PPPs introduces an "altered governance" 26: (1) a process for choosing the infrastructure service delivery and procurement options; (2) a participatory relationship approach between the PA, private partners and affected stakeholders; (3) the institutionalization between the partners and stakeholders for managing long term infrastructure services PPP contracts; and (4) a long term infrastructure service PPP contract.
This altered governance is exposed to pathologies that may not only reduce their positive effects but also open the door to discretional, opportunistic, inefficient end eventually corrupt behaviors, which may ultimately jeopardize public finances and destroy any credibility in PPPs.
Governance failure jeopardizes public goods and business market value.
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26 G.A.HODGE - C.GREEVE, "Public Private Partnerships: An Institutional Performance Review", Public Administration Review, May-June 2007 pp.552