scholarly journals Deciding on Financial Renegotiation in Public-Private Partnership Projects

2018 ◽  
Vol 7 (2) ◽  
pp. 171-199
Author(s):  
Wiston Risso
Keyword(s):  
Public Sector ◽  
Public Private Partnership ◽  
Theoretic Approach ◽  
Private Partnership ◽  
The Public ◽  
Additional Tool ◽  
Financial Variables ◽  
Game Theoretic ◽  
The Government ◽  
Game Theoretic Approach

This paper analyzes the renegotiation problem in the context of public-private partnership projects. Utilizing a game-theoretic approach, an equilibrium is found in which the government finds that accepting renegotiation can be efficient. A first indicator is proposed based the public sector comparator (PSC) that can be estimated by policymakers as an additional tool when deciding about renegotiation. A second more theoretical indicator is derived to analyze the economic and financial variables affecting renegotiation. This indicator is applied to four case studies in different countries (England, Taiwan, Portugal and China) and the results suggest that the model performs well.

scholarly journals Public Private Partnership in Transportation: The Case of the Washington State

2007 ◽  
Vol 32 (2) ◽  
pp. 53-60 ◽  
Author(s):  
Edward Murray
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Political Stability ◽  
Public Private Partnership ◽  
Transportation Infrastructure ◽  
Private Partnership ◽  
The Public ◽  
Design Build ◽  
The Us ◽  
The Government

While the world has changed dramatically in the last five decades or so, transportation has not been able to keep pace with the overall development. However, in order to ensure prosperity of a country or a state, it is imperative that the ability to move people and products must improve. This paper examines the status of transportation infrastructure and its funding in the State of Washington, USA and suggests some new approaches towards public-private partnership (PPP) in the area. In the process, the success and some of the challenges of PPP are also discussed. In the US, traditionally, people were not charged direct tax such as a toll for using the roads, the primary mode of financing transportation being gas tax. The new sources of revenue collection being developed include: Specific roadway pricing Mileage-based user fees Real-time variable rate roadway pricing. Traditionally, in the US, the public sector shouldered the main responsibility for managing transportation�acquire right-of-way (ROW), design, finance, operate, own, and maintain while the private sector was only allowed to build roads following all the regulation and permits introduced by the government. The reformed PPP model awards ‘design-build’ contracts on a competitive ‘best-value’ basis instead of the conventional ‘low-bid’ basis and thus turn over the design build responsibility to the private sector leaving with the government the financing and maintenance of the roads. The idea is to give road to everybody while allowing the private sector to earn some profit and the public sector to save some money. However, PPP could face a problem if: the traffic and revenue estimates are wrong traffic and revenue risks are taken by private sector but at a huge price construction costs are underestimated the people do not accept the proposition the PPP legislation is not favourable. For any infrastructure project such as transportation to succeed, what is most critical is a set of factors including feasibility, essentiality, reliable revenue forecasts, collateral, credibility, political stability, and transparency. Above all, the government has the responsibility to all its citizens while the private sector is accountable to its stockholders and business partners. What is therefore important is to see how the two parties meet their obligations while building a suitable transportation infrastructure.

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 VALUE FOR MONEY IN PUBLIC-PRIVATE PARTNERSHIP PROJECTS IN THE FIELD OF STREET LIGHTING IN THE REPUBLIC OF SERBIA

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Dejan Milenković ◽  
Vladimir Đurić
Keyword(s):  
Public Sector ◽  
Public Administration ◽  
New Public Management ◽  
Public Private Partnership ◽  
Value For Money ◽  
Street Lighting ◽  
Private Partnership ◽  
The Public ◽  
Public Administration Reform ◽  
The Republic

Public administration reform, better known as the New Public Management - NPM, which began in the mid-1970s, had a key impact on the development of modern public administration. The NPM emphasizes the economic values of public administration, to the detriment of its other values. Public Private Partnership- PPP is one of the basic elements of NPM doctrine. PPP is a partnership between the public and private sector that aims to provide a service traditionally provided by the public sector. An integral part of every PPP is the Value for Money methodology. The “Value for money”- VfM method emerged in this process of public administration reform, first in the UK. The document of the British Government Private Finance Initiative (PFI) from the year 1992, presented the basis for the creation of a new so-called “Venture”, which at that time was called a joint venture, and which is today known as PPP. PPP is a relatively new institute that has existed in the Republic of Serbia since 2011. In this paper, we will deal with the application of the VfM methodology in PPP projects related to street lighting in the Republic of Serbia, and try to give answer about social and economic justification of PPP and potential economic savings that can be achieved in the public sector through the implementation of PPP. At the present time, when there is more and more talk about the need for environmental protection, sustainable development and energy efficiency, PPP projects can have an increasing importance in this area. For this reason, we have limited the application of VfM methods in PPP projects in the Republic of Serbia only to street lighting projects which provide the mentioned goals.

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.

Using Systems Analysis and Dynamics to Evaluate Public Private Partnerships with Data and Best Practices from SAFER Santa Rosa

2015 ◽  
pp. 195-216
Author(s):  
Daniel Hahn
Keyword(s):  
Public Sector ◽  
Emergency Management ◽  
Systems Analysis ◽  
Public Private Partnership ◽  
Public Private Partnerships ◽  
Private Partnership ◽  
The Public ◽  
Federal Organizations ◽  
Original Case

Public private partnerships have been gaining the interest of emergency management and security-related federal organizations. In 2010, the National Academies Press published a framework for resilience-focused private-public sector collaboration which may be the catalyst for how resilience-oriented public private partnerships are developed in the future (National Academies Press. 2010). Public private partnerships can be utilized to increase citizen awareness and preparedness, to address a specific need in a community, or to accomplish any other function that brings a community and government together. “Utilized correctly, a public private partnership is a win-win situation for all participants” (Hahn, 2010, p. 274). Although perceived as very successful, no prior systems analysis has been conducted on these partnerships. In this chapter, a successful public private partnership is evaluated using systems analysis techniques. Results of that analysis, along with details of the original case study and the public private partnership itself are presented.

scholarly journals Sustainable and Optimal “Uniqueness” Contract in Public-Private Partnership Projects of Transportation Infrastructure

2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Yingjun Zhu ◽  
Zhitong Gao ◽  
Ruihai Li
Keyword(s):  
Social Welfare ◽  
Public Private Partnership ◽  
Transportation Infrastructure ◽  
Private Capital ◽  
Equilibrium Relation ◽  
Private Partnership ◽  
The Public ◽  
Welfare Losses ◽  
The Government ◽  
The Impact

To control the “uniqueness” risk in Public-Private Partnership (PPP) projects of transportation infrastructure, we design a simplified “uniqueness” contract model by incorporating the impact of the initial investment which is based on the Bertrand model. The nonlinear programming method is adopted to derive the optimal “uniqueness” contracts for incumbent private capital, the public, and the social welfare, respectively. The simulation results show that the achievement of the optimal “uniqueness” contract is essentially the result of a compromise between the private capital, the public, and social welfare. The extent to which such a contract reduces the probability of “uniqueness” risk mainly depends on the equilibrium relation between the interests of private capital and the public. The initial investment is not related to the government default when the contract does not take into account the interests of the private capital. Furthermore, the “uniqueness” contracts between private capital and the government are mainly for anticompetitive purpose in the PPP market of transportation infrastructure. Unless the contract terms focus on the improvement of social welfare, entering a “uniqueness” contract will cause social welfare losses.

scholarly journals A Game Theoretic Approach for Eco-Design and Remanufacturing Considering Take-Back Policy

2020 ◽  
Vol 12 (17) ◽  
pp. 7174
Author(s):  
Xiaoxiao Chang ◽  
Guangye Xu ◽  
Qian Wang ◽  
Yongguang Zhong
Keyword(s):  
Environmental Impact ◽  
Stackelberg Game ◽  
Theoretic Approach ◽  
Subsidy Policy ◽  
Monetary Value ◽  
Game Equilibrium ◽  
Take Back ◽  
Game Theoretic ◽  
The Government ◽  
Game Theoretic Approach

This paper mainly aims at investigating the governments’ take-back policy of penalty or subsidy that motivates eco-design or remanufacturing. For this purpose, we consider a two-stage Stackelberg game between a government and a manufacturer. The government first decides to impose a take-back penalty or offer a take-back subsidy, and then the manufacturer selects to remanufacture or invest in eco-design as a response to the take-back policy. Upon analyzing and comparing game equilibrium, we find that the government prefers to offer a subsidy policy for eco-design and to impose a penalty policy for remanufacturing. The manufacturer will decide on investing in eco-design when the monetary value of the environmental impact of landfill and eco-design coefficient is medium. However, if the eco-design coefficient is high, the manufacturer practices remanufacturing instead of eco-design whether penalized and subsidized. The present study provides a set of guidelines in practical managerial recommendations for governments and manufacturers.

scholarly journals The Arlanda Airport Rail Link: Lessons Learned from a Swedish Construction Project

2008 ◽  
Vol 7 (1) ◽  
Author(s):  
Jan-Eric Nilsson ◽  
Lars Hultkrantz ◽  
Urban Karlström
Keyword(s):  
Public Sector ◽  
Construction Project ◽  
Public Private Partnership ◽  
Lessons Learned ◽  
Tax Revenue ◽  
Costs And Benefits ◽  
Private Company ◽  
Railway Network ◽  
Private Partnership ◽  
The Public

The Stockholm – Arlanda airport rail link is a public-private partnership opened for traffic in 1999. This paper addresses costs and benefits of giving a private company control over one section of the otherwise public railway network. The project has reduced the pressure on the public sector’s budget and reduced the need to raise efficiency distorting tax revenue. The number of passengers has been below expectations. Track capacity may, however, be sufficient to negotiate an increase the supply of rail services by way of extending existing commuter trains, in that way attracting more passengers.

scholarly journals Institutional Support of the Public-Private Partnership in the Republic of Poland

2019 ◽  
pp. 145-155
Author(s):  
Nykola Lakhyzha ◽  
Svitlana Yehorycheva
Keyword(s):  
Public Administration ◽  
Organizational Support ◽  
Institutional Support ◽  
Public Private Partnership ◽  
Law Firms ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
The Republic ◽  
The Government

The experience of the institutional support of public-private partnership in the Republic of Poland has been analyzed. It is noted that Poland was one of the first among the post-communist countries to implement a mechanism of public-private partnership. The peculiarities of the practice of realization of public-private partnership in Poland during the 1990s and its legal support were determined. The possibility of its development on the basis of general norms of civil, economic, administrative and other branches of law is emphasized. The process of development and adoption of separate laws on public-private partnership and their specific features are described. The essence of discussions about the need for creation of a special authorized body for regulation of public-private partnership, which was caused by the problems that arose from public and private partners during the conclusion and implementation of the relevant agreements, was disclosed. The modern components of organizational support for supporting the development of public-private partnership in Poland, their role and their inherent functions are revealed: the Department for Public-Private Partnerships of the Ministry of Investment and Development, similar departments in public administration bodies of different levels, the Public-Private Partnership Platform, Polish Entrepreneurship Development Agency, Institute of Public Private Partnership, private law firms, scientific and educational institutions. The necessity to improve the institutional support of public-private partnership, which is realized by the government of Poland as well, is stated. The content and significance of the latest program documents in this area that are intended to improve the process of administration the development of public-private partnership — the concept «The vision of sustainable development for Polish business 2050» and «Government policy in the field of development of public-private partnership» are characterized. The importance of using the experience of the Republic of Poland in the practice of public administration of the Ukrainian system of public-private partnership is emphasized.

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