Monday October 8 2018
A new report exposing how public private partnerships across the globe have drained the public purse and failed to deliver in the public interest will be launched at the Annual Meetings of the World Bank in Bali this week (Wednesday October 10 at 1.30pm).
History RePPPeated: How public private partnerships are failing has been written by experts across four continents from organisations including Oxfam and the Centre for Financial Accountability in India. They expose the negative impacts of PPPs that have often caused misery to local communities.
The report shows that multilateral development banks, such as the World Bank Group (WBG) have played a leading role in providing advice and finance for PPP projects in different sectors. This is despite the mounting evidence showing that PPPs are expensive, risky and opaque.
Maria Jose Romero, one of the report authors and Policy and Advocacy Manager at the European Network on Debt and Development (Eurodad), said: “This report is a serious wake-up call. It is a collection of devastating stories – most of them resulting in national and international scandals in both developing and developed economies alike.
“Last year we launched a campaign manifesto in which more than 150 civil society organisations from around the world called for an end to the aggressive promotion of PPPs. There is overwhelming evidence of the harm they cause. How many more scandals do we need before a serious rethink takes place?”
The report covers 10 case studies from Colombia, France, India, Indonesia, Lesotho, Liberia, Peru, Spain and Sweden. The sectors investigated include education, health, water and sanitation, energy and infrastructure.
Some of the main findings are:
The case studies include the Queen Mamohato Hospital in Lesotho, which is bleeding government coffers largely through huge costs for the treatment of patients; and the case of Jakarta Water in Indonesia, where two PPP contracts resulted in huge losses for the public water utility, while residents often have to rely on groundwater from community wedge wells, or buy expensive water in jerry cans.
Romero said: “It is time for the World Bank Group, IMF and other institutions to stop repeating past mistakes and instead support countries to find the best financing method for public services. These solutions should be transparent, environmentally and fiscally sustainable, and in line with human rights obligations. The future of many communities depends on this.”
The report recommends that the WBG, the International Monetary Fund (IMF) and other public development banks, together with the governments of wealthy countries that play a leading role in these institutions:
Photos of the case studies are available on request.
To interview Maria Jose Romero please contact: Julia Ravenscroft (based in Brussels) on +32 486356814/ email@example.com OR Martin Atkin (in Bali from Tuesday afternoon October 9) on +44 (0)779 544 3607/ firstname.lastname@example.org.
LAUNCH OF REPORT:
Date: Wednesday October 10th from 13.30 to 15:00
Where: Civil Society Policy Forum, Bandung Room.
Notes to editors: