Abstract
Although infrastructure public-private partnerships (PPPs) have become increasingly popular globally, they face their own institutional challenges in transition economies. This paper highlights some of these challenges by examining the (in)formal factors affecting Kosovo’s first PPP in the waste management sector, Ecohigjiena sh.p.k. Drawing upon semi-structured interviews with executives, senior managers, and administrative personnel from Ecohigjiena sh.p.k, the Tax Administration of Kosovo (TAK), and the municipality of Gjilan, the case analysis shows the PPP ultimately faced insurmountable internal and external difficulties, including low levels of professionalism, challenging legal frameworks, poor communication/trust between partners, and inadequate enforcement of regulations.
Highlights
Around the world, poor government performance and service delivery remains an ongoing challenge
According to the Word Bank’s Private Participation in Infrastructure (PPI) database, only 281 private partnerships (PPPs) projects have been executed in 12 transition economies since 1990, amounting to e22 billion ($USD 25 billion) in investment
While many other infrastructure project delivery options still enable public agencies to ‘[internalize] transactions, [minimize] legalisms involved in complex contractual negotiations with external actors, and [provide] a more stable framework for bargaining,’ PPPs are becoming increasingly attractive in developing and transition economies because of their ability to both enhance competition, flexibility, and quality in infrastructure service provision while supplementing the public sector’s technical and financial capacity to deliver projects (Salamon & Elliott, 2002, p. 31)
Summary
Poor government performance and service delivery remains an ongoing challenge. Public-private partnerships (PPPs) in transitional settings have become an increasingly attractive method for alleviating government budgetary constraints and improving public service delivery (Dao et al, 2020; Harris, 2002; Macedo & Pinho, 2006; Yang et al, 2013; Zhou et al, 2005). While many other infrastructure project delivery options still enable public agencies to ‘[internalize] transactions, [minimize] legalisms involved in complex contractual negotiations with external actors, and [provide] a more stable framework for bargaining,’ PPPs are becoming increasingly attractive in developing and transition economies because of their ability to both enhance competition, flexibility, and quality in infrastructure service provision while supplementing the public sector’s technical and financial capacity to deliver projects In many countries, the concept of PPPs ‘is often introduced without much reflection on the need to reorganize policy-making processes and to adjust existing institutional structures’ (Teisman & Klijn, 2002, p. 197)
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