Tag: tourism

MAY 2016 PPP TO THE RESCUE OF THE FINANCING OF PORT INFRASTRUCTURE

For several years public-private partnerships (PPP) have been used as an alternative to public financing of major infrastructure projects. They have been applied to several areas, notably health, transportation, technology, information and the environment. PPP are still very popular throughout the world, particularly in  developing countries.

PPP in the maritime sector are not as well documented as those in other sectors. However, several major port infrastructure projects were funded according to this embodiment. Their popularity can be explained in several ways. It is largely related to  movements of privatization and liberalization around the world. These movements began in the 1970s, until the 1990s and early 2000s. Parallel to this situation, the opening of the port authorities have given opportunities for private companies.

The level competition between port sites and large international carriers has created a need for more capacity of transport (Gigantism) and treatment of their goods. To satisfy these requirements, port authorities must increase their capacity so that  infrastructure projects in the maritime sector are more and more  intensive in capital.

However, this adaptation to new standards has become a critical source of competitiveness and this can be translated into economic gains, income and added value. The increase of investment needed to remain competitive.  There is therefore need to better  funding, while governments are not necessary willing to offer such funding.

So far, the private sector has shown itself able to assume these new mandates and generate the required financing. It has demonstrated that it could  meet the needs of the industry and is a valid solution to the problems of the public sector. The challenge remains to know if participation of private sector has become a necessity to ensure the competitiveness of the port sites.

What is a PPP?

A PPP is a contractual arrangement between public bodies … Lire la suite