Cross-Border Public-Private Partnerships

Abstract

Cross-border infrastructure comprises facilities that are spatially divided by the border between two or more countries. Due to the ongoing intensification of regional co-operation and economic integration, cross-border infrastructure projects acquire special significance, particularly for landlocked developing countries. These projects require massive investment capital and a coordinated approach, and cross-border public-private partnerships (CPPPs) may serve as a mechanism of such coordination with the participation of private capital. Several dozen cross-border PPP-based infrastructure development projects have already been completed around the world, while only the first steps are being taken in that direction in the Eurasian region. To a large extent, this is because cross-border PPP projects use sophisticated structuring and financing arrangements, and have relatively more extensive risk profiles. That is why the authors have designed a list of principles to govern the operation of cross-border PPPs. Their application will make it possible to accelerate and facilitate the setup and launch of cross-border PPP projects in Eurasia, to reduce related risks in their implementation, and thus contribute to the continued development of regional co-operation and regional economic integration.

Keywords: infrastructure, cross-border infrastructure, public-private partnership, PPP, cross-border PPP, CPPP, key investment mega-projects, EAEU, Central Asia, economic integration

JEL Classification: F15, F21, H54, L32, L92, L94, P33, R11