Public-Private Partnerships for green infrastructures. Tensions and challenges

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.