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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


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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    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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    1. 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.
    2. Ian Heggie, 1999. "Commercially managed road funds: managing roads like a business, not like a bureaucracy," Transportation, Springer, Springer, vol. 26(1), pages 87-111, February.
    3. 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, Elsevier, vol. 34(3), pages 207-222, April.
    4. Spackman, Michael, 2002. "Public-private partnerships: lessons from the British approach," Economic Systems, Elsevier, Elsevier, vol. 26(3), pages 283-301, September.
    5. Gwilliam, Ken & Shalizi, Zmarak, 1999. "Road Funds, User Charges and Taxes," World Bank Research Observer, World Bank Group, World Bank Group, vol. 14(2), pages 159-85, August.
    6. Jean-Etienne de Bettignies & Thomas W. Ross, 2004. "The Economics of Public-Private Partnerships," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 30(2), pages 135-154, June.
    7. 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.
    8. Eduardo Engel & Alexander Galetovic & Ronald Fischer, 2003. "Privatizing Highways in Latin America: is it Possible to Fix What Went Wrong?," Documentos de Trabajo, Centro de Economía Aplicada, Universidad de Chile 163, Centro de Economía Aplicada, Universidad de Chile.
    9. Mathias Dewatripont & Philippe Aghion & Patrick Rey, 1994. "Renegotiation design with unverifiable information," ULB Institutional Repository 2013/9591, ULB -- Universite Libre de Bruxelles.
    10. 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.
    11. 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, Elsevier, vol. 36(7), pages 659-663, August.
    12. Antonio Estache, 2001. "Privatization and Regulation of Transport Infrastructure in the 1990s'," ULB Institutional Repository 2013/43998, ULB -- Universite Libre de Bruxelles.
    13. Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 1994. "Renegotiation Design with Unverifiable Information," Scholarly Articles 12375014, Harvard University Department of Economics.
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    Cited by:
    1. Metaxas, Theodore & Preza, Elisavet, 2012. "Public- Private Partnerships in Southeastern Europe: The case of Croatia," MPRA Paper 43830, University Library of Munich, Germany.


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