PPPs and their perspective in South Eastern Europe

• Main Author: Taleski Petar
• Format: Article
• Language: English
• Published: Visoka poslovna škola strukovnih studija, Novi Sad 2012-01-01
• Series: Škola Biznisa
• Subjects: PPPs; fiscal policy; public debt; investment; infrastructure; investment process; private capital; public investment; budget; risk
• Online Access: http://scindeks-clanci.ceon.rs/data/pdf/1451-6551/2012/1451-65511201085T.pdf

Public-private partnerships (PPPs) include the private sector supply of infrastructure assets and services that have traditionally been provided by the government. Additional supply of the private capital and management can make more easier the fiscal constraints on infrastructure investment and the efficiency of the economy should increase. By mentioning all these advantages, PPPs become more and more important instrument around the world and it has to be mentioned that there are programs of PPPs in a number of countries (including Chile, Ireland, Mexico, and the United Kingdom). However, it is important to mention that sometimes PPPs are not more efficient than public investment and government supply of services. The point is to find the reasons for the less efficiency of this kind of projects in some countries. One particular concern is that PPPs could usually be used to by pass the spending controls, and to move public investment off budget and debt off the government balance sheet, while the government still is involved in the risk and faces potentially large fiscal costs.