scholarly journals An analysis of the delivery challenges influencing public-private partnership in housing projects

2018 ◽  
Vol 25 (2) ◽  
pp. 202-240 ◽  
Author(s):  
Neema Kavishe ◽  
Ian Jefferson ◽  
Nicholas Chileshe
Keyword(s):  
Joint Venture ◽  
Structuration Theory ◽  
Public Private Partnership ◽  
Future Research ◽  
Risk Allocation ◽  
Ongoing Research ◽  
Private Partnership ◽  
Content Type ◽  
Housing Projects ◽  
Framework Model

Purpose The purpose of this paper is twofold: first, to identify and rank the challenges influencing the delivery of the housing public-private partnership (HPPP) in Tanzania; and second, to suggest solutions in the form of a conceptual public-private partnership (PPP) framework model that will address the identified challenges and boost the chances of success. Design/methodology/approach Using a convergent parallel (concurrent) mixed method approach, data were collected from 28 stakeholders involved with HPPP projects in Tanzania using a hand-delivered and e-mail survey and 13 semi-structured interviews with public and private sector respondents. The quantitative data included subjecting the 19 challenges as identified from the literature to parametric tests such as one-sample t-tests and descriptive statistics tests such as measures of central tendencies and frequency analysis through Statistical Package for Social Sciences (SPSS 22.0). Qualitative data employed content analysis. The research was further underpinned by a number of theoretical perspectives such as Gidden’s structuration theory, contingency theory, relational and equity theory. Findings The top five ranked challenges influencing the delivery of HPPP were “inadequate PPP skills and knowledge”; “poor contracting and tendering documents”; “inadequate project management”; “inadequate legal framework”; and “misinformation on financial capacity of private partners”. The least six ranked and most significant challenges based on the one-sample (single) t-tests were as follows: “Poor risk allocation”; “inexperienced private partner”; “unequal qualification and contributions of expertise”; “poor enabling environment to attract competent partners”; “inadequate mechanisms for recovery of private investors’ capital”; and “high costs in procuring PPP projects”. The qualitative study further confirmed the challenges and cited the reason for the failure of joint venture projects as the lack of motivation for undertaking similar PPP projects. Despite the increased awareness of PPP projects and associated marginal benefits, the main impediment to the uptake and delivery of PPP housing projects remained the lack of skills and expertise. Research limitations/implications The proposed framework model is not yet tested, but since this paper is part of the ongoing research, the next stage involves the testing and validation of the model. Future studies could test the applicability of the proposed framework in other HPPP projects in Tanzania, and in other similar developing countries. Second, the validated framework can contribute towards addressing similar challenges as well as providing guidance. The proposed framework model is not yet tested, but since this paper is part of the ongoing research, the next stage involves the testing and validation of the model. Furthermore, recommendation for future research is to test the alignment of the identified challenges to the proposed remedial solutions across the five phases within the proposed PPP framework with a number of case studies. Practical implications The identified challenges were used to form the basis of the framework presented in this paper. Furthermore, these provide useful information, thus leading to increased awareness to enable successful delivery of HPPP in Tanzania. Similarly, both the government and policy makers could use the findings as the basis for re-examining the existing PPP policy and regulations, and reflecting on the existing situation with a view to improving the delivery of future HPPP projects. Originality/value The empirical study is among the first that identifies and ranks the challenges of PPP for housing projects delivery within the Tanzanian context. The identification of the challenges enabled their ranking, resulting in the mapping out of the most critical challenges. Furthermore, using the Gidden’s structuration theory, the study illustrates how institution mechanisms (structures) address these delivery challenges, thus influencing the implementation of HPPP in Tanzania, and how individual stakeholders (human agents or agency) are able to make choices (advocated solutions) in dealing with the challenges. More so, these constraints (challenges) as identified and viewed through the contingency and equity theoretical lenses form the foundation for developing the PPP conceptual framework. The proposed framework would thus serve as a mechanism for providing practical solutions as well as reducing the level of severity of the identified challenges.

Determination of government guarantee and revenue cap in public–private partnership contracts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyu Jin ◽  
Shijing Liu ◽  
Jun Li ◽  
Chunlu Liu
Keyword(s):  
Financial Risk ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Financial Risks ◽  
Private Partnership ◽  
Content Type ◽  
Government Guarantee ◽  
Determination Process ◽  
The Government ◽  
Private Investors

PurposeConsidering there is a lack of research in determining the optimal levels of government guarantee and revenue cap, the objective of this research is to determine their optimal levels to achieve a reasonable financial risk allocation between governments and private investors while avoiding overly lucrative conditions for private investors.Design/methodology/approachExpanded net present value (NPV) analysis and bargaining game theory are employed to construct the core of the determination process. The risk gap between governments and private investors is assessed via an expanded NPV analysis to see if the financial risk has been shared reasonably, based on which the range of the government guarantee is decided. A bargaining model is then created to help locate the optimal level of the government guarantee. Finally, a revenue cap, often combined with the government guarantee in public–private partnership (PPP) agreements, will be determined if overly lucrative conditions for private investors are observed or governments suffer a risk spillover.FindingsReferring to a real PPP project in Australia, Project BA is created to validate the applicability of the proposed determination process. The outcome shows that the proposed determination process in this paper is capable of determining the optimal levels of government guarantee and revenue cap. The government preferences towards risk allocation will influence the values of the optimal levels. Governments may also consider to alleviate the control over investors' net profits to mobilise private investors into PPP projects.Research limitations/implicationsThere is a potential possibility that the revenue cap fails to control the financial risk for governments or the overly lucrative condition for private investors. In other words, even though the revenue cap is set at the minimal level, the financial risk for governments still beyond their tolerance range or the overly lucrative condition for private investors still occurs. Future research may focus on other financial protective schemes which help to better control the financial risks for governments and profits for private investors.Originality/valueGovernment guarantees are frequently used as an investment incentive to reduce the probabilities of suffering loss for private investors. Nevertheless, the financial risks for governments may increase after providing guarantees and, as a result, revenue cap is required by governments to avoid placing themselves in an unprotected situation. By recognising the importance of the two contractual parameters, many scholars dig into their option values. However, there are very rare research works focussing on the method of determining the specific levels of government guarantee and revenue cap. To overcome the limitations of existing models and enrich the methodology for government guarantee and revenue cap determination, this paper contributes to the body of knowledge by developing a government guarantee and revenue cap determination process which contributes to a reasonable allocation of financial risks between governments and private investors.

Bundling in public–private partnership projects – a conceptual framework

2019 ◽  
Vol 69 (6) ◽  
pp. 1177-1203 ◽  
Author(s):  
Tharun Dolla ◽  
Boeing Laishram
Keyword(s):  
Value Chain ◽  
Design Methodology ◽  
Transaction Cost Economics ◽  
Public Private Partnership ◽  
The Body ◽  
Future Research ◽  
Firm Level ◽  
Private Partnership ◽  
Content Type ◽  
Body Of Knowledge

Purpose The performance of public–private partnership (PPP) projects depends on how the project has been structured. The traditional PPP option analysis for structuring project scope and size relating to the bundling of functions concerning a single component of the value chain will need to be extended to handle multi-component sectors such as municipal solid waste (MSW) in formulating the project scope. This analysis is currently missing in the extant literature. The paper aims to discuss these issues. Design/methodology/approach Through a comprehensive literature review as the methodological backbone, this study develops a testable holistic framework for the procurement of MSW PPP projects that examines how various factors of bundling affect the performance of the PPP projects. Findings Using transaction cost economics, agency and auction theories, the review identifies that innovation, maturity, quality specifiability, scope, competition, information asymmetries and transaction attributes have a significant influence on the performance and success of the PPP projects. Research limitations/implications Alternative supply chain management possibilities and firm-level organisational ways can be predicted using this framework to strategize the solutions for the municipal infrastructure. Based on this contribution, future research can test the framework to increase the knowledge of bundling theory about how to structure network infrastructure PPP projects. Originality/value Studies on how to bundle/unbundle the projects having components of the value chain are in a nascent stage. The present study attempts to extend the body of knowledge on PPP to the complexity of bundling both the functions and components of the value chain in structuring the PPP project scope.

Perceptions of stakeholders on the critical success factors for operational management of public-private partnership projects

Facilities ◽  
2017 ◽  
Vol 35 (1/2) ◽  
pp. 21-38 ◽  
Author(s):  
Robert Osei-Kyei ◽  
Albert P.C. Chan
Keyword(s):  
General Public ◽  
Public Private Partnership ◽  
Critical Conditions ◽  
Future Research ◽  
Success Factor ◽  
Private Partnership ◽  
Content Type ◽  
Critical Success ◽  
Operational Management ◽  
Research Findings

Purpose This paper aims to explore the perceptual differences on the factors that contribute to the successful management of public-private partnership (PPP) projects at the operational stage among stakeholders. Design/methodology/approach An international questionnaire survey was conducted with purposively sampled PPP experts from the private, public and academic sectors. Survey responses were analyzed using Kendall’s coefficient of concordance (W), mean score ranking analysis, Kruskal–Wallis test and Mann–Whitney U test. Findings The research findings show that each stakeholder group considers an efficient and well-structured payment mechanism as the most important operational management critical success factor (CSF). Moreover, the public sector considers open and constant communication among stakeholders as the second most important CSF, whereas the private and academic sectors consider effective operational risk management and well-structured legal dispute resolution mechanism, respectively. Further analysis using non-parametric tests (i.e. Kruskal–Wallis and Mann–Whitney U statistics) reveal significant differences in the importance of three operational management CSFs – “open and constant communication among stakeholders”, “effective changes of shareholdings in private consortium” and “stable macroeconomic indicators”. Research limitations/implications The generalizability of the research findings is limited considering the low sample size and non-participation of users/general public in the study. Hence, it is recommended that future research should be conducted in a specific country using both face-to-face and email questionnaire distribution approaches. This would likely increase the response rate and facilitate the inclusion of the general public/users. Originality/value The results of this study highlight and provide significant insights into how different PPP stakeholders perceive the critical conditions that are required to ensure the operational efficiency of PPP projects. This would, therefore, enable a better cooperation and collective effort from all stakeholders towards achieving the overall project success. In addition, the study offers new and additional CSFs which would enhance the comprehensiveness of the existing list of CSFs for the general implementation of PPP projects.

Factors influencing the adoption of public–private partnership in low-cost housing development in Myanmar

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
The Su Nyein ◽  
Bonaventura H.W. Hadikusumo
Keyword(s):  
Influencing Factors ◽  
Low Cost ◽  
Public Private Partnership ◽  
Financing System ◽  
Private Partnership ◽  
Content Type ◽  
Factors Affecting ◽  
Housing Projects ◽  
Low Cost Housing ◽  
Private Investors

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.

scholarly journals A Life-Cycle Framework for Managing Risks in Public Private Partnership Housing Projects

2020 ◽  
Vol 10 (1) ◽  
pp. 27-34
Author(s):  
Yakubu N. Sanda ◽  
Natalia A. Anigbogu ◽  
Lura Y. Nuhu ◽  
Ola S. Olumide
Keyword(s):  
Life Cycle ◽  
Sampling Technique ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Private Partnership ◽  
Housing Projects ◽  
Risk Transfer ◽  
Purposeful Sampling ◽  
Number Of Parties ◽  
Structured Questionnaire

AbstractPublic private partnership projects have been adjudged to contain more risks than traditionally procured projects due to more number of parties involved and their varying interests. These risks affect the achievement of projects objectives and therefore need to be identified and treated to guarantee project success. This paper developed a life cycle framework for managing risks in PPP housing projects in Nigeria. The respondents were selected using purposeful sampling technique. The data used for the study were obtained through semi-structured questionnaire and were analysed using mean rating. Risk transfer was found to be the widely used measure for responding to risks in PPP housing projects. The criteria mostly used for risk allocation were party with the best ability to manage specific risks should they occur and ability of the party to foresee risks. A four-stage life cycle framework was developed, evaluated and validated by experts in the built environment to ascertain its reliability. The framework is recommended for PPP housing projects in Nigeria.

scholarly journals Public-Private Partnership for achieving sustainable development goals: a case study of Khulna, Bangladesh

2020 ◽  
Vol 23 (3) ◽  
pp. 283-298
Author(s):  
Md. Nazmul Haque ◽  
Mustafa Saroar ◽  
Md. Abdul Fattah ◽  
Syed Riad Morshed
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
The Road ◽  
Development Goals ◽  
On The Road

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.

Motivations for adopting unsolicited proposals for public-private partnership project implementation

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
Keyword(s):  
Public Sector ◽  
Developed Countries ◽  
Public Private Partnership ◽  
Project Implementation ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
Private Investors ◽  
Push And Pull ◽  
Specific Country

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.

Barriers to bond financing for public-private partnership infrastructure projects in emerging markets

2017 ◽  
Vol 22 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Solomon Olusola Babatunde ◽  
Srinath Perera
Keyword(s):  
Factor Analysis ◽  
Emerging Markets ◽  
Empirical Studies ◽  
Principal Component ◽  
Public Private Partnership ◽  
Bond Markets ◽  
Infrastructure Projects ◽  
Chi Square ◽  
Private Partnership ◽  
Content Type

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.

Risk assessment in public-private partnership infrastructure projects

2017 ◽  
Vol 17 (2) ◽  
pp. 204-223 ◽  
Author(s):  
Robert Osei-Kyei ◽  
Albert P.C. Chan
Keyword(s):  
Risk Factors ◽  
Hong Kong ◽  
Significant Risk ◽  
Developed Countries ◽  
Public Private Partnership ◽  
Cost Overruns ◽  
Private Partnership ◽  
Content Type ◽  
Project Completion ◽  
Rate Fluctuation

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).

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