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COMCEC Transport and Communications

Outlook 2018

48

sector had the largest share (59.6%) in terms of number of PPI projects and it was followed by

transport sector (22.7%).

Table 15: Distribution of PPI projects by infrastructure sectors (1991-2017)

Sectors

Number of PPI projects

Percentage shares

Energy

5.497

59,6%

Telecom

525

5,7%

Transport

2.095

22,7%

Water and sewerage

1.101

11,9%

Total

9.218

100,0%

Source: Author from the World Bank PPI Database

Table 16, which presents the distribution of PPI projects by their PPI-types during the 1991-

2017 period shows that some variations in PPI-type exist depending on the characteristics of

individual sectors. Table 16 shows that greenfield projects have been the most frequently used

PPI type in energy and telecom sectors whereas transport sector mostly adopted brownfield. On

the other hand, both energy and telecom sectors applied divestitures more frequently than

transport and water and sewerage sectors in both absolute and percentage terms. In addition,

water and sewerage sector used management and lease contracts more than any other sector

did. Among various PPI types, brownfield projects have been the most common form of PPI

investment in the transport sector with a share of 62.3% whereas 29% of the transport PPI

projects has been implemented through greenfield schemes. Divestitures and management and

lease contracts had relatively lower shares, i.e. 4.1% and 4.7%, respectively.

Table 16: Distribution of the PPI projects by PPI-types (1991-2017)

Sector

Brownfield Divestiture

Greenfield

project

Management and

lease contract

Total

Energy

1.035

1.017

3.380

65

5.497

Telecom

8

189

318

10

525

Transport

1.306

85

606

98

2.095

Water and sewerage

440

33

449

179

1.101

TOTAL

2.789

1.324

4.753

352

9.218

Source: Author from the World Bank PPI Database

The changes in the number of transport PPI projects by geographic regions in the 1991-2017

period are presented in Figure 26. In terms of using PPI models in transport projects, South Asia

- with an increasing trend in recent years - and Latin America and the Caribbean are the two

best performing regions whereas Middle East and North Africa and Sub-Saharan Africa

remained at the bottom of the figure. Another interesting feature of the figure is its fluctuant

pattern as a result of regional and global crises which proves that PPI/PPP implementation has

been quite sensitive to economic stability.