Your SlideShare is downloading. ×
0
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Privatization of Infrastructure
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Privatization of Infrastructure

901

Published on

Edwards Wildman partner Walter Reed explains privatization of infrastructure and why we're hearing more about this now. Learn the arguments for and against privatization of infrastructure.

Edwards Wildman partner Walter Reed explains privatization of infrastructure and why we're hearing more about this now. Learn the arguments for and against privatization of infrastructure.

Published in: News & Politics
1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total Views
901
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
12
Comments
1
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Walter Reed, Edwards Wildman PartnerPrivatization of Infrastructure © 2012 Edwards Wildman Palmer LLP & Edwards Wildman Palmer UK LLP
  • 2. What is Privatization of Infrastructure?♦ Privatization of infrastructure is when the government brings in a private organization to build, operate and maintain state infrastructure.♦ Examples of state infrastructures include: ♦ Roads ♦ Bridges ♦ Public buildings♦ Advocates for privatization argue that the private sector can operate these infrastructures more efficiently.♦ Privatization is appealing for governments because it solves short-term budget crunches.
  • 3. Two Privatization Approaches Ways to privatize infrastructure.Sell assets that have Have a private firmalready been built to take charge of buildingprivate companies to the infrastructure from operate. the start.
  • 4. Option 1: Selling Assets♦ State governments can privatize infrastructure by selling assets that have already been built to private companies.♦ This was done in 2006 when Indiana Governor Mitch Daniels leased the Indiana East-West Toll Road to an international consortium of investors. ♦ The private companies agreed to operate and maintain the roads for 75 years. ♦ The private companies were also given the right to increase the tolls each year.
  • 5. Option 2: Building Infrastructure♦ Private firms can be in charge of building the infrastructure from the start.♦ European countries have been doing this for years. ♦ Private companies bid for a project that the state has set-up. ♦ The private company has to raise enough money from outside investors to design, operate, build and maintain the highway for a decided on amount of time. ♦ The private company then has an incentive to keep costs low and finish the construction on time.
  • 6. Why Privatize Infrastructure?♦ Local governments can improve infrastructure while under a tight budget.♦ Private firms take the heat for raising fees and tolls instead of politicians.♦ Private companies often operate the infrastructure for less money and more efficiently. 6
  • 7. Arguments Against Privatization♦ Privatization has the potential to conflict with other public-policy goals♦ Monopolies might be created.♦ Increased transportation costs for consumers and freight transportation companies. 7
  • 8. For more information on Walter Reed, please visit: www.WalterReedEdwardsWildman.com© 2012 Edwards Wildman Palmer LLP & Edwards Wildman Palmer UK LLP
  • 9. For more information on Edwards Wildman, please visit: EdwardsWildman.com© 2012 Edwards Wildman Palmer LLP & Edwards Wildman Palmer UK LLP

×