Private Sector Participation in Infrastructure Investment

rivate participation in the provision of infrastructure is less than was once expected, particularly in developing countries. Some reasons for this are identified in this paper. It is argued that the problem of dealing with market power in the provision of infrastructure services is similar to that of other forms of procurement in the presence of long-lived and immobile assets employed specifically to produce an item or service. From this perspective, comments are offered on the inhibitors to private participation and on features of contract design that might limit impediments to private investment in this sector. P