Unpacking the framework of unsolicited proposal for public private partnership projects – the Indian case

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Varaprasad Mallisetti ◽  
Tharun Dolla ◽  
Boeing Laishram
Keyword(s):  
Design Methodology ◽  
Public Procurement ◽  
Time Frame ◽  
Public Private Partnership ◽  
Successful Implementation ◽  
Implementation Framework ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
Private And Public

Purpose The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement. Design/methodology/approach Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement. Findings The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages. Originality/value The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.

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 FEASIBILITY STUDY OF PUBLIC-PRIVATE PARTNERSHIP / VIEŠOJO IR PRIVAČIOJO SEKTORIŲ PARTNERYSTĖS GALIMYBIŲ ANALIZĖ

2011 ◽  
Vol 15 (3) ◽  
pp. 257-274 ◽  
Author(s):  
Ieva Meidutė ◽  
Narimantas Kazimieras Paliulis
Keyword(s):  
Dispute Settlement ◽  
Public Procurement ◽  
Legal Framework ◽  
Public Private Partnership ◽  
Public Infrastructure ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Private And Public ◽  
Dispute Settlement Procedure

Public-private partnership may cover various forms of partnership, viz. as the property of the private sector in the state of municipal activities or information and consultations between the public and private sectors, also as an unconventional method of public procurement when the public and private sectors enter into a long-term contract on the establishment of public infrastructure or the provision of public services. The most important thing in implementing PPP projects is to properly draw up the contract between the public and private partners, which should explicitly state all terms and conditions, undertakings and liabilities, evaluate risks, determine the payment mechanism and dispute settlement procedure, etc. In order to reduce any risk associated with such projects, a proper legal framework should be developed, which would provide liabilities and undertakings of both parties of the project (the private and public sectors), and more information should be disbursed as to how such projects are being implemented, what the structures of financing are, and what the benefit of such projects is. Santrauka Viešojo ir privačiojo sektorių partnerystė gali apimti įvairias partnerystės formas: kaip privačiojo sektoriaus nuosavybė valstybės ar savivaldybių veikloje ar informavimas ir konsultavimas tarp viešojo ir privačiojo sektorių, taip pat kaip netradicinis viešujų pirkimų būdas, kai sudaroma ilgalaikė sutartis tarp viešojo ir privačiojo sektorių dėl viešosios infrastruktūros sukūrimo ar viešųjų paslaugų teikimo. Vykdant VPP projektus būtina tinkamai parengti sutartį tarp viešojo ir privataus partnerio, kurioje turi būti vienareikšmiškai apibrėžtos visos sąlygos, įsipareigojimai, atsakomybė, įvertintos rizikos, atsiskaitymo mechanizmas, konfliktų sprendimo tvarka ir t. t. Siekiant sumažinti bet kokią su tokiais projektais susijusią riziką, reikia suformuoti tinkamą teisinę bazę, kuri numatytų abiejų projekto šalių - tiek privačiojo, tiek valstybinio sektoriaus - atsakomybes ir įsipareigojimus, bei teikti daugiau informacijos, kaip tokie projektai vykdomi, kokios finansavimo struktūros, kokia gaunama nauda.

Public sector’s perspective on implementing public – private partnership (PPP) policy in Ghana and Hong Kong

2018 ◽  
Vol 16 (2) ◽  
pp. 175-196 ◽  
Author(s):  
Robert Osei-Kyei ◽  
Albert P.C. Chan
Keyword(s):  
Hong Kong ◽  
Public Private Partnership ◽  
Successful Implementation ◽  
Training And Education ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
Success Criteria ◽  
Implementation Practices ◽  
And Training

Purpose The public sector plays a critical role in the successful implementation of public–private partnership (PPP) projects. Thus, there is a need to holistically explore the public sector’s view on the implementation practices of PPP. This paper aims to explore and compare the public sector’s views on PPP practices in Ghana and Hong Kong. Design/methodology/approach Semi-structured interviews were conducted with PPP practitioners of senior authority in public institutions in both Ghana and Hong Kong. The interviews covered critical issues of PPP implementation practices such as motivations for engaging in PPP, success criteria/indicators, critical success factors (CSFs), external stakeholder management and training and education in PPPs. Findings The findings show that quick delivery of public projects and private sector efficiency are the reasons considered by both groups of interviewees. On the success criteria, interviewees from both jurisdictions mentioned user satisfaction, budget, time and quality. The CSFs mentioned by both groups include capacity building and training, project viability, proper planning and good feasibility studies. Sensitization programs, including open forums and community meetings, were mentioned by both groups as measures for managing external stakeholders. On the training and education, both groups mentioned international study tours and organizing courses and seminars. Originality/value The outputs of this study offer strategies that are very useful to international private developers who are interested in PPP practices in Africa and Asia. Further, the findings contribute to the knowledge on the international best practices for PPP.

scholarly journals Public private partnership as a last resort for traditional public procurement

2006 ◽  
Vol 53 (3) ◽  
pp. 299-311 ◽  
Author(s):  
Viktorija Bojovic
Keyword(s):  
Public Sector ◽  
Public Services ◽  
Developing Economies ◽  
Public Procurement ◽  
Public Private Partnership ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Management Culture ◽  
Complex Projects

This paper discusses recent changes in the way public services are delivered A marked increase in the cooperation between the public and private sector in the realization of complex projects, mostly concerning development of infrastructure, is the main characteristic of present-day developing economies. The creation of new, innovative agreements is driven by the limitation of public funds and an ever-growing demand for an increase in the quality of public services. Looking upon the western economies experience alternatives to the traditional public sector procurement are identified in the public/private partnership. The public/private partnership can be seen as one component in the rearrangement of the public sector with a management culture that focuses on the citizen or customer. Also included in this are accountability for results, investigation of a wide variety of alternative service delivery mechanisms, and competition between public and private bodies for contracts to deliver services consistent with cost recovery and the achievement of value for money. The partnership can be realized through an array of models and in this paper priority is given to the DBFO (design-build-finance-operate) model, due to its importance in implementation. The DBFO model is considered to be a synonym for the public/private partnership, as it is the most suitable for complex projects and gains the most benefits.

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.

Getting innovations out of interactions in the public procurement context

2020 ◽  
Vol 35 (12) ◽  
pp. 2051-2065 ◽  
Author(s):  
Lisa Melander ◽  
Ala Pazirandeh Arvidsson
Keyword(s):  
Public Sector ◽  
Business Model ◽  
Design Methodology ◽  
Public Procurement ◽  
Business Model Innovation ◽  
Structured Interviews ◽  
Demand And Supply ◽  
Content Type ◽  
The Public ◽  
Product Service

Purpose The purpose of this paper is to discuss how a seller can use interactions to respond to public procurement needs for innovation when the buying side is restricted by public procurement regulations. Design/methodology/approach The authors collected data using qualitative semi-structured interviews of different empirical examples, in which private–public interactions of four different high-technological products are studied. Two products belong to the defence industry and two to the civil industry. Findings The findings point to three types of innovations in public procurement: product, service and business model. The empirical examples further indicate, as suggested in previous studies, that innovation is hindered by regulations that limit interaction between suppliers and the public. In addition, the empirical examples indicate that firms mobilize actors in their network when the buyer is restricted in regard to interaction. The findings also add to the IMP literature by comparing interactions in the three types of innovations in the public procurement context. Originality/value Public procurement is an area where innovations are lagging behind, compared with private procurement. Research points to limited interaction between actors as an obstacle to innovation in public sector collaborations. This paper extends the literature on how organizations interact in the setting of public procurement. The authors identify demand and supply triggers for three types of innovations: product, service and business model innovation.

Identifying the most important public–private partnership risks in Afghanistan’s infrastructure projects

2019 ◽  
Vol 24 (3) ◽  
pp. 309-337
Author(s):  
Farhad Bayat ◽  
Esmatullah Noorzai ◽  
Mahmood Golabchi
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Public Private Partnership ◽  
Implementation Study ◽  
Infrastructure Projects ◽  
Private Partnership ◽  
Content Type ◽  
Underdeveloped Countries ◽  
International Laws ◽  
Shed Light

Purpose The purpose of this paper is to identify the major public–private partnership (PPP) risks in infrastructure projects in Afghanistan and explain the extent to which extent the identified risks can shed light on the PPP implementation study in general. Design/methodology/approach Initially, 78 risks were identified through considering international laws and regulations, criteria for using PPP in developing and underdeveloped countries, and case studies. Later, 23 of the more important risks were determined, ranked and classified into five main groups. Findings Finally, these risks were adapted with some investigations conducted in the PPP field. Although some of the risks identified in this survey are unique to Afghanistan, this research can be used to develop the application of PPP generally. Originality/value PPP is one possible solution to finance infrastructure projects. However, there are a lot of risks, which make this method inefficient in Afghanistan. Therefore, identifying the risks of PPP can play an important role in improving the infrastructures of Afghanistan.

Risk managing contractual routes to effective innovation procurement

2019 ◽  
Vol 35 (10) ◽  
pp. 18-20
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Reading Time ◽  
Public Procurement ◽  
Public Organization ◽  
Content Type ◽  
The Public ◽  
Pertinent Information ◽  
Practical Implications ◽  
The Eu

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the public procurement of innovations (PPI) within the EU as a mechanism for stimulating private sector R&D efforts that solve public organization-identified problems. The authors encourage less risk aversion and greater risk management to encourage the increased use of cost-plus contracts to spread some risk between the procurer and supplier, which should in turn attract more innovative companies to participate in PPI exercises. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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.

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