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Public-private partnerships in new EU member countries of Central and Eastern Europe: An economic analysis with case studies from the highway sector

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Author Info

  • Brenck, Andreas

    () (Berlin University of Technology)

  • Beckers, Thorsten

    () (Berlin University of Technology)

  • Heinrich, Maria

    () (Berlin University of Technology)

  • von Hirschhausen, Christian

    () (Dresden University of Technology)

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    Abstract

    This paper analyses the role of public-private partnerships (PPPs) for infrastructure development in the new EU member states and candidate countries in Central and Eastern Europe. We survey projects in transport, water, energy, and telecommunications sectors and then focus on the highway sector. Based on theoretical considerations and extensive fieldwork in Hungary, Poland, Croatia, and the Czech Republic, we find that PPPs have not been very successful in the region to date. This is mainly due to the unfavourable institutional environment during the transition period, suboptimal project design, and unrealistic demand projections. However, the conditions for successful PPPs have considerably improved, partly due to EU membership, so that PPPs remain an important option for the second generation of infrastructure projects.

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    Bibliographic Info

    Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 10/2005.

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    Length: 30 pages
    Date of creation: 06 Jun 2005
    Date of revision:
    Handle: RePEc:ris:eibpap:2005_010

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    Related research

    Keywords: public-private partnerships; transport; road pricing; transition countries;

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    References

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    1. Antonio Estache, 2001. "Privatization and Regulation of Transport Infrastructure in the 1990s'," ULB Institutional Repository 2013/43998, ULB -- Universite Libre de Bruxelles.
    2. Gwilliam, Ken & Shalizi, Zmarak, 1999. "Road Funds, User Charges and Taxes," World Bank Research Observer, World Bank Group, vol. 14(2), pages 159-85, August.
    3. Hensher, David A. & Goodwin, Phil, 2004. "Using values of travel time savings for toll roads: avoiding some common errors," Transport Policy, Elsevier, vol. 11(2), pages 171-181, April.
    4. Eduardo M. Engel & Ronald D. Fischer & Alexander Galetovic, 2004. "Privatizing Highways in Latin America: Is it Possible to Fix What Went Wrong?," Yale School of Management Working Papers ysm417, Yale School of Management.
    5. Spackman, Michael, 2002. "Public-private partnerships: lessons from the British approach," Economic Systems, Elsevier, vol. 26(3), pages 283-301, September.
    6. Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 1994. "Renegotiation Design with Unverifiable Information," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
    7. Yang, Hai & Meng, Qiang, 2000. "Highway pricing and capacity choice in a road network under a build-operate-transfer scheme," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(3), pages 207-222, April.
    8. Antonio Estache & Tomas Serebrisky, 2004. "Where do We Stand on Transport Infrastructure Deregulation and Public-Private Partnerships?," ULB Institutional Repository 2013/44096, ULB -- Universite Libre de Bruxelles.
    9. Ian Heggie, 1999. "Commercially managed road funds: managing roads like a business, not like a bureaucracy," Transportation, Springer, vol. 26(1), pages 87-111, February.
    10. Trujillo, Lourdes & Quinet, Emile & Estache, Antonio, 2000. "Forecasting the demand for privatized transport - What economic regulators should know, and why," Policy Research Working Paper Series 2446, The World Bank.
    11. Jean-Etienne de Bettignies & Thomas W. Ross, 2004. "The Economics of Public-Private Partnerships," Canadian Public Policy, University of Toronto Press, vol. 30(2), pages 135-154, June.
    12. Yang, Hai & Meng, Qiang, 2002. "A note on "highway pricing and capacity choice in a road network under a build-operate-transfer scheme"," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(7), pages 659-663, August.
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