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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


  • 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)


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.

Suggested Citation

  • Brenck, Andreas & Beckers, Thorsten & Heinrich, Maria & von Hirschhausen, Christian, 2005. "Public-private partnerships in new EU member countries of Central and Eastern Europe: An economic analysis with case studies from the highway sector," EIB Papers 10/2005, European Investment Bank, Economics Department.
  • Handle: RePEc:ris:eibpap:2005_010

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    References listed on IDEAS

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    4. Eduardo M.R.A. Engel & Ronald Fischer & Alexander Galetovic, 2003. "Privatizing Highways in Latin America: Is It Possible to Fix What Went Wrong?," Working Papers 866, Economic Growth Center, Yale University.
    5. Antonio Estache, 2001. "Privatization and Regulation of Transport Infrastructure in the 1990s'," ULB Institutional Repository 2013/43998, ULB -- Universite Libre de Bruxelles.
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    7. Spackman, Michael, 2002. "Public-private partnerships: lessons from the British approach," Economic Systems, Elsevier, vol. 26(3), pages 283-301, September.
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    9. Estache, Antonio & Serebrisky, Tomas, 2004. "Where do we stand on transport infrastructure deregulation and public-private partnership?," Policy Research Working Paper Series 3356, The World Bank.
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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.
    2. repec:eee:transa:v:105:y:2017:i:c:p:79-94 is not listed on IDEAS
    3. Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), 2012. "Infrastructure for Asian Connectivity," Books, Edward Elgar Publishing, number 14819.
    4. ., 2012. "Public–private partnerships for regional infrastructure: lessons from the European Union," Chapters,in: Infrastructure for Asian Connectivity, chapter 12, pages 432-483 Edward Elgar Publishing.
    5. Michael Regan, 2017. "Capital Markets, Infrastructure Investment and Growth in the Asia Pacific Region," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 5(1), pages 1-28, February.

    More about this item


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

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy


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