Delivering value-for-money in PPPs? Risks and insights in change management

2017 ◽  
Vol 3 (2) ◽  
pp. 102-114 ◽  
Author(s):  
Steven McCann
Keyword(s):  
Success Factors ◽  
Major Change ◽  
Public Private Partnerships ◽  
Value For Money ◽  
Public And Private ◽  
The Public ◽  
Critical Success ◽  
Critical Junctures ◽  
Standard Management ◽  
Knowledge Policy

A fundamental benefit sought from Public Private Partnerships is risk transfer – or more explicit allocation of risks between the public and private partners. However, not all operating risks can be transferred or eliminated. The public partner retains residual risk and remains ultimately accountable for the delivery of public services. Sub-standard management of major change events can lead to poor value-for-money outcomes. In-depth insights are provided in this article into how the actual management of Public Private Partnerships may be carried out and dealt with by governments at critical junctures during the concession period. Key risks, issues and critical success factors are identified that can have profound effects on the achievement of intended outcomes. These considerations build upon existing knowledge, policy and guidance for Public Private Partnerships, both nationally and internationally, making this essay tangible and grounded for both academics and practitioners.

The Influence of Critical Success Factors on Value for Money Viability Analysis in Public–Private Partnership Projects

2017 ◽  
Vol 48 (4) ◽  
pp. 93-106 ◽  
Author(s):  
Khalid Almarri ◽  
Halim Boussabaine
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnership ◽  
Value For Money ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Public Projects ◽  
Viability Analysis ◽  
Critical Success

Governments are increasingly entering partnerships with the private sector through the public–private partnership (PPP) model for the development of public projects. Value for money analysis is used to assess the viability of these ventures. This research aims to investigate the contribution of the PPP critical success factors to value for money viability analysis. Relevant data were collected through a questionnaire to establish the PPP critical success factors and value for money success criteria. Data were collected from 92 participants. The data obtained were analyzed using mean score, t-test, and regression analysis. The research found that government guarantees, macroeconomic conditions, shared authority between the public and private sectors, social support, and transparent procurement process contributed positively to value for money viability analysis. The results imply that practitioners should consider these key indicators for improving the value for money viability of PPP projects.

Critical success factors for public–private partnerships in affordable housing in the United Arab Emirates

2019 ◽  
Vol 13 (5) ◽  
pp. 753-768 ◽  
Author(s):  
Khalifa Alteneiji ◽  
Sabah Alkass ◽  
Saleh Abu Dabous
Keyword(s):  
United Arab Emirates ◽  
Affordable Housing ◽  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnerships ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Critical Success ◽  
Gcc Countries

Purpose This study aims to identify the critical success factors (CSFs) in the implementation of the public–private partnerships (PPPs) in the United Arab Emirates’ (UAE) affordable housing sector. Design/methodology/approach A questionnaire survey was conducted to assess 17 CSFs for PPP projects derived from previous international and local studies. The collected data were analyzed using the relative importance index technique to establish the most significant factors based on feedback from 48 respondents from the public and private sectors. Findings The most identified CSFs were good governance, government guarantees, commitment and responsibility of the public and private sectors, favorable and efficient legal frameworks, political support and stability, and demand for and the debt-paying ability of the project. Research limitations/implications There has been rapid momentum in the UAE and other Gulf Cooperation Council (GCC) countries towards engaging the private sector in the provision of infrastructure and housing after increased pressure on government budgets and falling oil prices. Thus, this study encourages strong consideration of the highest-ranked CSFs in the absence of any prior experiences or studies. On a broader scale, these CSFs are an effective policy tool for the GCC countries, which share similar contexts. Originality/value This paper represents the first empirical study in the GCC region and the UAE on the CSFs for PPPs in affordable housing, which is experiencing growing demand in the region to overcome the large deficit in housing supply.

Factor analysis of critical success factors for water infrastructure projects delivered under public–private partnerships

2019 ◽  
Vol 24 (3) ◽  
pp. 338-357 ◽  
Author(s):  
Khotso Dithebe ◽  
Clinton Ohis Aigbavboa ◽  
Wellington Didibhuku Thwala ◽  
Ayodeji Emmanuel Oke
Keyword(s):  
Factor Analysis ◽  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnerships ◽  
Private Capital ◽  
Water Infrastructure ◽  
Infrastructure Projects ◽  
Content Type ◽  
The Public ◽  
Critical Success

Purpose The role of public–private partnerships (PPP) as a strategic initiative to improve and accelerate service delivery in the form of newly built and revitalised water infrastructure assets in developing countries cannot be over-emphasised. Hence, the purpose of this study is to assess and highlight the importance of critical success factors for water infrastructure projects delivered under public–private partnerships. Design/methodology/approach A survey design was used and a questionnaire was administered to stakeholders who have participated in delivering water infrastructure assets in South Africa. Out of 150 administered questionnaires, only 91 were returned and usable for analyses, representing a 61 per cent response rate. The data gathered were then analysed using descriptive and factor analysis. Findings The study revealed that thorough planning for project viability, high levels of transparency and accountability and a legal framework stipulating policy continuity are the CSFs for delivering water infrastructure projects under the PPP initiative. The findings emerging from factor analysis owing to a close variance revealed the importance of the following grouped factors, namely, public cooperation, project viability and policy and legislation enhancement. Practical implications From the results, it is clear that the public sector, as the facilitator of infrastructure development, should create an environment that is conducive for private capital through political will and commitment and the enhancement of policy and legislation where there is no or minimal private participation. Originality/value Adequate infrastructure investment from private capital promises to flourish economically and improve the living conditions of the public in the cities and the country at large. To further guarantee the reality of PPPs at a local level, the host government must adequately engage and enlighten the public.

scholarly journals What Drives the Employment of Public-private Partnerships in Kazakhstan and Russia: Value for Money?

2012 ◽  
Vol 3 (1) ◽  
pp. 32-57 ◽  
Author(s):  
Nikolai Mouraviev
Keyword(s):  
Best Practices ◽  
Transaction Cost Economics ◽  
Public Private Partnerships ◽  
Value For Money ◽  
Public And Private ◽  
The Public ◽  
Partnership Development ◽  
Policy Paradigm ◽  
Transitional Countries ◽  
Total Social Cost

Public-private partnerships (PPPs) are employed in many countries as an alternative method of public service provision in which partners from the public and private sectors share their resources, responsibilities, and risks.  Some well-justified factors that drive the partnership development are value for money and lack of budget funding.  As PPP drivers may be unique, thepaper surveys the reasons for PPP expansion in two transitional countries, Kazakhstan and Russia.  Based on detailed discussion of the commonly employed reasons for partnering (such as greater value for money, or lower total social cost associated with a PPP as opposed to contracting out a service), internal and external PPP drivers in Kazakhstan and Russia have been categorized and examined.  Among internal drivers, the need to attract private initiative and funding for upgrading the utilities and housing infrastructure is most influential because of enormity of the task for which governments lack resources.  The countries’ intention to align themselves with the requirements of perceived international best practices is yet additional influential driver of external nature.  The paper concludes that public policy in the two countries is the major driving force for PPP development although the value for money concept and transaction cost economics appear to be neglected.  The emerging PPP policy paradigm in Kazakhstan and Russia has facilitated PPP development in recent years, since 2005.  However, lack of reliable solutions and instruments for PPP formation and implementation significantly slows down PPP expansion.  

scholarly journals Critical success factors of public-private partnership from 2000 to 2019: A literature review

2021 ◽  
Vol 8 (6) ◽  
pp. 531-540
Author(s):  
Lydia Natalia ◽  
Nanny Dewi Tanzil ◽  
Prima Yusi Sari
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Infrastructure Development ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Critical Success ◽  
Legal Frameworks

Public-Private Partnership (PPP) is one of the schemes that have inspired many countries in infrastructure development. One of the most discussed PPP topics by researchers is the concept of Critical Success Factors (CSF). Therefore, this study examines CSF publications for PPP projects from selected journal sites from 2000-2019. The results showed that research on CSF in PPP began to increase in 2012. The most identified CSFs were appropriate risk allocation and sharing, competitive and transparent procurement processes, favorable and efficient legal frameworks, commitment and responsibility of the public and private sectors, and a robust and reliable private consortium. Furthermore, it was also found that most countries that were the objects of research on PPP CSF were China, followed by Hong Kong and Australia. The results also show that the dominant research focuses on multi-sector types of infrastructure where CSF can be applied to all infrastructure sectors. The findings obtained in this study can provide an overview of CSFs for projects with PPP schemes in the future. Besides, the identified CSFs can be applied to any PPP infrastructure sector. They can assist stakeholders in increasing the likelihood of PPP project success and can be adopted for further research

scholarly journals Technological innovations performance and public-private-partnerships

2016 ◽  
Vol 13 (4) ◽  
pp. 549-557
Author(s):  
Fanny Saruchera ◽  
Maxwell Agabu Phiri
Keyword(s):  
Research And Development ◽  
Success Factors ◽  
Developing Economies ◽  
Public Private Partnerships ◽  
Technological Innovations ◽  
The Public ◽  
Key Success Factors ◽  
Critical Success ◽  
Research Institutes

The research institutes’ dilemma in successfully bringing their breakthrough technological innovations to the market has remained major concern in most developing economies. Zimbabwe is no exception. The theory of Public-Private-Partnerships (PPPs) and their increasing applicability in especially the provision of public facilities and services has commanded some research interest worldwide. However, not much attempts have been made to unlock the value in the PPP’s capability in enhancing commercialization of technological innovations, worst still from a developing economy’s perspective. This paper explores the role of PPPs in ensuring successful Research and Development, and Commercialization (R & D-C) of research outcomes. Guided by a systematic literature review on key success factors of PPPs, cases of two forms of PPPs (a Build-Own-Operate-Transfer (BOOT) PPP, and a concession contract) were studied and their operations were monitored and evaluated, in comparison to institutes not engaged in any partnership – to supplement data obtained through key informant interviews. The study established that research institutes engaged in PPPs had relatively fewer commercialization challenges for their output as compared to those who were not engaged. However, it emerged that there are limitations regarding observance of the critical success factors, thereby hindering progress of the prevailing PPPs. The findings of this study imply that there are limited understandings surrounding the value that could be unlocked in commercializing research institutes’ innovations through PPPs. To the few existing PPPs, there is lack of integrative frameworks for the management of, and success of the PPPs. Anchored on promoting ideal collaborations in which all key values are honoured, the study proposes a framework that emphasizes a collaboration in which the public research institute concentrates on research and development, while the private firm partner uses her market analytics to focus on getting the product to the market.

A critical success model for PPP public housing delivery in Ghana

2016 ◽  
Vol 6 (1) ◽  
pp. 58-73 ◽  
Author(s):  
Titus Ebenezer Kwofie ◽  
Samuel Afram ◽  
Edward Botchway
Keyword(s):  
Public Housing ◽  
Success Factors ◽  
Sub Saharan Africa ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Critical Success ◽  
Success Model ◽  
Main Challenge ◽  
Sub Saharan

Purpose – The nature and characteristics of critical success factors (CSFs) that influence success on public private partnership (PPP) arrangements on different project typologies vary between countries and regions. Studies confirm the lack of success on PPP approach on public housing project (PHP). The main challenge to PPP-PHP success has been identifying, analysing, categorizing and matching CSFs that are likely to influence the PPP-PHP outcome. The purpose of this paper is to identify the CSFs that influence PPP-PHP delivery in Ghana. This is premised on the theoretical implications that understanding the factors that influence the success on PPP-PHP projects is critical. Design/methodology/approach – By adopting a 16 CSFs from literature and using a questionnaire survey, the factors that are critical to success on PPP-PHP approach in Ghana were identified. The questionnaires were administered on participants that have been involved in PPP-PHPs in Ghana. Findings – The results revealed six CSFs that are critical towards success on PPP-PHPs in Ghana. The results also do not show significant variability in the agreement by the public and private stakeholder. Practical/implications – The findings present useful lessons for parties in PPP-PHPs in Ghana to focus their attention to engender the needed atmosphere towards successful delivery in Ghana in the formulation of policies, decision frameworks and delivery strategies. Originality/value – The study presents a critical success model that is applicable to PPP-PHP delivery in Ghana and potentially to other developing countries with similar socio-economic, political and organizational characteristics especially in Sub-Saharan Africa. It also affirms the fact that CSFs are contextual to project typologies and that different project types will reveal CSFs with varying significance in ranking. The findings should help in the development of efficient frameworks and policies for successes on PPP-PHPs in Ghana.

Conclusions and Implications

2011 ◽  
pp. 44-54
Author(s):  
Shannon H. Schelin ◽  
G. David Garson
Keyword(s):  
Empirical Data ◽  
Critical Success Factors ◽  
Success Factors ◽  
Chief Information Officer ◽  
Relative Importance ◽  
Public And Private ◽  
The Public ◽  
Extant Literature ◽  
Critical Success

The intended goal of this research is to illustrate the various factors that are critical to IT project success in the public and private sectors. Section I uses extant literature to summarize the importance of the 14 critical success factors, reviews the role of the chief information officer within the organization, and offers empirical data to attest to the hypothesized critical success factors. The concept of critical success factors was introduced by Daniel (1961) and popularized by Rockart (1978). In much of the literature, critical success factors refer to those few items that can make or break a project. Accordingly, the literature also indicates the relative importance of various critical success factors. By empirically testing an assortment of findings, this book offers a listing and ordering of 14 of the factors.

scholarly journals Factors Influencing the Success of ERP System Implementation in the Public Sector in the Kingdom of Bahrain

2016 ◽  
Vol 8 (12) ◽  
pp. 21 ◽  
Author(s):  
Omar Mohamed Bukamal ◽  
Rami Mohammad Abu Wadi
Keyword(s):  
Public Sector ◽  
Critical Success Factors ◽  
Success Factors ◽  
System Implementation ◽  
Erp System ◽  
The Public ◽  
Critical Success ◽  
Management Commitment ◽  
Top Management Commitment ◽  
High Level

<p>This study aims empirically to analyze the critical factors that impact the success of ERP system implementation in the public sector in the Kingdom of Bahrain and to clarify the benefits gained from the implementation. The study used a detailed questionnaire as a measuring instrument across the sample group to measure two main variables, the first being critical success factors (CSFs), and the second whether ERP implementation was successful or not. The CSFs are top management commitment and support, ERP system matching organization, business process re-engineering, vendor support, and training users.</p>Those factors found to have a significant impact on ERP system implementation and the results illuminate the high level of success in implementing ERP systems. While simultaneously demonstrating that an organization with a functioning ERP system does not achieve the desired benefits by default, but rather the organization requires certain Critical Success Factors (CSFs) to be present and in effect for those benefits to be achieved.

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