Effect of transparency on the development phase of public-private partnership: Analysis of highway projects

Abstract

The impact of transparency on large Public-Private Partnership (PPP) projects has been a topic of interest for scholars and policymakers. However, empirical evidence of its impact has been limited. Governments from more than 100 countries across the globe have enacted transparency laws in the recent past. The development phase of PPP projects is critical for the success of the subsequent two phases- construction and operation. The objective of this study was to determine the influencing characteristics of projects and the environment in which they operate, as well as the impact of transparency laws on the duration of the development phase. Regression analysis using data of 469 PPP highway projects implemented in India revealed that concession period, length of the road, nodal authority implementing the project, duration of the construction phase, and road density in the region significantly impact the duration of the development phase. Mean comparison and regression analysis showed that the projects implemented after the enactment of the transparency law had a longer development phase. However, the projects with a longer development phase had a shorter construction phase. Understanding the factors affecting the duration of the development phase will help the nodal authority and the concessionaire to develop strategies to complete the project in a reasonably time-bound manner.