructure over the last 15 years.'Private Participation in Infrastructure in Developing Countries' assesses the impact that the private provision of infrastructure has had on service delivery. Finally, this book reviews the main policy lessons that can be drawn, and what governments need to do moving forward if they are to ensure that the supply of infrastructure services does not become an impediment to growth.

Table of Contents

Foreword	v
Abstract	vii
Acknowledgments	ix
Introduction	1	(2)
The Rise---and the Fall?---of Private Infrastructure	3	(14)
The Move Away from Public Provision	3	(2)
Towards the Boom	5	(1)
And the Bust?	6	(6)
Declining Investment Flows	6	(2)
Renegotiation of Contracts	8	(1)
Cancellations and Re-Nationalizations	9	(1)
Subdued Investor Interest	10	(2)
Signs of Popular Discontent Against Private Participation in Infrastructure	12	(1)
What Lies Behind the Current Malaise?	12	(5)
Has Infrastructure Provision Benefited from Private Sector Participation?	17	(14)
Impacts on the Delivery of Infrastructure Services	17	(9)
Impacts on Service Expansion	17	(3)
Impacts on Efficiency	20	(2)
Impacts on the Quality of Service	22	(1)
Fiscal Impacts	22	(1)
Impacts on Prices	23	(1)
Public Versus Private---What Really Matters?	24	(2)
Have There Been Negative Consequences Beyond Service Delivery?	26	(5)
Have the Poor Suffered?	26	(2)
Has the Environment Suffered?	28	(1)
Have Corruption Concerns Been Exacerbated?	29	(2)
Lessons of Experience	31	(8)
Pricing and the Fundamentals	31	(1)
Promoting Different Routes to Serving Consumers	32	(1)
Competition	33	(1)
Regulatory Frameworks	33	(3)
Financing and Exchange Rate Risks	36	(1)
The Politics Matter	37	(2)
Going Forward	39	(4)
A Return to Public Provision?	39	(1)
Strategies for Private Participation	40	(3)
References	43