A Systematic Review of Project Finance and Public Private Partnership Structures for Infrastructure Development

This systematic review examines project finance and public–private partnership (PPP) structures as critical mechanisms for delivering infrastructure in developed and developing economies. Infrastructure financing gaps, fiscal constraints, and rising demand for resilient assets have increased reliance on private capital, risk sharing, and long-term contractual arrangements. The review synthesizes peer-reviewed journal articles, policy reports, and multilateral development institution publications published between 2000 and 2024, applying PRISMA-based selection criteria to identify, screen, and analyze relevant studies. The objectives are to evaluate dominant project finance models, compare PPP typologies, assess risk allocation practices, and identify governance, financial, and institutional factors influencing project performance. Findings indicate that non-recourse and limited-recourse project finance structures remain central to large-scale transport, energy, water, and social infrastructure projects, enabling off-balance-sheet financing and enhanced risk segregation. PPP models such as Build–Operate–Transfer, Design–Build–Finance–Operate, and Concession arrangements dominate global practice, with variations shaped by legal frameworks, market maturity, and sectoral characteristics. Effective risk allocation, particularly for construction, demand, regulatory, and political risks, emerges as a determinant of value for money and long-term sustainability. The review further highlights the role of government guarantees, viability gap funding, multilateral credit enhancement, and blended finance in improving bankability, especially in emerging markets. However, persistent challenges are identified, including high transaction costs, contract rigidity, renegotiation risks, weak institutional capacity, and public opposition linked to transparency and affordability concerns. Evidence suggests that poorly designed PPPs can exacerbate fiscal risks when contingent liabilities are inadequately managed. The review underscores the importance of robust project preparation, transparent procurement, standardized contracts, and strong regulatory oversight. It also identifies emerging trends, including green PPPs, infrastructure funds, sustainability-linked finance, and the integration of environmental, social, and governance criteria into project finance decisions. Overall, the review contributes a consolidated framework for understanding how project finance and PPP structures can be optimized to enhance infrastructure delivery, financial sustainability, and public value, offering practical insights for policymakers, investors, and project sponsors. Future research should prioritize comparative empirical evaluations, post-implementation performance metrics, and context-specific policy design to strengthen evidence-based decision-making and improve the developmental impact of infrastructure finance arrangements globally across sectors and income groups worldwide.