Efficient transport is a vital component of economic development, globally and nationally. Transport availability affects global development patterns and can be a boost or a barrier to economic growth within individual nations.
Based on the challenges for developing countries, sustainable solutions are needed, as well as a more effective dissemination of existing knowledge and good practices from other regions. These countries also lack the efficient professional capacity to deliver improved service levels. Public-private partnerships can address these capacity gaps and help developing countries build and maintain their transportation networks.
PPIAF assists governments by providing technical assistance to implement traditional public-private partnerships or performance-based management contracts in the transportation sector. Performance-based contracts can emphasize the importance of maintenance by linking the payments for maintenance directly to the quality of the contractor’s performance. Without regular maintenance roads can rapidly deteriorate, limiting the benefits to the population.The experience shows that this type of contract is more efficient than standard method-based contract, based on payment of a lump sum for a specified amount of work, and gives long run savings to governments compared to more traditional public sector approaches.