TY - JOUR T1 - Hybrid Infrastructure PPPs in India: <em>Costs, Benefits, and Emerging Risks</em> JF - The Journal of Structured Finance DO - 10.3905/jsf.2020.1.094 SP - jsf.2020.1.094 AU - James Leigland Y1 - 2020/03/03 UR - https://pm-research.com/content/early/2020/03/03/jsf.2020.1.094.abstract N2 - The performance of infrastructure public-private partnerships (PPPs) in developing countries has been disappointing, as documented by practitioners and academicians. In India, once one of the world’s largest national PPP markets, private sector interest in conventional PPPs has sharply declined since 2012. Across the developing world, governments and development finance institutions have responded by blending more public money into projects to catalyze private sector investment, especially to achieve priority development targets. But how should the public-private financing balance be structured? Should these be private projects, like traditional PPPs, or public projects, owned and managed by governments? India has been exploring these kinds of issues for several years, and hybrid PPP contract models have emerged to optimize this kind of blending. The knowledge gained in that process offers valuable lessons for projects in other developing countries. This article explains the costs, benefits, risks, and wider implications of using these hybrid PPP models.TOPICS: Emerging markets, legal and regulatory issues for structured financeKey Findings• The disappointing performance of infrastructure public-private partnerships (PPPs) in the developing world is now well documented. Governments and development partners have responded by using public money to catalyze private investment, especially to achieve priority development targets.• The best ways of blending public and private money are not yet clear. Should these be private projects, like traditional PPPs, or public projects, owned and managed by governments? India has developed hybrid PPPs to optimize this kind of blending.• India’s experience with hybrid PPP models offers valuable lessons for projects in other developing countries but have not yet attracted much attention outside India. This article reviews the costs, benefits, risks, and implications of these hybrids. ER -