scholarly journals The implementation of public-private partnership models in road engineering

2021 ◽  
Vol 67 (3) ◽  
pp. 11-16
Author(s):  
Miloš Mladenović ◽  
Draženko Glavić ◽  
Marina Milenković

Investment in road infrastructure, i.e. its construction and maintenance, requires significant financial resources. When it comes to undeveloped and developing countries with limited funds, the available resources must be exploited in the most rational manner while obtaining the maximum benefits. One of the possible solutions is a public-private partnership (PPP) model. This paper analyzes different examples of applying PPP models in road engineering and their different rates of success. The analysis highlighted several key factors for the success of road infrastructure designs financed according to a PPP model. The key factors involve the appropriate traffic flow prediction, high-quality design process and construction cost prediction, the public partner’s decisive and strong attitude in negotiation with the private partner, as well as the contract based on positive regulations and containing thoroughly defined obligations of all parties. The conducted analysis should help decision-makers when making decisions regarding the selection of the appropriate PPP model in road design.

Author(s):  
Jude Mugurura ◽  
Zwelinzima Ndevu

Background: This article is based on a multidimensional empirical research study investigating aspects of the suitability of the public–private partnership environment of Uganda for road infrastructure development. The foundation of the article is the implementation of the relationship between existing legal and regulatory frameworks on the ground in Uganda.Aim: Key aspects and realities of the legal and policy frameworks that support public–private partnership, road investment projects and programmes in Uganda are examined from the perspective of a transparent, effective and efficient service delivery.Setting: A brief exposition of Uganda’s historical realities and present challenges, especially in terms of road infrastructure, an introduction of key aspects of the legal and regulatory frameworks is presented.Methods: The research is based on an exploratory research design methodology founded on a thorough literature review, exhaustive documentary analysis of primary and secondary sources and 30 interviews with senior and middle managers in the public and private sectors in Uganda. A semi-structured questionnaire was utilised.Results: The analysis of data was based on a dissection of the policies and systems as foundations of solid implementation, existing legal violations, the local private sector’s present conundrum and capacity gaps, the realities of integrity and corruption and the existing approach of citizens towards the problems and challenges.Conclusion: The lack of integrity in both the private and public sector has serious negative effects on the processes, functions, planning, designing, outputs and outcomes of infrastructure initiatives undertaken.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danrong Song ◽  
Jinbo Song ◽  
Hehui Yuan ◽  
Yu Fan

PurposeWith the growing demand for infrastructure and public services in recent years, PPP-UP have attracted a great deal of attention. However, while the user focuses on the payment for use and the private sector is concerned with its return on investment, the public sector pays more attention to the efficient utilization of public funds. In order to analyze the willingness of each stakeholder to join PPP-UP, an evolutionary game model involving the three parties is constructed.Design/methodology/approachAn evolutionary game model is established that considers the users and the public and private sectors in user-pay public-private-partnership projects (PPP-UP). Eight scenarios of equilibriums and the game's evolutionary stable strategies are analyzed, and the corresponding stability conditions are then obtained. A situation where all three players are willing to cooperate in theory is also examined. The key influencing parameters that affect cooperation behaviors are further discussed.FindingsFirst, the results illustrate that by properly adjusting the influencing factors, the cooperation status among the three parties can be changed along with certain evolutionary trends. Second, it is hard to modify unsatisfactory evolutionary stability by small changes in both the price compensation of and the construction and operation compensation. Third, it is necessary to involve the users in the decision-making process in PPP-UP and take their demands regarding benefits and payments into account.Originality/valueIn this paper, we focus on PPP-UP to research interactions among the public and private sectors and the users. Based on the analysis of the evolutionary game, to facilitate the successful implementation and development of a project, several conditions are needed to ensure tripartite cooperation. Several recommendations are then proposed for decision-makers in PPP-UP.


2014 ◽  
Vol 41 (10) ◽  
pp. 994-1010 ◽  
Author(s):  
Abouzar Zangoueinezhad ◽  
Adel Azar

Purpose – Public-private partnership (PPP) is mutually beneficial relationships that are formed between the public and private sectors. The private-sector partner typically makes a substantial equity investment, and in return the public sector gains access to new or improved services. When properly vetted and structured, PPP allocate risk to the party best suited to handle it. The purpose of this paper is to examine the relationship between the scale and nature of the PPP's contribution as a driver of the economic growth and gross domestic product (GDP). Design/methodology/approach – Using statistics causality modeling and relevant statistical techniques, the dynamic interactions and interdependencies over PPP and economic growth were addressed and quantified. Findings – Although PPP can free up government resources for other public priorities, three key factors enable PPP to stimulate a country's economic growth: the number of PPP projects under way, the value of PPP projects, and the ideal type of PPP contracts in use. Originality/value – The number, value, and type of PPP, combined with supportive policies, power economic growth. Governments with well-established and enforced policies against corruption, combined with low business transaction costs, a transparent legislative system, and exchange rate and monetary stability are far more attractive to the private sector.


2010 ◽  
Vol 16 (1) ◽  
pp. 5-18 ◽  
Author(s):  
Jing-Feng Yuan ◽  
Mirosław J. Skibniewski ◽  
Qiming Li ◽  
Jin Shan

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.


Author(s):  
Goran Amović

Public-Private Partnership (PPP) is a contractual relationship that integrates resources of the public and private sectors in the function of more efficient building public services. Over time, national governments have accepted, developed and organized Public-Private Partnerships in various ways, by respecting its historical and cultural context, the legal framework and the economic environment. The goal in this paper is to identify key factors that may have an impact on the development of public-private partnerships. In this paper, along with the presentation of previous research, we will demonstrate the development of the concept of Public-Private Partnership in countries with different political, social and economic regulations.


2021 ◽  
Vol 10 (45) ◽  
pp. 52-62
Author(s):  
Kostyantyn B. Marysyuk ◽  
Serhii O. Komnatnyi ◽  
Viktoriya V. Grygor`yeva ◽  
Tatiana M. Prystai ◽  
Olena H. Mital

The need to attract resources to socially significant infrastructure facilities, decentralize authority, market orientation of public services, efficiency and competition requires the search for a combination of opportunities for cooperation between the public and private sectors. A public-private partnership has become one of the modern approaches to the implementation of socially important projects. The study identified the degree of impact of the partnership between the state and business, as a mechanism of decentralization of public administration, on the factors of social responsibility. The methodological approach involved the analysis of the existing research on social responsibility of public-private partnership by identifying and comparing key factors of social responsibility; determination of variables that describe them, and conducting econometric analysis of established variables. It is proved that in addition to overcoming the budget deficit, contributing to economic performance, public-private partnership involves social responsibility. The activity of public-private partnerships (private investment in infrastructure projects) is found to have impact on innovation, the environment, health care, the rule of law, and unemployment rates. There is a need to conduct further research with an expanded number of countries and factors that describe social responsibility of public-private partnership.


2018 ◽  
Vol 10 (3) ◽  
Author(s):  
O. Nikoliuk

In the article the author's model of public-private partnership, which was developed based on its keyprinciples and functions of the subjects of state-agricultural partnership in the agrarian sphere has been proposed. The factors that affect the efficiency of formation and development of the public-private partnershipsplay a key role in restoring agricultural production. The author states that the task of further reducing administrative barriers as one of the key factors in the development of agrarian production remains relevant. Today, from the side of the state, the formation and effective development of partnerships with agrarian business is determined by a number of contradictions and obstacles on the path to modernization of the agrariansector, which must be eliminated with the help of the proposed models of public-private partnership.


2017 ◽  
Vol 2 (3(11)) ◽  
pp. 124-130
Author(s):  
Viktoriia Fedorivna Tyschenko ◽  
◽  
Fedir Andriiovych Shigol ◽  
Viktoriia Mykolayivna Ostapenko ◽  
◽  
...  

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