Government Concession Contracts in Chile: The Role of Competition in the Bidding Process
AbstractOver the last 12 years, Chile has been very successful in attracting private participation into the provision of Public Infrastructure. Private capital has gone into road infrastructure, ports and airports all over the country in the form of Concessions. The aim of the 1991 Concession Law, and that of the specific contracts associated with each project, has been to provide much-needed infrastructure efficiently and without committing government resources better employed elsewhere. Using the contracts of four infrastructure projects involving the private sector in Chile, we show that even though these projects and the Concessions Program are positively evaluated, design flaws in the auction setup directly or indirectly reduced competition in the bidding process, negatively affected performance, created incentives for ex-post renegotiation and precluded welfare maximization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Instituto de Economia. Pontificia Universidad Católica de Chile. in its series Documentos de Trabajo with number 258.
Date of creation: 2003
Date of revision:
Publication status: Published as "Government Concession Contracts in Chile: The Role of Competition in the Bidding Process", Economic Development and Cultural Change (revista ISI), octubre, Vol. 53 NÂº 1, pp. 215-234, 2004.
Contracts; concessions; bidding;
Other versions of this item:
- Paredes, Ricardo D & Sanchez, Jose Miguel, 2004. "Government Concession Contracts in Chile: The Role of Competition in the Bidding Process," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 215-34, October.
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Isidro Hernández, 2003. "Las privatizaciones en Colombia," REVISTA APUNTES DEL CENES, UNIVERSIDAD PEDAGOGICA Y TECNOLOGICA DE COLOMBIA.
- Ricardo D.Paredes & Luis I.Rizzi & Javier Valenzuela, 2006. "¿Cazabobos o salvavidas? : la economía política de los fotorradares en Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 33(2 Year 20), pages 97-116, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amparo García).
If references are entirely missing, you can add them using this form.