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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

Listed:
  • Andreas Brenck

    (Berlin University of Technology)

  • Thorsten Beckers

    (Berlin University of Technology)

  • Maria Heinrich

    (Berlin University of Technology)

  • Christian von Hirschhausen

    (Dresden University of Technology)

Abstract

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

  • Andreas Brenck & Thorsten Beckers & Maria Heinrich & Christian von Hirschhausen, 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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    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. ., 2012. "Public–private partnerships for regional infrastructure: lessons from the European Union," Chapters, in: Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), Infrastructure for Asian Connectivity, chapter 12, pages 432-483, Edward Elgar Publishing.
    3. Glavic, Drazenko & Milos, Mladenovic & Luttinen, Tapio & Cicevic, Svetlana & Trifunovic, Aleksandar, 2017. "Road to price: User perspectives on road pricing in transition country," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 79-94.
    4. Burke, Richard & Demirag, Istemi, 2015. "Changing perceptions on PPP games: Demand risk in Irish roads," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 27(C), pages 189-208.
    5. Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), 2012. "Infrastructure for Asian Connectivity," Books, Edward Elgar Publishing, number 14819, December.
    6. Michael Regan, 2017. "Capital Markets, Infrastructure Investment and Growth in the Asia Pacific Region," IJFS, MDPI, vol. 5(1), pages 1-28, February.

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    More about this item

    Keywords

    public-private partnerships; transport; road pricing; transition countries;
    All these keywords.

    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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