Developing country governments are increasingly realizing the benefit of involving the private sector in managing and financing of airports to improve service provision. Long-term concessions to private corporations to oversee all or part of the airport's operations are the predominant model today, with governments often taking less risk and a minority shareholding in the venture.
Air transport infrastructure is significant to development. Airports “aviation infrastructure” comprise an essential component of a nation’s infrastructure needs by providing domestic and international links vital to economic development through flows of human capital, commerce and tourism. The development of new tourism markets and enlarging high value added domestic markets via international linkages are especially dependent on the existence of efficient and effective aviation infrastructure.
PPIAF has been helping governments design policies, identify options on how to involve the private sector, address regulatory issues, and manage concessions. PPIAF has also provided funding to produce and disseminate best practices through workshops and publications. Below are some examples of PPIAF support in the airport sector over the last few years.
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In 2005 PPIAF provided funding to review developments in private participation in aviation infrastructure and to synthesize relevant experiences and best practice in respect of aviation infrastructure at a case study level. The publication discusses the development of appropriate private sector participation to optimize the provision of air transport infrastructure aimed primarily at government policy makers in low- and middle-income countries and their advisors. It answers a number of questions such as: When is it appropriate to allocate the responsibilities involved in Air Transport Infrastructure provision to private firms rather than continue to allocate them to governments and their agencies? If policy makers decide to vest certain responsibilities with private firms, what considerations are important during this allocation process? How is it best to achieve the transition and what kinds of private firms should be involved? To read the full publication, please click here. A related gridlines is also available.
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In 2008 PPIAF provided funding to conduct an economic analysis of airport performance benchmarking, regulation, and pricing in Latin America and the Caribbean. The book presents a comprehensive study of how airports in the region have evolved during late 1990s, when several countries implemented innovative public-private partnerships that transferred the financing and management of airports to the private sector. The book analyzes what should be done to reform the airport sector or to attract private participation and focuses on three dimensions of performance: productive efficiency, the governance of the sector, and financing of airport infrastructure and answers several policy questions including: Are Latin American airports technically efficient? How has efficiency evolved in the last decade? Are privately run airports more efficient than state-operated airports? How do independent regulators compare with government agencies in accountability, transparency, and autonomy? How has the level and structure of airport tariffs changed in recent years? To see the full report click here.
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In 2011 PPIAF provided funding to the IFC to host a PPP Seminar Series, which aims to disseminate knowledge on involving the private sector in the delivery of public infrastructure. The conference was designed as a forum for discussion and debate, brought together the public and private sector from various continents, and covered a wide range of themes of interest to airport sector stakeholders. Click here for more information on the conference.