Evaluating the Role of Public-Private Partnerships (PPPs) in Financing Large-Scale Infrastructure Projects: Implications for Economic Growth and Risk Allocation

Public-Private Partnership’s (PPPs) have assumed an increasing significance as a means to finance large-scale infrastructure projects in developed and developing economies in the face of growing infrastructure deficits and fiscal pressures. The role of PPPs in developing infrastructure finance is critically examined in this study, focusing specifically on their impact on financial sustainability, economic development, and risk sharing. The main objectives are long term financial feasibility of PPP models, macroeconomic impacts of the models, and the risk allocation between public and private parties. Utilizing a review-based method guided by the PRISMA 2020 approach, the scoping review synthesizes peer-reviewed literature (between 2018-2025), and compares among others global comparative reflections from cross-case studies (highlighting the United Kingdom, India, Nigeria, Chile and the United Arab Emirates). The study finds that successful PPPs are characterized by equitable risk sharing regimens, robust regulatory regimes and flexible contractual arrangements. Financial sustainability is closely interconnected with robust life cycle costing, VGF and PBIs. Furthermore, where they are well aligned with national development strategy, PPPs can deliver real economic growth benefits, in terms of jobs and productivity. The paper adds to the academic debate by reconciling the gap between literature and practice, while it identifies the institutional and contractual sizing of PPP success, and putting forward a number of concrete policy advices for governments and supranational organizations. It also identifies limitations or not enough risk management and capacity in AI and digital technologies in contract monitoring and governing that need further research.