Critical failure factors of public-private partnership low-cost housing program in Thailand

2014 ◽  
Vol 21 (4) ◽  
pp. 421-443 ◽  
Author(s):  
Surangkana Trangkanont ◽  
Chotchai Charoenngam

Purpose – Numerous studies to date have demonstrated the public-private partnership (PPP) project procurement method's failure to deliver low-cost housing (LCH) to low-income groups (LIGs) in developing countries. The purpose of this paper is to investigate critical failure factors (CFFs), and how they cause the failure of PPP-LCH program. Design/methodology/approach – Grounded Theory methodology was used to gather and analyze the data in order to identify, categorize, and develop the logically causal relationships among CFFs that cause PPP-LCH program failure. Findings – Ten CFFs in various phases of PPP-LCH project life cycle caused PPP-LCH program failure. Some CFFs resulted from ineffective PPP policy and strategy, while some were beyond the control of the project/program management team. These CFFs were inter-/intra-related to one another in a particular way. Originality/value – Despite the increase in PPP-LCH projects/programs for LIGs in practice and the prevalence of failure, the studies of PPP-LCH project/program failure still suffer from insufficient conceptual clarity about the causes of these failures. The lessons learned, to some extent, help decision makers in both public and private sectors to reduce the probability of the PPP-LCH project/program failure by clearly explaining the nature of each CFF.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
The Su Nyein ◽  
Bonaventura H.W. Hadikusumo

Purpose To provide low-cost housing, the Myanmar Government is attempting to use public–private partnership (PPP) to attract private investors. However, there is little information concerning the influencing factors for implementing PPP low-cost housing projects in Myanmar. This paper, therefore, aims to identify and analyse these factors. Design/methodology/approach A total of 51 in-depth interviews were conducted with interviewees involved in various kinds of housing projects implemented through the adoption of PPP or other approaches. The methods of data collection and the analysis are based on grounded theory (GT) methodology. Findings Using the GT method to analyse the interviews, five categories emerged from 50 influencing factors regarding the establishment and implementation of the PPP model for low-cost housing in Myanmar: provision of incentives; obstacles in implementing PPP for all stakeholders; barriers to private sector participation; public sector responsibilities and challenges; and attraction factors and challenges for financial institutions. Among 12 newly found factors, the three most important for PPP low-cost housing in Myanmar are the availability of project funding, the resolution of land-acquisition issues and the development of a sound financing system. Research limitations/implications Our findings strengthen previous studies by identifying factors affecting PPP low-cost housing either specific to Myanmar or common among other countries. Of the 50 factors identified, 38 factors were found in previous studies, but 12 are likely specific to Myanmar. Practical implications Our findings can be used by governments, particularly the Myanmar Government, and financial agencies to understand the low attractiveness of PPP low-cost housing for investors and to develop/improve policies to stimulate PPP low-cost housing, especially in Myanmar. Originality/value Many previous studies have been undertaken to identify factors that influence the implementation of PPP for low-cost housing. However, to the best of the authors’ knowledge, there are no prior studies specific to Myanmar in this context.


2020 ◽  
Vol 38 (3) ◽  
pp. 325-343 ◽  
Author(s):  
Andrew Ebekozien ◽  
Abdul-Rashid Abdul-Aziz ◽  
Mastura Jaafar

PurposeMalaysia's open registration system (ORS) scheme, which began in 1997, was established as part of prevention mechanism by the Ministry of Housing and Local Government to plug the leakage in the low-cost housing (LCH) allocation process. After two decades, ineligible persons still secure LCH to the detriment of the Malaysian low-income earners (LIEs) house-buyers/rentals. This paper explored the LCH computerised ORS for LIEs and proffered policy solutions to improve the scheme.Design/methodology/approachThe data were collected via unexplored exploratory sequential mixed methods approach that engaged 25 well-informed participants and the ‘quantilised findings’, validated by the Malaysian LCH policymakers.FindingsThis paper found that there is weak compliance to computerised ORS, which is pronounced in states with relaxed eligibility clearance. Also, it was found that under-declaration of income evident in states where there is relaxed verification and lack of data sharing between states and with federal governments, among others, are the root cause of weak compliance to computerised ORS.Research limitations/implicationsThis paper is limited to unravelling the encumbrances in the low-cost housing computerised open registration system in Malaysia's major cities. Future research is needed to use relevant information to access the level of enforcement of the computerised open registration system across the states of Malaysia.Practical implicationsThis paper recommended that LCH computerised ORS should be devoid of party favouritism, state government should establish functional LCH computerised ORS, and the state and federal governments, should embrace cooperative federalism. Also, applicants should be subjected to the Central Credit Reference Information System check, and culprits should be referred to the Malaysian Anti-Corruption Commission. This paper provides salutary lessons on how to improve the scheme with a view to achieving the Sustainable Development Goals regarding housing in 2030.Originality/valueThis paper demonstrates that the low-cost housing computerised open registration system in Malaysia is yet to be implemented across the states.


2020 ◽  
Vol 23 (3) ◽  
pp. 283-298
Author(s):  
Md. Nazmul Haque ◽  
Mustafa Saroar ◽  
Md. Abdul Fattah ◽  
Syed Riad Morshed

PurposePublic-Private Partnership (PPP) is a common practice in both the public and private sectors. PPP has been an important instrument to achieve Sustainable Development Goals (SDGs) at the national level. However, the role of PPP at the subnational level is often scarcely studied. Using Khulna city of Bangladesh as a case, this paper aims to assess the role of PPP projects in the attainment of SDGs.Design/methodology/approachThe research was conducted in the Central Business District (CBD) of Khulna, on a total of 4.6 kilometers stretches of road medians in the CBD where landscaping was done through the PPP approach. Besides the collection of secondary data from official records, primary data were collected through site visits, field surveys and interviews of PPP project partners.FindingsThe result shows that 89 percent of the respondents (road users) were pleased with the landscaping done on the road medians. Similarly, about 86 percent of the respondents felt more comfortable and safer to use the roads. Well-maintained road medians allow road-crossing at a regular interval which reduces the chance of an accident. The private parties have installed promotional billboards on the road medians and saved BDT 10.82 million a year. The public authority saves the maintenance budget amounting to BDT 23 million a year. The project achieves a triple-win situation. Despite some limitations, this PPP project has taken Khulna a step forward to achieve SDGs.Originality/valueThe findings have policy implications as the PPP project has enhanced the resilience of Khulna by addressing the relevant SDGs.


2018 ◽  
Vol 23 (2) ◽  
pp. 221-238 ◽  
Author(s):  
Robert Osei-Kyei ◽  
Albert P.C. Chan ◽  
Ayirebi Dansoh ◽  
Joseph Kwame Ofori-Kuragu ◽  
Emmanuel Kingsford Owusu

Purpose The purpose of this study is to explore the motivations of governments for adopting unsolicited proposals for public–private partnership (PPP) project implementation. Design/methodology/approach A comprehensive review of literature was conducted to derive a list of motivations for adopting unsolicited PPPs. Subsequently, an empirical questionnaire survey was conducted with international PPP experts. Inter-rater agreement analysis, mean significance index and independent two-sample t-test were used for data analysis. Findings Results reveal four very critical motivations for governments’ interest in unsolicited PPPs; these include: “enhanced private sector innovation and creativity in PPPs”; “lack of public sector capacity to identify, prioritise and procure projects”; “lack of private investors’/developers’ interest in projects at remote areas”; and “rapid implementation of PPP projects”. Further analysis shows that developing and developed countries view the significance of three motivations differently. Research limitations/implications The major limitation lies in the fact that this study only focused on the general motivations/rationale for using unsolicited PPP proposals and did not thoroughly examine and consider the inherent property of motivations (i.e. push and pull theories). Therefore, future studies should explore the “pull and push” motivations for adopting unsolicited PPPs within a specific country or region. Originality/value The research outputs inform international private developers of the key expectations of governments/public departments when submitting unsolicited PPP proposals for consideration by the public sector. Furthermore, the outputs will enable governments/public departments and private proponents to derive performance objectives and standards for unsolicited PPP projects.


2013 ◽  
Vol 838-841 ◽  
pp. 3156-3162 ◽  
Author(s):  
Noor Yasmin Zainun ◽  
Nadzirah Roslan ◽  
Aftab Hameed Memon

Housing is one of the basic needs of human. Population in Malaysia is increasing and expected to reach up to 35 million in year 2020. This phenomenon creates high demand for housing. To tackle the squatter problems, the government introduces low-cost housing. Low cost house is known as the government house, where the price is cheaper but still comfortable. Although there are many of low-cost housing projects have been completed to cope with the need of the citizen especially for low-income group. However, census report reveled that these is huge demand of low-cost housing. This demand might be because of various factors which are very essential to identify in order to meet the required demand of low cost houses. Hence, this study is carried out to assesse the demand of low cost housing in Melaka, determine the significant factors affecting demand of low-cost housing, and establish PLS-SEM model for assessing factors affecting low-cost housing demand. In this study, data are collected by distributing questionnaire in Melaka state. The collected data from survey was analyzed using statistical software SPSS and presented in graphs and chart. Further, factors affecting low cost housing demand in Melaka were modeled with the SmartPLS v2.0. The model shows the relationship between low cost housing demand and its indicators. The finding of the study showed that most significant indicators affecting the demand of low-cost housing in Melaka are the economic factors which include housing stock, inflation rate and Gross Domestic Products (GDP). The Goodness of Fit showed that the model has substantial explaining power for the assessing factors affecting low cost housing demand in Melaka which the values is 0.481. This means that the economic factor has a great influence on the low-cost housing demand in Melaka.


2017 ◽  
Vol 10 (3) ◽  
pp. 410-430 ◽  
Author(s):  
Bashir Olanrewaju Ganiyu ◽  
Julius Ayodeji Fapohunda ◽  
Rainer Haldenwang

Purpose This study aims to identify and establish effective housing financing concepts to be adopted by government in achieving its mandate of providing sustainable affordable housing for the poor to decrease the building of shacks, as well as proposing solutions to the housing deficit in South Africa. A rise in demand and shortage in supply of housing calls for the need to address issues of affordable housing in South Africa, and developing countries in general, to ensure a stable and promising future for poor families. Design/methodology/approach Literature has revealed that the South African government, at all levels, accorded high priority to the provision of low-cost housing. Thus, government has adopted subsidy payment as a method of financing affordable housing to ensure that houses are allocated free to the beneficiaries. This also addresses the historically race-based inequalities of the past, but unfortunately, this has not been fully realised. This study uses a sequential mixed method approach, where private housing developers and general building contractors were the research participants. The qualitative data were analysed using a case-by-case analysis, and quantitative data were analysed using a descriptive statistical technique on SPSS. Findings The results of the qualitative analysis reveal a gross abuse of the housing subsidies system by the beneficiaries of government-funded housing in South Africa. This is evident from illegal sale of the houses below market value. This has led to a continual building of shacks and an increased number of people on the housing waiting list instead of a decrease in the housing deficit. The results from quantitative analysis affirm the use of “Mortgage Payment Subsidies, Mortgage Payment Deductions, Down-Payment Grant and Mortgage Interest Deductions” as viable alternatives to subsidy payment currently in use to finance affordable housing projects by the South African Government. Practical implications At the moment, the focus of the South African National Government is continual provision of free housing to the historically disadvantage citizens, but the housing financing method being used encourages unapproved transfer of ownership in the affordable housing sector. This study thus recommends the use of an all-inclusive housing financing method that requires a monetary contribution from the beneficiaries to enable them take control of the process. Originality/value The relational interface model proposed in this study will reduce pressure on government budgetary provision for housing and guarantee quick return of private developers’ investment in housing. Government must, as a matter of urgency, launch a continuous awareness programme to educate the low-income population on the value and the long-term benefits of the housing.


Author(s):  
Solomon Olusola Babatunde ◽  
Srinath Perera

Purpose The purpose of this study is to identify and critically assess the barriers to bond financing for public–private partnership (PPP) infrastructure projects in Nigeria using an empirical quantitative analysis. Innovative ways to finance long-term infrastructure projects had been documented. However, there is a dearth of empirical studies on the barriers to bond financing for PPP infrastructure projects. Design/methodology/approach A comprehensive literature review was conducted to identify the barriers to bond financing for infrastructure projects, which were employed to design a questionnaire. A questionnaire survey was carried out which targeted financial experts in the Nigerian financial institutions/local banks. Data collected were analysed using descriptive and inferential statistics to include mean score, chi-square (χ2) test and factor analysis (principal component analysis). Findings The analysis of the ranking in terms of the mean score values for the 12 identified barriers indicated that all the identified barriers are considered by respondents as critical barriers to bond financing for PPP infrastructure projects in Nigeria. The study, through factor analysis, grouped the 12 identified barriers into 5 principal factors. These include governance and institutional capacity issues, higher issuance cost and risk, difficulties in getting approval for changes, the small size of bond markets and stringent disclosure requirements. Practical implications This research is significant by providing the empirical evidence of the barriers to bond financing for PPP infrastructure in emerging markets, especially in Nigeria. Originality/value The findings would enable the policymakers to draw some policy recommendations that will positively influence the development of bond markets in Nigeria and emerging markets at large. These study findings are crucial, as not many empirical studies have been conducted in Nigeria.


2017 ◽  
Vol 17 (2) ◽  
pp. 204-223 ◽  
Author(s):  
Robert Osei-Kyei ◽  
Albert P.C. Chan

Purpose The purpose of this paper is to empirically compare the risk factors in public-private partnership (PPP) projects in developing and developed countries, represented by Ghana and Hong Kong, respectively. Design/methodology/approach A structured questionnaire survey was conducted with PPP practitioners in Ghana and Hong Kong. In total, 103 valid responses were received for analysis. Kendall’s coefficient of concordance and mean ranking were used for data analysis. Findings The results show that respondents from Ghana ranked country risk factors higher, whereas their Hong Kong counterparts ranked project-specific risks higher. The top five significant risks in Ghana are corruption, inflation rate fluctuation, exchange rate fluctuation, delay in project completion and interest rate fluctuation. In Hong Kong, the top five significant risk factors are delay in land acquisition, operational cost overruns, construction cost overruns, delay in project completion and political interference. Originality/value The results of the study inform international investors of the appropriate risk mitigation measures and preventive actions to use when engaging in PPP arrangements in any part of the world. Further, governments who are yet to use the PPP concept would be informed of the prevailing risk factors in other neighbouring countries (i.e. developing or developed countries).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hong Kok Wang ◽  
Gabriel Hoh Teck Ling ◽  
Xuerui Shi

PurposeTo date, low-cost housing held under the common-property regime is faced with various collective action or management issues in relation to common facilities. Understanding and unpacking key collective action components in a multi-dimensional and systematic fashion that help explain the status quo of the complex low-cost housing management is crucial, particularly in identifying potential factors contributing to the suboptimal self-governing outcome. Therefore, the purpose of this paper is to investigate the collective action of low-cost housing in Malaysia using Ostrom's institutional analysis development and social-ecological system framework (IAD-SES framework) as a theoretical framework.Design/methodology/approachFirst, a mixed-method research design was adopted where issues relating to the management of common properties of low-cost housing were identified in the Malaysian context. Second, the components of Ostrom's IAD framework relevant to collective action were identified. Third, after interviewing six experts in the housing industry via semi-structured interviews, two more components (historical development/adaptability to new environment and ethnicity) were added to the questionnaire survey. From here, 633 respondents who lived in four low-cost housings in Kuala Lumpur from 1,598 households were surveyed in 2012. We then merged the IAD framework with the SES framework. Factor analysis and Cronbach's alpha analysis were conducted to uncover the underlying variables and the social ecological clusters that they belonged.FindingsWith average Cronbach's alpha of 0.83, the seven key SES components identified are able to cumulatively explain 71% variance of local collective action components. Based on the cumulative percentage explained, the top five key SES components are as follows: context (social, economic and political settings); ethnicity; outcome; resource system; and users characteristics.Originality/valueThis study identifies key components related to the collective action issues of low-cost housing management, where two additional components were also suggested to be added to the SES framework. Apart from the theoretical contribution, the study, serving as insights and potential solutions, is also of practical significance to the existing management practices of low-cost housing in Malaysia where policymakers and management corporations may prioritize primary SES components, helping them govern common properties more efficiently.


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