We strongly advocate appropriate sharing and retention of risk between the private and public sectors in infrastructure projects. PPPs can take a wide variety of forms with varying involvement of the private sector and with varying degree of risk transfer from government to the private sector. Properly implemented, PPPs and PFIs transfer risk from the public sector to entities that may be better qualified to bear it as well as be better qualified to reduce costs and create better service delivery outcomes. It also frees government resources and public funds to address pressing social problems or to develop projects that are less attractive to private investors. Issues that inevitably feature in policy discussions relate to economic transfers and distributional effects, e.g., who benefits and at what costs to others, rents, accountability, regional development, jobs, prices and tariffs.