Overpriced and underwritten - The hidden costs of Public-Private-Partnerships

Source: Nick Shaxson, Tackle Tax Havens blog

A phenomenon that has become quite fashionable over the last decade or so among governments is the Public-Private-Partnership, or PPP. The UK started to introduce this model in the mid-1990s, and it is also a favoured option in Spain and Hungary. One of the many dangers is that it allows private companies who enter into partnership with government to funnel the profits into tax havens.

Революция не должна быть приватизирована

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Активное продвижение частно-государственных партнерств не будет способствовать демократизации государств Арабской весны, а, скорее, повышает риски увеличения размера их государственного долга. На нашем новом сайте опубликованы уроки ЧГП, которые Европа должна была усвоить.


UK hospital PPPs

Between 1997 and the end of 2010 in England, 102 health sector PPP contracts (or PFI - private finance initiative) were signed compared with just 35 publicly funded health capital investment projects. Another 45 health sector PPP contracts were signed in Northern Ireland, Scotland and Wales during the same period.

London Underground PPP

The London underground PPP has been criticised already at an early stage for its high costs and high profits for the private partners. In the end, the PPP was ended when the consortiums were bought by London's public transport company.

D1 motorway, Phase 1, Slovakia

The controversy about the D1 motorway came from two angles: first, as a PPP its critics said it was overpriced, and second, the project promoter decided not to follow the route recommended through the Environmental Impact Assessment process, instead choosing one that would impact on protected Natura 2000 areas.

Background on PPPs

These pages offer an introduction to how PPPs work, a demystification of their supposed advantages and more arguments and reasons for being wary of them.

Public-private partnerships have been scrutinised by a number of people already. Our website by no means offers a comprehensive overview of that criticism, but rather a compilation of the most important aspects.

Гидроэлектростанции представляют угрозу для балканской рыси в Македонии

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Результаты миссии по установлению фактов в Македонию подтвердили наши опасения по поводу того, что запланированное строительство двух гидроэлектростанций приведет к уничтожению важных естественных ареалов обитания в национальном парке Маврово.


M25 widening, UK

The M25 widening scheme has faced a barrage of criticism due to its higher than necessary costs and failure to properly assess the alternative option of using the hard shoulder as an extra lane during peak hours. The UK House of Commons Public Accounts Committee has estimated that the potential extra cost to the taxpayer has amounted to around GBP 1 billion (EUR 1.2 billion).

Zagreb Wastewater Treatment Plant (CUPOVZ), Croatia

The EBRD-financed Zagreb Wastewater Treatment Plant, which opened in phases between 2004 and 2007, was intended to improve water quality in the River Sava. No-one disputed that some wastewater treatment was needed in the city, but the project which was developed has brought more questions than answers and cost Zagreb’s residents dearly.

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