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43 Regulation 30 (2020-2021)
Public-Private Partnerships: Some Lessons after 30 Years

handle is hein.journals/rcatorbg43 and id is 184 raw text is: 


30 / Reglacon / FALL -020

















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The savings policymakers usually c/lior these pro/ecis are illusory but

vwell-designed contracts can deliver public benefits.

    BY  EDUARDO ENGEL, RONALD FISCHER, AND ALEXANDER GALETOVIC



               P3s and concessions) emerged in recent decades
               as a new organizarional form ro provide public
               transport infrastruc ure. Around the world,   \\
               traditional provision continues to be the dom-
               inanrt procurement option, but investment in
               PPPs  over the last 30 years has been substan
rial, adding E203 billion of infrastructure spending in Europe
and $S3   billion of spending in developing countries. Most
investments are in roads, seaports, and airports, bur in some
countries investmenr via PPPs has been significant in ocher ypes
of infrastructure, such as hospitals and schools. In comparison,
PP  investments in the United States have been small.
   The post-CC)VID-19 world will probably bring a renewed impe-
tus to PPPs, and it is possible that the United States will jump.
on the bandwagon. The reason is that infrastructure spending -s
seen as a lever to a faster recovery, but fiscal budgets will be tight,
and governments will have accumnulated large ebt burdens. Poli
ticians .1l likely argue that PPPs allow them to increase spending                                        \ \\\
without using scarce tax dollars or incurring additional debt. \                                   \
   Tis argurnent is flawed. In the absence ofeffciency gains, the  \
present value of the fiscal effect of a PPP project is the same as with                \ \\\ \\  \              \
traditional provision of the same project. Consequently, PPPs do

EDUARDO ENGEL and RONALD FISCHERareprofessorsofeconomicsaithe                --
University of Chile in Santiago.ALEXANDERG.ALETOV'IC is asenior felloswat the                          \\\\\'*   \
Universidad Adolfo ibanea in Santiago and a research fellow at the Hoover Insti to- \           \
tin: at Stanford University. This article is condensed from their paper When and  -
H-owto Use Public-Private Parnershipsin inf-astroctere: Lessons fromthe Inter-  II \  \   \\ \\\ \
national Experience, prepared for the 2119 National Bunreaa of Economic Research  \'
Conference on Economics of infrastructure Envestment                                  .     .

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