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Governance of public-private partnerships: Lessons learned from an Albanian case

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  • Turhani, Ali

Abstract

Service infrastructure public-private partnerships (PPPs) in Albania have revealed significant governance problems. The aim of this research is to examine the technical-rational and social contractual issues of PPPs within the broad context of risk, and accordingly propose a governance framework. The research builds on international PPP literature to develop an analytical conceptualization. It uses document review and interviews to construct a case study of a Concession Contract for the Water Supply in Elbasan, Albania, which became operational in October 2002 and failed in December 2007. The research indicates that failure within this so-called PPP largely occurred within the technical-rational governance system due to unforeseen risks. This led to a breakdown in the social contract, through political risk. It is required a governance system that enhances risk assessment and diminishes the likelihood of negative political behaviors.

Suggested Citation

  • Turhani, Ali, 2013. "Governance of public-private partnerships: Lessons learned from an Albanian case," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 18(3), pages 371-385.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2013_03_turhani
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    Keywords

    governance; public-private partnerships (PPPs); social contract; sociality; risk;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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