How public-private partnership projects impact infrastructure industry for economic growth

2014 ◽  
Vol 41 (10) ◽  
pp. 994-1010 ◽  
Author(s):  
Abouzar Zangoueinezhad ◽  
Adel Azar
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Public Private Partnership ◽  
Key Factors ◽  
Dynamic Interactions ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
The Relationship

Purpose – Public-private partnership (PPP) is mutually beneficial relationships that are formed between the public and private sectors. The private-sector partner typically makes a substantial equity investment, and in return the public sector gains access to new or improved services. When properly vetted and structured, PPP allocate risk to the party best suited to handle it. The purpose of this paper is to examine the relationship between the scale and nature of the PPP's contribution as a driver of the economic growth and gross domestic product (GDP). Design/methodology/approach – Using statistics causality modeling and relevant statistical techniques, the dynamic interactions and interdependencies over PPP and economic growth were addressed and quantified. Findings – Although PPP can free up government resources for other public priorities, three key factors enable PPP to stimulate a country's economic growth: the number of PPP projects under way, the value of PPP projects, and the ideal type of PPP contracts in use. Originality/value – The number, value, and type of PPP, combined with supportive policies, power economic growth. Governments with well-established and enforced policies against corruption, combined with low business transaction costs, a transparent legislative system, and exchange rate and monetary stability are far more attractive to the private sector.

Constraints in implementing Public Private Partnership (PPP) in Malaysia

2014 ◽  
Vol 4 (3) ◽  
pp. 238-250 ◽  
Author(s):  
Suhaiza Ismail ◽  
Fatimah Azzahra Haris
Keyword(s):  
Private Sector ◽  
Evaluation Criteria ◽  
Public Private Partnership ◽  
Political Debate ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
The Government ◽  
Public And Private Sector

Purpose – The purpose of this paper is to study two objectives. First, it intends to scrutinize the challenges in implementing Public Private Partnership (PPP) by examining the factors that hinder the successful adoption of PPP in Malaysia. Second, it aims to investigate the differences in the perceptions of the government and the private sector pertaining to the hindrance factors. Design/methodology/approach – A questionnaire survey was used to elicit the perceptions of the public and private sectors concerning the constraints of PPP implementation in Malaysia. A total of 122 usable responses were obtained, which were analysed using Statistical Package for Social Sciences software. The mean score and mean score ranking were used to examine the importance of the hindrance factors based on the overall responses as well as on the respective responses of the public and the private sectors. An independent sample t-test was used to examine the differences in the perceptions between the two sectors. Findings – The overall results show that “lengthy delays in negotiation”, “lack of government guidelines and procedures on PPP”, “higher charge to direct users”, “lengthy delays because of political debate” and “confusion over government objectives and evaluation criteria” are the top five constraints for adopting PPP in Malaysia. In terms of the differences in the perceptions between the public and private sector groups, the statistical test results indicate that there are only significant differences in the perceptions for two hindrance factors. Originality/value – The paper contributes to the existing literature on PPP, which is currently limited, by focusing on the challenges of implementing PPP in a developing country (i.e. Malaysia). More importantly, this paper provides evidence concerning the differences in the opinion of two key players (i.e. the government and the private sector) on the PPP hindrance factors.

An evolutionary game analysis of user-pay public–private partnership projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danrong Song ◽  
Jinbo Song ◽  
Hehui Yuan ◽  
Yu Fan
Keyword(s):  
Evolutionary Game ◽  
Public Private Partnership ◽  
Decision Makers ◽  
Successful Implementation ◽  
Game Model ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
Game Analysis ◽  
The Public

PurposeWith the growing demand for infrastructure and public services in recent years, PPP-UP have attracted a great deal of attention. However, while the user focuses on the payment for use and the private sector is concerned with its return on investment, the public sector pays more attention to the efficient utilization of public funds. In order to analyze the willingness of each stakeholder to join PPP-UP, an evolutionary game model involving the three parties is constructed.Design/methodology/approachAn evolutionary game model is established that considers the users and the public and private sectors in user-pay public-private-partnership projects (PPP-UP). Eight scenarios of equilibriums and the game's evolutionary stable strategies are analyzed, and the corresponding stability conditions are then obtained. A situation where all three players are willing to cooperate in theory is also examined. The key influencing parameters that affect cooperation behaviors are further discussed.FindingsFirst, the results illustrate that by properly adjusting the influencing factors, the cooperation status among the three parties can be changed along with certain evolutionary trends. Second, it is hard to modify unsatisfactory evolutionary stability by small changes in both the price compensation of and the construction and operation compensation. Third, it is necessary to involve the users in the decision-making process in PPP-UP and take their demands regarding benefits and payments into account.Originality/valueIn this paper, we focus on PPP-UP to research interactions among the public and private sectors and the users. Based on the analysis of the evolutionary game, to facilitate the successful implementation and development of a project, several conditions are needed to ensure tripartite cooperation. Several recommendations are then proposed for decision-makers in PPP-UP.

scholarly journals THE DRIVING FACTORS OF CHINA'S PUBLIC-PRIVATE PARTNERSHIP PROJECTS IN METROPOLITIAN TRANSPORTATION SYSTEMS: PUBLIC SECTOR'S VIEWPOINT

2010 ◽  
Vol 16 (1) ◽  
pp. 5-18 ◽  
Author(s):  
Jing-Feng Yuan ◽  
Mirosław J. Skibniewski ◽  
Qiming Li ◽  
Jin Shan
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public Services ◽  
Transportation Systems ◽  
Public Private Partnership ◽  
Driving Factors ◽  
Key Factors ◽  
Private Partnership ◽  
The Public ◽  
Chinese Public

In recent years, China needs far more financing for transportation infrastructure than can be provided by the government alone. Meanwhile the capacity of the Chinese government to provide public services on its own in an effective and efficient way is being questioned and reassessed at various levels. Accordingly, the involvement of private investors in the development of Metropolitan Transportation Systems (MTS) has been promoted by the Chinese public sector by means of adopting the Public Private Partnership (PPP) model. However, China's dynamic and complex political, financial, legal and regulatory environment makes the private sector adjust to accommodate the existing regime by way of understanding the driving factors in PPP applications for improving the chances of project success. This paper presents two case studies in China's MTS. Based on a case study and comprehensive literature review, 15 driving factors associated with PPP projects from the perspective of the Chinese public sector have been identified. A structured questionnaire survey targeting the public sector has been conducted to seek, analyze and integrate its perception of the driving factors. Through statistical analysis of the relative significance of each of these driving factors, the writers determined five common major dimensions of the Chinese public sector's purpose in developing PPP schemes, and the key factors that quantify each purpose. The establishment of the measures for these objectives and the key factors that quantify each of these purposes will likely be useful in encouraging private participation in infrastructure management and directing/concentrating efforts of the private sector to deliver quality public services under mutually beneficial long‐term contractual arrangements. Santrauka Pastaruoju metu Kinijai reikia daug daugiau finansavimo transporto infrastruktūrai pletoti, nei gali suteikti vien šalies vyriausybe. Jos galimybes veiksmingai ir efektyviai teikti viešasias paslaugas tiriamos bei vertinamos ivairiais lygiais. Skatinamas privačiu investuotoju itraukimas i metropolijos transporto sistemu (MTS) pletra, taikant viešojo ir privataus bendradarbiavimo modeli. Tačiau Kinijos dinamiška ir kompleksine politine, finansine bei teisine aplinka priverčia privatu sektoriu derintis prie egzistuojančios tvarkos, atsižvelgiant i pagrindinius viešojo ir privataus bendradarbiavimo veiksnius, kurie padidintu projekto sekmes tikimybe. Straipsnyje pateikiami du Kinijos metropolijos transporto sistemu pletros pavyzdžiai. Remiantis nagrinejamais pavyzdžiais ir išsamia literatūros analize, iš Kinijos viešojo sektoriaus poziciju identifikuota 15 pagrindiniu veiksniu, susijusiu su viešojo ir privataus bendradarbiavimo projektais. Buvo atlikta apklausa, orientuota i viešaji sektoriu, išanalizuota, kaip pagrindiniai veiksniai suvokiami ir pritaikomi. Atliekant kiekvieno iš šiu veiksniu santykiniu reikšmingumu statistine analize, buvo apibrežti penki pagrindiniai Kinijos viešojo sektoriaus tikslu aspektai, pletojant viešojo ir privataus bendradarbiavimo schemas, ir pagrindiniai rodikliai, ivertinantys šiuos tikslus skaitine išraiška. Minetu tikslu nustatymas ir pagrindiniu skaitiniu rodikliu ivertinimas galetu būti naudingi, skatinant privatu sektoriu prisideti prie infrastruktūros valdymo, galetu padeti koncentruoti bei nukreipti privataus sektoriaus jegas kokybiškoms viešojo sektoriaus paslaugoms teikti, remiantis abipusiškai naudingomis ilgalaikemis sutartimis.

Antecedents of stakeholder management in public private partnership projects in Uganda

2019 ◽  
Vol 15 (2) ◽  
pp. 169-181 ◽  
Author(s):  
Rogers Mwesigwa ◽  
Vincent Bagire ◽  
Joseph Mpeera Ntayi ◽  
John C. Munene
Keyword(s):  
Stakeholder Management ◽  
Project Managers ◽  
Public Private Partnership ◽  
Multiple Stakeholders ◽  
Cross Sectional ◽  
Public And Private ◽  
Policy Makers ◽  
Private Partnership ◽  
Content Type ◽  
The Public

Purpose The purpose of this paper is to assess stakeholder management antecedents in public private partnership (PPP) projects in Uganda. Design/methodology/approach This study is cross sectional and quantitative in nature. Data were collected by means of a questionnaire survey from a sample of 94 PPP projects in Uganda. Stratified random sampling was used in selecting projects for this study. Smart PLS–SEM was used for analysis. Findings Results from the study show that the key antecedents of stakeholder management include; communication, engagement, commitment and trust. Communication was found to be the strongest antecedent of stakeholder management. Results also show that trust and commitment are insignificantly associated with stakeholder management in PPP projects. Research limitations/implications This paper is limited to the antecedents of stakeholder management in PPP projects in Uganda. Further studies should be conducted in the public and private sectors where there are also multiple stakeholders. Practical implications The paper has documented the antecedents of stakeholder management in PPP projects in Uganda. The results will help project managers and policy makers appreciate the different antecedents of stakeholder management and how they are important in managing interests and expectations of different stakeholders. Originality/value This research focused on the key antecedents of stakeholder management in PPP projects within the Ugandan context.

Achieving value for money in waste management projects: determining the effectiveness of public–private partnership in Ghana

2020 ◽  
Vol 13 (6) ◽  
pp. 1283-1309
Author(s):  
Mumuni Ishawu ◽  
Chen Guangyu ◽  
Emelia Darko Adzimah ◽  
Aliu Mohammed Aminu
Keyword(s):  
Waste Management ◽  
Private Sector ◽  
Structural Equation ◽  
Public Private Partnership ◽  
Equation Modeling ◽  
Value For Money ◽  
Private Partnership ◽  
Content Type ◽  
Private Sector Participation ◽  
The Relationship

PurposeGovernments all over the world are increasingly entering into partnership agreement with the private sector through public–private partnership (PPP) models for the development and management of public projects and services. Thus, the purpose of this study is to first examine the factors that enter into government's attitude, value for money (VFM) and PPP-based waste management projects (WMPs) in Ghana. Further, this study examines the relationship between PPP-based waste management and VFM, along with the mediating role of government's attitude.Design/methodology/approachData were collected through a survey questionnaire from four metropolitan municipal assemblies of Ghana. This study’s sample consisted of 230 respondents, and structural equation modeling was employed to conduct an empirical analysis. The structured model had evaluated the critical success factors (CSFs). Subsequently, the measurement model helped in the path analysis of the proposed model.FindingsThe authors found a nonpositive relationship between PPP-based WMPs and VFM; however, government's attitude will influence the achievement of VFM. Reliance on quality targets is ranked as the highest CSF in PPP-based WMPs in Ghana. Also, incentives for private sector participation and effective private sector participation are ranked as the least CSFs.LimitationsMost of the questionnaire's items were self -rated by employees of municipal assemblies who were not policymakers. This must have increased the possibility of common method bias. In addition, the study was limited to Ghana (a developing economy); therefore, the generalization of the results should be done with much caution.Practical implicationsThis study suggests to develop a network of private sector consortiums considering international and national participants who are engaged in PPPs in order to ensure successful delivery and hence valuing for money.Originality/valueThis study offers a novel perspective to investigate the relationship of PPP-based WMPs and VFM and shows how the government's attitude mediates this relationship.

scholarly journals DIFFERENT PERCEPTIONS OF CONCERN FACTORS FOR STRATEGIC INVESTMENT OF THE PRIVATE SECTOR IN PUBLIC-PRIVATE PARTNERSHIP TRANSPORTATION PROJECTS

2017 ◽  
Vol 7 (2) ◽  
pp. 66-86
Author(s):  
Do Tien Sy ◽  
Veerasak Likhitruangsilp ◽  
Masamitsu Onishi ◽  
Phong Thanh Nguyen
Keyword(s):  
Private Sector ◽  
Risk Perceptions ◽  
Public Private Partnership ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Political Risks ◽  
Transportation Projects ◽  
Private And Public ◽  
Private Investors

This paper identifies the concern factors of private investors associated with Public-Private Partnership (PPP) transportation projects in Vietnam. The concern factors are incorporated into four main groups: (1) company profile; (2) finance; (3) opportunities; and (4) risk perceptions. The paper examines the different perceptions by the public and private sectors about these concern factors adopted by experienced professionals related to PPP transportation projects. Based on a questionnaire survey in Vietnam, the most concern factors of private investors are their own capacity, demand issues, legal and political risks, long-term income, and financial sources issues of the PPP project. Moreover, five factors that represent the significant differences between the private and public sectors including political risks, enhancement of company’s strength in its industry, construction risks, demand issues, and financial viability of the company are also discovered. Addressing the different perceptions is indispensable to ensure the public sector can establish necessary policies that appeal to both domestic and foreign private investors. The paper at the same time hopes to provide some of lessons for the private sector.

Penalty mechanisms for enforcing concessionaire performance in public–private partnership contracts in Nigeria

2018 ◽  
Vol 16 (1) ◽  
pp. 161-191 ◽  
Author(s):  
Akintayo Opawole
Keyword(s):  
Public Private Partnership ◽  
Qualitative Assessment ◽  
Law Firms ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
Private Party ◽  
Face To Face ◽  
The Public ◽  
Significant Step

Purpose The purpose of this study is to develop penalty measures against concessionaires’ defaults as a mechanism for protecting the interests of parties (public and private) in public–private partnership (PPP) contracts for enhancing project delivery. Design/methodology/approach The research methodology is a mixed qualitative and quantitative approach. This study commenced with an in-depth literature review, which provided the basis for identification of penalty measures in construction contract management. The qualitative assessment was based on semi-structured face-to-face interviews, which were aimed at identifying the underlying pattern of the penalty measures, and the quantitative assessment was based on a structured questionnaire. In both cases, respondents were stakeholders’ organizations that had been involved in PPP contracts in the southwestern region of Nigeria. These include industrial practitioners from government-based organizations (ministries, agencies, corporations/parastatals, etc.), private developers/concessionaires, law firms, banks, etc. The sample size was selected using a respondent-driven sampling approach, as the comprehensive lists of the participants in PPP contracts are not readily available in the Nigerian construction industry. Responses from the interview were analysed using interpretative phenomenal analysis via ATLAS.ti7. The quantitative data were analysed using percentile for flexibility between “most” and “more” preferred mechanisms. Findings This study developed mechanisms that defined the rights of the public party to redress underperformance of PPP contracts consequent to the defaults of the private party. “Step-in-right” and “termination of the contracts” were preferred against specific cases of “delayed execution”, “abandonment of the project”, “bankruptcy of the concessionaire” and “non-compliance with design and specifications”. With respect to “shortfall in performance against established dates”, the results converged on “monetary fine” and diverged on “step-in-right” and “termination of the contracts”. Practical implications The study contributes to literature on mechanisms for enforcing PPP project performance. Besides, defining rights and obligations of the parties in specific events of underperformance of the concessionaires in PPP contracts is a significant step towards the development of standard conditions of contract for managing PPP projects in which the model is being newly adopted. Originality/value Project management studies on PPP were extended by defining the liabilities that are consequent to the defaults of the private party and the mechanisms for their enforcement.

Performance indicators for lifecycle process of public private partnership (PPP) projects in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suhaiza Ismail ◽  
Rosnani Mohamad ◽  
Julia Mohd Said
Keyword(s):  
Risk Management ◽  
Private Sector ◽  
Performance Indicators ◽  
Management System ◽  
Cost Management ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
Risk Management System

PurposeThis paper has two objectives. The first objective is to examine the important performance indicators of the lifecycle process of public private partnership (PPP) projects. The second objective is to investigate the difference in the perception of the importance of the performance indicators between the public and private sectors.Design/methodology/approachTo achieve the research objectives, the study used a questionnaire survey. The questionnaire was distributed via postal mail to officers of government departments and private sector companies who may have been involved in PPP projects. A total of 237 completed questionnaires were received, representing a 51.52% response rate. To examine the importance of performance indicators, the descriptive statistical tests of mean, standard deviation and mean score ranking were used. Independent t-tests were conducted to investigate the differences in the perceptions of the importance of performance indicators between the two respondent groups.FindingsThe findings show that all the 16 performance indicators are perceived as important and very important. The top five important performance indicators for a PPP project lifecycle process are “Time management”, “Contractual management”, “Cost management”, “Safety management” and “Effective risk management system”, while “stress or conflicts management” is the least important. In terms of the differences in the perception of the public and private sector groups, the results indicate that four indicators (“environment protection”, “cost management”, “effective risk management system” and “good work environment”), show a significant statistical difference between the perception of the public and the private sector respondents.Originality/valueThis study offers empirical evidence on key performance indicators for a PPP project that are crucial throughout its lifecycle as perceived by two key parties in a PPP contract, i.e. the public and the private sectors.

scholarly journals Influencing Factors on Profit Distribution of Public-Private Partnership Projects: Private Sector’s Perspective

2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
Jing Du ◽  
Hongyue Wu ◽  
Lei Zhu
Keyword(s):  
Private Sector ◽  
Influencing Factors ◽  
Risk Sharing ◽  
Public Private Partnership ◽  
Public And Private ◽  
Private Partnership ◽  
Effort Level ◽  
The Public ◽  
Profit Distribution ◽  
Management Ability

As an important issue in the public-private partnership (PPP) projects, the profit distribution has a critical impact on both the public and private sectors. Moreover, the influence of the private sector on the profit distribution of PPP projects cannot be ignored because the private sector are the implementers of PPP projects and responsible for the life-cycle performance and management of PPP projects. Therefore, this study aims at (1) investigating the influencing factors of the profit distribution of PPP projects from the private sector’s perspective and (2) analyzing the relationships between the factors and the profit distribution by the qualitative comparative analysis (QCA). The results first showed that the five key influencing factors on the profit distribution from the private sector’s perspective were the risk sharing, financing ability, investment, management ability, and effort level. Moreover, the results indicated that the risk sharing was the most important factor that had a positive impact on the profit distribution. Furthermore, the strong management ability and the high ratio of investment were identified as critical factors that led to a larger proportion of profits distributed to the private sector. In addition, the financing ability and the effort level of the private sector should also be considered in the profit distribution plan. The findings first contributed to the body of knowledge on the influencing factors of the profit distribution in PPP projects. In addition, this study is the first attempt of exploring the characteristics of the private sector under the context of profit distribution of PPP projects and using the QCA method to enrich the theoretical research. Thus, the findings would help the private companies improve their abilities and ensure their profits. Besides, the public and private sectors can make appropriate profit distribution proposals in practice based on the conclusion of this study.

scholarly journals Performance indicators for public private partnership (PPP) projects in Malaysia

2018 ◽  
Vol 34 (2) ◽  
pp. 137-152 ◽  
Author(s):  
Rosnani Mohamad ◽  
Suhaiza Ismail ◽  
Julia Mohd Said
Keyword(s):  
Performance Indicators ◽  
Statistical Tests ◽  
Employee Training ◽  
Public Private Partnership ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
Construction Period ◽  
The Public ◽  
Public And Private Sector

Purpose The purpose of this paper is twofold: first, to identify the important performance indicators used in assessing public private partnership (PPP) performance in terms of the two aspects of PPP which are “financing and markets” and “innovation and learnings”; and second, to investigate the differences in the perception between public and private sectors on the importance of performance indicators in terms of the two aspects of PPP. Design/methodology/approach Using a questionnaire survey, 237 completed questionnaires were received representing 51.52 per cent response rate. In examining the importance of performance indicators, the descriptive statistical tests of mean, standard deviation and mean score ranking were used. The independent t-tests were conducted to investigate the differences in the perceptions between the two respondents’ groups on the importance of performance indicators. Findings In relation to the two areas of indicators used in assessing PPP performance, the findings show that the top three important performance indicators for financing and markets are: “Operational cost”, “Construction cost” and “Construction period”. While the top three important performance indicators for innovation and learning are: “Technology innovation”, “Employee training” and “Financial innovation”. In terms of the differences in the perceptions between the public and private sector groups, the test results indicate that there is only one significant statistical difference for each aspect of performance indicators. Originality/value This study offers empirical evidence on key financial performance indicators for PPP projects as perceived by two key parties in a PPP contract that are public and private sectors.

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