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Private Sector Involvement in Infrastructure Development

The provision of reliable and sound infrastructure such as bridges, roads to other public

services are important drives of economic development. With an upsurge in population, the

request for such utilities is expected to increase while the provision of capital for infrastructural

development is inadequate to manage this demand rise. Private sector engagement in

infrastructural development is presented as a possible solution that comes with some obstacles,

but also clear benefits that outweigh the traditional public sector approach to infrastructure

development.

Private-Public Partnerships (PPP) in infrastructural development do provide better

outcomes than the public sector approaches due to their access to finance. When governments

find their development budgets stretched, private sector involvement offers access to private

capital that takes over where the government has no financial means. The outcomes of these

PPPs do offer the government an opportunity to rearrange resources and put them to good use.

According to Mathew Jordan-Tank (2017), the economic competitiveness of a nation does hinge

on the degree of increased investment which the private sector can work towards eliminating the

financial challenges.

Private sector involvement in infrastructure development does provide better outcomes

since the partnership does offer access to modern technology, skills, and management from the

private sector (Wyman). The result sees an increased prospect for innovation as the private sector
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can own and run facilities to deliver services to the government. The result sees the delivery of

quality infrastructure that meets the service outcomes while also easing up the government’s

financial burden.
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Works Cited

Jordan-Tank, Mathew. “Why Infrastructure Development Needs More from the Private

Sector.” Ebrd.com, 2017, www.ebrd.com/news/2017/why-infrastructure-development-

needs-more-from-the-private-sector.html.

Wyman, O. "Bridging the Infrastructure Gap: Engaging the Private Sector in Critical National

Development. Benefits, Risks and Key Success Factors." (2017).

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