Implementation of PPP Contracts: Pros and Cons
Implementation of PPP Contracts: Pros and Cons

Author(s): Egra Ibrahimi
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: PPP; Risk; Benefits; Effective policy; Developing countries
Summary/Abstract: PPP contracts are now widely spread all over the world, including both developed and developing countries, especially in getting major infrastructure projects built. They consist of a large private sector participation, aiming to achieve efficiency and effectiveness. Sometimes, happens that these projects fail to find the best level of private-sector participation. There are some reasons behind this: the fact that the public and private sectors think differently about the risk of such projects, corruption level, lack of effective policy, institutional framework, macroeconomic situation, etc. There is a difference between PPP contract implementation in developed and developing countries. There are some challenges in developing countries, such as lack of effective policy, poor planning, the country’s macroeconomic situation, level of corruption, etc. Through a descriptive analysis, this paper shall argue some of the benefits and some risks of the implementation of PPP contracts for developing countries including Albania.

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