Potential Disadvantages and Cited Public Policy Concerns

As with the advantages just described, the potential disadvantages of private-sector financing are not present in every case and may be mitigated through contractual terms, government oversight, or other means. Several of the cited policy concerns appear to be more extensively associated with asset monetization transactions than with concession arrangements for new capacity projects.

The cited policy concerns fall into three categories: issues related to control of public assets and operational flexibility, issues of public stewardship, and financial equity considerations.

More Information