A COMPARISON OF PPP´S AND TRADITIONAL PROVISION OF PUBLIC SERVICES AT THE MUNICIPAL LEVEL
A COMPARISON OF PPP´S AND TRADITIONAL PROVISION OF PUBLIC SERVICES AT THE MUNICIPAL LEVEL

Author(s): Beáta Mikušová Meričková, Nikoleta Jakuš Muthová, Marián Holúbek
Subject(s): Public Administration, Economic policy, Public Finances
Published by: Masarykova univerzita nakladatelství
Keywords: municipality; public lighting reconstruction project; public-private partnership; Slovakia;
Summary/Abstract: Implementation of alternative service delivery arrangements contributed to a rethinking of the public sector’s capacity as the public service provider. The public-private partnerships became part of the life of modern economics as the tool which enables the state or local government to carry their competences in a time that is ambitious to increase public need and decrease public expenditure. The goal of our paper (case study) is to present a set of analytical data comparing of public private partnership and traditional public procurement of public lighting reconstruction projects at the municipal level in Slovakia. This study uses a quantitative approach to investigate the research question. The study analyzes the original collected survey data from our own research in 14 Slovak municipalities. The analysis does not allow drawing normative conclusions about the desirability of PPP as a procurement method as it focuses only on construction costs, without being able to quantify its impact on life-cycle costs and benefits. Ideally, the relative costs and benefits of PPPs should be evaluated over the entire project lifecycle, from start of construction through operations and maintenance to the end of the contract period. However, most projects are either still under construction or in the early stages of operation and most available information relates to the construction phase.

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