MPFD Working Paper on Public-Private Partnership for Cross-border Infrastructure Development

Working paper4 May 2018

Cross-border infrastructure networks are critical for improving regional connectivity, their
financing has however been challenging. This paper examines whether Public-Private
Partnerships (PPP) may contribute to their development and reviews experience with this type of
financing arrangements in the energy, transport and telecommunication sectors. By involving
several countries, cross-border projects face specific challenges as these projects are by nature
more complex, face augmented political risks and necessitate higher level of coordination. To
support countries in financing cross-border projects, the paper studies these challenges in detail.
It also highlights the policy actions required to achieve enhanced regional connectivity. It stresses,
for instance, the importance of supporting intergovernmental platforms where international
networks can be planned, regulatory hurdles tackled and financing arrangements structured.
Developing guidelines for cross-border projects would also help countries in their efforts to
enhance regional connectivity. The paper concludes by recognizing the potential of PPP for these
projects, though it acknowledges that supportive policy actions from participating governments
will be required for their success as well as a strong high-level political backing.