PPP

The Zagreb wastewater plant public-private partnership (PPP), financed by the European Bank for Reconstruction and Development (EBRD), has for years been highlighted by Bankwatch and its member group Zelena akcija/Friends of the Earth Croatia as a harmful project allowing the private sector enormous profits at the expense of the City of Zagreb and the public.

A United Nations study finds that public-private partnerships involve substantial risks for the public sector and have often failed to yield ‘value for money’.

The World Bank is currently inviting comments for its consultation on disclosure in public-private partnership projects. Deadline for inputs 29th February 2016.

Although World Bank research and documents acknowledge the limitations of public-private partnerships the bank continues to push PPPs despite concerns.

Something quite amazing happened yesterday evening in Zagreb. The Croatian police and the State Prosecutor announced that several people had been arrested on suspicion of a number of criminal corruption offences, abuse of office and peddling influence. Among the arrested were Zagreb Mayor Milan Bandic, Head of Zagreb Holding municipal company Slobodan Ljubicic, the head of the ZET public transport company Ivan Tolic, head and part-owner of the CIOS metal recycling company Petar Pripuza and around 15 more un-named people.

The complicated nature, hidden future debts and other characteristics of public-private partnerships have led the Czech Republic's national security service to consider them a potential threat to public interests.

Despite collecting impressive evidence from 20 years of failed public-private partnerships in central and eastern Europe, an EBRD-financed study by the Economist Intelligence Unit concludes to continue using the controversial financing scheme.

A new report takes a critical look at the engagement of European development banks in Egypt after the popular uprisings in the Middle East and North African region. This article appeared originally on the Counter Balance blog and has been shortened and slightly edited.