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The mismatch between PPP concession periods (25-30 years with defined endpoints) and public-good mission cycles (which don't terminate neatly and require continuity). Performance incentives concentrate within concession horizons, creating systematic underinvestment toward contract end. See also: Temporal Misalignment (Capital Markets) for the market evaluation context.
Near the end of a 25-year school PPP, the private operator rationally minimizes maintenance spending since they won't bear the long-term consequences.
PPP Section 5.2