Legal Regimes for PPPs in Central and Eastern Europe

The private sector may invest in public infrastructure in numerous ways. Depending on the level of associated risk, the variety of possible contractual arrangements ranges from public procurement, where a contractor assumes no project risks, to privatization, where public assets or shares in a publicly owned company are disposed of to an investor together with all the associated risks. Arguably, the most interesting and sophisticated arrangements lie in the area between procurement and privatization. Such options are generally considered to be more effective than those at the extremes of the spectrum.