Best Practice Report


Public-private collaboration / Enabling green infrastructure and systems

4. Enabling green infrastructure and systems

This section identifies three key lessons for the use of PPCs in advancing investment in green infrastructure:

  1. Governments can use traditional PPP approaches that have proven to work well in areas such as energy, water, transport, and telecommunications in other green growth areas where large ‘public good’ infrastructure is needed but cannot be provided cost effectively by governments alone.
  2. PPCs can also play a critical role in advancing infrastructure development for smaller scale distributed systems, such as that to support smallholder farms, where they seek to overcome financing and other weakest link problems. In cases where infrastructure investments may only benefit certain segments of the population, they can be initiated by both public and private entities, but still benefit from bundling of support.
  3. PPCs can also be used to unleash entrepreneurial innovation in building infrastructure in new growth areas led by the private sector, as in the case of e-commerce services in the agriculture sector.

Development of green infrastructure is fundamental to green growth (Baietti, 2013). As infrastructure investments often have public good characteristics, effective infrastructure supply often requires government intervention. In the case of infrastructure investment for smaller scale distributed systems, there is less of a public good characteristic, and new markets could be initiated by both the public and the private sector. However, collaboration is often important for success.