THE CASE FOR PUBLIC SECTOR - PRIVATE SECTOR PARTNERSHIPS IN THE TRANSPORT AND COMMUNICATIONS SECTORS

The respective roles of the public and private sector in a joint project such as the construction of high-speed rail infrastructure is examined. The private sector will require information about the viablity of the project including potential demand and expected return on investment. It will then be responsible for the quality of the project, the costs and timing of construction and the raising of capital. The public authority should remain involved and offer investors guarantees on the completion of the project, management autonomy, freedom of tariffs and any compensation for changes in the project. Other factors to be considered are outlined including the need for a clear decision-making process. The role of the banker in the arrangement is described and includes critical analysis of the investment, legal and fiscal advice, knowledge of financial markets and funding methods and the raising of capital. This paper was presented at the EURAILSPEED 92 conference held in Brussels, April 27-29, 1992. For the covering abstract see IRRD 853180.