Impact of public support mechanisms on the performance of public private partnerships: an empirical analysis of road projects in spain
- Autores: Laura Garrido Maza
- Directores de la Tesis: José Manuel Vassallo Magro (dir. tes.)
- Lectura: En la Universidad Politécnica de Madrid ( España ) en 2019
- Idioma: español
- Tribunal Calificador de la Tesis: Juan Emilio Iranzo Martín (presid.), Thais Rangel Guilherme (secret.), María de los Ángeles Baeza Muñoz (voc.), Antonio L. Lara Galera (voc.), Elisabete Mª Mourinho Arsenio (voc.)
- Programa de doctorado: Programa de Doctorado en Sistemas de Ingeniería Civil por la Universidad Politécnica de Madrid
- Materias:
- Enlaces
- Tesis en acceso abierto en: Archivo Digital UPM
- Resumen
Budgetary constraints are prompting many governments to encourage private financing of transport infrastructure through Public Private Partnerships (PPPs). In this context, financial support has been broadly used by both supra-governmental institutions and governments to improve the financial feasibility of these projects and attract private investors. Moreover, governments have also commonly resorted to this type of support either as a means to re-establish the economic balance of PPP contracts or help those projects facing financial distress. In this respect, the extent to which this support is being used wisely is a matter of public interest, given the high cost that the use of support mechanisms can entail and has entailed in the past, and the great uncertainty over the future performance of PPP projects. For these reasons, improving the knowledge of PPPs performance and the factors that may positively influence is key for governments implementing these schemes. Furthermore, assessing both the potential benefits and risks that these mechanisms may entail is crucial for governments considering their support to PPP projects, especially when they involve long-term liabilities.
The scientific literature analysing the impact of public support is scarce, particularly at the project level. Previous research intended to explore the effects of public support on the outcomes of PPP projects has relied mainly on experts’ responses to questionnaires or surveys, but empirical analyses have been barely conducted beyond a few individual case studies. Moreover, very few ex post evaluations have been conducted to analyse the performance of PPP projects receiving support, and thus the effectiveness of the support provided. In addition, only few of them have incorporated sufficient perspectives in the analysis to evaluate the overall sustainability of the PPP projects or the adequacy of the support provided. Finally, little attention has been devoted to analysing governmental support for PPP projects, which, unlike that provided by supra-governmental institutions, risks being more discretionary.
Based on the above considerations, the objective of this thesis is about providing empirical knowledge on the impacts that the public support granted to PPP projects may have on the projects, the contracting authority and the society, taking Spain as case study. The research involves analysis at both the macro and the micro level to provide insight regarding the possible positive effects of public support on projects performance, and also the potential risks that poorly designed public support mechanisms can pose to governments and the society.
Particularly, a macro analysis is developed aimed at identifying those variables influencing the economic performance of road PPP projects, with a special focus on the impact of the public support received from the EU and the EIB. Based on a multiple regression and a panel data methodology, this analysis is applied at the national level, but analysing the impact of EU support at the project level. Likewise, a micro analysis is conducted aimed at evaluating the social and financial impacts of the public support provided by the Spanish government to a set of road PPP projects through subordinated loans. Based on a thorough ex post evaluation, the sustainability of the government’s decision to support the projects is analysed taking into account the social benefits, the financial feasibility of the loan and the public interest. The thesis yielded some interesting conclusions and useful policy lessons and recommendations for governments when providing public support to PPP projects.
