Business, Management and Accounting
4 years ago

Long-term contracts key to boosting private investment in public projects.

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Contract duration: Barrier or bridge to successful public-private partnerships?
Paul L. Hartman, Jeffrey A. Ogden, Ross A. Jackson

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Public-private partnerships involve contracts between public agencies and private suppliers. The length of these contracts can affect how much private suppliers invest in the partnership. Interviews with people involved in these partnerships showed that longer contracts can help reduce risks for both parties and encourage more investment from private suppliers.