Abstract
PurposeThe purpose of this paper is to explore and evaluate the problems encountered by five major road projects recently implemented in Greece as public–private partnerships (PPP) and make recommendations for improvement of the relevant managerial practices and contractual clauses for the benefit of similar future projects.Design/methodology/approachA qualitative approach was adopted in this research as only senior engineers with specific managerial experience were deemed suitable for the purposes of this research. In total, 15 semi-structured interviews were conducted with CEOs of the PPPs and heads of independent engineers involved in the projects’ implementation as well as with senior officials of two Greek Ministries.FindingsThe experts identified different areas of weakness relevant to the revenue risks, the planning of the scope, the management of designs and legal permits as well as the toll policy selected. They also made specific recommendations for the streamlining of the relevant procedures in the future.Practical implicationsThe experts’ opinions and recommendations constitute a solid basis for the achievement of higher efficiency in the management of future PPP projects worldwide.Originality/valueThis research offers a holistic perspective to PPP project management as it sheds light to the problems encountered by the Greek PPP programme as a whole and incorporates the experience gained at the contracts’ renegotiation. The research draws from the experience of experts and offers recommendations for systemic improvements which can be widely applied in any geographical context.
Highlights
A Public Private Partnership (PPP) can be described as any form of co-operation between contracting authorities and private sector economic operators, often with the aim of ensuring the funding, construction, renovation, management and maintenance of infrastructure and/or the provision of a service
Despite the accumulated experience numerous national PPP programs including those of Portugal, Spain, Greece, Hungary, Czech Republic, Poland, Croatia, Romania, Serbia, Bulgaria, Slovakia, Mexico, Colombia and Chile ended with a significant gap between the expected outcomes and the actual results
4.1 Financial crisis and traffic risk According to the contracts, the traffic risk had been fully undertaken by the Concessionaires
Summary
A Public Private Partnership (PPP) can be described as any form of co-operation between contracting authorities and private sector economic operators, often with the aim of ensuring the funding, construction, renovation, management and maintenance of infrastructure (works) and/or the provision of a service. Concession contracts are highly exposed to exogenous risks like traffic forecasts, stakeholder positions and macroeconomic factors, mainly due to their inherent nature of ex ante incompleteness (Nikolaidis and Roumboutsos, 2013; Macario et al, 2015; Carbonara et al, 2015; Guasch et al, 2008). These can lead to contract renegotiation i.e. a major revision not envisioned in the original contract. These can lead to contract renegotiation i.e. a major revision not envisioned in the original contract. Athias and Saussier (2018) note that when uncertainty is high, contract flexibility within a stable and efficient regulatory framework is crucial. Guasch (2004) provides a detailed description of such a framework emphasising the need for the strongest possible legal grounding
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