Public-Private Partnerships

The document defines public-private partnerships (PPPs) as collaborative arrangements between public actors and private partners, often including academia or citizen groups, to deliver urban development and infrastructure. It outlines common models such as Design-Build-Operate (DBO) and Build-Operate-Transfer (BOT), while highlighting that PPPs can accelerate climate neutrality by leveraging private capital and innovation. However, the text warns of risks including resource inequality between partners, lack of democratic mandates, and potential cost lock-ins. Success is attributed to early stakeholder engagement, a full life cycle approach, and transparent governance. The document notes that while the Caribbean and Latin America are highly active in PPPs, Swedish examples like the New Karolinska Hospital have been viewed as failures due to high costs and poor partner interaction.

• PPPs are frequently used for large infrastructure and urban development because public institutions often lack the necessary finance or technological knowledge, while private partners are seen as more efficient in terms of value-for-money and delivery time.
• The primary advantages of PPPs include the ability to use private capital for public infrastructure, which frees up public resources, and the capacity to spark innovation and cost-efficiency through private sector expertise.
• Significant risks associated with PPPs include an imbalance of resources where public partners cannot match the private sector's capacity for complex negotiations, as well as concerns regarding democratic mandates and the potential for expensive long-term cost lock-ins.
• Successful PPP implementation requires early engagement with stakeholders to find synergies, a full life cycle approach to projects, and governance mechanisms that ensure accountability, transparency, and trust.
• While the Caribbean and Latin America are the most active regions for PPPs in terms of investment and project numbers, Swedish examples such as the New Karolinska Hospital and Arlanda Airport Express have faced heavy criticism; the former is considered a failure due to a total taxpayer cost of 52 billion kronor and poor partner interaction.

APA

Requena, A., Vanhuyse, F., Agerström, M., Nilsson, A., & Arra, V. (2021). Public-Private Partnerships. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2021/06/210618a-mckay-requena-public-private-partnerships-2106e.pdf

Chicago

Requena, Alicia, Fedra Vanhuyse, Magnus Agerström, Astrid Nilsson, and Venni Arra. Public-Private Partnerships. Stockholm Environment Institute, 2021. https://www.sei.org/wp-content/uploads/2021/06/210618a-mckay-requena-public-private-partnerships-2106e.pdf.

Wikipedia

{{cite report |last1=Requena |first1=Alicia |last2=Vanhuyse |first2=Fedra |last3=Agerström |first3=Magnus |last4=Nilsson |first4=Astrid |last5=Arra |first5=Venni |title=Public-Private Partnerships |publisher=Stockholm Environment Institute |date=June 2021 |url=https://www.sei.org/wp-content/uploads/2021/06/210618a-mckay-requena-public-private-partnerships-2106e.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{requena2021publicprivate, author = {Requena, Alicia and Vanhuyse, Fedra and Agerström, Magnus and Nilsson, Astrid and Arra, Venni}, title = {{Public-Private Partnerships}}, institution = {Stockholm Environment Institute}, year = {2021}, month = jun, url = {https://www.sei.org/wp-content/uploads/2021/06/210618a-mckay-requena-public-private-partnerships-2106e.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }