The Risks and Tricks in Public-Private Partnerships
Elisabetta Iossa,
Giancarlo Spagnolo and
Mercedes Vellez
No 64, IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy
Abstract:
PPPs have been implemented broadly around the world in the infrastructure sector -water and sanitation, transports, energy, and telecommunications- and, more recently, in the provision of public services -education, health, prisons, and water and waste management. Key aspects of the contract design, such as risk allocation and payment mechanisms, significantly affect the PPP outcomes because they affect the incentives of the public and private parties to deliver a public service that satisfies user needs. Nevertheless, contractual provisions used in practice often do not implement the efficient risk allocation. In this paper, we discuss the crucial role of the public sector in designing and imposing standardized contracts, monitoring their compliance, disclosing contractual information to the general public, and transferring risks to the private sector in order to reduce the likelihood of PPP performance failure.
Keywords: Concession contracts; Incentives; Public Private Partnerships; Risk Allocation (search for similar items in EconPapers)
JEL-codes: D02 D20 D82 L33 L38 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2013
New Economics Papers: this item is included in nep-cta, nep-hrm, nep-ppm and nep-reg
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
https://repec.unibocconi.it/iefe/bcu/papers/iefewp64.pdf (application/pdf)
Related works:
Chapter: The Risks and Tricks in Public–Private Partnerships (2014) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bcu:iefewp:iefewp64
Access Statistics for this paper
More papers in IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy Via Röntgen, 1 - 20136 Milano - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Carlotta Milani ().