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PPPs in public infrastructure in Croatia

Transitional years from social to market economy in Croatia have been characterised with underinvestment in infrastructure facilities. Early examples of PPPs include concessions on highway construction, maintenance and operation. In the first decade of the 21st century PPPs in social infrastructure, particularly schools and sports halls construction were quite common. Until 2008 PPPs were regulated and treated as all other contracts. The public debt had been lower and public authorities used to give generous guarantees for project success to the private partners. Many projects had been contracted as directly negotiated deals. Although Croatia is at the forefront in concluding PPP contracts in the Western Balkans, according to the EPEC’s Overview of the PPP Legal and Institutional Frameworks in the Western Balkans (2014), only 14 contracts have been classified as pure PPPs by the national PPP monitoring agency by the end of 2015. The aim of this chapter is to address the reasons for PPP projects’ implementation postponement and/or failure and to present some lessons learned in order to accelerate PPP agreements in the future. The specific questions that emerge in this chapter are: whether PPP projects can be performed on time and on budget ; can they be implemented on a regular basis ; can PPPs be contracted under more favourable terms for the public sector, and whether the PPP projects can be better monitored during the contract term.

public-private partnership, Croatia, public infrastructure

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