RENEGOTIATION OF INFRASTRUCTURE CONCESSIONS: AN OVERVIEW

Numerous renegotiations have plagued Latin American infrastructure concession contracts in the 1990s, to the point that private sector involvement is being questioned in some countries. This issue has been analyzed in a series of papers by <link rid="b16 b17 b18">Guasch et al. (2003, 2006a, 2006b)</link>. After putting these contributions in the context of the theoretical and empirical literature on contract renegotiation, this note surveys the existing evidence on the determinants of these renegotiations and discusses the main policy implications regarding the necessity of efficient regulatory institutions and the adequate type of price regulation. Copyright 2006 The Authors Journal compilation © CIRIEC 2006.