Abstract:

It is role of government to provide infrastructure services to citizens. As the owner of the state infrastructure, the authority is responsible for construction, maintenance, and operation of physical assets such as roads, railways, telecommunication networks, water supply facilities, and electricity supply facilities. The government is additionally accountable for delivering these services with suitable quality to the public. However, financing these investment and conservation projects requires incurring significant expenditures which are beyond the capacities of many developing countries like Cambodia. To overcome an insufficiency of financial and material resources, governments may encourage local and foreign entities to get involved in the provision of infrastructure projects on agreed upon terms. Such cooperation could be complementary to government investment, and serve as a special vehicle to move the country’s infrastructure development forward. However, as a precondition for implementation of the private-public partnership, the government needs to establish a business climate which is conductive to investment and attractive to foreign investors. This can be done with regards to a series of factors such as the country’s political and economic credibility, the existence of domestic capital markets, the establishment of clear and stable rules for land acquisition or competitive biddings, and more (Kumaraswamy i Zhang, 2001). This aim of paper is to analyse the usage of various sources of financing including Private-Public Partnership in infrastructure rehabilitation of developing country on the case of Cambodia.