Environmental Engineering Reference
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Fig. 2 Extent of private sector participation. Source www.worldbank.org/ppp
The establishment of delivery standards and the need for services to reach poor
people are issues frequently discussed in the policy debate of private involvement in
service delivery.
As illustrated in Fig. 2 , the extent of private sector participation can vary con-
siderably between the extreme cases of decentralization, where the public sector
owns and operates assets, and full divestiture. Frequently used forms of PPPs,
involving increased private sector participation, include management and operating
contracts, leases/affermages, concessions, Build-Own-Transfer, Build-Own-Operate
or Design-Build-Operate projects, and joint ventures.
In developing countries, the scarcity of
financial resources and the strong need
for public infrastructures, contributed to the acceptance of shifting investment
responsibility to private providers. As can be seen in Fig. 3 , the total amount of
private investment in infrastructure in middle and low-income countries has grown
Fig. 3 PPPs in middle and low-income countries
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