Local Governments Bypass Regulations, Shift Costs to Private Sector Through Project Finance
The article examines how project finance is used for local public services and compares it to other funding methods. It finds that project finance works best when there are benefits from combining construction and service provision, when private partners take on market risks, and when projects are large. In Italy, similar methods are common in local services, but they are often used to avoid immediate costs or to work around strict rules, rather than for the reasons that usually make project finance a good choice.
