All Transport
Better Regulation of Public-Private Partnerships for Transport Infrastructure
Roundtable Report, Policy Insights,
24 September 2013
- A mix of financing models spreads risks.
- A dedicated budget for PPPs, set in relation to the rate at which future liabilities will be accumulated, can provide such a limit.
- Explicit consideration of alternative financing arrangements should be employed in determining whether to proceed with PPP projects.
- It is recommended that governments require PPP projects to pass tests of affordability and to clear the hurdle rates of return generally applied to publicly financed transport projects.
- The expected cost of PPP projects should take account of cost inflation resulting from the propensity for projects to be renegotiated.
- At the individual project level, risks should be assigned to the party best able to manage them, along with rights to make related decisions.
- Assigning demand risk is not straightforward and risk sharing arrangements are therefore common.
- Continuity of resources and expertise is essential for addressing strategic behaviour and optimism bias more generally.
- Regulatory agencies are well placed to ensure transparency and accountability by publishing reports on the criteria employed to make decisions and publishing contracts.
Déclaration des Ministres sur le Financement des transports. Sommet annuel 2013
Summit Declaration,
22 May 2013
Effective Regulatory Institutions: The Regulator's Role in the Policy Process, Including Issues of Regulatory Independence
Discussion Paper,
2 December 2010
The Practice of Cost Benefit Analysis in the Transport Sector: A Mexican Perspective
Discussion Paper,
20 October 2010
The Practice of Cost Benefit Analysis in Transport: The Case of France
Discussion Paper,
20 October 2010
Transport Regulation from Theory to Practice: General Observations and a Case Study
Discussion Paper,
30 September 2010
Estimating the Agglomeration Benefits of Transport Investments: Some Tests for Stability
Discussion Paper,
30 June 2010