Prospects and pitfalls of public-private partnerships in the transportation sector: theoretical issues and empirical experience

In this paper, we discuss the prospects and pitfalls of public-private partnerships (PPPs) in the transportation sector, focussing on long-term projects involving investments in new infrastructure for roads and railways. Of particular interest are the various problems related to the sharing of risks between different partners in a PPP project. This includes both the risk sharing between the private and the public sector and the distribution of risk among the involved private firms, such as the members of a consortium but also their relations to banks and similar institutions. The risks of a PPP project are typically related to estimations and forecasts of market development and other factors. We discuss these issues by using the theoretical concepts of lock-in and hold-up problems, and what can be done to avoid them in terms of PPP and contract design. The theoretical discussion and the conclusions of the paper also draw from the gathered empirical experience of previous projects, primarily from European countries. (a) For the covering entry of this conference, please see ITRD abstract no. E215911.

  • Authors:
    • HULTEN, S
  • Publication Date: 2007-8


  • English

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  • Accession Number: 01094862
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ITRD, ATRI
  • Created Date: Apr 25 2008 8:05AM