A COMPARATIVE ANALYSIS OF PPP GOVERNANCE IN SELECTED LATIN AMERICAN COUNTRIES: A QUALITATIVE AND QUANTITATIVE APPROACH

This paper aims to propose guidelines for an optimal relationship between a PPP unit and different entities that participate in a PPP process, according to the size of the country and considering the phases of the PPP process. We evaluate the different governance models of this type of alliances in the region. To this end, we analyze the role played in the PPP project cycle by the main public actors (PPP units, Ministries of Finance, Contracting Ministries and the Development Bank). We also seek to quantitatively analyze how the governance of PPPs influences the quality and quantity of projects through the incentives it creates for different actors. After diagnosing and elaborating the guidelines based on the analysis of incentives in institutional frameworks of selected countries, we tested the results considering the INFRASCOPE. This publication contains a ranking of LATAM countries concerning their willingness to carry out PPPs and for this purpose uses variables such as Regulations and Institutions, Project Preparation and Sustainability, Financing, Risk Management and Contract Monitoring, and Performance Evaluation and Impact. This exercise involves using principal component analysis to assess the robustness of the survey. To facilitate the analysis and interpretation, we standardized the scores of the factors assigned to each indicator along the scale from 0 to 100. The result of the exercise indicates that Brazil and Chile are the countries with the best governance conditions for PPPs. Peru, Costa Rica, Colombia, El Salvador and Mexico also have desirable levels of governance.