RENEGOTIATION OF INFRASTRUCTURE CONCESSIONS: AN OVERVIEW

J. Luis Guasch and Stephane Straub

Annals of Public and Cooperative Economics, 2006, vol. 77, issue 4, 479-493

Abstract: ABSTRACT**: Numerous renegotiations have plagued Latin American infrastructure concession contracts in the 1990s, to the point that private sector involvement is being questioned in some countries. This issue has been analyzed in a series of papers by Guasch et al. (2003, 2006a, 2006b). After putting these contributions in the context of the theoretical and empirical literature on contract renegotiation, this note surveys the existing evidence on the determinants of these renegotiations and discusses the main policy implications regarding the necessity of efficient regulatory institutions and the adequate type of price regulation.

Date: 2006
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