Abstract
Aiming to balance the interests of the principal stakeholders (the private sector, the government and the general public) in Public–Private Partnerships (PPP) projects, the satisfaction of stakeholders were researched thoroughly in this paper. A satisfaction evaluation model was structured based on authors’ prior questionnaire survey focusing on the performance objective indicators (POIs) of different stakeholders. The parties’ preferred POIs were identified as follows: all three parties emphasize the objectives of construction quality, service quality, cost, time, and lifecycle cost very much. Individually, the private sector prefer the objectives of profit making and government support, the government prefer the objectives of budget saving and risk transfer, and the general public prefer the objectives of toll rate and the facilities’ quantities. Furthermore, a satisfaction adjustment model was proposed based on the interrelationships of the adjusting POIs and their impact on the stakeholders’ satisfaction by using the feedback loops of System Dynamics (SD). An illustrative case was also introduced, the results of which indicated that the satisfaction evaluation and adjustment model could be well applied to balance the interests of stakeholders and also improve the general performance of the project.
Highlights
Due to the enormous demand of capital investment in public infrastructure and for delivery of essential public service, coupled with the need to contain the fiscal deficit, the governments all around the world are in favour of procuring public infrastructures through partnerships with private sector (Iyer, Sagheer 2010)
Evaluation of Private Partnerships (PPP) stakeholders’ satisfaction The satisfaction level for the private sector ( ), the government ( ) and the general public ( ) in the ith period are the differences between their expected level of performance objective indicators (POIs) and realized level of POIs
A satisfaction evaluation model and a satisfaction adjustment model were proposed for the three principal stakeholders in PPP projects
Summary
Due to the enormous demand of capital investment in public infrastructure and for delivery of essential public service, coupled with the need to contain the fiscal deficit, the governments all around the world are in favour of procuring public infrastructures through partnerships with private sector (Iyer, Sagheer 2010). PPPs have been practiced widely in different industrial sectors, and evidences can be found that the private sector usually have the ability to shorten the time to complete the project, reduce project life-cycle costs, and provide public goods and services with high-quality (Iyer, Sagheer 2010; Jin 2010). Those advantages of PPPs in economic efficiency delivered value for money in the development of infrastructures through the private foundation.
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