ABSTRACT In recent years, concern has grown over good practices in the procurement
process in public–private partnerships (PPPs). The consensus view is that PPPs are prone
to higher transaction costs than traditional public provision. In this paper, we contrast the
hypothesis that transaction costs in transport PPPs depend, to a large extent, on the
procurement mechanism used in each case, comparing the Negotiated and the Open
procedures. Given that PPPs may offer considerable benefits and significant savings over
the entire life cycle of the project, it is essential for PPPs to minimize those costs that
undermine efficiency gains and that deter private involvement. The quantitative analysis
undertaken in this paper highlights that there is room for important savings in the
tendering of PPP transport infrastructure projects, using an Open procedure.