Introduction: increasing the sustainability of public–private partnership projects

The pivotal role of civil infrastructure in enhancing public health and accelerating economic growth has been widely acknowledged in the literature (Estache 2004). It thus remains a central part of improvement initiatives in both developed and developing countries. Although responsibility for infrastructure development has alternated between private and public provision over the past century, in recent times it has largely been the responsibility of the public sector.

The last two decades have seen significant changes in the modes of government intervention in many developed countries. Reforms in countries like Great Britain and New Zealand have been at the forefront of this movement, largely driven by two broad factors: perceived public sector inefficiencies, and the ascendance of liberal economic ideology (Salamon 2002). Changes have broadly involved a reduction in the role of government or, more accurately, a change in the functions it performs, and greater private sector involvement (Hood 1991; Kaul 1997; Osborne and Gaebler 1992; Peters and Pierre 2002; Rhodes 1996; Salamon 2002). For infrastructure development this has meant a move toward increased reliance on public–private partnerships (PPPs) that involve private companies in the financing and provision of infrastructure. In most countries these PPP arrangements have been aimed at overcoming two broad public sector constraints: (1) a lack of public capital; and (2) a lack of public sector capacity – the resources and specialized expertise to develop, manage, and operate infrastructure assets (Bovaird 2004; Kumaraswamy and Zhang 2001).