Launching Public Private Partnerships for Highways in Transition Economies

In many countries the private sector has been involved in financing infrastructure through concessions under a public-private partnership (PPP) program. PPP schemes, however, are somewhat underutilized in transition economies, where the potential financing gaps are significant and growing, and there seems to be an enormous potential for more private sector involvement in the financing and operation of highway assets in these countries. Institutions such as the World Bank can contribute to enhance private financing of road infrastructure through greater use of their guarantee power, in addition to supporting, when required, the public sector contribution to the construction cost of a PPP project through loans. Partial risk guarantees are particularly relevant in the context of seeking more private involvement in the financing of road infrastructure. This paper reviews potential applications of partial risk guarantees, the required legal framework (for example, concession law) for attracting private capital for PPP schemes, possible steps for a country to launch a program of private participation in highways, the concept of greenfield and road maintenance concession programs, and the treatment of unsolicited proposals. It also summarizes potential applications of the World Bank Toolkit for PPP in Highways as an instrument to help decision-makers and practitioners to define the best PPP approach for a specific country.

Bibliographic Details

Main Author:	Queiroz, Cesar
Language:	English en_US
Published:	World Bank, Washington, DC 2005-09
Subjects:	ALLEGATIONS OF CORRUPTION, ARMENIA, ASSETS, AWARD OF CONTRACTS, AZERBAIJAN, BANK, BANK GUARANTEES, BELARUS, BID EVALUATION, BIDDERS, BIDDING FOR CONCESSIONS, BIDS, BOARD OF DIRECTORS, BOOT, BOT, BUILD, BUILD-OWN, CASH FLOW, COMMERCIAL RISK, COMPETITIVE BIDDING, COMPETITIVE BIDDING PROCESS, COMPETITIVE SOLUTIONS, COMPETITIVE TENDER, CONCESSION AGREEMENT, CONCESSION AGREEMENTS, CONCESSION CONTRACT, CONCESSION LAW, CONCESSION PERIOD, CONCESSIONS FOR INFRASTRUCTURE, CONCESSIONS LAW, CONTRACT AWARD, CREDIT, CRITERIA, DEBT, DEBT SERVICE, DEGREE OF COMPLIANCE, DEPRECIATION, DISPUTE RESOLUTION, DISPUTE RESOLUTION PROCEDURES, DUE DILIGENCE, ECONOMIC ANALYSIS, ECONOMIC GROWTH, ECONOMIES IN TRANSITION, ENVIRONMENTAL LIABILITIES, EQUITY INVESTMENTS, EXCEPTIONS, EXPANSION, EXPRESSIONS OF INTEREST, EXPROPRIATION, FEES, FINANCE, FINANCIAL APPRAISAL, FINANCIAL CRISES, FINANCIAL INSTITUTIONS, FINANCIAL RESOURCES, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN PARTICIPATION, GOVERNMENT OBLIGATIONS, GOVERNMENTS, GROSS REVENUE, GUARANTEES, INFRASTRUCTURE, INFRASTRUCTURE CONCESSIONS, INFRASTRUCTURE DEVELOPMENT, INSTITUTIONAL OPTIONS, INSTITUTIONAL STRUCTURE, INTEREST, INTERNATIONAL ARBITRATION, INTERNATIONAL BANK FOR RECONSTRUCTION, INVESTMENT PLANS, LACK OF TRANSPARENCY, LAND, LAWS, LEGAL FRAMEWORK, LEGISLATION, LENDERS, LOANS, MANAGEMENT, MARKETS, MATURITIES, MATURITY, MOLDOVA, NATURAL RESOURCES, NET PRESENT VALUE, NOTE, OPERATE, OPERATING COSTS, OWN, PARTIES, PER, PRESENT VALUE, PRINCIPAL, PRIVATE CAPITAL, PRIVATE COMPANY, PRIVATE FINANCE, PRIVATE FINANCING, PRIVATE INFRASTRUCTURE, PRIVATE INVESTOR, PRIVATE INVESTORS, PRIVATE INVOLVEMENT, PRIVATE PARTICIPATION, PRIVATE PARTNERSHIP, PRIVATE PARTNERSHIPS, PRIVATE RESOURCES, PRIVATE SECTOR, PRIVATE SECTOR COMPANIES, PRIVATE SECTOR FINANCING, PRIVATE SECTOR INVOLVEMENT, PRIVATE SECTOR PARTICIPATION, PRIVATIZATIONS, PROJECT FINANCE, PROJECTS, PROVISION OF INFRASTRUCTURE, PROVISION OF INFRASTRUCTURE SERVICES, PROVISION OF SERVICES, PROVISIONS, PUBLIC, PUBLIC AUTHORITIES, PUBLIC DISCLOSURE, PUBLIC FUNDS, PUBLIC INFORMATION, PUBLIC INFRASTRUCTURE, PUBLIC POLICY, PUBLIC PRIVATE PARTNERSHIPS, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICES, PUBLIC WORKS, PUBLIC-PRIVATE PARTNERSHIPS, REGULATION, REGULATORY ARRANGEMENTS, REGULATORY BODIES, REGULATORY FRAMEWORKS, RETURN ON EQUITY, RISK, ROAD INFRASTRUCTURE, ROADS, SERVICES, SHAREHOLDERS, SUBSIDIES, TARIFFS, TAXES, TECHNICAL ASSISTANCE, TRANSACTION COSTS, TRANSFER, TRANSPARENCY, TRANSPORT, TRANSPORT INFRASTRUCTURE, TREASURY, URBAN DEVELOPMENT, VALUE,
Online Access:	http://documents.worldbank.org/curated/en/2005/09/6363702/launching-public-private-partnerships-highways-transition-economies https://hdl.handle.net/10986/17416
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