IAQ and Bond University: A survey of alternative financing mechanisms for PPPs, 2009

Publication Date
31 July 2009

This research report by Infrastructure Association of Queensland and Bond University presents findings from a survey of alternative financing mechanisms for public–private partnerships (PPPs).

It is claimed that the use of PPPs has delivered significant benefits. However, some events in international capital markets have had major impacts on the ongoing rollout of PPPsand have slowed their use.

The report reviews recent literature to examine the performance of PPPs and conducts a survey of prevailing capital market conditions and state investment evaluation. It then critically evaluates the options for state provision of infrastructure and direct financial participation in PPP projects.

It makes six findings on the performance of PPPs that concern the advantages of using the PPP model in its present form; the effect of current capital market conditions; alternative methods for state provision of infrastructure; methods for state financial participation in PPP projects; and the state debt guarantee option, which it claims is the form of state debt participation that best remedies prevailing faults in capital markets, maintains value for money drivers central to the success of the PPP model and attracts lowest risk to the state.