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The Concept of Public-Private Partnerships: A New Approach To Transport Infrastructure Financing?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Declercq, Eddy |
| Copyright Year | 1999 |
| Abstract | Implementation of a trans-European transport network is of the highest priority in the European Union. Since inter-European dredging projects are essential to the realisation of a trans-European transport network, the European Dredging Association (EuDA), with the co-operation of Directorate General VII, Transport, sponsored a study to determine the feasibility and form of utilising public-private partnerships. This article is based on the study commissioned by the EuDA and executed by the Centre for Intermodal Research (CIR). Introduction In view of the stringent budgetary constraints in Europe and considering the urgent need to realise many projects for the trans-European transport network, the possibility to combine public and private financing has received renewed interest. The idea of Public-Private Partnerships (PPP) has been studied within the European Union (1997) with the objective to see how they could contribute to the implementation of the transEuropean transport network. THE CONCEPT OF PUBLIC-PRIVATE PARTNERSHIPS Comparing the various approaches to private sector co-financing (World Bank, EU, EIB,...), it is suggested that there are fundamentally common views, as demonstrated in Figure 1, but that perspectives differ from public and private partners. The private partner has a predominantly commercial perspective. Their first interest in participating in PPP’s is to obtain an acceptable return on investment. At present, the risk for the private partner is substantially higher than in traditional public works contracts. The risks are not only related to the financial return (which could eventually be guaranteed by the public authorities), but also to the insecurity of public policy and changing regulations. Both substantially increase the uncertainty/risk of the project and gradually rise in relation to the duration of the project. In many cases, the private sector still shies away from PPPs because the uncertainties (and thus risks) are still too high compared to traditional collaboration forms between the public and private sectors (co-operation). The public-partner prioritises societal needs (e.g., cohesion and integration). Public authorities have a high interest in establishing PPPs to reduce the (financial) risks in large infrastructure projects as well as public Terra et Aqua – Number 75 – June 1999 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.iadc-dredging.com/ul/cms/terraetaqua/document/0/8/4/84/84/1/terra-et-aqua-nr75-05.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
