Economics at your fingertips  

Myopic PPPs: Risk allocation and hidden liabilities for taxpayers and users

Germà Bel (), Bel-Piñana, Paula and Jordi Rosell

Utilities Policy, 2017, vol. 48, issue C, 147-156

Abstract: Drawing on evidence from three case studies, we show how the State's Financial Liability has worked in assigning risk in large PPP contracts in Spain. Project failure and the concessionaires' bankruptcy have resulted in the government having to assume heavy financial obligations, which have ultimately been absorbed by taxpayers and users. In contrast, Spain's leading construction companies, which were also major investors in the concessionaires, have been able to minimize their risk. Myopic PPPs have been entered into based on the transference of liabilities to taxpayers and users, and the, consequent, minimization of risks for the main private investors.

Keywords: Public-private partnerships; Concessions; Infrastructure projects; Transportation; Energy (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

Access Statistics for this article

Utilities Policy is currently edited by D. Smith

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2020-01-06
Handle: RePEc:eee:juipol:v:48:y:2017:i:c:p:147-156