Public-Private Articulation in the Financing of Road Infrastructure in Uruguay

This paper presents a case of public - private partnership in road provision in Uruguay. It is a concession where the concessionaire is publicly owned with a contract known as “present value of expenditure”. This scheme is a good solution in a country where people reject private ownership of public service providers, and which lacks independent regulation. It allows private financing of investment and ensures the stability of expenditures in road maintenance. The concession contract minimizes the risk allocated to the concessionaire but with correct incentives to be efficient, reducing in this way the probability of renegotiating the contract