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Public Private Partnership as a Last Resort for Traditional Public Procurement


  • Viktorija Bojović

    () (Department for European Economics and Business, Faculty of Economics in Subotica, Serbia)


This paper discusses recent changes in the way public services are delivered. A marked increase in the cooperation between the public and private sector in the realisation of complex projects, mostly concerning development of infrastructure, is the main characteristic of present-day developing economies. The creation of new, innovative agreements is driven by the limitation of public funds and an ever-growing demand for an increase in the quality of public services. Looking upon the western economies experience, alternatives to the traditional public sector procurement are identified in the public/private partnership. The public/private partnership can be seen as one component in the rearrangement of the public sector with a management culture that focuses on the citizen or customer. Also included in this are accountability for results, investigation of a wide variety of alternative service delivery mechanisms, and competition between public and private bodies for contracts to deliver services consistent with cost recovery and the achievement of value for money. The partnership can be realised through an array of models and in this paper priority is given to the DBFO (design-build-finance-operate) model, due to its importance in implementation. The DBFO model is considered to be a synonym for the public/private partnership, as it is the most suitable for complex projects and gains the most benefits.

Suggested Citation

  • Viktorija Bojović, 2006. "Public Private Partnership as a Last Resort for Traditional Public Procurement," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 53(3), pages 299-311, September.
  • Handle: RePEc:voj:journl:v:53:y:2006:i:3:p:299-311

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    References listed on IDEAS

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    More about this item


    Public private partnership; Public procurement; New public management; DBFO model (design-build-finance-operate);

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance


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