2.1.3  Governance risk for the new long term infrastructure service PPP contract type

•  The concentration and bundling of activities and contractual powers in the hands of a small number of partners not only undermines the self-regulatory effect of the competitions between potentials providers of services, but may also "lock-in" the PA in relationship that in, addition, may not be allowed to fail.29

•  Risk allocation may serve to cover rents or generate cost overruns due to the PA lack of capacity.

•  Output specification not clearly defined may favor conflicts or nullify the effects of a payment system based on incentives and penalties.

•  The same introduction of flexibility into the contract may lead to opportunistic practice and favor corruption.

•  The question of accountability and governance becomes even more relevant when the partnership is reluctant to divulge information to outsiders on the ground of commercial confidentiality or data protections.




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29  SHAOOUL J. (2003), "A financial Analysis of th National Air Traffic Services PPP"Public Money and Management, 23: 3, pp.192