Lonsdale, C. (2005) 'Post-Contractual Lock-in and the UK
Private Finance Initiative (PFI): The cases of National savings and investments
and the Lord Chancellor's Department'. Public administration, 83(1), p.67–88.
According to the UK government, one of the key
features of the Private Finance Initiative (PFI) is the scope it provides to
transfer risk to private sector suppliers. Under the PFI, public bodies are expected to develop
interdependent relationships with suppliers that allow risk to be transferred.
However, it is the argument of the author that it will not always be possible
for interdependent relationships to be engineered by public bodies – on many
occasions, public bodies
will find themselves asymmetrically locked-in to their supplier. This
situation leads to private sector suppliers becoming dominant in those
relationships which, in turn, will allow them to pass back risk and obtain
greater returns. As a result, the author argues that it is not a question of
whether risk can be transferred under the PFI, but when. This argument is
illustrated by use of the contracts managed by the UK National Savings and
Investments and the UK Lord Chancellor's Department.
Lonsdale, C. (2005) 'Risk Transfer and the UK Private Finance Initiative: a theoretical analysis'. Policy & Politics, 33(2), p.231–249.
Lonsdale, C. and Watson, G. (2007) 'Managing contracts under the UK’s Private Finance Initiative: evidence from the National Health Service'. Policy & Politics, 35(4), p.683–700.
Lonsdale, C. and Watson, G. (2007) 'Managing contracts under the UK’s Private Finance Initiative: evidence from the National Health Service'. Policy & Politics, 35(4), p.683–700.
Commentary
PPP Agencies http://ppplusofonia.blogspot.pt/2011/03/agencia-das-ppps-e-sustentabilidade.html
Lonsdale, C. (2005) 'Risk Transfer and the UK Private Finance Initiative: a theoretical analysis'. Policy & Politics, 33(2), p.231–249.
Lonsdale, C. and Watson, G. (2007) 'Managing contracts under the UK’s Private Finance Initiative: evidence from the National Health Service'. Policy & Politics, 35(4), p.683–700.
Lonsdale, C. and Watson, G. (2007) 'Managing contracts under the UK’s Private Finance Initiative: evidence from the National Health Service'. Policy & Politics, 35(4), p.683–700.
Commentary
PPP Agencies http://ppplusofonia.blogspot.pt/2011/03/agencia-das-ppps-e-sustentabilidade.html
Seems very similar to the concept of "Captura do Concedente" similar to but more risky than capture of the Regulator, due to higher opacity and lower levels of disclosure and transparency.
Reed more about PPP organizational and governance issues in
PPP Agency and Budget Sustainability http://ppplusofonia.blogspot.pt/2010/12/agencia-das-ppps-e-sustentabilidade.html
Intentional Instituitional Weaknesss http://ppplusofonia.blogspot.pt/2012/03/cansadode-ouvir-falar-de-e-de-ppps-eu.html
Abrantes on Managing PPPs for Budget Sustainability, the Experience of Portugal http://ppplusofonia.blogspot.pt/2009/09/managing-ppp-for-budget-sustainability.html
S. Ping Ho on Game Theory and PPPs http://ppplusofonia.blogspot.pt/2009/01/teoria-de-jogos-e-renegociao-de-ppp.html
Regulator orders, Concedent pays http://ppplusofonia.blogspot.pt/2012/10/regulador-manda-concedente-paga.html
It would be interesting to see whether different contractual and institutional designs make for different results, and what difference it makes in the Value-for-Money for the “Concedent” or public contracting authority over the life of the contract
ResponderEliminarWateraid 2003
ResponderEliminarPrivate sector contracting must not result in "irreverible dependence on private" partners...