Government subsidies for private partnerships erode value for taxpayers.
Public-private partnerships involve the private sector providing services usually done by the government. The key is to divide risks between the private firm and the government to ensure good value. In developing countries, private partners often need government support to make projects financially viable. However, this can be costly for taxpayers and reduce value for money. To make partnerships work better, governments should explore sharing risks or taking policy actions before giving fiscal support.