Infrastructure Concessions--To Auction or Not to Auction?
Author: Michael Klein Date: 11/1/1998 (PDF, 200KB)
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 preparing bids may be too costly, and that the bidding process may -discourage innovation. But proponents of competitive bidding argue that there are ways to address these 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.