When bigger is better: Investment volume drivers in infrastructure public-private partnership projects

This research studies the factors that favour the establishment of high-investment infrastructure public-private partnership (PPP) projects. We analyse 9121 PPPs, hosted in 107 developing countries, in the period 1997-2017. We find that PPP projects adopting contractual forms in which the private party takes more risks, awarded through competitive methods and benefitting from indirect government support programmes, are characterized by a larger investment volume. A more business-friendly economy and robust institutions configure the most conducive environment to establish larger investment PPPs. Furthermore, multilateral development banks' support of the projects relates positively to their investment volume.

Automated summary

This research examines the factors that contribute to the establishment of high-investment infrastructure public-private partnership (PPP) projects. After studying 9121 PPPs in 107 developing countries from 1997 to 2017, it is found that PPP projects with contractual forms that shift more risks to the private party, awarded through competitive methods, and benefiting from indirect government support programs, tend to have larger investments. Additionally, a business-friendly economy and strong institutions create a conducive environment for larger investment PPPs. Furthermore, the support from multilateral development banks is positively related to the investment volume of the projects.