scholarly journals Public-Private Partnership in New Zealand and Malaysia

2021 ◽  
Author(s):  
◽  
Nordyanawati binti Rusmani
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Private Sector ◽  
Public Private Partnership ◽  
Project Finance ◽  
Vision 2020 ◽  
High Quality ◽  
Private Partnership ◽  
The Public ◽  
Quality Infrastructure

<p>The importance of high quality infrastructure and its maintenance lies in its ability to stimulate economic growth as it fuels business activities, creates job opportunities, markets product, and generates earnings (Yakcop, 2006a). In consideration of this importance, the public sector encourages private sector participation in the delivery of public services and infrastructure in terms of funding and expertise. A successful Public Private Partnership (PPP) is one vehicle used internationally. Both New Zealand and Malaysia acknowledge the potential of PPPs in delivering high quality infrastructure and services to the general public. Consequently, both countries made a move towards PPPs by creating PPP-specialized units and producing PPP guidelines. However, thus far, Malaysia has been more active in pursuing PPPs when compared to New Zealand‘s cautious approach to PPPs. Hence, the purpose of this thesis is to find out the reasoning behind this trend. Issues relevant to reasons for implementing PPPs, features of PPPs, allocation of risks, performance indicators and accounting for PPPs are analysed to justify this trend. This thesis finds that the Malaysian "Vision 2020" has signalled a government preference for PPPs, including its ability to encourage bumiputera participation. Further, the government has developed a system involving Special Purpose Vehicles and utilizing government-held superannuation funds for project finance aid. Consequently, the system reduces the transfer of risk from the public sector to the private sector partners. This has transcended the major issue in New Zealand where the lack of a competitive market has restricted the development of PPPs. A lack of public support has also contributed to New Zealand‘s PPP under-development.</p>

scholarly journals Public-Private Partnership in New Zealand and Malaysia

2021 ◽  
Author(s):  
◽  
Nordyanawati binti Rusmani
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Private Sector ◽  
Public Private Partnership ◽  
Project Finance ◽  
Vision 2020 ◽  
High Quality ◽  
Private Partnership ◽  
The Public ◽  
Quality Infrastructure

<p>The importance of high quality infrastructure and its maintenance lies in its ability to stimulate economic growth as it fuels business activities, creates job opportunities, markets product, and generates earnings (Yakcop, 2006a). In consideration of this importance, the public sector encourages private sector participation in the delivery of public services and infrastructure in terms of funding and expertise. A successful Public Private Partnership (PPP) is one vehicle used internationally. Both New Zealand and Malaysia acknowledge the potential of PPPs in delivering high quality infrastructure and services to the general public. Consequently, both countries made a move towards PPPs by creating PPP-specialized units and producing PPP guidelines. However, thus far, Malaysia has been more active in pursuing PPPs when compared to New Zealand‘s cautious approach to PPPs. Hence, the purpose of this thesis is to find out the reasoning behind this trend. Issues relevant to reasons for implementing PPPs, features of PPPs, allocation of risks, performance indicators and accounting for PPPs are analysed to justify this trend. This thesis finds that the Malaysian "Vision 2020" has signalled a government preference for PPPs, including its ability to encourage bumiputera participation. Further, the government has developed a system involving Special Purpose Vehicles and utilizing government-held superannuation funds for project finance aid. Consequently, the system reduces the transfer of risk from the public sector to the private sector partners. This has transcended the major issue in New Zealand where the lack of a competitive market has restricted the development of PPPs. A lack of public support has also contributed to New Zealand‘s PPP under-development.</p>

Public Private Partnership (PPP) as a Mechanism to Improve the Infrastructure Needs of Countries

2021 ◽  
pp. 222-241
Author(s):  
Hakan Yurdakul ◽  
Rifat Kamasak
Keyword(s):  
Private Sector ◽  
Public Service ◽  
Financial Burden ◽  
Public Private Partnership ◽  
High Quality ◽  
Investment Activity ◽  
Private Partnership ◽  
The Public ◽  
Infrastructure Investments

The public-private partnership (PPP) model has been increasingly popular in recent decades as a mechanism to support infrastructure related investment activity. PPPs creates many advantages for countries such as releasing from financial burden of high cost infrastructure investments, bringing high quality of public service and increasing efficiency of operations through transfer of private sector expertise. However, these benefits are not guaranteed for every PPP project since successful implementations are subject to several factors. This chapter aims to review the different aspects of PPPs in detail and examine the factors which play crucial roles for successful PPP implementation.

Private Sector in Affordable Housing? Case of Slum Rehabilitation Scheme in Ahmedabad, India

2018 ◽  
Vol 9 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Darshini Mahadevia ◽  
Neha Bhatia ◽  
Bijal Bhatt
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Affordable Housing ◽  
Public Private Partnership ◽  
Private Partnership ◽  
The Public

The trend of involving private sector in affordable housing segment is observed globally. In India, it has been mainstreamed through the Pradhan Mantri Awas Yojana (PMAY) under which one component deals with in-situ slum redevelopment through the public–private partnership (PPP) mode in which the private sector brings in finance and skills to construct housing while the public sector provides land. Taking case study of one slum site, wherein the slum rehabilitation scheme has been implemented in Ahmedabad, this article narrates the bottlenecks faced in its implementation in spite of the agency of an NGO involved as a mediator in the process.

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.

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: 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.

Application of the Public-Private Partnership Organizational Structure in the Improvement of Business Operations of Public Sector Enterprises in Serbia

2015 ◽  
Vol 13 (3) ◽  
pp. 397-417 ◽  
Author(s):  
Sladjana Benkovic ◽  
Jovan Krivokapić ◽  
Miloš Milosavljević
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Organizational Structure ◽  
Legal Framework ◽  
Public Private Partnership ◽  
Public Enterprise ◽  
Private Partnership ◽  
The Public ◽  
Business Operations ◽  
Private Sector Participation

Many countries have made an approach to harmonization and design of the organizational and legal framework that encourages private sector participation in the co-ownership of public sector enterprises. This is why the aim of the paper was to draw attention to the potentials that are available to the public sector in Serbia in the improvement of business operations, taking into account the current Law on public-private partnerships and concessions which has been present in practice for less than two years. The paper’s contribution is reflected in the presented model of the organizational, financial and developmental benefits of a public enterprise, through the application of the public-private partnership concept while bearing in mind the circumstances that are specific to the Serbian market.

scholarly journals PROACTIVE CONTRACTING IN FINNISH PPP PROJECTS

2009 ◽  
Vol 13 (3) ◽  
pp. 219-228 ◽  
Author(s):  
Antti Tieva ◽  
Juha-Matti Junnonen
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
Private Sector ◽  
Contract Law ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Contractual Arrangements ◽  
Main Target

Public‐private‐partnership projects are long term, complex and very challenging contractual arrangements and relationships. They bring new roles for public sector and also for private sector in terms of construction and services. This paper will go through some features of the Finnish PPPs. Proactive law focuses in practical views as regards contract law and contractual issues. The main target is to prevent problems instead of confronting them. This paper will clarify what proactive law is about in terms of contract law and contracting especially in PPPs. For instance, 20–40 years’ partnership relation with PPPs brings up also dozens of different risks into the picture. This paper will discuss the risks and risk management in terms of proactive law and after that, focus on PPPs in Finland. Santruka Viešojo ir privataus sektoriu partnerystes (VPP) projektai ‐ tai ilgalaikiai, sude tin gi ir itin daug pastangu reikalaujantys sutartiniai susitarimai ir santykiai. Ne tik viešajame, bet ir privačiajame sektoriuje jie sukuria naujus, su statyba ir paslaugomis susijusius, vaidmenis. Šiame darbe apžvelgiami kai kurie Suomijos VPP bruožai. Iniciatyvi teise glaudžiai susijusi su prak ti nemis pažiūromis, sutarčiu teise ir pan. Pagrindinis tikslas ‐ išvengti problemu užuot jas sprendus. Šiame darbe paaiškinama iniciatyvios teises esme sudarant sutartis, ypač VPP. Pavyzdžiui, kai VPP trunka 20–40 metu, susiduriama su daugybe ivairiu rizikos rūšiu. Todel straipsnyje pirmiausia aptariamos rizikos rūšys ir rizikos valdymo būdai taikant iniciatyvia teise, o po to ‐ Suomijos VPP.

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.

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