From what ive read, consumers are definitely not the beneficiaries in such arrangements. Why do governments do this then? Why give up ownership and control of vital stuff (e.g. water, utilities, highways, etc.) to private – and often – foreign entities?
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Building infrastructure costs a LOT of money. Local governments would have to borrow money or raise taxes for construction. Many voters don’t find either of those options very appealing. Therefore the government will ask a private company to build the project using their own money and in return that company will get to charge a toll or other fee to use the infrastructure. This way the debt and costs aren’t in the governments books and they may even avoid some blame for the tolls.
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