Once a project is initiated the ultimate source of

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Unformatted text preview: he partners, impeding the benefit of the project. Dutzik, Bachelor’s Degree in science and policy analyst for the Frontier Group, Schneider, Frontier Group, Baxandall, U.S. PIRG Education Fund (Tony, Jordan, Phineas, US PIRG Education Fund, “High-Speed Rail: Public, Private or Both?”, Summer 2011, http://cdn.publicinterestnetwork.org/assets/85a40b6572e20834e07b0da3e66e98bf/HSR-PPP-USPIRG-July-192011.pdf, 6/28/12) EIL {A PPP arrangement involves a swapping of risk for control. In a traffic-based concession agreement (in which the private partner uses the revenue from high-speed rail service to pay for the cost of building the line), the government theoretically sheds a great deal of risk, but also provides the private company with a greater deal of control over how a high-speed rail line is operated. This is because private entities are less willing to depend on revenues from ticket sales and other user fees to recoup their investment unless they feel protected against government actions that might curtail those revenues. Availability payment concessions (design-build-maintain) on the other hand continue to expose government to ridership risk, but also give...
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