Private Sector Involvement in Infrastructure Projects

Abstract

Abstract There has been little systematic discussion of the issues associated with private involvement in infrastructure. Analysis of the relative performance of the private and public sector in different phases of infrastructure provision suggests that, in most cases, the private sector will be most efficient in the construction phase but the public sector will be best equipped to handle the risks associated with ownership. The situation is less clear‐cut with respect to operation—a mixture in which core operations are undertaken by the public sector owner with peripheral operations being contracted out may be optimal in many cases.

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