Optimal Capital Structure of Public-Private Joint Ventures

January 1, 2008

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Format: Chicago

Pawel Gasiorowski, and Marian Moszoro. Optimal Capital Structure of Public-Private Joint Ventures, (USA: International Monetary Fund, 2008) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents a model to assess the efficiency of the capital structure in public-private partnerships (PPP). A main argument supporting the PPP approach for investment projects is the transfer of know-how from the private partner to the public entity. The paper shows how different knowledge transfer schemes determine an optimal shareholding structure of the PPP. Under the assumption of lower capital cost of the public partner and lower development outlays when the investment is carried out by a private investor, an optimal capital structure is achieved with both the public and the private parties as shareholders.

Subject: Infrastructure, Public investment and public-private partnerships (PPP), Public investment spending, Public sector, Special purpose vehicle

Keywords: Capital structure, WP

Publication Details

Pages:

13
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/001
Stock No:

WPIEA2008001
ISBN:

9781451868630
ISSN:

1018-5941

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