Development financing needs are extremely large, and they far outpace public sector resources. To fill the gap in development finance between what is needed and what is available, it is necessary to create new markets and bring innovative solutions to developing countries. Private sources are necessary to achieve these goals; hence, there has recently been a strong push to increase the involvement of the private sector in the development arena.
Private Public partnerships (PPPs) can be a tool to incentivize greater private sector investment. When designed well and implemented in a balanced regulatory environment, PPPs can bring greater efficiency and sustainability in development, through on-time and within-budget project delivery, innovative and high-quality services using ideas from the private sector, reduction of coordination cost through a bundling effect, and compensating the financing gap in infrastructure development by mobilizing private funds. They also enable better allocation of risk between public and private entities.
In this session, panelists will discuss the challenges and opportunities for private sector investment in sustainable development; and how innovative solutions such as PPPs can be a tool for developing economies to attract private capital investment, increase efficiency and use of available public resources.