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1、China-USABusinessReview,ISSN1537-1514September2011,Vol.10,No.9,893-898Public-PrivatePartnerships—ForandAgainstAliTurhani,GjergjiShqauAleksanderXhuvaniUniversity,Elbasan,AlbaniaThispaperaimstomakeclearaboutwhicharetheadvantagesanddisadvantagesofpublic-p
2、rivatepartnership(PPP)andwhatwillbethemainindicatorstobeusedtoappreciatethebenefitofPPPindifferentprojectsofpublicservicesassets.HavingtheexperienceofothercountrieswithPPP,itwillhelptheAlbanianPublicInstitutionstobeabletotaketherightdecisionininvesting
3、thepublicservicesassetsthroughPPPorbybudgetfund.Publicauthoritiesshouldhaveabasegoodunderstandingforthepolicyandfinancialproblems,andalsoshouldhaveaclearrolethatitshouldplayinthePPPproject,aswellasthebenefitsthattheywillhavefromthisproject.Understandin
4、gofthisisveryimportanttotheAlbanianPublicInstitutions,especiallyfortheLocalAuthoritiesinAlbania.Keywords:public-privatepartnership(PPP),additionality,whole-lifecost,economiesofscale,complexityIntroductionWhyhastherebeensuchaworldwidegrowthininterestinp
5、ublic-privatepartnerships(PPPs)overthelastfewyears?Thepublic-sectorreformmovementknownas“newpublicmanagement”providesthetheoreticalbackgroundforPPPs,butinrealitythemaindriverforgrowthisthatPPPsavoidlimitationsonpublic-sectorbudgets.However,thedetailedd
6、ebateonthemeritsanddemeritsofPPPsisahighlycomplexone.AvarietyofargumentsisusedbygovernmentsforpromotingPPPprojects,butmanyoftheseareofasomewhatex-postnature,i.e.,theyareusedtojustifyadecisionwhichhasalreadybeentakenforbudgetaryreasons.Theseargumentswil
7、lreappearthroughoutthisbook,butitisprobablyworthsummarizingtheissuesinadvance.Themainelementsofthedebaterevolvearound:óWhetherPPPsprovide“additionality”ofinvestmentinpublicinfrastructure;óThehigherfinancingcostsimplicitinPPPs;óWhetherrisktransferandval
8、ueformoneyfromPPPscanbeoffsetagainsthigherfinancingcosts;óEconomiesofscale;óThebenefitsofwhole-lifecostingandmaintenance;óThevalueaddedthroughtheuseofprivate-sectorskills;óPPPsasacatalystforpublic-sectorreform;óComplexity;óTheeffectofPP
