Governance of Public- Private Collaborations for needs of Czechia: Best Practice in Selected European Countries

This report delves into the pivotal role of Public-Private Collaborations (PPCs) in addressing the substantial infrastructure investment gap in Czechia, drawing on best practices from France, Germany, and the United Kingdom. It offers a comprehensive analysis of the investment gap, evaluating its opportunity costs, economic benefits, and the limitations imposed by public financing.

Infrastructure Investment Gap

Globally, and especially in Central and Eastern Europe, there is a noticeable infrastructure investment gap. This gap represents the difference between current investment levels and the amount required to fulfill societal needs and foster economic growth. Urbanization, population growth, and the necessity for sustainable infrastructure are major contributing factors.

Opportunity Costs

Neglecting this gap incurs significant economic consequences. Inadequate infrastructure investment leads to deteriorating conditions that hinder economic productivity and growth. The European Investment Bank estimates that Europe must invest around €830 billion annually to maintain economic competitiveness, with considerable investments needed particularly in the energy and transportation sectors.

Economic Benefits of Infrastructure Investments

Investing in infrastructure not only boosts productivity and economic growth but also enhances public service delivery. These investments generate employment, stimulate economic activities, and foster innovation and industrial advancement. Research suggests that the returns on infrastructure investments are substantial, underscoring their critical role in achieving long-term economic stability.

Limitations of Public Financing

Czechia faces considerable challenges due to high public debt levels and fiscal constraints, further complicated by EU fiscal regulations that restrict government debt and deficits. These conditions necessitate innovative financing solutions, like PPCs, to effectively bridge the investment gap without worsening fiscal vulnerabilities.

Key Benefits of Public-Private Collaborations

PPCs offer multiple advantages including cost efficiency, enhanced service quality, faster service deployment, and access to cutting-edge technology. These collaborations improve risk management, focus on outcome-based service delivery, and bolster the domestic private sector. By providing value for money and operational efficiency, PPCs play a crucial role in economic diversification.

Read the full report below for an in-depth data analysis, case studies from selected European countries, and expert recommendations.