Public-Private Partnerships (PPPs) are receiving significant policy attention in the Caribbean. As fiscal pressures constrain public sector-led investment, the Caribbean Development Bank (CDB) is critically examining alternative funding models for delivering economic and social services with the release of a new report on early lessons.
As quoted in by the CDB, to date the Caribbean’s track record with respect to PPP application has been less than stellar. Missteps by several countries have caused project costs to greatly exceed budgeted amounts and benefits to fall below expectations. Such situations often point to a genuine lack of understanding of project dynamics, including financing structures and a miscalculation of projects risks, which leads to fiscal surprises.
Improving the landscape for PPP application calls for a genuine and sustained effort to build technical capacity in the public and private sectors across the Caribbean. Further, if countries are to learn from each other’s experiences, then a platform that facilitates ongoing dialogue is also required.
As part of this effort, the CDB released, ‘‘Public-Private Partnerships in the Caribbean: Building on Early Lessons’’ which undertakes a detailed examination of deals including the Sangster International Airport in Jamaica and the Water and Sewerage Company in St. Lucia, among others. The report is also very clear about the pros and cons that underpin PPP structuring, and easily lends itself to the distillation of some very useful lessons.
Credit: Caribbean Development Bank
Link to Report