PUBLIC PRIVATE PARTNERSHIP, NET EFFECTS AND RISKS - THE CHALLENGE FOR VALUATION AND THE DECISION MAKING PROCESS

The article enlarges the conceptual and methodological framework necessary for the decision making process in the public sphere and the relating private decision point of view. There should not be any mixed financial "valuation" and "socioeconomic valuation" but both are necessary. The first big challenge in each valuation is the consequences estimate in terms of expected value. However, a more difficult task is taking the principle of uncertainty into consideration. It is often argued that a PPP project decreases the risk of an investment. If we want to be sure that this is the case, we need to clearly distinguish between the flows to which the risk is linked, as well as having to decide, what our willingness to pay for the change is. A brief and limited clarification of the most important principles of dealing with risk in the PPP form of investment valuation is a main focus of the article.