Public Private Partnerships for Infrastructure and Business Development

Public-Private Partnerships for Infrastructure and Business Funding is ideal for scholars and practitioners who work in the field of public policy design and implementation, finance and banking, and economic development.

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Public Private Partnerships for Infrastructure and Business Development Principles, Practices, and Perspectives

Edited by

STEFANO CASELLI, GUIDO CORBETTA, AND VERONICA VECCHI

PUBLIC PRIVATE PARTNERSHIPS FOR INFRASTRUCTURE AND BUSINESS DEVELOPMENT

Copyright © Stefano Caselli, Guido Corbetta, and Veronica Vecchi, 2015. Softcover reprint of the hardcover 1st edition 2015 978-1-137-48782-7 All rights reserved. First published in 2015 by PALGRAVE MACMILLAN® in the United States— a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-57014-0 ISBN 978-1-137-54148-2 (eBook) DOI 10.1057/9781137541482 Library of Congress Cataloging-in-Publication Data Public private partnerships for infrastructure and business development : principles, practices, and perspectives / edited by Stefano Caselli, Guido Corbetta, Veronica Vecchi. pages cm Includes bibliographical references and index. 1. Public-private sector cooperation. 2. Infrastructure (Economics) 3. Entrepreneurship. I. Caselli, Stefano, 1969– II. Corbetta, Guido. III. Vecchi, Veronica. HD3871.P837 2015 658⬘.046—dc23 A catalogue record of the book is available from the British Library. Design by Newgen Knowledge Works (P) Ltd., Chennai, India. First edition: September 2015 10 9 8 7 6 5 4 3 2 1

2015004486

To Manuela and Mark for their intellectual stimuli and Bruno for his friendship, by Veronica My children, Elisa and Lorenzo, by Stefano My wife, Rossella, by Guido

Contents

List of Figures

ix

List of Tables

xiii

List of Boxes

xv

A Note from the Editors 1 The Public-Private Partnerships’ Framework Veronica Vecchi, Stefano Caselli, and Guido Corbetta

xvii 1

Part I Private Capital for Infrastructure Preface to Part I Gorno Tempini 2 What Drives Private Participation in Infrastructure Developing Countries? Marian Moszoro, Gonzalo Araya, Fernanda Ruiz-Nuñez, and Jordan Schwartz 3 Public Investment as a Driver of Economic Development and Growth: What Is the Appropriate Role of Public-Private Partnerships? Mark Hellowell

15

19

45

4 Preparing and Structuring Bankable PPP Projects Christoph Rothballer and Philipp Gerbert

57

5 International Trends in Infrastructure Finance Raffaele Della Croce and Stefano Gatti

81

6 Attracting Private Investors: The EU Project Bond Initiative and the Case of A11 Motorway Veronica Vecchi, Francesca Casalini, and Stefano Gatti

101

7 Public-Private Partnerships for Transportation: Infrastructure Development in the United States Rick Geddes and J. H. Foote

119

viii

Contents

8 PPP in the Airport In