Public procurement mechanisms for public-private partnerships
| Date | 01 March 2014 |
| Published date | 01 March 2014 |
| Pages | 538-566 |
| DOI | https://doi.org/10.1108/JOPP-14-04-2014-B004 |
| Author | Dmitri Vinogradov,Elena Shadrina,Larissa Kokareva |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 14, ISSUE 4, 538-566 WINTER 2014
PUBLIC PROCUREMENT MECHANISMS FOR
PUBLIC-PRIVATE PARTNERSHIPS
Dmitri Vinogradov, Elena Shadrina, and Larissa Kokareva*
ABSTRACT. Why do some countries (often developing and emerging
economies) adopt special laws on PPP, whilst in others PPPs are governed
by the legislation on public procurement and related bylaws? This paper
explains the above global discrepancies from an institutional perspective. In
a contract-theoretical framework we demonstrate how PPPs can enable
projects that are not feasible through standard public procurement
arrangements. Incentives for private partners are created through extra
benefits (often non-contractible) from their collaboration with the
government (e.g. risk reduction, reputational gains, access to additional
resources, lower bureaucratic burden, etc.). In a well-developed institutional
environment these benefits are implicitly guaranteed, suggesting no need in
a specialized PPP-enabling legislation. Otherwise, a PPP law should establish
an institutional architecture to provide the above benefits.
INTRODUCTION
Public-private partnerships (PPP) enable projects that (a) cannot
be implemented by the private sector alone, for example, due to their
low profitability, (b) cannot be effectively performed by the public
sector, for example, due to the high costs to the society, and (c) are
desirable from the standpoint of their social significance. Various
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* Dmitri Vinogradov, Ph.D., is a lecturer at Essex Business School, University
of Essex. His research interests are in public finance, financial
intermediation and decisions in uncertainty. Elena Shadrina, Ph.D., is an
Associate Professor, Department of Public Administration, National
Research University Higher School of Economics (HSE). Her research
interests are in public procurement, public-private partnerships, and human
resources management. Larissa Kokareva is a Regional Manager for Central
Asia, Crown Agents Ltd. Her research interests are in public procurement,
public-private partnerships, and project management.
Copyright © 2014 by PrAcademics Press
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