A number of developing countries have liberalised and privatised infrastructure activities and the private sector is increasingly tasked to deliver and fund public services.  Private sector participation (PSP) solutions are, however, very difficult to implement, particularly in the poorer countries.  PSP can address the implementation weakness of governments and private sector finance can supplement or replace scarce public sector resources.  However, the involvement of the private sector is not a panacea.  PSP approaches need to be combined with the introduction of competition, or where it is not possible, effective regulation to ensure providers are incentivised to achieve efficiency gains that are passed on to consumers.  Second, the interface between the public and private sectors must be carefully designed to marry the development objectives of the governments with the private sector’s need for a rate of return, that compensates it for the risks assumed.

The difficulties of infrastructure development are well documented.  However, solutions are not easily achieved.  It is the intention of ICOM to contribute to solving these problems in infrastructure implementation.  This will be done in two ways.  First, providing action learning programmes for the public and private sectors involved in infrastructure.  Second, in creating INFRASTRUCTURE DEVELOPMENT INSTITUTES (IDI) in specific countries to become centres of excellence in delivering development programmes and researching the process of delivering infrastructure projects.