Limited Concession (Public-Private Partnership): A New Model of Participation of Private Entrepreneurs in the Production of Public Services

A new legal/economic model of participation of private entrepreneurs in the production of public services is invented. In this model, service infrastructure (i.e. building) is constructed by the private partner. Administration will rent this building. Production of public service is fragmented and keeping the core element of production administration attributes the concession of management of the fragmented services and of the services areas to private entrepreneurs. Apart from this concession private entrepreneurs will receive rent income from the administration. In Anglo-American practice this model is called public – private partnership. Limited concession is a more proper and comprehensive term for Turkish legal system. We suggest limited concession because the core part of production rests in the hands of administration. This is the limitation of a classic and complete concession of public services. In Turkey the first legal regulation of limited concession was made in the field of health services in 2005, but its implementation is started by 2010. This article evaluates this new model, limited concession, in the context of health services.