Public-private partnerships : lessons learned from the context of developing countries

Abstract

The concept of Public-Private Partnerships (PPPs) is drowned in a muddle of “conceptual ambiguities”. PPPs have for so long been viewed as a form of privatization. However, in the modern literature, they are treated as a form of collaboration between the public and private sectors in order to pursue common goals, which mainly are the provision of public services, by pooling resources of both sectors. In Lebanon, PPPs were first contemplated in 1992 as an alternate form of public procurement. A number of PPP projects were initiated in various sectors of public services, such as infrastructure, telecommunication industry and solid waste management. Most of the studies conducted on the topic studied the PPP either before the conclusion of the contract or after its expiration. Few are the studies conducted on a PPP during its application with a deep insight on the various challenges and opportunities that may rise during the timeline of the partnership and the appropriate way to face them. The analysis will highlight the major challenges and opportunities through two case studies selected from the Lebanese context, the case of solid waste management in the city of Saida (South Lebanon) and the case of LibanPost. The conclusion inferred from the project is that PPPs can constitute a great tool for improvement in the quality of public services in developing countries. PPPs can help save costs and decrease the level of risk and responsibilities assumed by the public partner. However, PPPs in developing countries can open window for corruption and opportunistic attitudes, especially in the absence of clear accountability processes. Therefore, the adoption of legal frameworks that organize the implementation of PPP projects in a developing country context is one of the major recommendations of this project.