In the realm of infrastructure development, particularly in the context of broadband infrastructure, Public-Private Partnerships (PPPs) have emerged as a significant approach for bridging the gap between public sector needs and private sector expertise. PPPs involve substantial risk sharing between public and private entities and are a well-known procurement method for infrastructure development (Hurk & Verhoest, 2014). These partnerships are crucial as they allow for cooperation between the government and private sector, optimizing resource allocation and stimulating private sector participation in critical infrastructure projects (Chimauzom, 2024). PPPs have been identified as key drivers of innovation in large public infrastructure projects such as energy sector, hospitals, courthouses, bridges, highways, airport and port as well as ICT sector (Himmel & Siemiatycki, 2017). They offer a promising and proven tool in many developed countries to attract investment in infrastructure projects.

The success of PPPs depends on a robust framework that ensures transparency, accountability, and responsible management of public funds. This intertwining of public sector accounting and governance in PPPs creates a synergy that safeguards the public interest and delivers valuable infrastructure (Reynaers, 2013).  Furthermore, PPPs offer governments the opportunity to achieve efficiency, innovation, and flexibility in developing better infrastructure and services through mutual agreements at reasonable costs (Yunus et al., 2021). By reducing financial pressure on government budgets, accelerating infrastructure construction, and enhancing investment management efficiency, PPP models play a vital role in infrastructure development (Иванов et al., 2023). The collaboration between the government and business entities in infrastructure development, as seen in PPPs, has become increasingly popular worldwide, aligning with the concept of New Public Management (Mandasari & Wahyuni, 2019).

Public sector accounting is fundamental for financial transparency and governance in Public-Private Partnerships (PPPs)

The adoption of International Public Sector Accounting Standards (IPSAS) is crucial for enhancing the quality of financial reporting in public sector entities involved in PPP projects (Oyeshola et al., 2022). Adhering to IPSAS can improve the comparability, accuracy, and transparency of financial information, thereby contributing to the effectiveness and efficiency of public sector entities and preserving their fiscal integrity and credibility (Zoumi, 2023). The application of IPSAS not only enhances the quality of general purpose financial reporting but also increases transparency, fostering greater accountability in the management of PPP projects (Abushamsieh et al., 2014). Adherence to standardized accounting practices ensures that financial transactions related to PPPs are accurately recorded, reported, and scrutinized, promoting trust among stakeholders and safeguarding the public interest.

Moreover, public sector accounting, guided by IPSAS, plays a pivotal role in promoting accountability and transparency in PPP governance. The implementation of accrual-based Public Sector Accounting Standards (APSAS) has gained traction recently, emphasizing the importance of transparent financial reporting in the public sector (Miraj & Wang, 2019). By aligning with IPSAS and APSAS, governments can ensure that PPP projects are evaluated, monitored, and reported in a manner that upholds financial accountability and transparency (Bellanca & Vandernoot, 2013). The harmonization of government financial information systems based on IPSAS principles further enhances transparency in reporting, providing comprehensive information on assets, liabilities, income, and expenditures of the entire public sector (Ijeoma, 2014). Through the application of IPSAS and APSAS, public sector entities can strengthen their financial management practices, improve governance structures, and ultimately enhance accountability and transparency in PPP projects for the benefit of all stakeholders involved.

Conclusions

In conclusion, the incorporation of public sector accounting practices in Public-Private Partnerships (PPPs) is vital for enhancing accountability and transparency in infrastructure development. Adhering to International Public Sector Accounting Standards (IPSAS) and accrual-based Public Sector Accounting Standards (APSAS) ensures high-quality financial reporting, enhancing comparability, accuracy, and transparency in PPP projects. By following standardized accounting practices guided by IPSAS and APSAS, governments can effectively assess, supervise, and disclose information on PPP initiatives, maintaining financial responsibility and transparency. This collaboration between public sector accounting and governance in PPPs not only protects public interests but also builds confidence among stakeholders, leading to successful infrastructure projects. The partnership between public and private sectors in infrastructure development through PPPs, backed by strong financial transparency and accountability, enables governments to achieve efficiency, innovation, and flexibility in delivering essential services while attracting private investments.