The Challenging Business of Long-Term Public-Private Partnerships: Reflections on Local Experience

Many widely publicized, long-term, complex contracts between private companies and municipalities are labeled public-private partnerships. Theoretically, cost savings, risk sharing with the private sector, and improved service quality are some of the substantial public benefits offered by these innovative contracts. These long-term contracts, however, in practice pose challenges that can undermine, at the local level, successful implementation. The author draws on illustrative cases to examine some impediments to appropriate innovative long-term contact transparency, effective performance guarantees, equitable risk sharing, and market-driven competition achievement. The author examines partnership model inapplicability to most business and government commercial transactions, uncontrollable circumstance risk, local resource constraint impacts, and long-term contract transparency barriers. The conclusion that when embarking on long-term contracts, strong governance structures, effective contract management, and specialized expertise must be invested in by local governments is reached.

Language

  • English

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 400-411
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01055377
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 23 2007 1:00PM