Currently, an increasing number of Public-Private Partnerships (PPP) is being set up in order to provide transport services and/or infrastructure. In spite of the multitude of forms that such partnerships may take, the increasing involvement of the private sector in the provision of assets and/or services previously provided directly by the states raises significant questions about the application of socially optimal pricing schemes such as Social Marginal Cost (SMC) pricing. Private engagement entails allowing adequate rates of return in a purely financial perspective, which is too often incompatible with SMC pricing principles.
The aim of the ENACT project is two-fold:
- to assess the extent to which the introduction of SMC pricing obligations may hinder or not the further development of PPP schemes in the transport sector and,
- to devise ways to incorporate such obligations in PPP schemes while, at the same time, taking advantage of the positive aspects that such partnerships can have.
Call for proposal
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Funding SchemeSTREP - Specific Targeted Research Project