Public–private partnerships for future urban infrastructure

Abstract

This paper recognises that future infrastructure delivery presents new challenges primarily from constraints on public financing (creating the need for private funding) and the evolving vision for urban development to be smart, sustainable and socially inclusive. This paper focuses on public–private partnerships for financing of future infrastructure. Lessons learned from past failures of public–private partnerships suggest that a delivery strategy tailored for their successful implementation is required. This strategy would make the public sector responsible for developing the preliminary design and a robust understanding of the related technical, financial and regulatory requirements before initiating procurement; it recommends use of standardised tools for greater consistency and transparency in project evaluation and that the project delivery entity must represent a true partnership between the public and private sectors. The public sector has a responsibility to safeguard public interest and ensure transparent procurement and sustainable, socially inclusive and smart development. These objectives are often in conflict with the private sector’s profit maximisation goals, and the challenge is creating the entity that allows the two sectors to coexist and meet their goals collaboratively. This paper looks at a joint ownership company as a vehicle for a more collaborative and equal public–private partnership.