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Norway

In: Handbook on Public–Private Partnerships in International Infrastructure Development

Author

Listed:
  • Paulos Abebe Wondimu
  • Ole Jonny Klakegg
  • Agnar Johansen
  • Espen Solheim-Kile
  • Anne Live Vaagaasar

Abstract

From 2010 onwards municipalities and regional governments used PPP in housing, schools, and cultural sectors. In the transport sector a second wave of pilot road projects uses PPP from 2018. PPP as a delivery model is still contested and highly politicized. The less successful PPP project in the Norwegian chapter is found in the first wave of pilot projects. The E18 Grimstad-Kristiansand highway project is chosen because it illustrates some typical challenges: being delivered on time, budget, and quality with positive societal effects. The most important negative aspect of this PPP project is that the main contractor lost significant amounts of money on the project, negatively affecting the attractiveness of future public-private partnerships. The more successful PPP project in Norway is found in the second wave of pilot road projects. The Rv 3/25 Løten-Elverum highway project is the latest completed road project in Norway using PPP, completed before schedule, significantly cheaper than budgeted, without any injuries during execution, and recognized as the best PPP transport project in the Partnership Awards 2019. Many improvements were based on experiences gained in previous PPP projects, confirming that shortcomings can be remedied. A detailed analysis of the procurement phase shows the importance of good communication and preparations on both the client side and the supplier side. Also, the balance in the contract concerning risk allocation and payment mechanisms in this case shows important improvements compared to earlier PPP projects in Norway.

Suggested Citation

  • Paulos Abebe Wondimu & Ole Jonny Klakegg & Agnar Johansen & Espen Solheim-Kile & Anne Live Vaagaasar, 2024. "Norway," Chapters, in: Stewart R. Clegg & Yongjian Ke & Ganesh Devkar & Vince Mangioni & Shankar Sankaran (ed.), Handbook on Public–Private Partnerships in International Infrastructure Development, chapter 7, pages 162-213, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19554_7
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    File URL: https://www.elgaronline.com/doi/10.4337/9781839102769.00013
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