Opportunities for Public-Private Partnerships

Dangis Gudelis, Vilma Rozenbergaitė


In the last two decades various countries of the world have shown a growing interest in Public-Private Partnerships. A Public–Private Partnership (PPP) is a partnership between the public and private sector for the purpose of delivering a project or service traditionally provided by the public sector. This article develops arguments for the choice of various Public-Private Partnership arrangements taking into account various factors that affect the balance between costs and benefits of each alternative of public service provision and infrastructure development. The factors derived of premises of the new institutional economics and theories of public finance are the nature of good provided, positive externalities, transaction costs, management costs, risk costs, and interest rates. The next part of the article deals with experience of various countries of the world in developing PPP policy and implementing successful PPP projects. In the last part of the article the legal environment for PPP implementation as well as obstacles and opportunities for successful PPP projects in Lithuania are discussed.


Public-Private Partnership (PPP); Public Finance Initiative (PFI); Public Sector Comparator; concession; lease; distribution of risk; transaction costs; positive externalities; public goods

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"Public Policy and Administration" ISSN online 2029-2872 / ISSN print 1648-2603