Public–Private Partnerships for green infrastructures. Tensions and challenges

• Published in: Current opinion in environmental sustainability 2015-02, Vol.12, p.30-34
• Main Author: Koppenjan, Joop FM
• Format: Article
• Language: English
• ISSN: 1877-3435; 1877-3443
• DOI: 10.1016/j.cosust.2014.08.010

•Public–Private Partnership is not without risks and may be a dangerous ally.•Private involvement will not automatically result in the adoption of LCCR technologies.•PPPs for sustainability demand new alliances with other policy sectors.•Sustainable infrastructures may require Public Private Community Partnerships.•A greening is needed of the economy oriented regulation framework of PPPs. Recently, the OECD has suggested to seek private investment to realize and accelerate the realization of low-carbon, climate-resilient (LCCR) infrastructure. One of the options explored was the use of Design, Build, Finance, Maintain and/or Operate (DBFMO) contracts. Since experiences with these forms of Public–Private Partnerships are diverse, making the realization of government's sustainability policies dependent upon these practices is not without risks. In this paper tensions between DBFMO contracts and LCCR-objectives are explored. Engaging in PPPs requires these tensions to be addressed. Governments must ensure that success conditions are in place, like the presence of a sound LCCR policy, potentials for return on investments, and the skills to act as professional client and competent contract and stakeholder manager. Last not least it requires the greening of the predominantly economic oriented regulation framework of PPPs.