WHAT ARE SOME EXAMPLES OF SUCCESSFUL PUBLIC PRIVATE PARTNERSHIPS IN DEVELOPING COUNTRIES

One of the largest and most prominent examples of a successful PPP is the expansion and modernization of the Panama Canal. In 1997, the government of Panama signed a concession agreement with the Panama Canal Authority (APC) to greatly expand the capacity of the Canal in a partnership that would last for many decades. A consortium called Grupo Unidos por el Canal (GUPC) was awarded the contract and investing over $5 billion to widen the Canal and add a new set of locks. This allowed the Canal to handle much larger post-Panamax ships. The expanded Canal was completed ahead of schedule and under budget in 2016. It has been credited with significantly boosting Panama’s economy and prospects for growth.

In India, public-private partnerships have played a major role in expanding infrastructure, improving services, and promoting development. For example, in the power sector, the state-owned Power Grid Corporation of India set up a joint venture called Power Link Transmission Company to improve the transmission network. Private investors put in the majority of funding which allowed for major projects to be completed on time and at lower cost than if done publicly. Reliable electricity access across India has increased substantially due to such partnerships.

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In the transportation sphere, some standout PPPs include building or upgrading major highways and ports. The Golden Quadrilateral highway project connected the four major cities across India through over 5,000 kilometers of modern highways constructed by 2005. Private consortiums were responsible for the design-build-finance-operate-transfer model which sped up delivery significantly. India also has some of the busiest container ports globally now thanks to partnership redevelopments like the project in Nhava Sheva which boosted annual capacity from 700,000 to over 3.2 million TEUs.

Another area where PPPs thrived is urban development and housing. For example, in Surat, Gujarat, a Public-Private-Community Partnership redeveloped congested informal settlements into well-planned neighborhoods with widespread community support. Private developers worked with municipal agencies and local participation to provide new housing, public facilities, and livelihood opportunities in a major slum upgrading project. The innovative model delivered social and economic benefits for low-income residents and set a precedent for inclusive urban regeneration programs nationwide.

In Indonesia, private sector investment has also been effectively mobilized through partnerships to expand infrastructure. One pioneering instance is the Jakarta Inner Toll Roads project constructing over 50 kilometers of tolled urban expressways. A BOT (build-operate-transfer) agreement with a government-owned corporation and private consortium saw the routes completed in 2005 for around $650 million in investment. It relieved chronic traffic congestion in the capital and its success led to numerous other similar highway PPPs across the archipelago.

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Another notable case is Patimban Port in Subang, West Java. As Indonesia’s economy and imports/exports grew rapidly, existing seaport capacities struggled to keep up with demand. Under a 35-year concession from 2014, a private operator has invested $3 billion in building new container and general cargo terminals at Patimban, along with connecting roads and railways. When fully operational by 2024, it will triple Indonesia’s total container handling capacity and attract more industrial zones and economic activity to the region, representing exactly the kind of transformative infrastructure PPP envisioned to support development goals.

Moving to the health sector, Kenya has seen its healthcare system expanded and access to services rise substantially through public-private cooperation. Kenyatta National Hospital, Africa’s largest referral medical center, underwent an ambitious PPP renovation and expansion project. Concesses designed, built, and now operate modern patient accommodation towers, parking facilities, a waste management plant and more through a 25-year agreement. The government retained ownership and strategic control while over $200 million in private funding modernized Nairobi’s flagship hospital.

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Innovation hubs and science parks have also benefited various nations. The University of Nairobi Science and Technology Park was established through collaborations between the government, local researchers, international organizations and the private Arm Holdings which provided an endowment. It now hosts over 90 companies and research groups commercializing technologies, creating knowledge-based jobs and transferring ideas to industry partners. Examples like these demonstrate how engaging public and private stakeholders can successfully drive technology development and foster economic diversification in developing economies.

Across various sectors like infrastructure, healthcare, industrialization and more, well-structured public-private partnerships have significantly aided progress in developing nations by mobilizing private expertise, management abilities and financing towards shared development goals that benefit citizens and businesses alike when each sector plays to its strengths through collaboration rather than competition or conflict. PPPs present a major opportunity going forward for closing infrastructure gaps, boosting productivity and facilitating continued progress on sustainable development in the Global South.

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