Current Public-private Partnership Research Articles

Financing Development Through Public Private Partnerships (PPPs) in Botswana

Largely due to chronic fiscal stress since the recent global economic crisis, there are calls for alternative ways of financing economic development. Public Private Partnerships (PPPs) have been identified as such alternatives. There is an increasing awareness that the private sector is not a competitor but a strategic partner in the drive for economic development. Therefore, governments are leveraging on the benefits of PPPs. Using the case study of Botswana, which is experiencing revenue challenges as diamonds have not been selling well since 2008, this theoretical paper explores the possibility of using more PPPs to finance economic development. Grounded in interpretivist research methodology, using the survey research strategy and using secondary data sources in the form of a desk survey, it concluded that there is a case for the increased use PPPs to finance economic development. It further concluded that while there is demonstrated appetite for PPPs, to date, only a few projects have been procured through PPPs. Hence, moving forward, and given the deteriorating revenue situation, there is a need to use more PPPs to deliver economic development. Finally, the paper argues that there is a need to reform the current PPP legal-institutional architecture and bench-mark and peer-learn from best PPP practices in Africa such as South Africa and Nigeria and beyond.

Crowd Financing for Public–Private Partnerships in the United States: How Would It Work?

The public–private partnership (PPP) model remains a tool that can facilitate private investment to partially resolve the significant funding need to respond to aging infrastructure in the United States. However, the current PPP model does not allow for broad-based public equity investment in PPP projects. The Jumpstart Our Business Startups Act in 2012 has led to a rapidly changing legislative and regulatory environment, which enables new ventures to raise equity and debt investment. This new form of investment crowdfunding, or crowd financing, provides flexibility for start-ups to raise low-cost capital from supporters of their project or business. This flexibility also can be used to enhance the PPP model. Given the approach’s novelty and its potential impact on taxpayers, it requires a comprehensive look. This paper introduces an implementation framework for the PPP crowd-financing model and builds on an earlier paper that provided a policy review of the model, with an analysis of its strengths, weaknesses, opportunities, and threats. This paper also highlights similarities between crowd-financing models that are being implemented in the real estate industry and their applications to PPPs and then describes the current regulatory framework for crowd financing. An outline is provided to show how crowd financing can be implemented for PPPs during procurement, including a discussion of investment types, U.S. Security Exchange Commission exemptions, and crowd financing–platform interaction.

Public Private Partnership (PPP) – Für ein gemeinsames Verständnis von PPP als Teil der New Public Governance

ZögU Zeitschrift für öffentliche und gemeinwirtschaftliche Unternehmen , Seite 187 - 208

Introduction to a Crowdfunded Public–Private Partnership Model in the United States

Crowdfunding is a tool to raise capital for a project or venture from individuals (the crowd) through an intermediary online platform. In the United States, the passage of the Jumpstart Our Business Startups Act in 2012 has led to a rapidly changing legislative and regulatory environment that provides the flexibility to use crowdfunding as a financial mechanism for project funding. This flexibility used in public–private partnership (PPP) projects provides the opportunity to engage institutional and individual investors as direct equity investors. This crowd-funded PPP model results in an enhanced version of the current PPP model and creates value beyond just the financing benefits. Because of the novelty of the approach and the potential impact on taxpayers, a comprehensive look at the approach is needed. This paper introduces a crowdfunded PPP model and begins a policy review on the model by using an analysis of strengths, weaknesses, opportunities, and threats (SWOT). This analysis looks through the lenses of various prisms, including SWOT. The strengths are equal investment opportunities, return on equity, enhanced stakeholder support, and increased transparency. The weaknesses are induced complexity, administrative and accounting challenges, third-party confidential information, and social equity. The opportunities are enhanced prioritization and idea exchange. The threats are business failure, potential for fraud, and possible misconceptions. Future research will be needed for further development and study of the implications and implementation of an enhanced PPP model that uses crowdfunding.

Actions de prévention coordonnées par les SSTI : équilibre gagnant – gagnant entre partenaires

A Public–Private Partnership (PPP) procurement mode is poised to play a leading role in delivering global infrastructure. However, there is no fundamental microeconomic framework to determine whether a project or part/s of a project is a suitable PPP. This paper presents the development of a new theoretical framework that overarches and harnesses the application and integration of prominent microeconomic theories, namely, transaction cost and resource-based theories, property rights theory and principal-agent theory, to explain how an efficient bundle of property rights, associated with externalised project activities, is configured or crafted. This novel framework is developed to contribute significantly to advancing the rigour and transparency of PPP selection, as well as advancing theory of the firm. In turn, this change in current PPP thinking would appreciably increase the prospect of PPPs efficiently addressing the substantial appetite for this mode of procurement.

Public–private partnerships for the development of port hinterlands and their ramifications for global supply chain management

Ongoing world-wide economic slumps coupled with the undisciplined capacity expansion of some international hub ports have created a glut for port services and intensified port competition. As a way to better utilize the existing port infrastructure and attract more shippers/carriers, a growing number of ports have begun to provide various incentives including tax benefits and subsidies to private enterprises that engage in global supply chain activities. Such incentives also include co-development of port hinterlands between government agencies and private enterprises in such a way that the government agencies establish the basic infrastructure tailored to specific needs of the private enterprises, whereas the private enterprises pay rental fees and create the economic spillover effects of the port hinterland development. In other words, port hinterland development through the public–private partnership (PPP) can be a viable strategic option for creating ‘win-win’ situations for both government agencies and private enterprises. Considering the benefit potentials and supply chain implications, this article examines the current PPP practices of the major hub ports in the Asia-Pacific region and then identifies critical success factors for port hinterland development through PPP based on a descriptive case study.

Designing Public-Private Partnership in Macedonia: Designing Crisis-Resilient Strategy

Worldwide, in the last 10 years we saw a significant increase in cooperation between public and private sectors in infrastructure development and management of infrastructure, intended to carry out many economic activities. One of the directions of the World Bank to overcome negative consequences of the economic and financial crisis of 2008-2009 was fostering infrastructure development plans among many countries in Europe. This paper shows that public-private partnership (PPP) financing remains viable and can bring value to the economy, despite the difficulties these projects faced. The global financial crisis has created new opportunities to refocus PPP projects on value-for-money and financial sustainability, as the primary drivers for private participation, and using the range of options and innovative approaches.This paper provides an overview of PPP projects in Europe and Macedonia and an assessment of the current PPP market. The background provided, this paper addresses three key questions: (i) What are the main issues that need to be addressed in order to create such a favorable environment, and how have these been tackled in Macedonian government? (ii) What are the possible ways for managing conflicts between private and public partners? (iii) What are the most appropriate forms of incentives the Macedonian government should use to attract private investors?Gradual reforms in facing with the consequences of the crisis could encourage wider use of PPPs. When allocation of capital resources become less politicized, innovative forms of financing projects are likely to become popular. It is necessary to change the rules governing for the provision of utility services. Public-private partnerships, where the focus is on the economic aspects, can contribute a lot for this situation to be changed.

Vaincre l’obésité en Europe par des Partenariats Public-Privé – La région nordique représente-t-elle un cas particulier ?

According to the Commission of the European Communities, Public Private Partnerships (PPPs) are ‘the cornerstone’ to tackle obesity today. This research analyzes if and how current PPPs combating obesity in Europe vary between Nordic social-democratic, conservative, liberal, Mediterranean, and East European regimes. It identifies main characteristics of PPPs focusing on cooperating partners, target groups, and objectives. Some variations between European regimes were found, but a general conclusion is that most PPPs fighting obesity in Europe aim at changing consumers’ eating and exercise practices through information. As information-based PPPs may increase social inequality, it is suggested that more efforts should be made to establish PPPs aiming to change the structures in society that make it difficult for disadvantaged groups to ‘choose’ health. The results of this study may be interpreted as indicating tendencies towards standardization and harmonization of nutrition policies and food culture across Europe.

Strategies for accountability in public-private partnerships in South Africa

This paper suggests the different techniques for enhancing accountability in public-private partnerships in South Africa. Although public-private partnerships are theoretically appealing as a necessary and viable service delivery option for physical infrastructure, in roads, schools, water reclamation, hospitals, and prisons and for the provision of health and social services, there are several challenges to accountability within the current public-private partnership procurement model. Little attention has been paid to incorporating accountability techniques in the different stages of public-private partnerships. If the vision and effective delivering of the public-private partnership are to be realized, there is a need for effective strategies in place that will enhance accountability in the different stages of public-private partnership. Key words: Public-private partnership, accountability, South Africa.

Flying Beneath the Radar of Health Reform: The Community Living Assistance Services and Supports (Class) Act

The Patient Protection and Affordable Care Act attempts to address prevailing deficiencies in long-term care (LTC) financing through the Community Living Assistance Services and Supports (CLASS) Act, a national voluntary LTC insurance program administered by the Federal government. The CLASS Act is intended to supplement rather than supplant assistance received from other payers. Furthermore, its reliance on a cash benefit allocated by beneficiaries with the assistance of counseling services makes it consistent with the consumer-directed philosophy increasingly favored by the LTC advocacy community. Largely due to inadequate take-up, however, particularly among better than average risks, it is unlikely that implementation of the CLASS Act will fundamentally alter the current public-private partnership for LTC financing. Instead, voluntary enrollment combined with a lack of medical underwriting could lead to disproportionate numbers of high cost enrollees. This could result in premium increases that further discourage participation on the part of the broader population. Barring making the program mandatory there are a number of comparatively minor changes policymakers could make to strengthen the risk pool, though doing so will involve a tradeoff between attracting better off risks while eschewing those likely to need the benefit most. Thus, while the CLASS Act may provide a meaningful benefit for those who enroll, its impact on improving the affordability of LTC for most Americans will likely be limited. Most will continue to rely on substantial unpaid care, out-of-pocket payments when formal care is required, and Medicaid when all other money has run out.

Flying Beneath the Radar of Health Reform: The Community Living Assistance Services and Supports (CLASS) Act

The Patient Protection and Affordable Care Act attempts to address prevailing deficiencies in long-term care (LTC) financing through the Community Living Assistance Services and Supports (CLASS) Act, a national voluntary LTC insurance program administered by the Federal government. The CLASS Act is intended to supplement rather than supplant assistance received from other payers. Furthermore, its reliance on a cash benefit allocated by beneficiaries with the assistance of counseling services makes it consistent with the consumer-directed philosophy increasingly favored by the LTC advocacy community. Largely due to inadequate take-up, however, particularly among better than average risks, it is unlikely that implementation of the CLASS Act will fundamentally alter the current public-private partnership for LTC financing. Instead, voluntary enrollment combined with a lack of medical underwriting could lead to disproportionate numbers of high-cost enrollees. This could result in premium increases that further discourage participation on the part of the broader population. Barring making the program mandatory, there are a number of comparatively minor changes policymakers could make to strengthen the risk pool, though doing so will involve a trade-off between attracting better-off risks while eschewing those likely to need the benefit most. Thus, although the CLASS Act may provide a meaningful benefit for those who enroll, its impact on improving the affordability of LTC for most Americans will likely be limited. Most will continue to rely on substantial unpaid care, out-of-pocket payments when formal care is required, and Medicaid when all other money has run out.

The Role of Partnerships in Economic Development and Labor Markets in the United States

This paper describes the role of local partnerships in the delivery of workforce and economic development services in the United States. Partnerships include both public and private organizations and increasingly depend upon local business people for leadership. With grassroots organizations traditionally taking the lead in addressing local issues and a long history of decentralized government, it is not surprising that a labyrinth of partnerships characterize the provision of public services. This paper grew out of a study tour that the Upjohn Institute conducted in conjunction with the Local Employment and Economic Development (LEED) Committee of the Organization for Economic Co-Operation and Development (OECD). Delegates from 16 European countries visited nearly two dozen partnership organizations in the U.S. Midwest. The paper summarizes the history of local partnerships in the United States, tracks the separate evolution of workforce and economic development activities, describes the leadership roles of the federal and state governments in fostering partnerships, and provides case studies of current public-private partnerships that the delegates visited on the tour. The paper concludes by drawing lessons learned from the tour regarding the efficiency of partnerships, the efficiency of service delivery, the local management of programs, and the proper roles of federal, state, and local governments.This paper describes the role of local partnerships in the delivery of workforce and economic development services in the United States. A version of the paper appears in an OECD volume on partnerships entitled Local Partnerships for Better Governance, prepared by Sylvain Giguere.

Weighing Public and Private Options for Reforming Long-Term Care Financing: Findings From a National Survey of Specialists

Deficiencies in current long-term care (LTC) financing models are substantial and must be addressed if the nation is going to meet the needs of the growing population of frail and disabled elders. Because debate over reforming LTC financing has traditionally focused on the relative roles of the public and private sectors, this article examines what characteristics predispose LTC specialists to weigh one approach--public or private--more than the other. Data are derived from a Web-based survey of 1,147 individuals with known or demonstrable experience with LTC, including consumer advocates, provider representatives, policy experts, and public officials. Results suggest that support for spurring private sector mechanisms, bolstering the government's role, and reforming Medicare and Medicaid vary with key characteristics of the respondents, including experiential, attitudinal, and background variables. Findings also suggest consensus that reform of LTC financing should improve on the current public-private partnership in this area.

Value for Money Analysis in U.S. Transportation Public–Private Partnerships

Value for money (VfM) assessment has been used by various public agencies worldwide as a tool to compare the viability of pursuing a project as a public–private partnership (PPP) with traditional procurement. Although sources have described the use of VfM in Europe, Australia, and parts of Asia, relatively little is known of the use of such tools in the United States. This paper presents the results of a survey of state transportation agency officials on their PPP practices and their use of assessments and tools to evaluate public–private partnerships. From the evaluation, the paper provides a guided reference for public agencies looking to adopt the VfM methodology in their current PPP decision-making framework. It also provides recommendations for future adaptations to enhance the VfM tool's level of effectiveness.

The State of the Practice of Value for Money Analysis in Comparing Public Private Partnerships to Traditional Procurements

Literary sources regarding public—private partnerships (PPPs) often mention the importance of conducting a value for money (VfM) analysis to determine the value of pursuing a project through a PPP versus a traditional procurement; however, few sources detail how agencies actually use this analysis in practice. This article provides a state-of-the-practice review of VfM analysis using examples from Australia, Canada, Europe, Africa, and Asia, focusing particularly on the VfM model used by agencies such as Partnerships Victoria, The United Kingdom's Her Majesty Treasury Department, and Partnerships British Columbia. Despite its growing applications in PPP projects from all different sectors, VfM has faced significant criticisms from academics and practitioners. This article evaluates reviews of VfM, noting the weaknesses and strengths of the methodology. Using the information derived from the evaluation, this article provides a guided reference for public agencies looking to adopt this VfM methodology in their current PPP decision-making framework.

Public‐private partnerships in international trade: a lobbying effort from passive to aggressive in the USA?

AbstractPublic‐private initiatives have been the domain of many governments as they try to shape international trade for their countries. The research presented in this paper indicates that US international businesses are not satisfied with the passive role that has been assumed by the US government and current public‐private partnerships. The evidence suggests that US companies desire a more aggressive role for the federal government in the not too distant future. Public‐private partnerships will be less informational and play an active part in stimulating international trade throughout the world. Copyright © 2002 Henry Stewart Publications