This paper was presented at the "Privatized maintenance : making it work" session. These proceedings are available on CD-ROM. The key to successful private financing of public infrastructure lies in the establishment of processes that have credibility within the public organization and amongst respective bidders or proponents. Bidders need to know that the cost and effort of preparing maintenance and design-build-finance projects is worth the investment. They also need to appreciate that they can bring innovation and creativity to the project or concession. Many privatized projects that have been let in North America in the last decade have suffered from a heavy bureaucratic emphasis which has resulted in considerable expense to the concessionaire as well as to the public agency responsible for contracting the concession. This paper summarizes experience in the contracting of North American privatized contracts. Many contractors have pondered about the fairness of the process that has been used, while government agencies have worried about the transparency and confidentiality of a process they once controlled. The paper suggests better ways that these concerns may be overcome; ways that may ensure the health of the contracting industry and confidence within government organizations. (A)
Abstract