Public-Private Partnership - Why Should We Insist on its Development?
Warsaw School of Economics (SGH)
September 3, 2008
Bank i Kredyt, No. 5/2008, pp. 50-61, 2008
Public-private partnership is a delivery model for new infrastructure to meet social needs that should only be used where it can be demonstrated that it offers greater value for money for the public sector compared with other forms of procurement. Private sector should only be involved in building and maintenance of public infrastructure if it has such expertise to deliver that can be expected to offer value for money. The appropriate sharing of risk is the key to ensuring that value for money benefits in public-private partnerships are indeed obtained. Transferring risks to the private sector is not an end in itself but it has to force private investors to create a better outcome. It is a key issue to ensure value for money performance in public-private partnership.
Note: Downloadable document is in Polish.
Number of Pages in PDF File: 12
Keywords: public-private partnership, risk sharing in PPP projects, value for money
JEL Classification: R53
Date posted: September 3, 2008