scholarly journals Delivering Countywide Cost-Effective and Better Education Services: The Models of Public Private Partnership (PPP)

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Abu Rashed
Keyword(s):  
Social Services ◽  
Capital Investment ◽  
Cost Effective ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Education Services ◽  
The Government ◽  
Increasing Demand ◽  
Private Investors ◽  
Operation Phase

Like other social services, education is one of the essential services that government is obliged to arrange for its country people, but to meet such increasing demand of educational infrastructures, government alone faces hues difficulties in capital investment especially in the developing countries. So, for developing the education infrastructure and providing quality education programmes, Public Private Partnership (PPP) has been proven an advanced tool for government in many of the countries. However, private investors may not have much interest for a typical PPP deal in education sector, because government provides the education services for free at the primary and secondary level. Therefore to make the PPP deal attractive to private investors, this paper suggests two approaches of PPP funding under the Built Operate and Transfer (BOT) models. Both the Viability Gap Funding (VGF) and Annuity Payment provide the investors the required subsidy from the government through payment in the construction or operation phase to make the project viable. This allows private investors to make revenue at expected level and government to save of hues up-front investments. Moreover, among different types of PPP models, the suggested types – BOT - also ensures the quality of education programmes.

Determination of government guarantee and revenue cap in public–private partnership contracts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyu Jin ◽  
Shijing Liu ◽  
Jun Li ◽  
Chunlu Liu
Keyword(s):  
Financial Risk ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Financial Risks ◽  
Private Partnership ◽  
Content Type ◽  
Government Guarantee ◽  
Determination Process ◽  
The Government ◽  
Private Investors

PurposeConsidering there is a lack of research in determining the optimal levels of government guarantee and revenue cap, the objective of this research is to determine their optimal levels to achieve a reasonable financial risk allocation between governments and private investors while avoiding overly lucrative conditions for private investors.Design/methodology/approachExpanded net present value (NPV) analysis and bargaining game theory are employed to construct the core of the determination process. The risk gap between governments and private investors is assessed via an expanded NPV analysis to see if the financial risk has been shared reasonably, based on which the range of the government guarantee is decided. A bargaining model is then created to help locate the optimal level of the government guarantee. Finally, a revenue cap, often combined with the government guarantee in public–private partnership (PPP) agreements, will be determined if overly lucrative conditions for private investors are observed or governments suffer a risk spillover.FindingsReferring to a real PPP project in Australia, Project BA is created to validate the applicability of the proposed determination process. The outcome shows that the proposed determination process in this paper is capable of determining the optimal levels of government guarantee and revenue cap. The government preferences towards risk allocation will influence the values of the optimal levels. Governments may also consider to alleviate the control over investors' net profits to mobilise private investors into PPP projects.Research limitations/implicationsThere is a potential possibility that the revenue cap fails to control the financial risk for governments or the overly lucrative condition for private investors. In other words, even though the revenue cap is set at the minimal level, the financial risk for governments still beyond their tolerance range or the overly lucrative condition for private investors still occurs. Future research may focus on other financial protective schemes which help to better control the financial risks for governments and profits for private investors.Originality/valueGovernment guarantees are frequently used as an investment incentive to reduce the probabilities of suffering loss for private investors. Nevertheless, the financial risks for governments may increase after providing guarantees and, as a result, revenue cap is required by governments to avoid placing themselves in an unprotected situation. By recognising the importance of the two contractual parameters, many scholars dig into their option values. However, there are very rare research works focussing on the method of determining the specific levels of government guarantee and revenue cap. To overcome the limitations of existing models and enrich the methodology for government guarantee and revenue cap determination, this paper contributes to the body of knowledge by developing a government guarantee and revenue cap determination process which contributes to a reasonable allocation of financial risks between governments and private investors.

Performance Efficiency Measurement of Airports

2021 ◽  
pp. 748-767
Author(s):  
Anil Kumar ◽  
Manoj Kumar Dash ◽  
Rajendra Sahu
Keyword(s):  
Efficiency Score ◽  
Public Private Partnership ◽  
Data Envelopment ◽  
Institutional Barriers ◽  
Private Partnership ◽  
Efficiency And Effectiveness ◽  
Overall Efficiency ◽  
The Government ◽  
Using Data ◽  
Private Investors

This article describes how to improve the overall efficiency and effectiveness of the aviation sector and also to source extra funding, the Government of India has paved the way for private investors through to a Public Private Partnership (PPP) model since the 1980s. This liberalization step in the Indian aviation market has minimized the institutional barriers which have hindered the freedom and flexibility of air transport operations among private investors. Now, competition within the aviation sector has become fiercer; the Airports Authority of India (AAI) and Public Private Partnership (PPP) in Indian airports are not only providing varied services, but also attracting consumers with new infrastructure and full modern facilities. The importance of this article is because after privatization, no studies have been conducted to examine the efficiency of Indian airports by using Data Envelopment Analysis (DEA). An output-oriented DEA model is employed to determine the efficiency score of airports by taking a sample of 15 airports, including airports run by PPP, for comparison. Output-oriented DEA calculates the efficiency by maximizing the outputs for a given level of inputs. Therefore, this article contributes to the existing literature on Indian airports. Based on available data, three variables - length of runways, terminal size and number of check-in counters, are used as inputs and two variables - passenger movement and aircraft movement, are used as outputs.

scholarly journals Public-Private-Partnership (Ppp) in Nigeria

2019 ◽  
Vol 6 (4) ◽  
pp. 482-501
Author(s):  
Theresa U Akpoghome ◽  
Theophilus Chinedu Nwano
Keyword(s):  
Joint Venture ◽  
Private Investment ◽  
Cost Effective ◽  
Public Private Partnership ◽  
Historical Background ◽  
Private Partnership ◽  
Goods And Services ◽  
Arbitration Clause ◽  
Global Standards ◽  
The Government

Public-Private-Partnership (PPP) in Nigeria is a major issue of discourse among individuals, corporate bodies and government. PPP is a tool to deliver the much needed infrastructural services. Building modern, sustainable and reliable infrastructure is critical for meeting the rising aspirations of millions of people in Nigeria and PPP helps to raise economic growth rates, offers new economic opportunities and facilitates investment in human capital. This paper examines the historical background and types of Public-Private-Partnership in Nigeria. It discovers that the problems or the challenges of Public-Private-Partnership include multiplicity of functions by various bodies, definitional issues, joint venture agreements, conflicts and contractual review conflicts. The paper discovers that one of the major challenge in PPP agreements is the absence of arbitration clause in the contracts. The paper recommends that the insertion of arbitration clause should be encouraged to reduce incidences of prolonged litigation. Synergy among regulatory bodies is also recommended to foster reduction in the issue of double taxation and encourage more private investment participation. The paper concludes that Public-Private-Partnership remains one of the most important developmental avenues available to the government to revive the decaying public corporations, utilities and public goods and services of global standards through cost effective mechanisms.

scholarly journals Affordable social infrastructure vs public-private partnership

2021 ◽  
Vol 17 (3) ◽  
pp. 339-348
Author(s):  
Vitaly Maximov
Keyword(s):  
Social Services ◽  
Private Investment ◽  
Public Private Partnership ◽  
The State ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Private Partnership ◽  
Economic Mechanism ◽  
Wide Range ◽  
Private Investors

The article is devoted to the problems of sustainable development of social infrastructure and social services, which are beyond the effective demand of large cities, cannot develop according to market laws, and provide the necessary level of infrastructure fullness. Despite 45.9% of private companies in the social sectors, the vast majority of real estate objects continue to be owned by the state, forming the need to find economic mechanisms for the development of state social infrastructure, outside of limited budget opportunities. The possibility of attracting private investment in new construction and reconstruction without alienating the ownership right to it makes public-private partnership (PPP) and the economic mechanism based on it have no alternative. However, its practical application suffers from asociality, leading to the appearance of state-owned facilities where private investors conduct exclusively commercial activities. The apparent budget savings lead the state, judicial and supervisory authorities in such territories to a strategic failure, reducing the number of state facilities operating at state prices, ignoring the requests of the population for affordable social infrastructure, increasing social tension in society. This work is aimed at studying the irrational behavior of private investors, the stability of which is provided by the PPP mechanism, where the state determines the necessary level of the sociality of infrastructure objects that best corresponds to the existing stratification of residents of a certain territory through competitive procedures and essential conditions of the future project. It is necessary to continue research on improving federal legislation, whose social neutrality leads to conflicting expectations of the parties from PPP, adding sensitivity to a wide range of risks, repelling private investment and investors, limiting infrastructure development only to budget opportunities. The development of an economic mechanism that ensures finding a balance of accessibility and market rationality of social facilities is not an easy task, which has many solutions taking into account the characteristics of a particular territory and its population

Performance Efficiency Measurement of Airports

2018 ◽  
Vol 9 (2) ◽  
pp. 19-37 ◽  
Author(s):  
Anil Kumar ◽  
Manoj Kumar Dash ◽  
Rajendra Sahu
Keyword(s):  
Efficiency Score ◽  
Public Private Partnership ◽  
Data Envelopment ◽  
Institutional Barriers ◽  
Private Partnership ◽  
Efficiency And Effectiveness ◽  
The Government ◽  
Using Data ◽  
Private Investors ◽  
New Infrastructure

This article describes how to improve the overall efficiency and effectiveness of the aviation sector and also to source extra funding, the Government of India has paved the way for private investors through to a Public Private Partnership (PPP) model since the 1980s. This liberalization step in the Indian aviation market has minimized the institutional barriers which have hindered the freedom and flexibility of air transport operations among private investors. Now, competition within the aviation sector has become fiercer; the Airports Authority of India (AAI) and Public Private Partnership (PPP) in Indian airports are not only providing varied services, but also attracting consumers with new infrastructure and full modern facilities. The importance of this article is because after privatization, no studies have been conducted to examine the efficiency of Indian airports by using Data Envelopment Analysis (DEA). An output-oriented DEA model is employed to determine the efficiency score of airports by taking a sample of 15 airports, including airports run by PPP, for comparison. Output-oriented DEA calculates the efficiency by maximizing the outputs for a given level of inputs. Therefore, this article contributes to the existing literature on Indian airports. Based on available data, three variables - length of runways, terminal size and number of check-in counters, are used as inputs and two variables - passenger movement and aircraft movement, are used as outputs.

scholarly journals A Survey Analysis on Institutional Challenges in implementing Public Private Partnership (PPP) Projects: A perspective from a developing economy of Ghana

2020 ◽  
Vol 5 (2) ◽  
pp. 24-35
Author(s):  
Mumuni Ishawu ◽  
Chen Guangyu ◽  
Emelia Darko Adzimah ◽  
Aliu Mohammed Aminu
Keyword(s):  
Public Private Partnership ◽  
Influential Factors ◽  
Developing Economy ◽  
Survey Analysis ◽  
Private Partnership ◽  
Adoption And Implementation ◽  
High Participation ◽  
Increasing Demand ◽  
Private Investors ◽  
Institutional Challenges

There is an increasing demand for infrastructure projects all over the world. One important model adopted in providing them is Public –private partnership. To this end, this study aims at identifying the most influential factors as well as new factors that will serve as barriers against the adoption of PPP as a model in procurement of social projects in Technical Universities in Ghana. Using a survey questionnaire, appropriate data were obtained from Ghanaian Technical Universities. In all, a total of 152 questionnaires were collected from the participants. The research found that `lack of governmental guidelines and procedures’ was perceived as the most important factor with a mean score of 4.12. The remaining four factors in descending order include; ‘high risk relying on the public sector, high charge to direct users, very few scheme reach the contract stage and high participation cost. These are depicted with the following mean scores (4.10, 4.02, 4.01 and 3.99 respectively. The factors considered as neither most important nor least important include; less employment positions, lack of experience and appropriate skills, a great deal of management time spent on contract transactions and lengthy delays in negotiations. Interesting enough, the factors that are considered as least important include; excessive restrictions on participations for PPP with a mean score average of 3.67. Also, high project cost and political instability were also perceived as least important. This shows that these two factors were not seen as the same most important hindrances. The results shows that practitioner’s (public institutions and private investors) should consider these key factors as barriers to be address for adoption and implementation of a successful achievement of PPP projects. Citation: Mumuni Ishawu, Chen Guangyu, Emelia Darko Adzimah, Aliu Mohammed Aminu. A Survey Analysis on Institutional Challenges in implementing Public Private Partnership (PPP) Projects: A perspective from a developing economy of Ghana, 2020; 5 (2): 24－35. Received: April 14, 2020 Accepted: June 30, 20

APPROACHES TO STRUCTURING OF PROJECTS IN THE AIRPORT INDUSTRY

2021 ◽  
Vol 2 (5) ◽  
pp. 91-97
Author(s):  
A. D. KULAKOV ◽  
◽  
K. Yu. RATNIKOV ◽  
Keyword(s):  
Cost Effective ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Property Complex

The article highlights the approaches to structuring the airport property complex in Russian public-private partnership projects. Possible mechanisms of legal and financial structuring are considered. The authors pro-pose the most cost-effective way to implement a concession agreement in the airport industry.

scholarly journals Public Private Partnership (PPP) in Malaysia

2018 ◽  
Vol 2 (4) ◽  
pp. 9-13
Author(s):  
Mahirah Rafie
Keyword(s):  
Future Study ◽  
Public Private Partnership ◽  
New Method ◽  
Private Partnership ◽  
Implementation Project ◽  
Potential Benefits ◽  
The Government

Public Private Partnership (PPP) is not a new method of development in a country. In Malaysia, concept of PPP had been used almost four decades after Malaysian Incorporated Policy had been introduced by the government. The objectives of this present study is to scrutinize defining the concept of PPP, the evolution of implementation PPP, and also characteristic and criteria of PPP based on Public Private Partnership Guidelines. This paper also examines the potential benefits of PPP implementation in Malaysia based on the previous study. Last but not least, issues and recommendation for future study has been suggested to enhance PPP implementation project.

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.

Explaining Public-Private Partnership Projects through Political Factors: An Assessment of Developing Countries

2021 ◽  
pp. 003232172110403
Author(s):  
Noemí Peña-Miguel ◽  
Beatriz Cuadrado-Ballesteros
Keyword(s):  
Developing Countries ◽  
Political Ideology ◽  
Political Competition ◽  
Public Private Partnership ◽  
Public Private Partnerships ◽  
Left Wing ◽  
Political Factors ◽  
Middle Income ◽  
Private Partnership ◽  
The Government

This article analyses the effect of political factors on the use of Public Private Partnerships in developing countries. According to a sample of 80 low- and middle-income countries over the period 1995–2017, our findings suggest that Public Private Partnership projects are affected by political ideology, the strength of the government and electoral cycles. Concretely, they tend to be used by left-wing governments to a greater extent than governments with other ideologies. Public Private Partnerships also tend to be more frequently used by fragmented governments and when there is greater political competition. There is also some evidence (although slight) on the relevance of the proximity of elections in explaining Public Private Partnerships in developing countries.

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