Public-Private Partnerships have emerged as a linchpin in economic development but their success hinges on more than just collaboration. From Kuwait to the Commonwealth, four experts shared what separates bankable projects from policy white elephants.
Public-Private Partnerships (PPPs) have long promised a win-win formula: governments unlock capital and expertise while the private sector accesses new markets under the banner of nation-building. But as a panel of global experts made clear at the Unlocking Investment Through PPPs summit in Nicosia, this promise is often undermined by poor design, political fragility and misplaced expectations. What emerged from the discussion was a nuanced, occasionally candid account of what makes PPPs work – and what still holds them back.
“It’s not just a matter of whether PPPs exist – it’s a question of quality,” said Nayef S. Alhaddad, Chair of the Mena Chapter of the World Association of PPP Units & Professionals (WAPP).
Beyond the acronym
For Atter Hannoura, Director of Egypt’s Ministry of Finance Central PPP Unit, a Public-Private Partnership is not simply a joint venture – it is a formal structure that reassigns, rather than relinquishes, government responsibility. The private sector delivers a traditionally public service but under well-defined parameters of risk, cost recovery, and performance. PPPs typically fall into two categories, he explained: user-paid (such as toll roads and transport systems) and government-paid (including utilities and social infrastructure). In both cases, the public sector’s role shifts from implementer to regulator and monitor. Kamal Patel, Partner, Corporate Finance and Infrastructure at EY, speaking from the UK’s perspective, warned against overly simplistic interpretations. “Some people describe PPPs as joint ventures – but that’s not accurate. It’s far more complex than just saying, ‘let’s work together,’” Patel noted.
Alhaddad sharpened the point further. He noted that many PPPs fail because they are poorly structured, especially when it comes to legal frameworks that unfairly transfer risk to private parties. “That’s a recipe for failure,” he said. “A truly excellent PPP strikes a balance of responsibilities and benefits. It should be bankable, publicly supported, and designed with community impact in mind.”
Economic engine or policy patch?
When asked why PPPs matter for economic development, Patel offered a clear rationale: innovation, efficiency, and access to capital. “The private sector brings design innovation and delivery capability,” he said. “But PPPs also build skills, strengthen local supply chains, and attract foreign direct investment – capital that wouldn’t otherwise be available.” He cited the UK’s early experience with the Private Finance Initiative (PFI), which spurred significant infrastructure growth in the 2000s before political fatigue set in. Ironically, he noted, the UK is now returning to PPPs after a period of stagnation. The implication: PPPs work when governments are willing to do the hard work of structuring them properly.
Suresh Yadav, Senior Director of Trade, Ocean and Natural Resources and Lead of AI and Digital Transformation at The Commonwealth Association – a voluntary association of 56 countries – took a broader view. “PPPs align perfectly with Sustainable Development Goal 17, revitalising global partnerships for development. But implementation is the hard part, especially around risk allocation,” he said. Yadav pointed to India’s ambitious $1.3 trillion national PPP pipeline as a benchmark for coordinated effort. “Governments aren’t designed to take commercial risk,” he noted. “That’s the role of the private sector. The state’s job is to provide governance and credibility. Without that separation, PPPs fail.”
“A PPP is not just a structure – it’s a signal,” Hannoura added. “It tells the market: we are serious, we are ready, and we are here for the long term.”
Risk, politics and pipelines
The experts repeatedly returned to the same fault lines: a lack of political will, underdeveloped project pipelines and asymmetries in capacity between public and private actors.
“PPPs will not fly without political support,” said Hannoura, bluntly. Egypt’s PPP momentum stalled following the 2011 revolution, he explained, only resuming with the return of stable governance. “You need political proofing; otherwise projects are vulnerable to disruption.” The solution, he argued, lies in robust feasibility studies, technically skilled internal teams, and consistent market signalling. “Private investors are looking not just for projects but for a pipeline. If they lose one tender, they’ll try again, if they trust the system,” he said.
Alhaddad added that PPP credibility is easily lost when projects are delayed, cancelled or politicised. “In Kuwait, we’ve had to rebuild trust. That means strengthening state commitment and engaging the next generation. PPPs should be a space for youth, innovation, and entrepreneurship.”
Patel echoed this from the investor’s side. “Bidding is expensive,” he stressed. “If a government pulls out late, that’s a sunk cost – and it hurts their reputation with the whole market. You don’t need hundreds of projects, but you need enough to create continuity and confidence.”
Trial and error
Yadav offered India’s infrastructure boom as a case in point. When the Government set a target of 175GW in renewable energy, the market initially scoffed. But with public commitment came private action – and the pricing of solar and wind was rapidly disrupted. The same logic applies across sectors, he said, from national highways to the Unified Payments Interface (UPI), now processing 17 billion transactions per month. “Investors are willing to take risks when they see clarity, consistency, and commitment,” he said.
Egypt, too, had lessons to share. After early missteps in 2007–08, Hannoura’s team developed stronger frameworks, better feasibility mechanisms and a clear project pipeline. “We made every mistake in the book,” he said, “but we learned.”
“Governments must stop treating PPPs as experiments,” Alhaddad highlighted.
“They are long-term commitments – and should be treated as such.”
The next frontier
“The AI economy alone will add $16 trillion to global GDP by 2030,” said Yadav. “But to unlock that, we need infrastructure: compute power, data centres and connectivity. These are natural fits for PPPs.”
He proposed the creation of an AI-powered global PPP platform, capable of matchmaking investors with structured, de-risked projects. “Think of it as a neural network for infrastructure finance,” he said. “It could bridge the gap between the $150 trillion in capital and the small states that need it.”
But it’s not all about megaprojects. Alhaddad shared a personal anecdote about his struggle to find how many public libraries exist in Cyprus and reflected on Kuwait’s underused state-run libraries. “What if we turned them into digital hubs, e-service centres, co-working spaces?” he asked.
These kinds of small-scale PPPs, he argued, are essential to making the model real for citizens. “You don’t need to start with megaprojects. Begin with local, smart, scalable ideas that connect policy to people,” he emphasised.
From buzzword to blueprint
The consensus was clear: PPPs are not a panacea, but they are a powerful tool, if structured correctly, backed politically and understood socially.
They require discipline, transparency and the willingness to think beyond traditional procurement. But as panellists from across regions and sectors showed, the blueprint for success is no longer elusive – it’s just rarely followed.
“The future of PPPs,” said Yadav, “lies in their credibility. And credibility is a choice.”
PANEL DISCUSSION
What are PPPs and Why are They Important for Economic Development
• Nayef S. Alhaddad, Manager of Research and Strategic Planning, Kuwait
Authority for Partnership Projects (KAPP), Chairman, Middle East and North
Africa Chapter, World Association of PPP Units and Professionals (WAPPP)
• Atter Hannoura, Director of Central PPP Unit, Ministry of Finance, Egypt
• Kamal Patel, Partner, Corporate Finance – Infrastructure, EY
• Suresh Yadav, Senior Director, Trade, Ocean and Natural Resources, Lead,
AI and Digital Transformation, Commonwealth
Moderator: Jean-Christophe Barth-Coullaré, International Mediator,
Executive Director, World Association of PPP Units & Professionals (WAPPP)
Read more about PPPs in the online edition here.
