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Privatization of infrastructure assets: financial structures,

Privatization of infrastructure assets: financial structures, 2026

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The article examines the privatization of infrastructure assets, focusing on financial structures, participant motivations, and tax implications for buyers and sellers. It discusses the shift from public to private financing due to declining government budgets and explores three main types of public-private financial relationships: outsourcing, privatization through sale or lease, and Public-Private Partnerships (PPPs). The authors analyze the advantages and disadvantages of privatization for governmental entities, private investors, and consumers, highlighting the potential for improved efficiency but also increased costs for users. The article concludes that municipalities may increasingly rely on privatization as a solution to budget constraints while cautioning against potential long-term drawbacks.

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