Abstract: Public Private Partnerships (PPPs) have been implemented widely around the world to build and manage public infrastructures in sectors such as water, transports, energy, and telecommunications and, more recently, education, health, prisons, and waste. Key aspects of their design are task bundling, long-term contracting, private finance and risk transfer.
In this paper, we briefly discuss how these characteristics constitute the main drivers behind the potential efficiency improvement that PPP may bring about, once an efficient private partner has been selected at competitive conditions. However, we also highlight why these very same factors may affect the extent to which competition for the market can function effectively.

Paper link