Managing Public – Private Partnership Market in the Times of Economic crisis

Abstract

The article focuses on the issues and problems caused by the economic crisis of 2008 for public-private partnership (PPP). The challenges faced are presented from the point of view of a public entity, a private partner and a financial institution, as well as the relationships between these parties and the influence of economic issues on these relations. The most crucial of these challenges seems to be: the pressure on public finance and growing difficulties in financing the public infrastructural investments, the rise of the economic risk of investments and the necessity of sufficient and appropriate transfer and management of risk, and finally – the lack of interest of financial institutions to finance long-term liabilities. The aim of the author is to provide a precise description and diagnosis of the issues mentioned above, which might improve the strategic management of PPP market as well as management of projects. The article is based on experience, documents and working papers concerning the countries and markets of the European Union but the presented conclusions should be of more universal nature.