Evaluation of Public Private Partnerships (PPP): Case Study: British Airways i360

Abstract

The notion of PPP has been in existence for a long time. Governments and the private sector have utilized these partnerships to form mutually beneficial entities or to complete projects that would have been difficult if tackled by a single entity. Many governments, across the globe, have utilized the PPPs to reduce the pressure exerted on the public resources. One example of PPP, in recent times, is the construction of the British Airways i360, which is a 168-meter tall observation tower in Brighton Hove. The construction of the tower brought together four main stakeholders: Brighton Hove County Council, Coast to Capital, West Pier Trust, and the management team of the project (owners). The tower is not only meant to benefit its owners but the Brighton Hove County Council, which advanced a 25-year £36 million loan, also expects to benefit from the project by charging a higher interest rate from the loan. The West Pier Trust, who are the proprietors, also expect to benefit from the project by receiving part of the revenue generated by the tower and the Coast to Capital, who advanced a 7-year £4 million loan also expects to be paid with interest.