The cost of building new roads, railways, tunnels and bridges can be cut by up to 10% and projects can be completed more quickly if privately financed, according to a government commission set up to look at the role of private capital in infrastructure projects.
The commission, lead by former finance minister Onno Ruding, concludes that everyone gains from private financing, according to the Financieele Dagblad’s website on Thursday.
Public private partnerships are cheaper and produce quality end results, the commission says, and praises the ‘high level of efficiency, expertise, experience, specialisation, continuity, discipline and decision-making which the private sector has.’
The fact that the government can borrow money more cheaply is no argument to rely on government financing, the paper quotes the commission as saying.
In particular, the committee says the government should not attempt to put all the risks associated with a project on the private sector. Risks should be carried by the party best able to manage them.
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