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Public-Private Partnerships - A Component of Public Procurement System

Author

Listed:
  • Teodora MANAILA (PADUCEL)

    (The Bucharest Academy of Economic Studies, Romania)

Abstract

While many in the community may remain suspicious of private sector involvement in public infrastructure, the truth is that old concept 'command and control' in the public sector are going to smashes and are being replaced by new interrelationships between government and private sector entities. The purpose of this article is to illustrate that Public Private Partnerships (PPPs) are a way of introducing very different incentives into the procurement process. The theory of PPPs suggests that incentives to productive efficiencies can be introduced into infrastructure procurement by vesting control rights with the private sector, bundling into one contract the design, construction, operation and maintenance of the facility, and by transferring the risk of cost and time overruns to the private partner.

Suggested Citation

  • Teodora MANAILA (PADUCEL), 2011. "Public-Private Partnerships - A Component of Public Procurement System," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(6), pages 435-440, December.
    • Handle: RePEc:rom:rmcimn:v:12:y:2011:i:6:p:435-440
    as

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    File URL: https://rmci.ase.ro/no12vol1s/Vol-12_No-1S_Article-67.pdf
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    References listed on IDEAS

    as
    1. Darrin Grimsey & Mervyn K. Lewis, 2004. "Public Private Partnerships," Books, Edward Elgar Publishing, number 2438.
    2. Blanc-Brude, Frederic & Goldsmith, Hugh & Valila, Timo, 2007. "Ex Ante Construction Costs In The European Road Sector: A Comparison Of Public-Private Partnerships And Traditional Public Procurement," Economic and Financial Reports 2006/1, European Investment Bank, Economics Department.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public – Private Partnerships; Value for Money; Traditional Procurement; Ownership rights; Bundling; Risk transfer.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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