Country context (P3 lens)

Cuba is a middle-income, centrally planned island country in the Caribbean with very limited private participation in infrastructure. Traditional P3s are largely absent due to the state-controlled economy, but the government has recently explored foreign joint ventures and concessions in strategic sectors such as tourism, energy, and transport to mobilize investment and technical expertise. Multilateral involvement is very limited.

Verified sources: World Bank PPP Knowledge Lab, UNDP, IMF, OECD.

Economic and infrastructure conditions

• Economy: Primarily state-controlled, with tourism, agriculture, and services as main sectors; government investment drives most infrastructure projects.

• Infrastructure priorities:

  • Ports, airports, and transport corridors

  • Energy generation, including renewables

  • Water supply, sanitation, and urban utilities

  • Social infrastructure (hospitals, schools, and housing)

• Private sector: Very small; foreign investors participate mostly through joint ventures or government concessions.

Due to limited market liberalization, projects with strong government backing or foreign partnerships are the only feasible private participation models.

Public Private Partnerships framework

Legal and institutional setup

• Cuba does not have a formal P3 legal framework comparable to most countries.

• Foreign investment in infrastructure is structured through:

  • Joint ventures with state-owned enterprises

  • Concessions or management contracts for strategic assets (e.g., hotels, ports)

  • BOT arrangements are occasionally applied in energy projects

Market characteristics

• Private participation is highly selective and state-controlled.

• Projects rely on government guarantees, long-term agreements, and foreign technical expertise.

• Investor participation is almost exclusively international.

Sector experience and opportunities

Transport

• Limited P3 activity; some airport and port management concessions exist for foreign operators.

Energy

• Renewable energy and grid modernization projects occasionally structured with foreign operators under long-term agreements.

Water and municipal services

• Very limited private participation; mostly state-managed.

Social infrastructure

• Joint ventures for tourism, some hospital equipment, or housing modernization may allow private involvement.

Key P3 considerations

• Project preparation: Feasibility and risk analysis are highly state-controlled.

• Risk allocation: Private operators bear operational risks under strict government oversight; fiscal and regulatory risks remain public.

• Institutional capacity: Strong in state-managed projects, but P3 experience is very limited.

• Market depth: Domestic private market is almost nonexistent; foreign investors dominate selective opportunities.

Outlook

Cuba is a very early-stage and highly restricted P3 environment:

• Only feasible in foreign joint ventures, concessions, or BOT arrangements

• Focus sectors: tourism, energy, transport, and selective infrastructure modernization

• Multilateral involvement is limited; government approval is essential for any private participation