Worldwide trends in private participation in roads: Growing activity, growing government support
Authors: Cesar Queiroz and Ada Karina Izaguirre
Source: Gridlines No. 37, Public-Private Infrastructure Advisory Facility (PPIAF), May 2008
Private participation in roads revived strongly in developing countries in 2005–06.
The activity was concentrated in greenfield projects and in Asia and Latin America.
The main reason for the revival has been the willingness of governments to provide support
needed to attract the private sector. Nevertheless, governments need to be aware of the
potential risks of such support. And because of the monopolistic features of road projects,
they also need to ensure good governance so that the public reaps the full benefits of the private
sector’s involvement.
The Growing and Evolving Business of Private Participation in Airports: New Trends, New Actors Emerging
Authors: Doug Andrew and Silviu Dochia
Source: Gridlines No. 15, Public-Private Infrastructure Advisory Facility (PPIAF), September 2006.
Private sector management and financing of airports has continued to expand in developing
countries. Long-term concessions for airports are the predominant model today, with
governments often taking a minority shareholding in the venture. Careful attention to policy
design, regulatory issues, and management of concessions will continue to be important in
ensuring that private participation delivers efficient and effective airport infrastructure services.
Toll Roads: Recent Trends in Private Participation
Author: Gisele F. Silva
Source: Public Policy Journal No. 224, the World Bank, December
2000.
During the 1990s developing countries increasingly turned to the private sector
for construction, management, and maintenance of toll roads. Between 1990 and 1999,
US$61 billion of private investment was committed to 279 projects in 26 developing
countries, comprising 34,369 kilometers of toll highways, bridges and tunnels. This
Note analyzes the main trends in private participation in toll roads in developing
countries using figures from the World Bank's Private Participation in Infrastructure
Project Database.
Private Participation in the Airport Sector-Recent Trends
Author: Gisele F. Silva
Source: Public Policy Journal No. 202, the World Bank, November
1999.
During the 1990s private sponsors have participated in projects involving eighty-nine
airports in twenty-three developing countries, with investment totaling US$5.4 billion.
About three-fifths of this investment was carried out in 1998 alone, and about two-fifths
related to the award of the Argentine airport system that year. Analysis of the
investment patterns shows that Latin America leads in attracting private investors,
operations and management contracts with major capital expenditure have been the
main vehicle for investment, and governments are transferring networks to the private
sector more often than single airports or stand-alone facilities.
Private Participation in Port Facilities-Recent Trends
Author: Dirk Sommer
Source: Public Policy Journal No. 193, the World Bank, September
1999.
The private sector has become increasingly involved in the operation of common-user
port facilities during the 1990s, following public sector dominance of the sector
since the 1940s. During the past decade the reform of port administration has gained
momentum in industrial and developing countries alike. Between 1990 and 1998, 112
port projects with private participation reached financial closure in twenty-eight
developing countries, with investment commitments totaling more than US$9 billion.
Most projects are in East Asia and Latin America , and most are long-term concessions.
This Note provides an overview of the emerging trends in developing countries and
outlines the main issues for the future. These issues include sustaining competition
at a regional level, across networks, and with other transport sectors, such as
road and rail.
Private Participation in the Rail Sector-Recent Trends
Author: Nicola Tynan
Source: Public Policy Journal No. 186, the World Bank, June 1999.
Private participation in the railway sector has increased significantly during the
1990s, with fourteen developing countries reaching financial closure on thirty-seven
projects in 1990-97. Although this resurgence in private participation is still
in its infancy, the experience in Latin America highlights some lessons. For example,
the renegotiation of freight concessions in Argentina has revealed the importance
of establishing flexible contracts and setting clear renegotiation or other adjustment
mechanisms in advance. Developing countries can also learn from the experience of
OECD countries with different models of private involvement. For example, the benefits
of splitting infrastructure provision from service operation have driven many of
the reforms in OECD countries and may offer one solution to the access pricing issues
faced when vertically integrated companies are concessioned with open access requirements.