When and How to Use Public-Private Partnerships in Infrastructure: Lessons from the International Experience

Eduardo Engel, Ronald Fischer and Alexander Galetivoc ()

No 349, Documentos de Trabajo from Centro de Economía Aplicada, Universidad de Chile

Abstract: In the last 30 years public-private partnerships (PPPs) have emerged as a new organizational form to provide public infrastructure. Governments find them attractive because PPPs can be used to avoid fiscal check-and-balances and increase spending. At the same time, PPPs can lead to important efficiency gains, especially for transportation infrastructure. These gains include better maintenance, reduced bureaucratic costs, and filtering white elephants. For these gains to materialize, it is necessary to set up a governance structure, that is more sophisticated than the governance of traditional infrastructure provision. The governance structure can be complemented by variable-term contracts that allocate demand risk efficiently, and by avoiding opportunistic renegotiations, which have been pervasive. The good news is that, based on the experience with PPPs over the last three decades, we have learnt how to cope with these challenges. Por aparecer en: Poterba, J. and Glaezer, E. (eds) "The Economics of Infrastructure Investment", MIT Press. Key words:

Date: 2021
New Economics Papers: this item is included in nep-cta, nep-tre and nep-ure
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Related works:
Chapter: When and How to Use Public-Private Partnerships in Infrastructure: Lessons from the International Experience (2020)
Working Paper: When and How to Use Public-Private Partnerships in Infrastructure: Lessons From the International Experience (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:edj:ceauch:349

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