Evaluating critical success factors in public – private partnership water supply infrastructure projects

Anh Tuan Nguyen,Minh Anh Do,Hoa Doan Xuan Trieu,Phuong Van Nguyen

doi:10.1051/shsconf/202112909012

Anh Tuan Nguyen, Minh Anh Do + Show 2 more

Open Access

https://doi.org/10.1051/shsconf/202112909012

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Abstract

Research background: Public-private partnership (PPP) has been implemented in Vietnam since 1995 in the field of water supply. It is worth noting that not all governments are successful in implementing the PPP policy. According to studies in many countries in the region on the factors affecting the success of a PPP project, there are many similarities. However, differences in politics and administrative systems of each country can lead to changes in the influencing factors, changes in the degree of influence of the above factors on the success of the PPP project. Purpose of the article: This article aims to identify critical success factors (CSFs) that enable successful project execution, contributing to knowledge for practitioners in assessing the likelihood of success in executing a public-private partnerships PPP water supply project. Methods: In-depth interviews with PPP specialists in the water supply sector have confirmed the list of CSFs, after which the attributes are weighted to evaluate among different types of PPP by applying the AHP approach. The influences of CSFs were evaluated by data collected using a sample survey of 20 experts involved in the water supply sector and PPP projects in Vietnam. In Vietnam, the study finds seven CSFs affecting the success of PPP projects in the domestic water supply sector, including political environment, commitment of partners, strong consortium, asset quality/social support, national PPP unit, good governance, and project feasibility. Findings & Value added: The results reveal that the political environment is CSF that has the strongest impact on the success of the projects. As suggested by AHP, the BOO contract type of a PPP project in Vietnam water supply industry is chosen above the BOT contract.

Highlights

Policymakers in industrialized and emerging areas have increasingly embraced public-private partnerships (PPPs) as a groundbreaking procurement strategy for developing public infrastructure (Chou and Pramudawardhani, 2015)
As data collecting from 20 experts in PPP project in the water supply sector, the Analytic Hierarchy Process is applied to weigh the priorities of seven critical success factors (CSFs) influencing the success of a PPP water supply project for the BOO contract
The fourth and fifth places in the ranking table are taken by the strong consortium (SC) and the national public–private collaboration team (NP), respectively

Summary

Introduction

Policymakers in industrialized and emerging areas have increasingly embraced public-private partnerships (PPPs) as a groundbreaking procurement strategy for developing public infrastructure (Chou and Pramudawardhani, 2015). Over the last couple of decades, the PPP definition has garnered widespread recognition and has evolved exponentially on a global scale. Global experience has shown that when correctly formulated, PPP may have a variety of benefits. Countries that have thoroughly analyzed and investigated the success factors that contribute to the progress of policy execution have reaped significant gains from the resources and benefits associated with this procurement process (Osei-Kyei and Chan, 2015). Countries with few lessons to draw on have not adequately benefited from implementing the PPP policy

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