NASSAU, BAHAMAS — A recently released report commissioned by the Inter-American Development Bank, which evaluates countries’ capacity to develop efficient and sustainable Public-Private Partnerships (PPPs), ranks The Bahamas 17th out of 26 countries in the Latin American and Caribbean region.
This report, Measuring the Enabling Environment for Public-Private Partnerships in Infrastructure in Latin America and the Caribbean, uses the Infrascope index to assess countries’ abilities to implement sustainable, impact-driven PPPs across infrastructure sectors, including transport, energy, water, sanitation, solid waste management, and social infrastructure. Published since 2009, the 2023/24 edition of Infrascope analyzed data from August to December 2023 and covered 26 countries in the region.
According to the report, “The Bahamas has an overall index score of 38.5 out of 100 (17th of 26 in the region), demonstrating emerging potential in its public-private partnership (PPP) capabilities. The Bahamas has a relatively favorable risk environment and passed a new PPP policy in 2018; however, most institutional aspects of the policy have yet to be implemented.” The report noted that the Bahamas’ 2018 PPP policy provides primary guidance for PPP execution, yet “its implementation remains incomplete, especially in organizational management, agency interaction, and the formation of a dedicated PPP unit. PPP initiatives are overseen by government ministries rather than steering committees or dedicated project teams.”
The report also highlights recent legislative progress in The Bahamas, particularly the 2023 Public Procurement Act, which applies to all projects while deferring to PPP policy for specific regulatory matters. “Members of parliament have also been engaged in reviewing the proposed National Development Plan: Vision2040, which emphasizes expanded utilization and diversity of PPPs. In 2023, the government launched a PPP process to engage private participants to design, build, finance, operate, and maintain 14 Family Island airports,” the report noted.
According to the report, support for PPPs in The Bahamas is strong across major political parties. “There is robust support for PPPs across all major political parties in the Bahamas, reaffirmed by the current prime minister since assuming office in September 2021. The ruling Progressive Liberal Party’s economic plans emphasize public-private collaboration to overcome COVID-19 setbacks, improve housing, advance information technology, and boost job creation,” according to the report.
The Infrascope report, developed by Economist Impact in collaboration with the IDB, evaluates PPP capabilities across more than 100 indicators, emphasizing the need for joint public and private investment in the region to address an estimated $250 billion annual infrastructure gap. Marking its 15th anniversary, Infrascope’s latest edition includes updates addressing resilience, inclusion, performance measurement, impact evaluation, and new sectors such as social infrastructure, covering all 26 IDB borrowing countries.
Several key findings are highlighted in the Infrascope 2023/24 report, showing that PPP investment in infrastructure in Latin America and the Caribbean has grown by over 15 percent, and the number of projects has increased by more than 25 percent since the 2021/22 edition. However, institutional capacity remains a persistent challenge, with only half of the 26 countries having fully operational PPP agencies. Systematic evaluation in most countries is helping develop higher-impact projects, yet sustainability criteria in PPP frameworks are underdeveloped, presenting a significant area for improvement.
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