Market-oriented agricultural infrastructure: appraisal of public-private partnerships

Agricultural Management, Marketing and Finance Occasional Paper 23

Market-oriented agricultural infrastructure:
appraisal of public-private partnerships

by
Michael Warner
Director Business and Development Performance Programme
Overseas Development Institute (ODI)
United Kingdom

David Kahan
Senior Officer,
Agricultural Management, Marketing and Finance Service (AGSF)
Rural Infrastructure and Agro-industries Division
Food and Agriculture Organization of the United Nations

Szilvia Lehel
Consultant
Overseas Development Institute (ODI)
United Kingdom

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Food and Agriculture Organization of the United Nations
Rome, 2008

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ISBN 978-92-5-106129-9

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Abstract

This Occasional Paper presents the findings of a study that appraises and compares different models of public-private partnership (PPP) in rural infrastructure development. The study was commissioned by the Rural Infrastructure and Agro-Industries (AGS) Division of FAO, under its normative programme on Rural Infrastructure Development. It contributes to the identification of public-private models for different categories of market-oriented infrastructure for agricultural development. It specifically looks at five types of infrastructure categories: (i) farm to market roads; (ii) water for irrigation; (iii) wholesale markets and trading centres; (iv) agroprocessing facilities; and (v) information and communications technology.

The paper is based on a review of 35 public-private partnership projects as they relate to the provision of “hard” and “soft” infrastructure for market-oriented agricultural development. The study describes the rising demand for new investment in rural infrastructure and identifies some of the failures to date in engaging the private sector successfully in its provision. It also highlights the key financial and institutional “building blocks” of public-private partnerships. In particular in sections 4 to 8, a range of models for public private partnerships is presented and analysed for their success factors, innovations and weaknesses, drawn mainly from the case studies commissioned for this study. The final section brings together areas for further research and follow up that can be of strategic interest to organizations involved in market-oriented infrastructure

© FAO 2009