Association for Public Policy Analysis & Management

The multilateral support has become an important source for PPP (public-private partnership) projects in different countries, especially developing countries. However, the literature has not explored the different behavior of multilateral institutions and private partners in choosing such PPP projects. Based on PPI data base from 1996 to 2016, this paper explores the determinant factors of multilateral support on infrastructure PPP projects. The preliminary empirical results show that: (1) higher level of institutional quality has a positive impact on multilateral support on PPP projects. Specifically, countries with higher level of democracy and stronger regulatory capabilities are more attractive for PPP projects; (2) Multilateral financial development institutions tend to support PPP projects in countries with fewer international reserves, and the impact of national financial risks is not obvious; (3) PPP projects with larger private partnership are more likely to get support from multilateral development financial institutions; (4) Factors affecting the multilateral development financial institutions to support the PPP project development varies in sectors and regions. This research has policy implications for understanding the behavior of multilateral institutions in supporting infrastructure projects in developing countries.