A Thillai Rajan

Individual studies on the impact of such Private Sector Participation (PSP) have yielded mixed results. This study synthesises evidence on the impact of PSP on access and quality outcomes. Studies to be included for the review were selected using well-defined inclusion, exclusion and quality appraisal criteria. Meta-regression analysis of 90 observations from 17 econometric studies was used to synthesise the evidences. Evidence on access was stronger as compared to that of quality. This indicated that PSP as a tool for improving quality of services has not been effective. Among the three sectors studied, telecom sector showed the strongest evidence of a true empirical effect between access and PSP, indicating that PSP has been an effective strategy to improve telecom access. In the case of electricity and water supply, the evidence indicated a positive and negative impact on access, respectively, though the effect was not significant. Overall, the results suggested that the effectiveness of PSP in improving access and quality in infrastructure services delivery has been limited and underlines the need for creating appropriate monitoring and incentive structures to make PSP interventions more effective in improving outcomes.

Developing countries have been increasingly adopting the Private Sector Participation (PSP) model in the delivery of electricity, telecom and water services. The results from individual studies on the impact of PSP has been mixed. This systematic review synthesizes the evidence on access and quality of services as a result of PSP. Though count of evidence approach shows that PSP is associated with positive impact on outcomes, not all of that can be attributed to PSP. The strength of positive evidence also varies between sectors and outcomes and is strongest for those outcomes where there could be a strong corresponding benefit to the private sector. Narrative synthesis indicated that (i) there are potential trade-offs between different outcomes; (ii) PSP should be accompanied by appropriate regulation, sector reform, and organizational changes to achieve the desired outcomes; (iii) In the absence of specific measures, access to rural and poor areas are adversely affected; and (iv) Unless properly designed, short term focus could dominate long term investment for network expansion and improvement. © 2013 Elsevier Ltd.