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

Capital City ◽

Cooperation Agreement ◽

Private Partnership ◽

Water Service ◽

The Public ◽

Clean water is crucial for survival and economic development. Everyday, people need a sufficient amount and a suitable quality of water for drinking, cleaning and sanitation. However, rapid population growth, pollution and climate change have made water a scarce resource, which everyone competed. The United Nations Development Program's recent report stated that more than 1 billion people, up to this day, are without access to safe drinking water and sanitation. Lack of access to clean water can cause social, economic and health problems. Therefore, there is an urgent need to find solutions to this problem. To solve the problem of water scarcity, International Financial Institutions introduced Public Private Partnership (PPP) in the management of water sector. PPP is a concept which involves private sector participation in the management of drinking water service. In PPP, water is recognized as an economic good which is recognised under the 1992 Dublin Principles. It was hoped that by placing an economic value on water, efficient and equitable use of water can be achieved. It was also hoped that it would encourage conservation and protection of water resources. However, studies show opposite results from the Principle. Jakarta drinking water service is one example of a failed PPP. Jakarta, the Capital City of Indonesia, adopted Public Private Partnership (PPP) in the management of its drinking water service in 1998. The twenty five years concession contract was granted to Thames Water International (TWI) and its local partner, Kekarpola Airindo (KATI), now known as Thames PAM Jaya (TPJ). This company is responsible for the management of Eastern Jakarta drinking water service. This research was aimed to evaluate Thames PAM Jaya (TPJ) performance on water provision in Eastern Jakarta, ten years into the twenty five years concession by undergoing a qualitative research method. A range of semi-structured interviews were used to: gain perceptions and opinions of each stakeholder on the Public Private Partnership (PPP), identify the advantages and/or disadvantages of the water privatization in the capital city and to identify the constraints and limitations facing the private sector. Participants involved in this research include Government officials, Thames PAM Jaya, Jakarta Water Supply Regulatory Body (JWSRB), non governmental organizations (NGOs), and TPJ customers. The analysis concludes that Public Private Partnership (PPP) in Eastern Jakarta does not bring improvement to the region's drinking water service. Thames PAM Jaya (TPJ) had failed in fulfilling targets set in the Cooperation Agreement. Lack of transparency and public tendering in the process of forming the public private partnership may have contributed to this poor performance because the proper search for a competent partner was short circuited. Political interference in the bidding process is a form of corruption in which the company granted the contract was clearly complicit. The water tariff in Jakarta is not only the highest in Indonesia, but it is also the highest in the Southeast Asia region. The quality of its service, however, is still of poor quality. Limited access to water due to its high price and low service has resulted in water hacking and the on-going use of groundwater. The Cooperation Agreement, on the other hand, has locked the Government of Indonesia into a long term partnership which is very disadvantageous for the government and the residents. Private sector involvement should be the last alternative to improve the management of the water supply service in Indonesia.

Public-Private Partnership in New Zealand and Malaysia

10.26686/wgtn.16984690.v1 ◽

2021 ◽

Author(s):

◽

Nordyanawati binti Rusmani

Keyword(s):

New Zealand ◽

Public Sector ◽

Private Sector ◽

Project Finance ◽

Vision 2020 ◽

High Quality ◽

Private Partnership ◽

The Public ◽

Quality Infrastructure

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.

Ten Years of Public Private Partnership in Jakarta Drinking Water Service (1998-2007): Eastern Jakarta Drinking Water Service by Thames PAM Jaya

10.26686/wgtn.16959520 ◽

2021 ◽

Author(s):

◽

Renalia Iwan

Keyword(s):

Drinking Water ◽

Private Sector ◽

Capital City ◽

Cooperation Agreement ◽

Private Partnership ◽

Water Service ◽

The Public ◽

Clean water is crucial for survival and economic development. Everyday, people need a sufficient amount and a suitable quality of water for drinking, cleaning and sanitation. However, rapid population growth, pollution and climate change have made water a scarce resource, which everyone competed. The United Nations Development Program's recent report stated that more than 1 billion people, up to this day, are without access to safe drinking water and sanitation. Lack of access to clean water can cause social, economic and health problems. Therefore, there is an urgent need to find solutions to this problem. To solve the problem of water scarcity, International Financial Institutions introduced Public Private Partnership (PPP) in the management of water sector. PPP is a concept which involves private sector participation in the management of drinking water service. In PPP, water is recognized as an economic good which is recognised under the 1992 Dublin Principles. It was hoped that by placing an economic value on water, efficient and equitable use of water can be achieved. It was also hoped that it would encourage conservation and protection of water resources. However, studies show opposite results from the Principle. Jakarta drinking water service is one example of a failed PPP. Jakarta, the Capital City of Indonesia, adopted Public Private Partnership (PPP) in the management of its drinking water service in 1998. The twenty five years concession contract was granted to Thames Water International (TWI) and its local partner, Kekarpola Airindo (KATI), now known as Thames PAM Jaya (TPJ). This company is responsible for the management of Eastern Jakarta drinking water service. This research was aimed to evaluate Thames PAM Jaya (TPJ) performance on water provision in Eastern Jakarta, ten years into the twenty five years concession by undergoing a qualitative research method. A range of semi-structured interviews were used to: gain perceptions and opinions of each stakeholder on the Public Private Partnership (PPP), identify the advantages and/or disadvantages of the water privatization in the capital city and to identify the constraints and limitations facing the private sector. Participants involved in this research include Government officials, Thames PAM Jaya, Jakarta Water Supply Regulatory Body (JWSRB), non governmental organizations (NGOs), and TPJ customers. The analysis concludes that Public Private Partnership (PPP) in Eastern Jakarta does not bring improvement to the region's drinking water service. Thames PAM Jaya (TPJ) had failed in fulfilling targets set in the Cooperation Agreement. Lack of transparency and public tendering in the process of forming the public private partnership may have contributed to this poor performance because the proper search for a competent partner was short circuited. Political interference in the bidding process is a form of corruption in which the company granted the contract was clearly complicit. The water tariff in Jakarta is not only the highest in Indonesia, but it is also the highest in the Southeast Asia region. The quality of its service, however, is still of poor quality. Limited access to water due to its high price and low service has resulted in water hacking and the on-going use of groundwater. The Cooperation Agreement, on the other hand, has locked the Government of Indonesia into a long term partnership which is very disadvantageous for the government and the residents. Private sector involvement should be the last alternative to improve the management of the water supply service in Indonesia.

Public-Private Partnership in New Zealand and Malaysia

10.26686/wgtn.16984690 ◽

2021 ◽

Author(s):

◽

Nordyanawati binti Rusmani

Keyword(s):

New Zealand ◽

Public Sector ◽

Private Sector ◽

Project Finance ◽

Vision 2020 ◽

High Quality ◽

Private Partnership ◽

The Public ◽

Quality Infrastructure

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.

How public-private partnership projects impact infrastructure industry for economic growth

International Journal of Social Economics ◽

10.1108/ijse-04-2013-0083 ◽

2014 ◽

Vol 41 (10) ◽

pp. 994-1010 ◽

Cited By ~ 3

Author(s):

Abouzar Zangoueinezhad ◽

Adel Azar

Keyword(s):

Economic Growth ◽

Private Sector ◽

Key Factors ◽

Dynamic Interactions ◽

Public And Private ◽

Private Partnership ◽

Content Type ◽

The Public ◽

The Relationship

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.

Staff‐Prisoner Relationships, Staff Professionalism, and the Use of Authority in Public‐ and Private‐Sector Prisons

Law & Social Inquiry ◽

10.1111/lsi.12093 ◽

2015 ◽

Vol 40 (02) ◽

pp. 309-344 ◽

Cited By ~ 29

Author(s):

Ben Crewe ◽

Alison Liebling ◽

Susie Hulley

Keyword(s):

Private Sector ◽

Public Service ◽

Service Provision ◽

Public And Private ◽

Frontline Staff ◽

The Public ◽

Private Prison ◽

Public And Private Sector ◽

Specific Impact

Prison privatization has generally been associated with developments in neoliberal punishment. However, relatively little is known about the specific impact of privatization on the daily life of prisoners, including areas that are particularly salient not just to debates about neoliberal penality, but the wider reconfiguration of public service provision and frontline work. Drawing on a study of values, practices, and quality of life in five private‐sector and two public‐sector prisons in England and Wales, this article seeks to compare and explain three key domains of prison culture and quality: relationships between frontline staff and prisoners, levels of staff professionalism (or jailcraft), and prisoners' experience of state authority. The study identifies some of the characteristic strengths and weaknesses of the public and private prison sectors, particularly in relation to staff professionalism and its impact on the prisoner experience. These findings have relevance beyond the sphere of prisons and punishment.

Public–Private Partnership Monitor: Pakistan

10.22617/sgp210251-2 ◽

2021 ◽

Keyword(s):

Private Sector ◽

Energy Sector ◽

Public Infrastructure ◽

Related Services ◽

Private Partnership ◽

The Public ◽

Private Sector Investment ◽

Total Investment ◽

The Government of Pakistan strongly supports public–private partnership (PPP) initiatives. From 1990 to 2019, Pakistan witnessed 108 financially closed PPP projects, with a total investment of approximately $28.4 billion. About 88% of these projects are in the energy sector, attracting more than $24.7billion, followed by investments in the port sector. In early 2021, Parliament approved the amendments to the 2017 PPP Law, enacting the Public Private Partnership Authority (Amendment) Act 2021. This further strengthens the enabling legal and regulatory framework for developing and implementing PPPs, thereby promoting private sector investment in public infrastructure and related services.

Bulletin of the Kyiv National University of Technologies and Design Series Economic sciences ◽

АНАЛІЗ ТЕНДЕНЦІЙ РОЗВИТКУ СИСТЕМИ ДЕРЖАВНО-ПРИВАТНОГО ПАРТНЕРСТВА НА РИНКУ ПОСЛУГ АВТОМОБІЛЬНОГО ТРАНСПОРТУ

10.30857/2413-0117.2020.5.10 ◽

2021 ◽

Vol 151 (5) ◽

pp. 94-103

Author(s):

Даниїл В. Лапоног

Keyword(s):

Private Investment ◽

Road Transport ◽

Infrastructure Development ◽

Private Partnership ◽

The Public ◽

Partnership Development ◽

Transport Services ◽

The article seeks to provide insights into contemporary research in public-private partnership development in the road transport market. The study reviews a range of world public-private partnership best practices which demonstrate that effective interaction between government and business at different levels (national, subnational and regional) allows to attract and allocate investment resources more effectively, thus contributing to creating new jobs, promoting better infrastructure development and enhancing the overall quality of life in the country. It is argued that among the key factors boosting the public-private partnership market development the most significant is the level of institutionalization. It is also asserted that this factor, in combination with the relevant political environment and the capital market specifics, facilitates building successful partnerships. Moreover, government initiatives together with legal and regulatory interaction frameworks shape solid foundation to encourage further public-private partnership development by gaining positive effects from successful implementation of such partnerships, designing roadmaps and unified standard procedures and processes aimed at simplifying the relationships between the private sector and the government. Apart from the above, it is highlighted that the institutional factor aligned with the government strategic goals affects the formation and legitimation of public-private partnership markets. The study also provides argument that through the models of public-private partnerships the public sector can benefit, in the first place by utilizing resources of private companies, thus fostering further infrastructure development and raising the effectiveness and efficiency of road transport services market. The findings reveal that the purpose of public-private partnership programs institutionalization in the sector of road transport services is to enhance government motivation to attract private investment and offer new road network services based on public-private partnership contracts which will contribute to ensure the quality of road services.

Evolution of the mechanism of regulation owing to development road economy on the basis of innovative principles public-private partnership

Problems of Innovation and Investment Development ◽

10.33813/2224-1213.23.2020.5 ◽

2020 ◽

pp. 44-53

Author(s):

Vdovenko ◽

Korobova ◽

Pavlenko

Keyword(s):

National Economy ◽

The State ◽

Theory And Practice ◽

Investment Activity ◽

Private Partnership ◽

The Public ◽

The Road ◽

Road Development ◽

The Impact

Subject of research – relations in the process of improving the mechanism of regulation of road development in Ukraine and putting into practice proposals to ensure innovative approaches and modernization of the road system on the basis of public-private partnership are formed. The purpose of the article. The scien- tific and methodological and practical proposals with the purpose of applying the mechanism of regulation of the road economy development as a promising of the national economy have been developed. The methodology of the work. The theoretical and methodological basis of the research is the system of both general scientific and special methods of scientific cognition, fundamental provisions of modern economic theory and practice. In scientific research such methods as mono- graphic in formulating approaches that the development of the road economy de- pends not only on the level of economic development, but also on the influence of regulatory mechanisms that are applied, economic and statistical – in determining and calculating the concession payment for the right to management are used. The results of the work – the scientific results of the improved basis of development of the national economy through the creation of an effective mechanism for the implementation of new rules and tasks in the system of regulation in the field of road economy are proposed for application. Conclusions. We propose modern mea- sures and tools for shaping the innovative environment, and we propose to intro- duce such rules that would meet the interests of the authorities, increase the level of protection of interests of private investors and the state in the implemen- tation of public-private partnership projects. The advantages in developing mech- anisms for guaranteeing public-private partnership project financing by the state partner during the whole project implementation period are substantiated; mecha- nism of fair compensation in case of early termination of the public-private part- nership contract at the initiative of the state partner in order to compensate for the reasonable losses of the private partner. The scientific-methodological and practical proposals for the purpose of application of the mechanism of regulation of the road development are revealed. It is proved that due to the impact of mod- ernization transformations, the public-private partnership can play a dual role as an institutional innovation and has every reason to combine both the modernization of investment activity and the modernization of the regulatory mechanism for the purpose of evolutionary transformations in the leading spheres of the national economy.

Performance objectives of public private partnership implementation in Malaysia: perception of key players

Journal of Asia Business Studies ◽

10.1108/jabs-09-2015-0167 ◽

2018 ◽

Vol 12 (1) ◽

pp. 17-30 ◽

Cited By ~ 2

Author(s):

Rosnani Mohamad ◽

Suhaiza Ismail ◽

Julia Mohd Said

Keyword(s):

Public Service ◽

Design Methodology ◽

High Quality ◽

Public And Private ◽

Private Partnership ◽

Content Type ◽

The Public ◽

Public Facilities ◽

Key Players ◽

Purpose The objectives of this present study are twofold. First, it aims to investigate the performance objectives of PPP implementation in Malaysia. Second, it aims to examine the differences in the perceptions of two PPP key players – the public and private sectors – pertaining to the performance objectives. Design/methodology/approach A questionnaire survey was used to elicit the perceptions of the public and private sectors concerning the performance objectives of PPP projects in Malaysia; 237 usable responses were obtained and analysed using SPSS to rank the importance of the performance objectives and to examine the differences in the perceptions between the government and private sectors. Findings The results reveal that the five most important performance objectives for PPP implementation in Malaysia based on overall respondents’ perceptions are “High-quality public service”, “Provide convenient service for society”, “Within or under budget”, “On-time or earlier” and “Satisfy the need for more public facilities”. As for differences in the perceptions of the two key players, only one objective was perceived as statistically more important by the public sector respondents than by their private sector counterparts. Originality/value The contribution of this paper is that it not only provides empirical evidence for the performance objectives for PPP implementation in Malaysia, but also offers evidence concerning the differences in the perceptions of the public and private sectors pertaining to the performance objectives.