An abundance of theoretical and empirical evidence recognizes the vital role of infrastructure to stimulate and sustain economic growth
Stable power supplies, paved roads, and advanced information and communication technology (ICT) infrastructure improves productivity and competitiveness.
One may expect that the PPP's impact mainly lies on the delivery of public infrastructure. Infrastructure is widely recognized as one of the critical factors that could determine a country’s economic success. Road and rail networks, power supply, and internet connectivity improve productivity and competitiveness. They prevent bottlenecks and remove barriers, thus facilitating movements of goods and people, enhancing the means of communication, improving health and education outcomes, to name a few.
Empirical evidence indicates a significant positive macroeconomic contribution of PPPs. Following on from this, PPPs—and especially social and pro-poor infrastructure—has an essential role to play in efforts to reduce poverty by improving access to infrastructure and markets.