Advantages and Limitations of the Public Private Partnerships and the Possibility of Using Them in Romania

Abstract

Public-private partnership (PPP) is a means for the public sector to complete infrastructure projects by using the skills and the experience of the private sector. In many cases, PPP may also mean that the private sector finances public infrastructure investments. PPPs can present difficult and complex contractual issues for both the public and the private sector partners. The goal of this paper is to emphasize and to analyze the advantages and the risks posed by the publicprivate partnerships starting from the presentation of the experience acquired by the actors involved in the construction and the use of the Channel Tunnel. In addition, the paper aims to analyze the situation of the PPPs in Romania. Taking into consideration that, in the context of accession to the European Union, an increase in the number and importance of the PPP projects was observed at the level of several member states, the interest of the Romanian local public authorities in PPPs is prefigured to increase in the next period. The final part of the paper analyzes the causes of the reluctance manifested by the Romanian local authorities in using private resources to accomplish public investments.