Mechanisms for financing investments in PPPs: the case of the health sector in Morocco

Abstract

Public-private partnerships (PPPs) are contractual mechanisms used today to acquire and maintain public infrastructure, mainly in the areas of transport, social sectors, utilities, and professional services. Governments use these partnerships to meet infrastructure needs, deadlines, and budgetary resources, while maintaining the quality of public services. PPPs harness the private sector's capacity for innovation and financing, foster the emergence of national groups and encourage small and medium-sized enterprises. This article focuses on the financing mechanisms for PPP investment projects in the healthcare sector. The authors pose several research questions, including the definition of PPPs, private financing structures, public financing mechanisms and international partnerships in the healthcare sector. To answer these questions, a descriptive approach to the existing literature was adopted. The researchers conducted a literature search to analyse existing work on PPP financing mechanisms, focusing on the healthcare sector. This study delves into the world of financing Public-Private Partnerships (PPPs) within the Moroccan healthcare sector. Through in-depth interviews with 15 project finance managers, we uncover the diverse funding mechanisms employed and their associated strengths, weaknesses, and influencing factors. This exploration sheds light on both challenges and opportunities for financing PPPs in this crucial domain.