The New Report Coverage
The World Bank initiated the Benchmarking PPP Procurement reports in 2015. The Procuring Infrastructure PPPs 2018 report is a continuation of Benchmarking PPP Procurement 2017 report and has increased its review coverage from 82 to 135 economies. It has also improved on the Benchmarking PPP Procurement 2017 edition by evaluating the laws and regulations of 135 economies in great detail against globally recognized best practices.
The 2018 report also has another valuable goal in that it aims to help governments, partners and stakeholders identify areas for reform to achieve more transparent, competitive, and efficient PPP procurement systems and increase private sector participation in infrastructure and service delivery.
The USA Ranking
The following exhibit is taken from the 2018 report (see page 213) and shows where the USA stands in the procurement of PPPs in 2018. Overall the USA improved its scores in 2018 in comparison to 2017 with one exception.
The USA improved its score in the area of PPP preparation (71/100 in 2017 to 79/100 in 2018). Its score for procurements of PPPs declined (83/100 in 2018 to 74/100 in 2018). The USA still needs to work hard at PPP contract management which showed a small improvement in 2018 (43/100 in 2017 to 57/100 in 2018). It is also important to note that in the area of unsolicited PPP procurements the USA scored perfect scores of 100 in 2017 and 2018.
It should be noted that the PPP enabling environment differs from state to state due to decentralized state PPP laws and implementation practices for non-federal infrastructure projects.
The US ranking provides potential international and domestic PPP investors and developers with insights into the holistic health of the USA PPP enabling environment which is important in the context of the federal government’s efforts to push state governments to fund their own infrastructure projects. The improvement in the 2018 scores over 2017’s scores is encouraging and investors should take note. It will be interesting to see if the 2019 score for procurements improves or continues with a downward trend.
In addition to scores for the USA, additional information on 134 other countries is available in this report.
World Bank – Procuring Infrastructure Public-Private Partnerships 2018 – see link below.
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