scholarly journals Factors determining the success of public private partnership projects in Nigeria

2016 ◽  
Vol 16 (2) ◽  
pp. 42-55 ◽  
Author(s):  
Afeez Olalekan Sanni
Keyword(s):  
Policy Development ◽  
Success Factors ◽  
Good Governance ◽  
Implementation Process ◽  
Public Private Partnership ◽  
Political Support ◽  
Risk Allocation ◽  
Public And Private ◽  
Private Partnership ◽  
The Government

The implementation of public private partnership (PPP) procurement method is expected to help governments in the development of infrastructures and provides an opportunity for the reduction in the governments’ debt profiles. This method has been adopted in Nigeria for more than a decade and with these years of implementation, few infrastructural projects have been developed using this method while some have been unsuccessful. This study aims to examine the PPP projects implementation in Nigeria and identify the most critical factors that could determine the success of such projects. A total of 184 questionnaires were received from public and private sectors’ participants in the implementation of PPP projects. An exploratory factor analysis identified seven critical success factors as projects feedback, leadership focus, risk allocation and economic policy, good governance and political support, short construction period, favourable socio-economic factors, and delivering publicly needed service. This study shows that more developmental projects could be delivered through PPP if the government could focus on these main factors in the implementation process. The result will influence policy development towards PPP and guide the partners in the development of PPP projects. 

scholarly journals Critical success factors of public-private partnership from 2000 to 2019: A literature review

2021 ◽  
Vol 8 (6) ◽  
pp. 531-540
Author(s):  
Lydia Natalia ◽  
Nanny Dewi Tanzil ◽  
Prima Yusi Sari
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Infrastructure Development ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Critical Success ◽  
Legal Frameworks

Public-Private Partnership (PPP) is one of the schemes that have inspired many countries in infrastructure development. One of the most discussed PPP topics by researchers is the concept of Critical Success Factors (CSF). Therefore, this study examines CSF publications for PPP projects from selected journal sites from 2000-2019. The results showed that research on CSF in PPP began to increase in 2012. The most identified CSFs were appropriate risk allocation and sharing, competitive and transparent procurement processes, favorable and efficient legal frameworks, commitment and responsibility of the public and private sectors, and a robust and reliable private consortium. Furthermore, it was also found that most countries that were the objects of research on PPP CSF were China, followed by Hong Kong and Australia. The results also show that the dominant research focuses on multi-sector types of infrastructure where CSF can be applied to all infrastructure sectors. The findings obtained in this study can provide an overview of CSFs for projects with PPP schemes in the future. Besides, the identified CSFs can be applied to any PPP infrastructure sector. They can assist stakeholders in increasing the likelihood of PPP project success and can be adopted for further research

The Influence of Critical Success Factors on Value for Money Viability Analysis in Public–Private Partnership Projects

2017 ◽  
Vol 48 (4) ◽  
pp. 93-106 ◽  
Author(s):  
Khalid Almarri ◽  
Halim Boussabaine
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnership ◽  
Value For Money ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Public Projects ◽  
Viability Analysis ◽  
Critical Success

Governments are increasingly entering partnerships with the private sector through the public–private partnership (PPP) model for the development of public projects. Value for money analysis is used to assess the viability of these ventures. This research aims to investigate the contribution of the PPP critical success factors to value for money viability analysis. Relevant data were collected through a questionnaire to establish the PPP critical success factors and value for money success criteria. Data were collected from 92 participants. The data obtained were analyzed using mean score, t-test, and regression analysis. The research found that government guarantees, macroeconomic conditions, shared authority between the public and private sectors, social support, and transparent procurement process contributed positively to value for money viability analysis. The results imply that practitioners should consider these key indicators for improving the value for money viability of PPP projects.

scholarly journals PRINSIP PROPORSIONALITAS DAN GOVERNANCE TERHADAP ALOKASI DAN TRANSFER RISIKO DALAM SKEMA KERJASAMA PUBLIC-PRIVATE PARTNERSHIP (PPP)

Yuridika ◽  
2017 ◽  
Vol 32 (3) ◽  
pp. 541
Author(s):  
Yuniarti Yuniarti ◽  
Fifi Junita
Keyword(s):  
Risk Sharing ◽  
Public Private Partnership ◽  
Government Support ◽  
Risk Allocation ◽  
Infrastructure Development ◽  
Transfer Scheme ◽  
Private Partnership ◽  
Force Majeure ◽  
The Government ◽  
High Level

The high level of Foreign Direct Investment (FDI) is also supported by the availability of infrastructure to the remote area where the investment will be implemented. However, with limited funds from both APBN and APBD, infrastructure development can not be fully done by the government. Therefore, the government will cooperate with the investor (private) in the implementation of infrastructure development known as public private partnership. The main problem in implementing PPP is the allocation of risk to PPP projects. The different bargaining positions between the government and the private sector resulted in the fact that most of them impose risks on private parties (private). Implementation of PPP is closely related to the emergence of various risks including and not limited to regulatory risks, force majeure, etc. If there is no risk allocation arrangement proportionally based on governance principles, it weakens the pattern of PPP cooperation in Indonesia. PPP as one form of risk sharing in infrastructure investment should not release the role and government support to private parties / investors. Even in practice, PPP implementation in Indonesia only relies on BOT (Build Operate and Transfer) scheme which is expected to minimize government support in project implementation. This will ultimately lead to project failure.

scholarly journals Institutional Support of the Public-Private Partnership in the Republic of Poland

2019 ◽  
pp. 145-155
Author(s):  
Nykola Lakhyzha ◽  
Svitlana Yehorycheva
Keyword(s):  
Public Administration ◽  
Organizational Support ◽  
Institutional Support ◽  
Public Private Partnership ◽  
Law Firms ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
The Republic ◽  
The Government

The experience of the institutional support of public-private partnership in the Republic of Poland has been analyzed. It is noted that Poland was one of the first among the post-communist countries to implement a mechanism of public-private partnership. The peculiarities of the practice of realization of public-private partnership in Poland during the 1990s and its legal support were determined. The possibility of its development on the basis of general norms of civil, economic, administrative and other branches of law is emphasized. The process of development and adoption of separate laws on public-private partnership and their specific features are described. The essence of discussions about the need for creation of a special authorized body for regulation of public-private partnership, which was caused by the problems that arose from public and private partners during the conclusion and implementation of the relevant agreements, was disclosed. The modern components of organizational support for supporting the development of public-private partnership in Poland, their role and their inherent functions are revealed: the Department for Public-Private Partnerships of the Ministry of Investment and Development, similar departments in public administration bodies of different levels, the Public-Private Partnership Platform, Polish Entrepreneurship Development Agency, Institute of Public Private Partnership, private law firms, scientific and educational institutions. The necessity to improve the institutional support of public-private partnership, which is realized by the government of Poland as well, is stated. The content and significance of the latest program documents in this area that are intended to improve the process of administration the development of public-private partnership — the concept «The vision of sustainable development for Polish business 2050» and «Government policy in the field of development of public-private partnership» are characterized. The importance of using the experience of the Republic of Poland in the practice of public administration of the Ukrainian system of public-private partnership is emphasized.

scholarly journals Critical Success Factors in Public-Private Partnership

2021 ◽  
Vol 4 (1) ◽  
pp. 81
Author(s):  
Sri Mulyani
Keyword(s):  
Success Factors ◽  
Organizational Factors ◽  
Public Private Partnership ◽  
External Factors ◽  
Structural Factors ◽  
Key Factors ◽  
Private Partnership ◽  
Goods And Services ◽  
Critical Success ◽  
The Government

Public Private Partnership (PPP) is an alternative solution for the government in order to provide public goods and services that the government cannot fulfill itself due to budget constraints.    However, not all PPP implementations are successful. In this article, the determinants of the success of PPP implementation are examined.  The analysis was carried out based on articles discussing the keys success factors of implementing PPP. These articles are taken from articles published in reputable journals. The results of the analysis show that organizational factors, interactional factors, structural factors and external factors are the key factors for the success  of the implementation of PPP.

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.

scholarly journals Fuzzy Synthetic Evaluation of the Critical Success Factors for the Sustainability of Public Private Partnership Projects in China

2021 ◽  
Vol 13 (5) ◽  
pp. 2551
Author(s):  
Binchao Deng ◽  
Dongjie Zhou ◽  
Jiachen Zhao ◽  
Yilin Yin ◽  
Xiaoyu Li
Keyword(s):  
Policy Development ◽  
Critical Success Factors ◽  
Success Factors ◽  
Legal Framework ◽  
Public Private Partnership ◽  
Fuzzy Synthetic Evaluation ◽  
Private Partnership ◽  
Stakeholder Relationships ◽  
Critical Success ◽  
Synthetic Evaluation

Public Private Partnership (PPP) projects have attracted wide attention from academia and industry over the past 20 years, however, they have been plagued by certain factors. This study identified, classified, and evaluated the success factors that may affect PPP projects for achieving sustainability. First, a list of 32 critical success factors were categorized into 3 groups, then a questionnaire survey was conducted, with 108 responses received from experts, researchers, and PPP project managers in China. Second, using a fuzzy synthetic evaluation (FSE) method, stakeholder relationships (A1–A10), external environmental (B1–B8), and project management of a special purpose vehicle (C1–C14) collected data at three different factor group locations in PPP projects were used in this evaluation. The results obtained nine top factors: private sector financing capacity, government credit, government commitment or guarantee, completeness of legal framework, available financial markets, the feasibility study report and implementation, effectiveness of risk management, project investment, and cost control and revenue distribution. It was demonstrated that fuzzy synthetic evaluation techniques are quite appropriate techniques for PPP projects. The research findings should impact on policy development towards PPP and Private Finance Initiative (PFI) project governance.

scholarly journals Understanding of CSFs in the Application of Public-Private Partnership (PPP) Toll Expressway in Malaysia

2019 ◽  
Vol 9 (1) ◽  
pp. 2082-2087
Keyword(s):  
Success Factors ◽  
Descriptive Analysis ◽  
Legal Framework ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Factors Affecting ◽  
Public Investments ◽  
Innovation Cluster ◽  
Critical Success ◽  
The Government

Expressways are extremely expensive to build and maintain. A major infrastructure project and services involve massive public investments starting from planning, land acquisition, grading, paving and other expenditure. As an alternative, Public Private Partnership (PPP) is a popular tool for the government to cope and meet the increasingly demand by capitalising on private sectors ‘resource and expertise. Given the inherent advantages of PPP model over conventional model, the PPP model was highly favoured and adopted for toll expressway development in Malaysia. Many studies have been made on PPP in the literature but very few have been conducted to investigate factors affecting adoption of PPP toll expressway in Malaysia. Thus, this paper attempts to register all these Critical Success Factors (CSFs) from available journal articles published since 2012. Twenty (20) articles were identified and all the CSFs in them were registered in one list. A two stage exploratory sequential mixed method design was adopted. The first stage was to list all the 161 CSFs that illustrated in the articles and qualitatively analysed them (using thematic analysis) and this resulted in reducing the number to 77. Then these 77 themes of CSFs went through of consolidating exercise into grouping them under the relevant Clusters. Overall, there are nine (9) clusters of criteria of CSFs that can be consolidated as factors affecting on adoption of PPP namely;(1) risks cluster, (2) governmental influence cluster, (3)project viability cluster, (4)organisational cluster, (5)economic and financial cluster, (6)legal framework cluster, (7)technology and innovation cluster, (8) social and environment cluster, and (9) trust cluster. The consolidated nine (9) clusters of CSFs list then went through a final stage of analysis for validation. A set of questionnaire to validate the degree of importance of these nine (9) clusters of factor affecting was prepared and sent to thirty (30) experts in PPP from three (3) main sectors; public, private and academic. The descriptive analysis was done by using Statistical Package for Social Sciences (SPSS) Version 23.0 to differentiate these nine (9) clusters of factor affecting through their mean score. Finally, based on the group mean score value higher than 3.95, three (3) clusters of CSFs were selected as the most factor affecting in adoption of PPP namely; governmental influence, project viability and trust. This list is recommended to be considered in future studies of the influencing factors of involvement private sectors into PPP particularly on expressway projects.

scholarly journals PUBLIC PRIVATE PARTNERSHIP AS A DETERMINANT FACTORS OF AFFORDABLE HOUSING IN ABUJA NIGERIA

2019 ◽  
Vol XLII-4/W16 ◽  
pp. 71-78
Author(s):  
Y. Ahmed ◽  
I. Sipan
Keyword(s):  
Affordable Housing ◽  
Building Materials ◽  
Success Factors ◽  
Good Governance ◽  
Urban Housing ◽  
Housing Affordability ◽  
Public Private Partnership ◽  
Economic Policies ◽  
Housing Provision ◽  
Private Partnership

Abstract. The implementation of Public-Private Partnership (PPP) in housing provision in Nigeria meant to increase urban housing provision and address housing affordability and accessibility problems. Consequently, the study aims to identify the critical success factors of Public-private partnerships for affordable housing provision in Nigeria. However, the data were obtained using interviews with PPP experts to build the questionnaire for affordable housing in Nigeria. Overall, 254 responses were obtained and analysed using smart PLS to identify PPP success factors for affordable housing in Abuja. The result shows that good governance, availability of financial markets, Sound economic policies, consistency monetary, a commitment of public and private sectors are the key parameters of PPP for affordable housing in Nigeria. Therefore, the main contributions of the article indicate that strong government intervention, dependent of foreign building materials, easier access to mortgage institutions, and provision of land at no cost are the challenges to address in order to succeed in providing affordable housing in Nigeria. It is therefore recommended that a good design a framework should put in place in order to achieve the desired aim of providing affordable housing in Nigeria.

scholarly journals Understanding the Decisive Causes of PPP Project Disputes in China

Buildings ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 646
Author(s):  
Xiaoxiao Zheng ◽  
Yisheng Liu ◽  
Ruijiao Sun ◽  
Jinzhao Tian ◽  
Qi Yu
Keyword(s):  
Decision Making ◽  
Public Private Partnership ◽  
Risk Allocation ◽  
Relative Importance ◽  
Public And Private ◽  
Private Partnership ◽  
The Public ◽  
Holistic Understanding ◽  
Strategic Measures ◽  
Potential Sources

Disputes are inevitable in public-private partnership (PPP) projects and generate great losses of time and money in practice. If an in-depth understanding of dispute sources can be obtained beforehand, the process of PPP may become more smooth. This paper aims to identify and assess the causes of PPP disputes between the public and private sectors. First, 15 causes are explored based on the PPP litigation cases from China Judgments Online. Second, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is utilized to provide a holistic understanding of the relative importance and define the cause-effect categories among PPP dispute sources. The results demonstrate that the top three decisive causes of PPP disputes are the repudiation of contracts (result category), lack of expertise and experience (reason category), and unreasonable risk allocation (result category). Further, dispute avoiding strategies are proposed to minimize or completely avoid the occurrence of PPP disputes. The outputs are expected to add meaningful insights to potential sources of dispute and dispute prevention mechanisms in PPPs. To some extent, the investors can develop strategic measures through the findings before entering into PPP markets.

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