Procurement in Infrastructure : What Does Theory Tell Us?

Estache, Antonio; Iimi, Atsushi; Ruzzier, Christian

dc.creator	Estache, Antonio
dc.creator	Iimi, Atsushi
dc.creator	Ruzzier, Christian
dc.date	2012-03-19T19:11:28Z
dc.date	2012-03-19T19:11:28Z
dc.date	2009-07-01
dc.date.accessioned	2023-02-17T21:10:45Z
dc.date.available	2023-02-17T21:10:45Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090715105832
dc.identifier	http://hdl.handle.net/10986/4185
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/245222
dc.description	Infrastructure has particular challenges in public procurement, because it is highly complex and customized and often requires economic, political and social considerations from a long time horizon. To deliver public infrastructure services to citizens or taxpayers, there are a series of decisions that governments have to make. The paper provides a minimum package of important economic theories that could guide governments to wise decision-making at each stage. Theory suggests that in general it would be a good option to contract out infrastructure to the private sector under high-powered incentive mechanisms, such as fixed-price contracts. However, this holds under certain conditions. Theory also shows that ownership should be aligned with the ultimate responsibility for or objective of infrastructure provision. Public and private ownership have different advantages and can deal with different problems. It is also shown that it would be a better option to integrate more than one public task (for example, investment and operation) into the same ownership, whether public or private, if they exhibit positive externalities.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 4994
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADVERSE SELECTION
dc.subject	ASSET OWNERSHIP
dc.subject	ASYMMETRIC INFORMATION
dc.subject	AUCTION
dc.subject	AUCTION DESIGN
dc.subject	AUCTIONS
dc.subject	BENEFICIARIES
dc.subject	BID
dc.subject	BID PRICE
dc.subject	BIDDING PROCESS
dc.subject	BIDS
dc.subject	BULK CARGO
dc.subject	CAPITAL INVESTMENT
dc.subject	CARRIERS
dc.subject	COMMERCIAL INVESTMENTS
dc.subject	COMPETITION AMONG PORTS
dc.subject	COMPETITIVE BIDDING
dc.subject	CONCESSION
dc.subject	CONCESSION AGREEMENTS
dc.subject	CONCESSION CONTRACTS
dc.subject	CONCESSIONAIRES
dc.subject	CONFLICT OF INTEREST
dc.subject	CONFLICTS OF INTEREST
dc.subject	CONTRACT ADJUSTMENT
dc.subject	CONTRACT ADMINISTRATION
dc.subject	CONTRACT AWARD
dc.subject	CONTRACT CLAUSES
dc.subject	CONTRACT LEASE CONCESSION
dc.subject	CONTRACT RENEWAL
dc.subject	CONTRACT THEORY
dc.subject	CONTRACTOR
dc.subject	CONTRACTORS
dc.subject	CONTRACTUAL ARRANGEMENTS
dc.subject	CONTRACTUAL RELATIONSHIP
dc.subject	COORDINATION FAILURE
dc.subject	COST-REIMBURSEMENT
dc.subject	CUSTOMER SATISFACTION
dc.subject	DEBTS
dc.subject	DEREGULATION
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT BANK
dc.subject	DISTRIBUTION COMPANIES
dc.subject	DISTRIBUTION FUNCTIONS
dc.subject	DISTRIBUTION NETWORK
dc.subject	DIVESTITURE
dc.subject	ECONOMIC COSTS
dc.subject	ECONOMIC EFFICIENCY
dc.subject	EFFICIENT ALLOCATION
dc.subject	EFFICIENT OUTCOME
dc.subject	ELECTRICITY
dc.subject	ELECTRICITY DISTRIBUTION
dc.subject	ELECTRICITY SECTOR
dc.subject	ELECTRICITY SECTOR REFORM
dc.subject	ENERGY MANAGEMENT
dc.subject	ENERGY SALES
dc.subject	FEDERAL PROCUREMENT
dc.subject	FINANCIAL PERFORMANCE
dc.subject	FINANCIAL STRUCTURE
dc.subject	FISCAL DISCIPLINE
dc.subject	FRAUD
dc.subject	FREIGHT
dc.subject	FREIGHT OPERATIONS
dc.subject	GENERATION
dc.subject	GOVERNMENT OWNERSHIP
dc.subject	GOVERNMENT SUBSIDY
dc.subject	HIDDEN ACTION
dc.subject	HIDDEN ACTION PROBLEM
dc.subject	HOURS OF SERVICE
dc.subject	INCENTIVE MECHANISMS
dc.subject	INCENTIVE PAYMENTS
dc.subject	INCOMPLETE CONTRACT
dc.subject	INCOMPLETE CONTRACTS
dc.subject	INFRASTRUCTURE CONCESSIONS
dc.subject	INFRASTRUCTURE DEVELOPMENT
dc.subject	INFRASTRUCTURE DEVELOPMENT PROJECTS
dc.subject	INFRASTRUCTURE PROJECTS
dc.subject	INFRASTRUCTURE PROVISION
dc.subject	INFRASTRUCTURE SECTOR
dc.subject	INFRASTRUCTURE SERVICES
dc.subject	INITIAL CONTRACT
dc.subject	INSTRUMENT
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL STANDARDS
dc.subject	INVESTING
dc.subject	INVESTMENT REQUIREMENT
dc.subject	INVESTMENT REQUIREMENTS
dc.subject	JOINT VENTURE
dc.subject	JOINT VENTURES
dc.subject	LACK OF COMPETITION
dc.subject	LACK OF TRANSPARENCY
dc.subject	LEASE
dc.subject	LEASE CONTRACT
dc.subject	LEASE CONTRACTS
dc.subject	LEASES
dc.subject	LEVEL OF COMPETITION
dc.subject	LICENSES
dc.subject	LICENSING
dc.subject	LONG-TERM COMMITMENT
dc.subject	MACROECONOMIC RISKS
dc.subject	MANDATE
dc.subject	MARKET RISK
dc.subject	MONETARY FUND
dc.subject	MORAL HAZARD
dc.subject	NEGATIVE EXTERNALITIES
dc.subject	OPTIMAL CONTRACT
dc.subject	ORIGINAL CONTRACTS
dc.subject	OWNERSHIP STRUCTURE
dc.subject	PARTICULAR CONTRACT
dc.subject	POLITICAL ECONOMY
dc.subject	PORT OPERATIONS
dc.subject	PORTS
dc.subject	POSITIVE EXTERNALITIES
dc.subject	POWER
dc.subject	POWER MARKETS
dc.subject	POWER PLANTS
dc.subject	POWER SECTOR
dc.subject	PRESENT VALUE
dc.subject	PRINCIPAL-AGENT MODEL
dc.subject	PRINCIPAL-AGENT PROBLEM
dc.subject	PRINCIPAL-AGENT RELATIONSHIP
dc.subject	PRIVATE FINANCE
dc.subject	PRIVATE FINANCING
dc.subject	PRIVATE OPERATORS
dc.subject	PRIVATE SECTOR
dc.subject	PRIVATE SECTOR INVOLVEMENT
dc.subject	PRIVATE SECTOR PARTICIPATION
dc.subject	PROCUREMENT MECHANISM
dc.subject	PROCUREMENT OFFICIALS
dc.subject	PROCUREMENT PROCEDURE
dc.subject	PROCUREMENT PROCESS
dc.subject	PRODUCT QUALITY
dc.subject	PROPERTY RIGHTS
dc.subject	PROVISION OF INFRASTRUCTURE
dc.subject	PROVISIONS
dc.subject	PUBLIC
dc.subject	PUBLIC ASSETS
dc.subject	PUBLIC CONTRACT
dc.subject	PUBLIC CONTRACTS
dc.subject	PUBLIC ECONOMICS
dc.subject	PUBLIC FINANCE
dc.subject	PUBLIC GOODS
dc.subject	PUBLIC INFRASTRUCTURE
dc.subject	PUBLIC INVESTMENT
dc.subject	PUBLIC OWNERSHIP
dc.subject	PUBLIC PRIVATE PARTNERSHIPS
dc.subject	PUBLIC PROCUREMENT
dc.subject	PUBLIC SAFETY
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SECTOR PRODUCTIVITY
dc.subject	PUBLIC SERVICES
dc.subject	PUBLIC TRANSPORT
dc.subject	PUBLIC UTILITY
dc.subject	PUBLIC WORKS
dc.subject	PUBLICPRIVATE PARTNERSHIPS
dc.subject	QUALITY REQUIREMENTS
dc.subject	RAIL
dc.subject	RAIL PRIVATIZATION
dc.subject	RAILWAY
dc.subject	RAILWAY SECTOR
dc.subject	RAILWAYS
dc.subject	REGULATORY SYSTEM
dc.subject	RELATIONAL CONTRACT
dc.subject	RENEGOTIATED CONTRACTS
dc.subject	RENEGOTIATION
dc.subject	RENEGOTIATIONS
dc.subject	RETRENCHMENT
dc.subject	RETURN
dc.subject	REVENUE GUARANTEES
dc.subject	RISK NEUTRAL
dc.subject	ROAD
dc.subject	ROAD CONCESSIONS
dc.subject	ROLLING STOCK
dc.subject	SAFETY
dc.subject	SANITATION
dc.subject	SAVINGS
dc.subject	SELLER
dc.subject	SELLERS
dc.subject	SERVICE PROVIDER
dc.subject	SEWERAGE SERVICES
dc.subject	SOCIAL WELFARE
dc.subject	SPEEDS
dc.subject	SUBCONTRACTORS
dc.subject	TARIFF ADJUSTMENTS
dc.subject	TELECOMMUNICATIONS
dc.subject	THIRD PARTY
dc.subject	TIME REQUIREMENT
dc.subject	TRAFFIC
dc.subject	TRANSACTION
dc.subject	TRANSACTION COST
dc.subject	TRANSACTION COSTS
dc.subject	TRANSPARENCY
dc.subject	TRANSPORT INFRASTRUCTURE
dc.subject	TRANSPORT INFRASTRUCTURES
dc.subject	TRANSPORT SECTOR
dc.subject	TRUE
dc.subject	UTILITIES
dc.subject	VALUATIONS
dc.subject	VENDORS
dc.subject	VERTICAL INTEGRATION
dc.subject	WATER SUPPLY SERVICES
dc.title	Procurement in Infrastructure : What Does Theory Tell Us?
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region