Public-Private Partnerships and Urban Infrastructure Development in Southeast Asia

Abstract

Public-private partnerships (PPPs) are arrangements between government and private sector entities for the purpose of providing public infrastructure, community facilities and related services. PPP infrastructure development can take place at a regional level on a large scale, such as a cross country tunnel construction or on a small scale at an urban level such as city waste water treatment and sewerage rehabilitation. The purpose of this article is to identify issues and challenges in the area of public-private partnerships for infrastructure provision and finance at the urban and national levels in Southeast Asia. More thought will be given to discuss essential features of regulatory and legal frameworks required to support public and private sectors to effectively deliver urban infrastructure services. These include building legal frameworks and institutions at the outset; introducing sound regulations to protect private sector investment; using contractual safeguards against potentially disputable matters; and implementing governance and accountability frameworks. It also offers some insights into the regulatory and surveillance machinery required at a national-urban PPP setting to ensure effectiveness, fairness and openness for executing urban infrastructure development projects. Reviews of impediments to successful PPPs have indicated several prevailing issues and challenges. Urban local authorities often encounter overlapping regulations and still need adequate clarity on their roles and authority levels. For central governments, there is a real need for a comprehensive and consistent regulatory framework and a more streamlined process for implementation of PPP projects.