PPPs can make a positive difference

Speaking on the impact that negative economic growth will have on issues such as infrastruc-ture, President of the Caribbean Development Bank (CDB), Dr. W. Warren Smith, pointed out the positive influence of Public/Private Partnerships (PPPs).

Addressing the Caribbean Public/Private Partnerships for Sustainable Growth forum, which got under way on Tuesday at the Hilton Barbados, he noted that Caribbean states were seeking mechanisms for shifting more of the responsibility for financing growth-inducing infrastructure from the balance sheet of the government to that of private enterprise.

Some of those in attendance at the forum.

“It is because of the conundrum inherent in the need for governments to put their fiscal houses in order, whilst at the same time needing to get on with the business of investing in economic and social infrastructure, that the interest in PPPs is so great. On the face of it, the PPP instrument can represent an escape route out of the dilemma,” Smith noted.

However, he pointed out that for as many success stories, there were also visible failures, but said nevertheless that this was often due to poor design and unbalanced contractual arrangements frequently traced to inadequate capacity within the public sector itself.

“CDB intends to assist by providing upstream capacity building through the provision of technical assistance and downstream support through financing of private sector investment in PPPs,” he said, adding that in the form of the latter, “CDB would be working with other multilateral development banks as we build our own capacity in this very important area”.

“Our deliberations in this forum will demonstrate the versatility of the PPP mechanisms, enabling both public and private sector to function as true partners in development to deliver public goods and services. Through co-operation, they can better cope with threats to their economic systems, build resilience to natural hazards and create a stable environment for regional prosperity and for growth,” he continued. (JMB)