The involvement of the private sector in various projects increases economic efficiency and lowers public expenditure, an Industry Watch report said.

These reasons feature among the main pros of public-private partnership, the report said.

Public-private partnerships in the sphere of infrastructure can act as a check of governmental activities on major projects, like the recently concluded concession of Trakia highway.

Significant part of Bulgaria’s assets is under governmental control. A part of these can be privatised in the traditional way. But for some developments in the infrastructure sector, the country should look for private management without sale, Industry Watch said.

The involvement of a private investor increases economic efficiency and provides stimuli for limiting expenditure and increasing profits.

Private companies also have the needed know-how, ensuring better project execution, the report said. The state will also share risks with the private investor.

Usually the investor accepts the financial risk, while the state can provide some warranty. State can provide equipment and terrain, advance payments and loans, the report said.