Research report prepared by Vanita Gangwal under the supervision of Dr. E.S. Savas for submission to the Committee on Undergraduate Honors at Baruch College of The City University of New York in partial fulfillment of the requirements for the degree of Bachelor of Science in Public Affairs with Honors.
| TABLE 1-2 DIVISION OF FUNCTIONAL RESPONSIBILITIES FOR VARIOUS INSTITUTIONAL ARRANGEMENTS | |||||||||
| Functions | Service Arrangements | ||||||||
| Government Department | Public Authority Parastatal | Service Contracting | Management Contacting | Leasing | Concession | Private Enterpreneur | Cooperative/ Communal | ||
| Tradional | Corporatized | ||||||||
| Ownership of Assests | State | State (Majority) | State or Mixed | Private (Majority) | Private or in common | ||||
| Sectoral investment, planning, coordination, policy-making, regulation | Internal to Government | By Parent Agency | Parent Agency or Separate Public Authority | Public Authorith negotiated with Contractor | None or Public Authority | ||||
| Capital financing (fixed assets)
|
Government | Large Recourse to Subsides and Government-backed borrowing | Parastatal (limited subsidies; Market based financing) | Public | Public | Public | Private Contractor | Private | Private |
| Current financing (working capital) | Government | Public | Public | Private Contractor | Private Contractor | Private | Private | ||
| Execution of investment | Government | By Parastal | Private Contractor for Specific Services | Public Partner | Private Contractor | Private | |||
| Operation and maintenance | Government | Private Contractor | |||||||
| Collection of tariff revenues | Government | Government or public Enterprise | Public Enterprise | Private Contractor | Private | ||||
| Other characteristics | |||||||||
| Managerial Authority | Government | Parastatal | Public Partner | Private Contractor | Private | ||||
| Bearer of Commercial Risk | Government | Parastatal | Public Partner | Mainly Public | Private Contractor | Private | |||
| Basis of private party compensation | N/A | Based on services rendered | Based on services and results | Based on results, net of contractor payment for use of existing assets | Privately Determined | ||||
| Typical duration | No Limit | Less than 5 years | About 3-5 years | 5-10 years | 10-30 years | No Limit | |||
| Source: Adapted from Christine Kessides. 1993. Institutional Options for the Provision of Infrastructure. World Bank Discussion Paper No. 212, Washington D. C. 19 | |||||||||