The study provides a detailed analysis of experiences in different countries, regarding private participation in key infrastructure sectors, examines the judicial and financial framework, and its impact (and incidence) on infrastructure private participation (IPP). The analysis provided a set of recommendations and actions to be taken to facilitate the Government's elaboration of a strategy for IPP, as well as a medium- and long-term plan of action. Such recommendations were presented, and discussed at a workshop held in Tunisia on December 2003 (volume 2). The study was implemented in two phases: 1) diagnostic phase at the sectoral level; and, 2) the second phase, covering the horizontal levels of IPP, and the preparation of an IPP strategy and plan of action. Overall, the objectives to be achieved call for improved quality and cost management of public services, accelerated infrastructure development to support growth and employment, improved fiscal administration, knowledge transfer concerning technology innovation and its management, and an approach to stimulate the development of capital markets and private industries within the infrastructure sector nationwide. To attain those objectives the IPP strategy proposes reforms within the long term vision, particularly regarding infrastructure regulation and financial management focused on competitiveness for public service efficiency. Moreover, the report stipulates cost recovery is an essential element within this strategy, as is subsidy rationalization. But new IPP modes need to be introduced to eventually expand applicability, considering the possibility of establishing Design Build Operate/Finance (DBO/DBF) mechanisms, which allow access to public finance, namely bonds. The report reviews in depth the fundamentals and principles of IPP, comparing international standards, advantages, and risks involved.
