Renegotiations in public-private partnerships: Theory and evidence

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

Regional dimensions of recent investment weakness: Facts, investment needs and policy responses

“…Many countries still lack adequate frameworks for effective public-private partnerships, which can improve the effectiveness of public investment (Engel et al, 2011). Capital market reforms can help channel domestic savings towards private investment (EBRD, 2015).…”

“… Several countries have begun to develop public-private partnership frameworks (Chile, Colombia, Peru). If designed well, these can improve the efficiency of public investment spending (Engel et al, 2011). Vashakmadze E, et al  LAC economies rank low on ease of business startup and tax compliance (South America and Central America), as well as trading across borders and registering property (Caribbean and South America) (World Bank, 2017b).…”

Deciding on Financial Renegotiation in Public-Private Partnership Projects

“…Ho (2006) contends that the fact that the government may bail out a distressed project and renegotiate with the developer in PPP projects can lead to serious opportunism problems in project administration. Engel et al (2014) posit that governments should limit contract renegotiations because they can erase the efficiency gains associated with PPPs. Hasselgren et al (2014) point out that sometimes objective reasons arise that make renegotiation necessary, even in contracts that initially seemed to consider all possible contingencies.…”

Highways to heaven: Infrastructure determinants and trends in Latin America and the Caribbean

“…Various solutions were tried and, in 1997, the government announced a restructuring plan under which it offered to take over the private concessions, assuming all their debt and all their liabilities to third parties (Bloomgarden and Blumenfeld, 2013). Evidence from Chile, Peru, and Colombia has shown that renegotiation of contracts can be substantial, and may end up in higher spending for the government and lower value-for-money when done outside of a competitive tender process (Engel et al, 2014).…”

“…Bitran et al (2013) and Engel et al (2014) studied the renegotiation of contracts in these countries, in a theoretical and empirical setting, focusing mostly on PPPs in the area of transport infrastructure. The incidence of renegotiations in transport has been close to 80% of all contracts during 1980−2000, and this has increased more recently, but has also decreased in countries that have strengthened their PPP frameworks (Guasch et al, 2004).…”