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PPP model: debt and transparency risks

A new report by Peruvian researchers Germán Alarco Tosoni and Ciro Salazar Valdivia through LATINDD reveals debt and transparency risks in the PPP model and provides recommendations. The study “includes the experience of PPPs implemented in Peru and the cost that these have had for the government of this country, as well as the overcosts that they have had during realization. Among the main problems that this business model implies, the lack of evaluation mechanisms to define whether the APP model is the best option for project execution; It also carries fiscal risks because the PPP dealership plays the same role as a public debt holder; finally the text also considers the weaknesses that the project can have in the planning stages, in the institutionality of the country in which it is developed and the transparency with which the works will be executed.”

Source: LATINDADD

Privatization of the municipal waste system

Privatization of the municipal waste system is “an option” being considered by the mayor of the Provincial Municipality of Chiclayo, Marcos Gasco Arrobas. After years of working under appalling conditions, workers have launched an indefinite strike to protest the annulment of the collective agreement signed with former mayor David Cornejo. Gasco has threatened to fire the workers.

Source: larepublica.pe

Documents (2)

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What lies beneath? A critical assessment of PPPs and their impact on sustainable development

This report shows that the last decade has seen a huge increase in the amount of money invested in PPPs in developing countries. This has been driven by economic growth and thus the need for infrastructure development, but also by low interest rates in developed countries which has driven investors to ‘search for yield’ elsewhere. Current estimates indicate that the developing world will experience a new wave of PPPs in the near future. This report looks at the empirical and theoretical evidence available on the nature and impact of PPPs, and analyses the experiences of Tanzania and Peru. It critically assesses whether PPPs deliver on the promises of their proponents and gives concrete recommendations for policymakers.