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A slice or the whole cake? Network ownership, governance and public–private partnerships in Finland

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  • Leviäkangas, Pekka Juhani
  • Nokkala, Marko Juha Mikael
  • Talvitie, Antti Petri

Abstract

This paper discusses and analyses public–private partnership (PPP) options within the framework of different ownership and governance (O&G) models of technical infrastructures. The O&G models in Finland are described and the market layers of ownership, operation, and services are studied. All infrastructure sectors have somewhat different O&G structures and they each have a different market context, not least because of ownership and the market structures that are “on” the infrastructure. Private companies, public companies, state and municipality owned enterprises and purely public-authority-type models can be found. Interestingly, the models seem not to affect too much the cash-based returns to the owners. However, the market structures will probably provide varying prospects for PPPs to be carried out, whether the PPPs are means of procuring projects or outsourcing of formerly public functions. The financial return capacity of the infrastructure is playing a key role. Some infrastructures have already a tradition of “good business” while others are considered as public goods on more or less sustainable grounds. The results imply that for some infrastructures there could be more natural markets for PPPs. The paper gives a topology for different market layers which can be identified for infrastructures and related services and businesses.

Suggested Citation

  • Leviäkangas, Pekka Juhani & Nokkala, Marko Juha Mikael & Talvitie, Antti Petri, 2015. "A slice or the whole cake? Network ownership, governance and public–private partnerships in Finland," Research in Transportation Economics, Elsevier, vol. 49(C), pages 2-13.
  • Handle: RePEc:eee:retrec:v:49:y:2015:i:c:p:2-13
    DOI: 10.1016/j.retrec.2015.04.001
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    References listed on IDEAS

    as
    1. Bitsch, Florian & Buchner, Axel & Kaserer, Christoph, 2010. "Risk, return and cash flow characteristics of infrastructure fund investments," EIB Papers 4/2010, European Investment Bank, Economics Department.
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    Cited by:

    1. Leviäkangas, Pekka & Ojala, Lauri & Töyli, Juuso, 2016. "An integrated ecosystem model for understanding infrastructure PPPs," Utilities Policy, Elsevier, vol. 42(C), pages 10-19.
    2. Merkel, Axel & Sløk-Madsen, Stefan Kirkegaard, 2019. "Lessons from port sector regulatory reforms in Denmark: An analysis of port governance and institutional structure outcomes," Transport Policy, Elsevier, vol. 78(C), pages 31-41.

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    More about this item

    Keywords

    Infrastructure; Ownership; Governance; Public–private-partnership;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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