Examining the Value for Money of Deals Under the Private Finance Initiative/Public Private Partnership

2000 ◽  
Vol 15 (4) ◽  
pp. 72-82 ◽  
Author(s):  
Jeremy Colman
Keyword(s):  
Public Private Partnership ◽  
Value For Money ◽  
Private Finance Initiative ◽  
Private Partnership ◽  
Private Finance

Risk Transferin Public Private Partnership/Private Finance Initiative Procurement Documents:The Differencebetween The United Kingdom and Malaysia

2016 ◽  
Vol 4 (4) ◽  
pp. 30
Author(s):  
Nooriha Abdullah ◽  
Darinka Asenova ◽  
Stephen J. Bailey
Keyword(s):  
United Kingdom ◽  
Public Procurement ◽  
Research Question ◽  
Public Private Partnership ◽  
Private Finance Initiative ◽  
Private Partnership ◽  
Risk Transfer ◽  
Private Finance ◽  
The United Kingdom ◽  
The Uk

The aim of this paper is to analyse the risk transfer issue in Public Private Partnership/Private Finance Initiative (PPP/PFI) procurement documents in the United Kingdom (UK) and Malaysia. It utilises qualitative research methods using documentation and interviews for data collection. The UK documents (guidelines and contracts) identify the risks related to this form of public procurement of services and makeexplicittheappropriateallocation of those risks between the public and the private sector PPP/PFI partners and so the types of risks each party should bear. However, in Malaysia, such allocation of risks was not mentioned in PPP/PFI guidelines. Hence, a question arises regarding whether risk transfer exists in Malaysian PPP/PFI projects, whether in contracts or by other means. This research question is the rationale for the comparative analysis ofdocumentsand practicesrelatingtorisk transfer in the PPP/PFI procurements in both countries. The results clarify risk-related issues that arise in implementing PPP/PFI procurement in Malaysia, in particular how risk is conceptualised, recognised and allocated (whether explicitly or implicitly), whether or not that allocation is intended to achieve optimum risk transfer, and so the implications forachievement ofvalue for moneyor other such objectivesinPPP/PFI.

scholarly journals Dynamics of Organisational Capability of Japanese Construction Firm towards Open and Service Innovation through PPP/PFI arrangement

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Taeko Suehiro ◽  
Kumiko Miyazaki
Keyword(s):  
Open Innovation ◽  
Service Innovation ◽  
Public Private Partnership ◽  
Private Finance Initiative ◽  
Private Partnership ◽  
Construction Firms ◽  
Private Finance ◽  
Construction Company ◽  
Construction Firm ◽  
Collaborative Capabilities

<p>This study examined the influence of Public–Private Partnership (PPP) — or, more specifically, Private Finance Initiative (PFI) — arrangements in relation to open and service innovation in construction firms in Japan. The expectation of the PPP/PFI procurement arrangement is that Japanese construction firms will provide a broader range of services (service innovation) through expanded cooperation with various other firms (open innovation) compared to the conventional procurement scheme.</p><p>Our in-depth case study of a Japanese construction company shows the dynamics of project-based firms' capability accumulation through a PPP/PFI arrangement. The study identified a model of capability development for construction firms towards service and open innovation. It consists of three organisational capabilities: technological capabilities, project capabilities and collaborative capabilities. The model can be seen as an ideal approach for understanding and comparing cases of long-term capability accumulation of project-based firms, especially regarding providing services that meet the public's needs.</p><p> </p><p>Keywords: Public–Private Partnership (PPP); Private Finance Initiative (PFI); Project Capability, Open innovation; Service innovation; Construction firm</p>

Risk allocation, transfer and management in public–private partnership and private finance initiatives: a systematic literature review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mouhcine Tallaki ◽  
Enrico Bracci
Keyword(s):  
Risk Management ◽  
Literature Review ◽  
Systematic Literature Review ◽  
Public Private Partnership ◽  
Value For Money ◽  
Knowledge Gaps ◽  
Private Partnership ◽  
Content Type ◽  
Private Finance ◽  
Emerging Themes

PurposeThis paper examines risk and risk management in public–private partnership and private finance initiatives (PPP/PFI). Despite growing interest in PPP/PFI, there are knowledge gaps in the literature. The authors’ aim is to analyse these knowledge gaps and define emerging themes to guide future research agendas.Design/methodology/approachThe authors conduct a systematic literature review from 1990 to 2018 using the Scopus database.FindingsThe authors define six emerging themes: risk definition and types of risks; value for money (VFM) and risk; risk sharing, allocation and transfer; financial risk; contractualisation and renegotiation of risk; and risk management and governance. They proposed a conceptualisation of potential development of PPP/PFI research through the three phases of risk management cycle, i.e. prospective, real time and retrospective. This paper revealed some new aspects that could help to analyse better risk and risk management in PPP/PFI to reach value for money (VFM) and to exploit the potential of PPP/PFI.Originality/valueDespite the increasing attention to PPP/PFI, further researches are required in relation to operational and post-operational risk studies, risk management and control, the role of trust. The authors’ analysis underlines the difficulties in how risk is perceived and how to ascertain VFM. In addition, the authors highlight how the increase of contract renegotiation is changing the provisions with reference to risk assignment creating market distortion. Risk should be managed as a cycle; PPP/PFI would benefit by engaging more with the risk management literature.

APPLYING OF THE SUCCESSFUL EXPERIENCE OF EU COUNTRIES FOR INCREASING THE EFFECTIVENESS OF PUBLICPRIVATE PARTNERSHIP PROJECTS

2017 ◽  
Author(s):  
Valentin Stanishevskiy ◽  
Keyword(s):  
Large Scale ◽  
Public Private Partnership ◽  
Green Paper ◽  
Private Business ◽  
Public Authorities ◽  
Private Finance Initiative ◽  
Private Partnership ◽  
Private Finance ◽  
Eu Countries ◽  
Capital Construction

The article considers the tendencies of applying the successful experience of EU countries to increase the efficiency of public-private partnership projects, solving the main problems of their development in socio-economic spheres, as well as to upgrade the infrastructure of countries. Emphasis is placed on the main features that characterize public-private partnership projects, in accordance with the provisions of the Green Paper of the European Union. It is substantiated that the leading countries in the implementation of large-scale public-private partnership projects are the United Kingdom, Germany and France, and the most common areas of application of these mechanisms are transport and social infrastructure. According to the results of 2019, the total value of public-private partnership transactions in the European market was almost 10 billion euros. It is determined that one of the forms of cooperation between public authorities and representatives of private business in developed countries is the mechanisms of public-private partnership, which contribute to more efficient and rational implementation of large-scale projects of national importance. It is substantiated that one of the most common forms of partnership, interaction between public authorities and private business representatives is the private finance initiative, which is actively used by the British government. There is no legal framework in this area, so in practice, the regulation of the implementation of private finance initiative projects is based on internal directives of the UK Ministries of Finance. The essence of the mechanism of private financial initiative is to combine the state procurement program, when the authorities purchase capital construction projects from representatives of private business with the conclusion of an external contract for the provision of public services.

scholarly journals Accumulation of Knowledge by Strategic Public Procurement through Public-Private Partnerships for Service Innovation in Japan

2019 ◽  
Vol 4 (2) ◽  
Author(s):  
Taeko Suehiro ◽  
Kumiko Miyazaki
Keyword(s):  
Tacit Knowledge ◽  
Public Service ◽  
Public Procurement ◽  
Service Innovation ◽  
Public Private Partnership ◽  
Waste To Energy ◽  
Private Companies ◽  
Private Finance Initiative ◽  
Private Partnership ◽  
Private Finance

<p>This study focuses on how governments strategically procure public service through Public–Private Partnership (PPP) – or more specifically, Private Finance Initiative (PFI) arrangements. PPP/PFI is recognised as a key element of demand-oriented innovation policy in the field of social infrastructure.  However, owing to the considerable uncertainty of each project, the benefits of PPP/PFI are subject to debate, as is the role of public procurement in fostering public service innovation. The purpose of this study is to examine how governments strategically procure public services from construction firms in Japan. We conduct a comparative case study of two waste-to-energy PFI projects to clarify how governments improved the public procurement.</p><p>The results suggest the following: first, municipalities utilise a greater extent of other municipalities’ experience through external experts (i.e. Ministry of Environment, advisors, committee members and potential bidders) and standardised service criteria. Second, the codification of tacit knowledge, which both public and private entities have gained from previous projects, is important for securing a robust and routinised service level and reaping the benefits of the scale of repetition. Third, interaction with private companies in the bidding process with an appropriate manner would foster public service innovation. Governments' capability development through the use of internal and external resources can create space for private companies to provide better service by accumulating tacit knowledge within the projects.</p><p><strong> </strong></p><p>Keywords: Public procurement; Public–Private Partnership; Private Finance Initiative; Service innovation; Construction firm; Waste-to-energy</p>

scholarly journals Alternative To Development of Tourist Attraction with Public Private Partnership Scheme in Magelang Regency

2021 ◽  
Vol 2 (4) ◽  
pp. 263-273
Author(s):  
Siti Arifah ◽  
Agung Nur Probohudono ◽  
Djuminah ◽  
Evi Gantyowati
Keyword(s):  
Local Governments ◽  
Public Private Partnership ◽  
Tourist Attraction ◽  
Value For Money ◽  
Structured Interviews ◽  
Private Partnership ◽  
The Public ◽  
Service Contracts ◽  
Natural Beauty ◽  
Management Contracts

This study aims to see how the condition of the object/Tourist Attraction (TA) in Magelang Regency in Indonesia and its alternative development. This research uses a descriptive qualitative approach with case studies of 31 tourism objects which will then be investigated regarding their conditions and possible future developments. Research data were obtained by direct observation of the location of tourist objects and through semi-structured interviews. The results of this study illustrate that tourism objects in Magelang Regency are currently quite developed. However, this has not been able to attract general tourists to linger in the regency and provided an optimal contribution to regional income. This is because tourism objects in the regency other than Borobudur Temple have not been maximized for their existence and utilization. The Public-Private Partnership (PPP) scheme model can be an alternative to be applied in developing tourism objects accompanied by an appropriate Value for Money (VfM) analysis. Tourism objects in the form of cultural heritage can be developed through concession contracts, natural beauty can be developed through management contracts, and artificial objects can be developed through service contracts while taking into account the development needs of each tourism object. Local governments need to establish cooperation with the private sector with a Public-Private Partnership scheme accompanied by the preparation of strict regulations so that the implementation of cooperation in the context of developing tourism objects in the Magelang Regency can bring optimal benefits to all parties.

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