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Public-Private Partnerships in the New EU Member States

Author

Listed:
  • Nina Budina
  • Hana Polackova Brixi
  • Timothy Irwin

Abstract

Public-private partnerships (PPPs) operate at the boundary of the public and private sectors, being neither fully public nor fully private. PPPs are defined in this paper as privately financed infrastructure projects in which a private firm either: (i) sells its services to the government; or (ii) sells its services to third parties with significant fiscal support in the form of guarantees. Despite these common elements of PPPs across sectors, there are differences in the type of arrangements that are typical in each sector. This study focuses on whether and when using PPPs can create fiscal space for additional infrastructure investments in the EU8. In doing so, the paper will examine the fiscal risks of PPPs and the role of fiscal institutions in this regard, including how these affect the use and design of PPPs and thus the potential for creating fiscal space while promoting investment in infrastructure. Chapter 2 distinguishes the illusory from the real fiscal effects of PPPs. Chapter 3 relates the extent to which PPPs reduce fiscal costs to the nature of fiscal institutions. Chapter 4 explains how fiscal institutions can be improved to encourage fiscal prudence in the use and design of PPPs. Chapter 5 concludes.

Suggested Citation

  • Nina Budina & Hana Polackova Brixi & Timothy Irwin, 2007. "Public-Private Partnerships in the New EU Member States," World Bank Publications - Books, The World Bank Group, number 6743.
    • Handle: RePEc:wbk:wbpubs:6743
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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/6743/405580ECA0Part1LIC0disclosed0Aug271.pdf?sequence=1
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    References listed on IDEAS

    as
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    Cited by:

    1. Baurzhan R. Shakirtkhanov, 2017. "Venture Funds as one of the Major Sources of Investment for Innovative Entrepreneurship in the Republic of Kazakhstan," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 334-347.
    2. Emek, Uğur, 2015. "Turkish experience with public private partnerships in infrastructure: Opportunities and challenges," Utilities Policy, Elsevier, vol. 37(C), pages 120-129.
    3. Gerhard Hammerschmid & Tamyko Ysa, 2010. "Empirical PPP Experiences in Europe: National Variations of a Global Concept," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 15, Edward Elgar Publishing.
    4. Ivailo V. Izvorski & Satu Kahkonen, 2008. "Public Expenditure Policies in Southeast Europe," World Bank Publications - Books, The World Bank Group, number 6370.

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