IDEAS home Printed from https://ideas.repec.org/a/ate/journl/ajbev5i3-1.html

Opening Argentina to Public-Private Partnerships: Opportunities and Risks for Government Entities and Private Investors

Author

Listed:
  • Ulrich Schüle
  • Franz Liening-Ewert
  • Daniel Schäffer
  • Edith Zeppenfeld

Abstract

Since the presidential elections in November 2015, Argentina’s economic system has shifted back to a more neo-liberal paradigm. After more than 15 years of “neodesarrollismo†characterized by large scepticism towards inward FDI, the country opens up to international investment into infrastructure. With a new law adopted in early 2017, Argentina promotes public-private-partnership (PPP) projects. The expectations in Argentina vary from the belief that inward FDI will significantly contribute to the modernization of infrastructure to the fear that PPP projects will surrender the country to the interest of international capital. Even though the government believes that the ambitious National Infrastructure Plan with intended investment of US-$69bn in transport and energy infrastructure cannot be achieved without PPP projects, a critical analysis of the conditions under which PPP projects may be successfully applied in Argentina, is yet missing. In order to identify such conditions, a triangulation of three research methods was chosen: First, cases in Europe and Latin America were analysed in order to identify key success factors and arrangements correlated with project deficiencies. The focus was on contractual arrangements of risk distribution between stake holders and impediments to cash flow analysis. Second, documentary analysis was applied to examine the regulatory and institutional environment in Argentina. Third, in-depth interviews with 22 experts from Europe and Latin America were conducted. The experts represented the major stake holders in PPP projects: officials from government procurement, lawyers, bank representatives, and managers of project companies and major suppliers. As a result, conditions for a successful application of the PPP concept in Argentina’s road and underground railway infrastructure as well as in integrated waste management systems were derived. The research was carried out in the framework of a bi-national Master program in International Business run by the Hochschule Mainz (Germany) and UCES, Buenos Aires.

Suggested Citation

  • Ulrich Schüle & Franz Liening-Ewert & Daniel Schäffer & Edith Zeppenfeld, 2019. "Opening Argentina to Public-Private Partnerships: Opportunities and Risks for Government Entities and Private Investors," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 5(3), pages 185-206, July.
    • Handle: RePEc:ate:journl:ajbev5i3-1
    DOI: 10.30958/ajbe.5-3-1
    as

    Download full text from publisher

    File URL: https://www.athensjournals.gr/business/2019-5-3-1-Schule.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.30958/ajbe.5-3-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Trujillo, Lourdes & Quinet, Emile & Estache, Antonio, 2002. "Dealing with demand forecasting games in transport privatization," Transport Policy, Elsevier, vol. 9(4), pages 325-334, October.
    2. Bent Flyvbjerg, 2014. "What You Should Know About Megaprojects, and Why: An Overview," Papers 1409.0003, arXiv.org.
    3. Antonio Estache & Stéphane Saussier, 2014. "Public-Private Partnerships and Efficiency: A Short Assessment," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(03), pages 08-13, October.
    4. José Luis Guasch & Daniel Benitez & Irene Portabales & Lincoln Flor, 2014. "The Renegotiation of PPP Contracts: An Overview of its Recent Evolution in Latin America," International Transport Forum Discussion Papers 2014/18, OECD Publishing.
    5. repec:ces:ifodic:v:12:y:2014:i:3:p:19126463 is not listed on IDEAS
    6. Antonio Estache & Stéphane Saussier, 2014. "Public-Private Partnerships and Efficiency: A Short Assessment," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(3), pages 08-13, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schüle, Ulrich & Liening-Ewert, F. & Schäffer, D., 2018. "Opening Argentina to public-private partnerships: Opportunities and risks for government entities and private investors," UASM Discussion Paper Series 8/2018, University of Applied Sciences Mainz.
    2. Athias, Laure & Saussier, Stéphane, 2018. "Are public private partnerships that rigid? And why? Evidence from price provisions in French toll road concession contracts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 174-186.
    3. Solak, Ali Osman, 2025. "Rent-seeking in megaprojects: The case of Turkey's public-private partnerships for roads," Utilities Policy, Elsevier, vol. 96(C).
    4. Antonio Estache & Stéphane Saussier, 2014. "Public-Private Partnerships and Efficiency: A Short Assessment," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(3), pages 08-13, October.
    5. Aidan R. Vining & David L. Weimer, 2016. "The challenges of fractionalized property rights in public‐private hybrid organizations: The good, the bad, and the ugly," Regulation & Governance, John Wiley & Sons, vol. 10(2), pages 161-178, June.
    6. Tang, Longhai & Mahmood, Hamid & Khalid, Samia, 2025. "Examining the impact of structural reforms on energy poverty: A threshold effect of energy affordability," Energy, Elsevier, vol. 320(C).
    7. Recep Emre Ericok, 2023. "Public–Private Partnership Practices in the World and Türkiye: A Numerical Analysis," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 629-661, July.
    8. Antonio Estache & Stéphane Saussier, 2014. "Public-Private Partnerships and Efficiency: A Short Assessment," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(03), pages 08-13, October.
    9. Pierre M. Picard & Ridwan D. Rusli, 2018. "State‐owned firms and private debt," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(5), pages 672-702, October.
    10. Fabre, Anaïs & Straub, Stéphane, 2019. "The Impact of Public-Private Partnerships (PPPs) in Infrastructure, Health and Education: A Review," TSE Working Papers 19-986, Toulouse School of Economics (TSE), revised Sep 2021.
    11. repec:bla:annpce:v:89:y:2018:i:1:p:25-48 is not listed on IDEAS
    12. repec:ces:ifodic:v:12:y:2014:i:3:p:19126463 is not listed on IDEAS
    13. Antonio Estache, 2016. "Institutions for Infrastructure in Developing Countries: What We Know and the Lot We still Need to Know," Working Papers ECARES ECARES 2016-27, ULB -- Universite Libre de Bruxelles.
    14. Schreiner, Lena & Madlener, Reinhard, 2022. "Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany," Energy Economics, Elsevier, vol. 107(C).
    15. Giovanni Esposito & Andrea Terlizzi & François Pichault, 2024. "The Panopticon reloaded: A critical analysis of performance management systems in the trans-European transport network policy," Environment and Planning C, , vol. 42(3), pages 476-498, May.
    16. Walker, Benedikt & Klagge, Britta & Haid, Ravn, 2025. "Spatial planning policies for export-oriented green-hydrogen projects in Chile, Namibia, and South Africa," Land Use Policy, Elsevier, vol. 157(C).
    17. Anna Matas & Ginés de Rus & Stef Proost & Salvador Bertoméu-Sánchez & Antonio Estache, 2018. "The Financing of Infrastructure / La financiación de las infraestructuras / El finançament de les infraestructures," IEB Reports ieb_report_1_2018, Institut d'Economia de Barcelona (IEB).
    18. Tianxiao Zhou & Rong Tan & Thomas Sedlin, 2018. "Planning Modes for Major Transportation Infrastructure Projects (MTIPs): Comparing China and Germany," Sustainability, MDPI, vol. 10(10), pages 1-23, September.
    19. Alexander Budzier & Bent Flyvbjerg & Andi Garavaglia & Andreas Leed, 2019. "Quantitative Cost and Schedule Risk Analysis of Nuclear Waste Storage," Papers 1901.11123, arXiv.org.
    20. Csereklyei, Zsuzsanna & Thurner, Paul W. & Bauer, Alexander & Küchenhoff, Helmut, 2016. "The effect of economic growth, oil prices, and the benefits of reactor standardization: Duration of nuclear power plant construction revisited," Energy Policy, Elsevier, vol. 91(C), pages 49-59.
    21. Crystal COLE, 2017. "Project Management Evolution to Improve Success in Infrastructure Projects," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(4), pages 619-640, December.
    22. Francesco Di Maddaloni & Roya Derakhshan, 2019. "A Leap from Negative to Positive Bond. A Step towards Project Sustainability," Administrative Sciences, MDPI, vol. 9(2), pages 1-19, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ate:journl:ajbev5i3-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Afrodete Papanikou (email available below). General contact details of provider: https://www.athensjournals.gr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.