Private sector contributions to PPP initiatives (from concept to completion)

Egra Ibrahimi and Orkida Ilollari
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Egra Ibrahimi: Mediterranean University of Albania, Tirana, Albania
Orkida Ilollari: Mediterranean University of Albania, Tirana, Albania

Romanian Journal of Economics, 2025, vol. 60, issue 1(69), 99-110

Abstract: Public-Private Partnerships (PPPs) projects are an alternative way used from governments to leverage the resources and expertise of the private sector in delivering public services and goods. Governments can undertake procurement processes aiming to offer different public infrastructure and services projects, through such risk-sharing arrangements and agreements. These projects can be of great importance and with great benefits for all socio-economic sectors. According to the World Bank (2023), this requires strong policy and regulatory frameworks, screening projects for sustainability, solid project preparation, and contract management capacity. The development of public–private contracts occurred with the construction of railways and telegraphs, water supply, and trams in 19th century, when governments started contracting the private sector (Goldsmith, 2015). Many authors have analysed different PPP projects with the aim of finding advantages and disadvantages of private sector involvement in projects such as transport, water, education, airport, energy, and health projects. The private participation has had different impacts due to some factors: period, political situation, regulatory frameworks and specification of the contracts (Fabre & Straub, 2021). The main objective of this paper is to analyse through different cases, the contribution of private sector into PPP projects success and failure, identifying the specific advantages and disadvantages of private sector participation in each sector. The method used is a descriptive analysis of some private sector involvements in PPP projects in infrastructure, education and health in some countries around the world. At the end, the paper shall give a reflection on the implications of the findings for both public and private sectors involved in PPP projects and some discussions on the importance of addressing key factors such as policy frameworks, contract design, and government support.

Keywords: PPP; advantages; disadvantages; failure; success; policy framework (search for similar items in EconPapers)
JEL-codes: H54 H57 R42 (search for similar items in EconPapers)
Date: 2025
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