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 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.

scholarly journals Traditional Procurement versus Public-Pivate Partnership: A Comparison and Synergies with Focus on Cross-border Contracts

2020 ◽  
Vol 66 (1) ◽  
pp. 52-64
Author(s):  
Ludmila Štěrbová ◽  
Jaroslav Halík ◽  
Pavla Neumannová
Keyword(s):  
Public Sector ◽  
Service Providers ◽  
Public Procurement ◽  
Public Private Partnership ◽  
Barriers To Entry ◽  
National Interests ◽  
Private Partnership ◽  
The Public ◽  
Cross Border ◽  
Foreign Governments

AbstractGovernment purchases represent an important part of the world economy. Selling to the public sector is a key business activity for certain industries or service providers. The public procurement segment’s attractiveness is also underlined by the security of payment and large extent of supplies. With globalisation as a worldwide phenomenon, businesses do not have to rely only on domestic institutions; they can enter international B2G markets as well. However, the ability of private companies to do business with foreign governments is limited by various national legislations as governments settle the procurement regulation with respect to their national interests. In the following overview article, the authors analyse the two main and typical procurement types – traditional procurement and public-private partnership – with regard to recent development trends, international regulatory framework, opportunities and barriers to entry for European businesses. The main goal of the paper is to define, based on this analysis, the main differences and possible synergies of the traditional procurement and public-private partnership while focusing on cross-border contracts. This paper can be regarded as useful for business, academia as well as the public sector.

A Procedure for Entering into a Public-Private Partnership

10.4335/68 ◽  
2009 ◽  
Vol 7 (1) ◽  
pp. 83-105
Author(s):  
Milan Železnik
Keyword(s):  
Public Finance ◽  
Public Service ◽  
Public Services ◽  
Public Procurement ◽  
Public Private Partnership ◽  
The State ◽  
Research Subject ◽  
Private Partnership ◽  
The Public ◽  
Physical Assets

The prescribed procedure for entering into a public-private partnership, which is the research subject in this paper, is extremely complex and long-lasting because in addition to the umbrella Public-Private Partnership Act, the public partner must observe also the regulations governing the commercial public services, public procurement, public finance and disposal of the physical assets of the state, regions and municipalities. Due to a great number of regulations that need to be observed upon entering into a public-private partnership, in a given case, the public partner has to judge whether or not it is more economical and appropriate to carry out his intention to finance investments in infrastructure or to carry out public service activities in a different manner either by granting an architectural right or by selling physical assets, or by public procurement and not by entering into a public-private partnership. KEYWORDS: • local self-government • public service • public-private partnership • Slovenia

scholarly journals THE DRIVING FACTORS OF CHINA'S PUBLIC-PRIVATE PARTNERSHIP PROJECTS IN METROPOLITIAN TRANSPORTATION SYSTEMS: PUBLIC SECTOR'S VIEWPOINT

2010 ◽  
Vol 16 (1) ◽  
pp. 5-18 ◽  
Author(s):  
Jing-Feng Yuan ◽  
Mirosław J. Skibniewski ◽  
Qiming Li ◽  
Jin Shan
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public Services ◽  
Transportation Systems ◽  
Public Private Partnership ◽  
Driving Factors ◽  
Key Factors ◽  
Private Partnership ◽  
The Public ◽  
Chinese Public

In recent years, China needs far more financing for transportation infrastructure than can be provided by the government alone. Meanwhile the capacity of the Chinese government to provide public services on its own in an effective and efficient way is being questioned and reassessed at various levels. Accordingly, the involvement of private investors in the development of Metropolitan Transportation Systems (MTS) has been promoted by the Chinese public sector by means of adopting the Public Private Partnership (PPP) model. However, China's dynamic and complex political, financial, legal and regulatory environment makes the private sector adjust to accommodate the existing regime by way of understanding the driving factors in PPP applications for improving the chances of project success. This paper presents two case studies in China's MTS. Based on a case study and comprehensive literature review, 15 driving factors associated with PPP projects from the perspective of the Chinese public sector have been identified. A structured questionnaire survey targeting the public sector has been conducted to seek, analyze and integrate its perception of the driving factors. Through statistical analysis of the relative significance of each of these driving factors, the writers determined five common major dimensions of the Chinese public sector's purpose in developing PPP schemes, and the key factors that quantify each purpose. The establishment of the measures for these objectives and the key factors that quantify each of these purposes will likely be useful in encouraging private participation in infrastructure management and directing/concentrating efforts of the private sector to deliver quality public services under mutually beneficial long‐term contractual arrangements. Santrauka Pastaruoju metu Kinijai reikia daug daugiau finansavimo transporto infrastruktūrai pletoti, nei gali suteikti vien šalies vyriausybe. Jos galimybes veiksmingai ir efektyviai teikti viešasias paslaugas tiriamos bei vertinamos ivairiais lygiais. Skatinamas privačiu investuotoju itraukimas i metropolijos transporto sistemu (MTS) pletra, taikant viešojo ir privataus bendradarbiavimo modeli. Tačiau Kinijos dinamiška ir kompleksine politine, finansine bei teisine aplinka priverčia privatu sektoriu derintis prie egzistuojančios tvarkos, atsižvelgiant i pagrindinius viešojo ir privataus bendradarbiavimo veiksnius, kurie padidintu projekto sekmes tikimybe. Straipsnyje pateikiami du Kinijos metropolijos transporto sistemu pletros pavyzdžiai. Remiantis nagrinejamais pavyzdžiais ir išsamia literatūros analize, iš Kinijos viešojo sektoriaus poziciju identifikuota 15 pagrindiniu veiksniu, susijusiu su viešojo ir privataus bendradarbiavimo projektais. Buvo atlikta apklausa, orientuota i viešaji sektoriu, išanalizuota, kaip pagrindiniai veiksniai suvokiami ir pritaikomi. Atliekant kiekvieno iš šiu veiksniu santykiniu reikšmingumu statistine analize, buvo apibrežti penki pagrindiniai Kinijos viešojo sektoriaus tikslu aspektai, pletojant viešojo ir privataus bendradarbiavimo schemas, ir pagrindiniai rodikliai, ivertinantys šiuos tikslus skaitine išraiška. Minetu tikslu nustatymas ir pagrindiniu skaitiniu rodikliu ivertinimas galetu būti naudingi, skatinant privatu sektoriu prisideti prie infrastruktūros valdymo, galetu padeti koncentruoti bei nukreipti privataus sektoriaus jegas kokybiškoms viešojo sektoriaus paslaugoms teikti, remiantis abipusiškai naudingomis ilgalaikemis sutartimis.

DEVELOPMENT OF PUBLIC-PRIVATE PARTNERSHIP IN UKRAINE AND THE WORLD

2017 ◽  
Author(s):  
Yaroslav Izmaylov ◽  
◽  
Iryna Yegorova ◽  
Keyword(s):  
Public Sector ◽  
Power Plants ◽  
Private Investment ◽  
Public Private Partnership ◽  
Financial Resources ◽  
State Budget ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
The World

The purpose of the article is to consider the issues and prospects for the development of public-private partnership in the context of the COVID-19 pandemic and limited investment resources. It is proved that a new and quite effective form of integration cooperation of public sector enterprises and private business is the mechanism of public-private partnership, which has not become widespread in Ukraine and in other countries due to the complex mechanism of its implementation. It is substantiated that the urgent task for the public and private sector is to develop an optimal mechanism of cooperation through the involvement of private investment funds in infrastructure projects, search for foreign investors and partners, development of public-private relations. It is established that the most popular areas for PPP projects are the social sphere (education, medicine), transport (road infrastructure, rail transport, sea and river ports, airports), energy (construction and reconstruction of power plants, management of energy facilities) and utilities. economy (water supply, sewerage systems). It is proved that the main reason for the popularity of PPP projects is the constant need for financial resources, which are always lacking in the public sector, minimizing risks for all stakeholders, which reduces the burden on the state budget of Ukraine. The most urgent problems that create obstacles for the development of PPP in Ukraine and the world are outlined. It is proposed to improve PPPs for synergetic interaction between the public and private sectors in the direction of creating a base and foundation to ensure the possibility of expanding financial resources to the budget sphere, through national and foreign investments, which will improve the quality of goods and services population.

scholarly journals Public-Private Partnership: An Analysis of the Legal Features of PPP Instrument in the Albanian Reality

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Artan Spahiu
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public Services ◽  
Legal Framework ◽  
Public Private Partnership ◽  
Public Affairs ◽  
Public Institutions ◽  
Added Value ◽  
Private Partnership ◽  
The Public

Ensuring high productivity in public services has been required to be achieved by reducing costs and at the same time by raising standards. This is indeed a challenge intended for which the public sector has turned its eyes on the market. The latter's mechanisms and management methods used by the private sector in the production and delivery of services have become the management philosophy that has characterized public sector reforms in recent decades. Nowadays the main objectives of public sector organizations are to reduce costs and increase the efficiency of operations, which has steered these organizations towards the outsourcing model. Transferring or subcontracting a private entity for some of the operations of public institutions is a concept already known to public sector managers. Heads of various public institutions see the transfer of part of their operations or all operations to private entities as the proper way to provide added value public services. One of the widely used ways of engaging private parties in public projects is the Public Private Partnership (PPP). Implementation of this public-private partnership ensures immediate service availability, debt and public budget avoidance, management, technology and higher performance in service standards and contract enforcement. This type of engagement requires a great deal of attention to the legal framework in order for the private sector to participate in public affairs and services in a regular and reasonable manner and also in order to protect the public interest, maximize the value for money and ensuring appropriate risks sharing.

scholarly journals The attractiveness of public-private partnership for road projects in India

2022 ◽  
Vol 7 (2) ◽  
pp. 111-120 ◽  
Author(s):  
Mohammed Shakil Malek ◽  
Laxmansinh Zala
Keyword(s):  
Development Stage ◽  
Public Private Partnership ◽  
Public And Private ◽  
Private Partnership ◽  
Factors Affecting ◽  
The Public ◽  
The Road ◽  
Road Projects ◽  
Net Benefits ◽  
Descriptive Statistical Analysis

The objective of this paper was to have a study on the perceptions of stakeholders of Public-Private Partnership (PPP) projects for factors affecting the attractiveness of road projects in India. A questionnaire survey was conducted among major PPP project participants of Indian PPP road projects. Fifteen attractive factors were shortlisted through a literature survey for designing the questionnaire. Collected data was analyzed with factor analysis and descriptive statistical analysis. The findings resulted in three components: effectiveness of the private sector, effective time and cost management, and the public sector’s economic benefit. Eight factors were identified as highly affecting the attractiveness of PPP in Indian road projects. PPP provides ample diversity of net benefits to both the public and private sectors. During the project development stage, both sectors have to formulate decisions based on appropriate assessment criteria. Therefore, the reflection of attractive factors will assist the public-sector to select PPP in the road sector. It also helps to establish the strategy for road projects using PPP.

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.

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