A slice or the whole cake? Network ownership, governance and public–private partnerships in Finland. (June 2015)

• Record Type: Journal Article
• Authors: Leviäkangas, Pekka Juhani; Nokkala, Marko Juha Mikael; Talvitie, Antti Petri
• Is Part Of: Research in transportation economics. Volume 49(2015)
• Page Start: 2
• Page End: 13
• Publication Date: 2015-06
• Subjects: Infrastructure -- Ownership -- Governance -- Public–private-partnership; G32 -- H44 -- H54; Transportation -- Periodicals; 388.05
• DOI: 10.1016/j.retrec.2015.04.001
• Languages: English
• ISSNs: 0739-8859

Abstract

Abstract: This paper discusses and analyses public–private partnership (PPP) options within the framework of different ownership and governance (O&G) models of technical infrastructures. The O&G models in Finland are described and the market layers of ownership, operation, and services are studied. All infrastructure sectors have somewhat different O&G structures and they each have a different market context, not least because of ownership and the market structures that are "on" the infrastructure. Private companies, public companies, state and municipality owned enterprises and purely public-authority-type models can be found. Interestingly, the models seem not to affect too much the cash-based returns to the owners. However, the market structures will probably provide varying prospects for PPPs to be carried out, whether the PPPs are means of procuring projects or outsourcing of formerly public functions. The financial return capacity of the infrastructure is playing a key role. Some infrastructures have already a tradition of "good business" while others are considered as public goods on more or less sustainable grounds. The results imply that for some infrastructures there could be more natural markets for PPPs. The paper gives a topology for different market layers which can be identified for infrastructures and related services and businesses.