Potential Concerns and Controversies

Analysts have identified several potential concerns and controversies related to transportation PPPs.45 Some pertain to the increased private sector involvement in any PPP and others to the terms of individual projects, particularly brown-field concessions. Again, some of these may be mitigated to some extent through well-crafted enabling legislation and contract terms, as well as through careful project analysis and selection, procurement, and long-term contract management and oversight.46

Potential PPP Concerns and Controversies

Loss of public control and flexibility

Private profits at the public's expense

Loss of future public revenues

Risk of bankruptcy or default

Accountability and transparency

Environmental issues

Labor concerns

Foreign companies

Toll road controversies

Specific contract terms

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