Infrastructure Concessions : To Auction or Not to Auction?

Should a conceding authority auction off or negotiate a contract for an exclusive private infrastructure deal? Advocates of negotiation often argue that a formal competition may take too much time, that the costs of preparing bids may be excessive,...

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Bibliographic Details
Main Author: Klein, Michael
Format: Viewpoint
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/1998/11/441576/infrastructure-concessions-auction-or-not-auction
http://hdl.handle.net/10986/11526
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Summary:Should a conceding authority auction off or negotiate a contract for an exclusive private infrastructure deal? Advocates of negotiation often argue that a formal competition may take too much time, that the costs of preparing bids may be excessive, and that innovation may be discouraged. But proponents of competitive bidding argue that there are ways to address theses concerns without sacrificing the bidding process. Moreover, they argue, competition may yield a better deal for the conceding authority and enhance the transparency of the process, making the transaction more politically sustainable. This Note examines the arguments.