Understanding pitfalls in the application of PPPs in transport infrastructure in Portugal

Over the last few decades, public–private partnerships (PPPs) have been increasingly used by governments to finance and manage complex operations in public investment, especially in the provision of transport infrastructure. Portugal has been in the forefront of the most active European countries in the market of PPPs, having adopted a specific legal framework and involving a large number of institutions in its PPP process. PPPs have had high costs for the State, with transparency issues leading to difficulties assessing performance and accountability. This paper attempts to relate those pitfalls of the Portuguese experience with PPPs with the regulatory framework that was adopted and changed along the decades, at the light of theory of regulation. It is a first step in further exploring the relationships between regulatory aspects and PPP performance in the Portuguese case. Several lessons can be learned from Portuguese experience to enhance the processes of successful implementation of PPPs. The paper addresses these elements and provides evidences on pitfalls that should be avoided.