Privatizacija izgradnje i eksploatacije puteva - izazovi i preporuke

Participation of private sector in infrastructural projects, highways in par- ticular, has numerous advantages - freeing up the funds that can be used elsewhere being just one of them. The problems arising from awarding concessions can be, to a large extent, overcome by modifying the design of auction mechanism. The Demsetz auction stipulates the award of concessions for a fixed time period, the consequences of which are that the entire demand risk is borne by the concessionaire, and further inefficien- cies, such as government guarantees. Modification of Demsetz auction results in LPVR (least present value of revenue) auc- tion and creates a framework for a more intensive and efficient participation of pri- vate sector in infrastructural projects.