Private sector involvement in public projects could save taxpayers money.
Public authorities are considering involving private companies in building and running new infrastructures to save money. The main reason is that private companies are thought to manage projects more efficiently than public bodies. This is because private companies can pay staff less, work faster, and resist political pressure better. However, both public and private operators aim for a similar profit margin. A study looked at French toll highway projects to see if using private companies (PPP) saves public money. The study found that PPP can reduce public spending if the projects are profitable and certain conditions are met.