ABSTRACT
Many governments do not have all the financial resources required to meet their country’s infrastructure needs. Facing limited resources and searching for more efficient and effective delivery of their infrastructure, many countries have involved the private sector under long term Public-Private Partnership (PPP) contractual arrangements. Typically, PPPs involve a private sector company or consortium (the ‘concessionaire’) contracting with government to finance, build, operate, and then transfer the asset back to the public sector at the end of a concession. On the premise that good governance can lead to more successful PPPs, this paper reviews some key requirements for good governance in such projects, including competitive selection of the concessionaire, public disclosure of relevant information, and regulatory oversight of the concession contract. Because PPPs in infrastructure tend to have monopolistic features, good governance in managing them is essential to ensure that the private sector’s involvement yields the optimum benefit for society.
