PARIS, France-- Public-private partnerships (PPPs) have become an important tool for governments to attract private finance for infrastructure investments. In the face of tight budgets, PPPs are seen as a means to maintain transport investment and limit public spending at the same time, said the OECD's International Transport Forum.
Experience with PPPs has been mixed, however. Some transport PPP projects have delivered major cost savings, many others have exceeded their budgets. PPPs are prone to overestimating revenues from the investment, and the associated risks often fall on the taxpayer when projects run into financial difficulty.
The report “Better Regulation of Public-Private Partnerships for Transport Infrastructure” released by the International Transport Forum at the OECD, examines the nature of risks and uncertainties associated with different PPP types.
It looks at the practical consequences of transferring risks to private partners, assesses the fiscal impact of PPPs, discusses budget procedures and accounting rules, and reviews the relative merits of tolls, availability payments and regulated asset base models.
The report will be of interest to policy makers, transport planners, regulators, economists, financial institutions, transport researchers and related areas of interest.