ABSTRACT
Public-Private Partnership models have been gaining greater acceptance in developing countries. Since 2002, there has been a steady recovery of private investments in infrastructure. Investment commitments in infrastructure projects, developed with private participation, reached a new peak in 2007 totaling US$ 158 billion—ten per cent higher than the previous peak in 1997 2 . There has been a growing convergence of investments across regions with an upward trend in even hw-income countries. However, in 2008, following the unfolding global economic and financial crisis, there has been some slowdown in the process. While projects continue to be awarded and brought to financial closure, the rate of project closure during July 2008-March 2009, fell by 15% compared to the same period in the previous year. Transport and water are so far the most affected sectors. Looking forward, a new set of challenges are emerging; these will need to be addressed if PPPs are to stay on track and contribute to meeting infrastructure needs in the developing countries.
