scholarly journals Is the Public Private Partnership Model the Right Vehicle for Public Infrastructure Delivery in Developing Countries?

2019 ◽  
Vol 11 (1(J)) ◽  
pp. 211-222
Author(s):  
Patrick Mabuza

There has been an increase in the number of governments that adopted public-private partnership (PPP) as an infrastructure delivery model. However, there are still misgivings about the role PPPs play in developing countries’ economies. The objective of this study is to address the question of whether the PPP model really benefits the public. This study follows a qualitative approach based on international review of literature on PPP experiences around the world. The results of the study indicate that, the PPP model can be a good vehicle for delivering public infrastructure projects in developing countries. However, for PPPs to meet the expectations of the public sector and the citizens there are certain aspects that need to be in place i.e. transparency, accountability, optimum risk allocation/sharing, and increased competition to name just a few. If a country implements its PPP programme properly, there are massive benefits compared to the public procurement approach that may accrue to consumers and the economy as a whole. Such benefits include reduced prices, which may also increase access to services. The study has elucidated valid from invalid arguments about PPPs and has established whether the PPP model is indeed the right vehicle for delivering infrastructure projects.

2011 ◽  
Vol 15 (3) ◽  
pp. 257-274 ◽  
Author(s):  
Ieva Meidutė ◽  
Narimantas Kazimieras Paliulis

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.


2019 ◽  
Vol 23 (02) ◽  
pp. 427-456
Author(s):  
Sanjeev Ganguly ◽  
Satyasiba Das

The unprecedented growth of air traffic during the early years of industrial and economic reform in India led to the government’s decision to open Indian airspace to private and international operators. During this period, inadequate infrastructure and management’s inability to expand had created congestion in most of the airports. The urgent requirements for modernization and expansion with limited funds left the government in the dilemma of selecting the right kind of inter-organizational collaboration. After much deliberation and consideration, the government considered adopting the public-private partnership model. Without any prior experience and executional history, selection of partners was the key challenge before the government. The case summarizes one of the most significant public-private partnership projects in India and provides managerial insights into partner selection and execution challenges of large infrastructural projects typical to many developing countries.


2006 ◽  
Vol 53 (3) ◽  
pp. 299-311 ◽  
Author(s):  
Viktorija Bojovic

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Varaprasad Mallisetti ◽  
Tharun Dolla ◽  
Boeing Laishram

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.


2017 ◽  
Vol 142 ◽  
pp. 1065-1074 ◽  
Author(s):  
Tong Yang ◽  
Ruyin Long ◽  
Xiaotong Cui ◽  
Dandan Zhu ◽  
Hong Chen

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