PUBLIC–PRIVATE PARTNERSHIP IN INFRASTRUCTURE SECTORS: A REDISCOVERED OPTION

Албена Ватралова

doi:10.56497/etj2570103

Articles

PUBLIC–PRIVATE PARTNERSHIP IN INFRASTRUCTURE SECTORS: A REDISCOVERED OPTION

Albena Vatralova — Climate, Atmosphere and Water Research Institute, Bulgarian Academy of Sciences

albenav@cawri.bas.bg

Vol. 70 No. 1 (2025): Issue 1/2025

Published: 26.03.2025

DOI: https://doi.org/10.56497/etj2570103

Abstract

Governments around the world turned to public-private partnerships (PPPs) to design, finance, build and operate infrastructure projects in the 1980s and particularly the 1990s. This increased cooperation between the public and private sectors for the development and operation of infrastructure in a wide range of economic activities was provoked primarily by the limitations of public funds to cover investment needs but also by efforts to increase the quality and efficiency of public services. During the global financial crisis of 2008–2010, interest in PPP models for delivering public services significantly decreased worldwide. Still, there has been sustained attention towards this form of cooperation for the implementation of projects benefitting society on the part of international institutions. Public–private partnership as a management tool entails a paradigm shift from paying for public services to focusing on delivering better services. The present study examines and analyses the essence of PPP. The need for PPP in infrastructure sectors is justified, while its characteristics and main models are also examined. The mechanism of its implementation is described, and the role of the various stakeholders is discussed. Finally, the necessary business environment conditions are formulated, and conclusions regarding the successful implementation of PPPs are drawn.

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JEL Classification

H41, L32, L51, H54, L12, L90, R42

How to Cite

Vatralova, А. (2025). Public-Private Partnership in Infrastructure Sectors: A Rediscovered Option. Economic Thought Journal, 70 (1), 39-54. https://doi.org/10.56497/etj2570103

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