Publication:
The Seven Sins of Flawed Public-Private Partnerships

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dc.contributor.authorRudolph, Heinz
dc.contributor.authorde la Torre, Augusto
dc.date.accessioned2016-01-07T21:38:43Z
dc.date.available2016-01-07T21:38:43Z
dc.date.issued2015
dc.description.abstractThere are three stakeholders in a public-private partnership (PPP), (a) the government in office, (b) private firms (financial and non-financial) and investors (individual and institutional), and (c) final beneficiaries (taxpayers or users, present and future). The raison detre of PPPs is threefold: (i) to crowd in private firms and investors into projects that they will otherwise not undertake; (ii) to transfer to the private sector a significant part of the risks and costs that the government would otherwise fully absorb; and (iii) to ensure that the projects efficiency/quality is at least equal to that obtained if the government alone carried all costs and risks. Important (yet often ignored) implications follow. First, outsourcing (e.g., construction and maintenance) to the private sector does not by itself constitute a PPP if all risks and costs are, in one way or another, still borne by the government. Second, a PPP does not reduce total risk; it simply distributes it differently, involving private sector firms and investors. Third, the total costs borne by the final beneficiaries would be lower under a PPP (compared to a project whose costs and risks rest completely in the governments balance sheet) only if the PPP achieves efficiency gains; otherwise, what beneficiaries save in taxes they will pay in user fees, although, under a PPP, more of the costs would be assigned to direct beneficiaries/users, than to taxpayers at large. Fourth, that a PPP can provide (cash) budget relief may be a welcome corollary for the government in office but it is not a core objective of a PPP.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/12/25674410/seven-sins-flawed-public-private-partnerships
dc.identifier.doi10.1596/23595
dc.identifier.urihttps://hdl.handle.net/10986/23595
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAUCTION
dc.subjectCONTINGENT LIABILITIES
dc.subjectCAPITAL MARKETS
dc.subjectFINANCIAL SERVICES
dc.subjectHOLDING
dc.subjectBROKERAGE
dc.subjectLIABILITY
dc.subjectACCOUNTING
dc.subjectCHECKS
dc.subjectPUBLIC-PRIVATE PARTNERSHIPS
dc.subjectFUND MANAGERS
dc.subjectINTEREST
dc.subjectINSTITUTIONAL INVESTORS
dc.subjectLIFE INSURANCE
dc.subjectGUARANTEES
dc.subjectLONG-TERM FINANCE
dc.subjectSAVINGS ACCOUNTS
dc.subjectEXCHANGE
dc.subjectDISCOUNT RATE
dc.subjectCAPITAL BASE
dc.subjectLIQUIDITY
dc.subjectLONG-TERM LIABILITIES
dc.subjectFIXED ANNUITIES
dc.subjectCAPITAL STRUCTURES
dc.subjectREVENUES
dc.subjectCAPITAL STRUCTURE
dc.subjectREGULATOR
dc.subjectDEFAULT RISK
dc.subjectBONDS
dc.subjectLOAN
dc.subjectDISCOUNT
dc.subjectRENEGOTIATION
dc.subjectSUBSIDY
dc.subjectPRICE
dc.subjectSAVING
dc.subjectBENEFICIARIES
dc.subjectGOVERNMENT GUARANTEES
dc.subjectPENSION
dc.subjectCREDITOR
dc.subjectDISPUTE RESOLUTION
dc.subjectBUDGET
dc.subjectCONCESSION
dc.subjectLONG-TERM ASSET
dc.subjectMARKET LIQUIDITY
dc.subjectINVESTMENT HORIZONS
dc.subjectINSTITUTIONAL INVESTOR
dc.subjectPRIVATE CREDITOR
dc.subjectDISPUTE RESOLUTION MECHANISM
dc.subjectSAVINGS
dc.subjectPUBLIC-PRIVATE PARTNERSHIP
dc.subjectCONCESSION CONTRACT
dc.subjectCURRENCY
dc.subjectCONTRACT RENEGOTIATION
dc.subjectINFRASTRUCTURE PROJECT
dc.subjectCONTRACTS
dc.subjectPRIVATIZATIONS
dc.subjectOPTIONS
dc.subjectMARKETS
dc.subjectDEBT
dc.subjectRETURN
dc.subjectPUBLIC FINANCE
dc.subjectNEGOTIATIONS
dc.subjectLIFE INSURANCE COMPANIES
dc.subjectBREACH OF CONTRACT
dc.subjectLOANS
dc.subjectSECONDARY MARKET LIQUIDITY
dc.subjectRISK SHARING
dc.subjectPENSION FUNDS
dc.subjectFINANCIAL SYSTEM
dc.subjectDUE DILIGENCE
dc.subjectSUBSIDIES
dc.subjectFINANCE
dc.subjectTAXES
dc.subjectCONTINGENT LIABILITY
dc.subjectINVESTORS
dc.subjectSYSTEMIC RISKS
dc.subjectGOOD
dc.subjectJURISDICTION
dc.subjectPROCUREMENT
dc.subjectDISCLOSURE STANDARDS
dc.subjectSOVEREIGN RISK
dc.subjectFUTURE
dc.subjectGOVERNMENT GUARANTEE
dc.subjectCONFLICTS OF INTEREST
dc.subjectCONCESSIONS
dc.subjectBOND MARKET
dc.subjectCONTRACT
dc.subjectINFRASTRUCTURE BONDS
dc.subjectBIDS
dc.subjectBALANCE SHEET
dc.subjectMARKET
dc.subjectDEFAULT
dc.subjectINFRASTRUCTURE PROJECTS
dc.subjectLOCAL CURRENCY
dc.subjectFINANCIAL CONTRACTS
dc.subjectGOVERNANCE
dc.subjectRENEGOTIATIONS
dc.subjectINFRASTRUCTURE CONCESSIONS
dc.subjectINSURANCE
dc.subjectECONOMIC DEVELOPMENT
dc.subjectGOVERNMENT BONDS
dc.subjectINTERESTS
dc.subjectINVESTOR
dc.subjectMISSING MARKET
dc.subjectMUTUAL FUND
dc.subjectINVESTMENT
dc.subjectRATES OF RETURN
dc.subjectBOND
dc.subjectCOMMERCIAL BANKS
dc.subjectCONTRACTUAL OBLIGATION
dc.subjectINFRASTRUCTURE BOND
dc.subjectINFRASTRUCTURE FINANCE
dc.subjectFINANCIAL ASSETS
dc.subjectPRIVATE INVESTORS
dc.subjectBID
dc.subjectCOORDINATION FAILURES
dc.subjectPROFIT
dc.subjectRESOLUTION MECHANISM
dc.subjectCONTRACT RENEGOTIATIONS
dc.subjectSUPERVISORY AGENCY
dc.subjectPENSION FUND
dc.subjectLONG-TERM INVESTORS
dc.subjectINSURANCE COMPANIES
dc.subjectLEVERAGE
dc.subjectEXCHANGE RATE
dc.subjectINSTITUTIONAL FRAMEWORK
dc.subjectSECONDARY MARKET
dc.subjectFINANCIAL SYSTEMS
dc.subjectLIABILITIES
dc.subjectLONG TERM FINANCE
dc.subjectOUTSOURCING
dc.subjectFINANCIAL SERVICES INDUSTRY
dc.subjectGUARANTEE
dc.subjectLONG-TERM ASSETS
dc.subjectUNDERDEVELOPED FINANCIAL SYSTEMS
dc.subjectEXCHANGE RATE REGIMES
dc.subjectFAIR PRICE
dc.subjectASSET MANAGERS
dc.titleThe Seven Sins of Flawed Public-Private Partnershipsen
dc.title.alternativeLos siete pecados de la deficiente colaboración público-privadaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Seven Sins of Flawed Public-Private Partnerships
okr.date.disclosure2015-12-15
okr.date.doiregistration2025-05-05T11:27:03.272093Z
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2015/12/25674410/seven-sins-flawed-public-private-partnerships
okr.guid235741468180535650
okr.guid191831468186273847
okr.identifier.externaldocumentum090224b084187c22_3_0
okr.identifier.internaldocumentum25674410
okr.identifier.report102050
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/12/15/090224b083c5da28/1_0/Rendered/PDF/The0seven0sins0private0partnerships.pdfen
okr.region.administrativeLatin America & Caribbean
okr.topicInfrastructure Economics and Finance::Private Participation in Infrastructure
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Emerging Markets
okr.unitChief Economist (LCRCE)
relation.isAuthorOfPublication35317b87-0569-5cde-bb5e-db1a425e6889
relation.isAuthorOfPublication.latestForDiscovery35317b87-0569-5cde-bb5e-db1a425e6889
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