Partnership Infrastructure Research Articles

Unbundling Infrastructures to Identify Attractive Public-Private Infrastructure Partnerships in the United States

Unbundling Infrastructures to Identify Attractive Public-Private Infrastructure Partnerships in the United States

An Analysis of Public-Private Partnerships in Infrastructure of Provision of Public Goods Through E-Governance in India

This article examines the public and private partnerships (PPPs) in investments in infrastructure of provision of public goods in India beset with institutional failures at several fronts. It draws insights from institutional (transaction costs) and information economics. The objective is to examine under what conditions PPPs succeed or fail. This article attempts to introduce (PPP) as a new form of governance structure that is efficient from the other structures in terms of contractual norms, transaction costs of uncertainty and asset specificity and information asymmetry through proper monitoring and incentive mechanism. Furthermore, we bring forth a few technological issues in applying transaction costs and information economics into the PPP model. We analyse the PPP model in the domain of ICT developmental projects carried out by the Indian government as e-governance.

The performance of transparency in public–private infrastructure project governance: The politics of documentary practices

That public–private infrastructure partnerships (P3s) present problems in relation to democratic accountability has often been noted, with calls for greater transparency often following. Such calls tend to assume that anything that promotes transparency will further accountability and openness. Drawing on socio-legal studies of the documentary and other information practices that underpin and operationalise governance, this article carefully examines the features and the possible uses of the documentation that is made public by the PPP sector, in Canada. We find that information practices that perform and produce transparency (such as posting project documents online) may produce a merely illusory accountability. Particular attention is paid to the scale at which infrastructure planning information is made public, the selection of content included in the documents (e.g. photos of buildings versus background information), and the information formats commonly utilised. Overall, we find that the information that is made public does not actually empower the concerned public: projects are presented out of context, devoid of historical or comparative context and without reference to any broader regional or other plan, and when ‘real’ documents are made public, neither the content nor their framing enables effective openness, thus hindering accountability.

Perceptions of Residents in Xinjiang, Urumqi towards Tourism Development through China’s Belt and Road Initiative

China’s Belt and Road Initiative (BRI) clearly reads as an audacious vision for transforming the political and economic landscapes of Eurasia and Africa over the coming decades via a network of infrastructure partnerships across the energy, telecommunications, logistics, law, Information and Technology, transportation and tourism sectors. The BRI prioritises people-to-people connection. Various countries and cities will benefit from promoting cultural nationalism and local civic identities. The joint project of Belt and Road (B&R) embraces the trend towards a multi-polar world, economic globalization and cultural diversity for upholding global free trade, allocating many resources and deeply integrating marketers. The BRI is a remarkable example of the borderless nature of infrastructure development. This initiative aims to foster economic growth and investment along the ancient Silk Road trading route between Europe and the East. For instance, in Xinjiang, Urumqi, various resources promoting the culture of the area add value to the tourism industry. This study adopted a descriptive research design that encompasses a qualitative approach and addressed the residents’ perception and attitude towards tourism. In-depth interviews with residents were conducted. Recommendations were made for destination marketers and governmental practitioners on how to improve and facilitate tourism industry for Xinjiang, Urumqi.

Estimating the determinants of public private partnerships in infrastructure: the case of India

Public private partnership (PPP) mode of financing is quickly becoming the favoured way to invest and fund infrastructure in India. This paper focuses exclusively on the PPP mode of infrastructure financing by examining and estimating the significant determinants of attracting any PPP in India. The empirical findings indicate that for India a higher cash deficit with huge government debt tends to attract more number of PPP projects. The study also suggests that political factors play a crucial role for the private sector in terms of making decisions regarding involvement of the PPP mode for financing infrastructure. Ultimately, there is evidence in favour of all the channels except the macroeconomic factors. While examining the investment aspect for PPPs, it was concluded that soft governmental constraints, market conditions and effectiveness of government proved to be decisive.

Estimating the determinants of public private partnerships in infrastructure: the case of India

Public private partnership (PPP) mode of financing is quickly becoming the favoured way to invest and fund infrastructure in India. This paper focuses exclusively on the PPP mode of infrastructure financing by examining and estimating the significant determinants of attracting any PPP in India. The empirical findings indicate that for India a higher cash deficit with huge government debt tends to attract more number of PPP projects. The study also suggests that political factors play a crucial role for the private sector in terms of making decisions regarding involvement of the PPP mode for financing infrastructure. Ultimately, there is evidence in favour of all the channels except the macroeconomic factors. While examining the investment aspect for PPPs, it was concluded that soft governmental constraints, market conditions and effectiveness of government proved to be decisive.

Contractual Efficiency of PPP Infrastructure Projects: An Incomplete Contract Model

This study analyses the contractual efficiency of public-private partnership (PPP) infrastructure projects, with a focus on two financial aspects: the nonrecourse principal and incompleteness of debt contracts. The nonrecourse principal releases the sponsoring companies from the debt contract when the special purpose vehicle (SPV) established by the sponsoring companies falls into default. Consequently, all obligations under the debt contract are limited to the liability of the SPV following its default. Because the debt contract is incomplete, a renegotiation of an additional loan between the bank and the SPV might occur to enable project continuation or liquidation, which in turn influences the SPV’s ex ante strategies (moral hazard). Considering these two financial features of PPP infrastructure projects, this study develops an incomplete contract model to investigate how the renegotiation triggers ex ante moral hazard and ex post inefficient liquidation. We derive equilibrium strategies under service fees endogenously determined via bidding and examine the effect of equilibrium strategies on contractual efficiency. Finally, we propose an optimal combination of a performance guarantee, the government’s termination right, and a service fee to improve the contractual efficiency of PPP infrastructure projects.

Efficiency Analysis of Government Subsidy and Performance Guarantee Policies in Relation to PPP Infrastructure Projects

Sustainable operation of public-private partnership (PPP) infrastructure projects that are characterized by considerable external benefits is of vital importance. However, a liquidity shock might trigger an inefficient liquidation of a project by the special purpose vehicle (SPV) and the bank, whose objectives are to maximize the profits generated by the project. This study argues that performance guarantee and subsidy policies implemented by the government play a role in encouraging socially efficient decision-making by the SPV and the bank to ensure the continuation of socially valuable projects. The results show that both government subsidy and performance guarantee policies are effective in avoiding the inefficient liquidation of PPP infrastructure projects when the external benefits are large and certain. However, a performance guarantee policy might lead to inefficient continuation when the external benefits of a project are uncertain. Finally, we discuss the possibility that an integrated policy combining performance guarantees and government subsidies improves the efficiency of a PPP infrastructure project.

Win-Win Agreements and Public Private Infrastructure Partnerships: Managerial and Governance Concerns

Using qualitative data from free form interviews this article examines the role of win-win agreements in negotiating state and local public-private infrastructure partnerships. Based on case study evidence the authors argue that the skills required to assemble coalitions for such partnerships may, in some cases, lead administrators to pay insufficient attention to the public values aspects of partnership negotiation. The concluding section offers suggestions to alleviate this problem. One recommendation focuses on giving legislatures a larger role in overseeing the public value aspect of PPPs. Another recommendation proposes that administrators develop and use value checklists.

A mixed-methods study of system-level sustainability of evidence-based practices in 12 large-scale implementation initiatives

BackgroundIn recent decades, evidence-based practices (EBPs) have been broadly promoted in community behavioural health systems in the United States of America, yet reported EBP penetration rates remain low. Determining how to systematically sustain EBPs in complex, multi-level service systems has important implications for public health. This study examined factors impacting the sustainability of parent-child interaction therapy (PCIT) in large-scale initiatives in order to identify potential predictors of sustainment.MethodsA mixed-methods approach to data collection was used. Qualitative interviews and quantitative surveys examining sustainability processes and outcomes were completed by participants from 12 large-scale initiatives.ResultsSustainment strategies fell into nine categories, including infrastructure, training, marketing, integration and building partnerships. Strategies involving integration of PCIT into existing practices and quality monitoring predicted sustainment, while financing also emerged as a key factor.ConclusionsThe reported factors and strategies impacting sustainability varied across initiatives; however, integration into existing practices, monitoring quality and financing appear central to high levels of sustainability of PCIT in community-based systems. More detailed examination of the progression of specific activities related to these strategies may aide in identifying priorities to include in strategic planning of future large-scale initiatives.Trial registrationClinicalTrials.gov ID NCT02543359; Protocol number PRO12060529.

Uncertainty analysis of value for money assessment for public-private partnership projects

In recent years, private sectors are encouraged to take an active part in franchising of urban infrastructure investments and operations, which promotes the rapid development of public-private partnership (PPP) in infrastructure and public service supply. Value for money (VFM) assessment has been officially proposed to provide a reference for selection of projects planning to adopt PPP. Based on the bottlenecks of VFM application in China and the uncertainties for urban infrastructure PPP projects, a discounted cash flow (DCF) model is established for VFM of infrastructure PPP projects. Then, a Monte Carlo simulation model is established on the basis of uncertainty factors for VFM. Through the analysis of Huai’an trams PPP project, coping strategies of uncertainties for VFM are put forward. Findings of the research may propel the establishment of a complete VFM evaluation system for PPP projects. Key instructional functions of VFM during the process of decision-making can be brought into full play and PPP may develop orderly.

Design and Development of a Risk Identification and Analysis Tool (RIAT) for Australian Public-Private Partnership Infrastructure Projects

Design and Development of a Risk Identification and Analysis Tool (RIAT) for Australian Public-Private Partnership Infrastructure Projects

A fuzzy synthetic evaluation analysis of operational management critical success factors for public-private partnership infrastructure projects

PurposeThe purpose of this paper is to identify the factor groupings of a set of 19 critical success factors (CSFs) associated with managing public-private partnership (PPP) projects at the operational stage and examine the most significant factor grouping using fuzzy synthetic evaluation (FSE) technique.Design/methodology/approachThe paper adopted a comprehensive review of the pertinent literature and an empirical questionnaire survey geared towards targeted international PPP experts. Survey responses were analysed using factor analysis and FSE modelling.FindingsThe results from factor analysis show five CSF groupings (CSFGs) for managing operational PPPs. These are proficient service delivery and adequate legal structures, simplified payment mechanism and consistent project monitoring, effective contract variations management, suitable stakeholder management mechanism and environmental health and safety control. The FSE modelling shows that “simplified payment mechanism and consistent project monitoring”, is the most critical CSFG. The operational management CSFs under this grouping are acceptable level of user fee charges, efficient and well-structured payment mechanism, consistent project performance monitoring and long-term demand for public facility.Research limitations/implicationsThe major limitation lies in the low sample size that was used for analysis; however the years of research and/or industrial experience of respondents and the wide coverage of different cultural backgrounds (18 countries from five regions globally) contribute to the authenticity of the survey responses. Future research should adopt interviews and case study analysis to unravel CSFs in managing operational PPPs.Originality/valueThe findings of this study are considerably beneficial to both public authorities and private operators. They inform practitioners of the strategic procedures and measures to employ in optimising the operational performance of PPP projects. Further, the methodology employed allows project management experts to reliably select the operational management CSFs for their projects.

Ex Post Risk Management in Public-Private Partnership Infrastructure Projects

Public-private partnerships (PPPs) have been widely used in infrastructure development in the past 30 years. However, a number of PPP projects have suffered serious risk scenarios and ended up with project failures. The change from a short-term contract period of traditional projects (fewer than five years) to a long-term contract period of PPP projects (20–30 years) has raised challenges to the traditional risk management. The high occurrence of renegotiations and early terminations of PPP projects suggest that ex ante risk management is no longer enough and ex post risk management is needed. This study aims to propose an ex post risk management model, under which renegotiations and early terminations are introduced. The application of this model begins with risk impact evaluation, then ex post risk response measures assessment, selection, and enforcement. An illustrative case is provided in the Appendix at the end of the article. The outputs of this study would facilitate governments’ decision making in PPP projects under serious risk scenarios.

Enabling Bond Market Finance for Infrastructure Projects in India: The Problem of Credit Ratings

In India, public–private partnership (PPP) infrastructure projects are mainly financed by commercial bank debt, and bond markets have had only limited participation in financing infrastructure. One of the factors that has constrained infrastructure projects from accessing bond markets has been their low-investment-grade credit ratings. Infrastructure projects are considered risky by rating agencies, and their low-investment-grade (BBB) rating levels do not attract bond market investments. However, the rationale for higher risk grades for infrastructure PPP projects is not clear. This article reviews research on financing infrastructure in India, analyzes rating transition studies over five years, and summarizes findings from an analysis of actual defaults for 134 infrastructure PPP projects in India. The findings indicate that infrastructure PPP projects exhibit lower rates of default than those expected from the credit ratings given to the infrastructure project debt. The use of external credit ratings by investors and financial sector regulators is constraining debt investments in infrastructure specifically from bond markets and long-term sources.

“Making It Happen”: Deciphering Government Branding in Light of the Sydney Building Boom

“Making It Happen”: Deciphering Government Branding in Light of the Sydney Building Boom

Barriers to bond financing for public-private partnership infrastructure projects in emerging markets

PurposeThe purpose of this study is to identify and critically assess the barriers to bond financing for public–private partnership (PPP) infrastructure projects in Nigeria using an empirical quantitative analysis. Innovative ways to finance long-term infrastructure projects had been documented. However, there is a dearth of empirical studies on the barriers to bond financing for PPP infrastructure projects.Design/methodology/approachA comprehensive literature review was conducted to identify the barriers to bond financing for infrastructure projects, which were employed to design a questionnaire. A questionnaire survey was carried out which targeted financial experts in the Nigerian financial institutions/local banks. Data collected were analysed using descriptive and inferential statistics to include mean score, chi-square (χ2) test and factor analysis (principal component analysis).FindingsThe analysis of the ranking in terms of the mean score values for the 12 identified barriers indicated that all the identified barriers are considered by respondents as critical barriers to bond financing for PPP infrastructure projects in Nigeria. The study, through factor analysis, grouped the 12 identified barriers into 5 principal factors. These include governance and institutional capacity issues, higher issuance cost and risk, difficulties in getting approval for changes, the small size of bond markets and stringent disclosure requirements.Practical implicationsThis research is significant by providing the empirical evidence of the barriers to bond financing for PPP infrastructure in emerging markets, especially in Nigeria.Originality/valueThe findings would enable the policymakers to draw some policy recommendations that will positively influence the development of bond markets in Nigeria and emerging markets at large. These study findings are crucial, as not many empirical studies have been conducted in Nigeria.

Risk assessment in public-private partnership infrastructure projects

PurposeThe purpose of this paper is to empirically compare the risk factors in public-private partnership (PPP) projects in developing and developed countries, represented by Ghana and Hong Kong, respectively.Design/methodology/approachA structured questionnaire survey was conducted with PPP practitioners in Ghana and Hong Kong. In total, 103 valid responses were received for analysis. Kendall’s coefficient of concordance and mean ranking were used for data analysis.FindingsThe results show that respondents from Ghana ranked country risk factors higher, whereas their Hong Kong counterparts ranked project-specific risks higher. The top five significant risks in Ghana are corruption, inflation rate fluctuation, exchange rate fluctuation, delay in project completion and interest rate fluctuation. In Hong Kong, the top five significant risk factors are delay in land acquisition, operational cost overruns, construction cost overruns, delay in project completion and political interference.Originality/valueThe results of the study inform international investors of the appropriate risk mitigation measures and preventive actions to use when engaging in PPP arrangements in any part of the world. Further, governments who are yet to use the PPP concept would be informed of the prevailing risk factors in other neighbouring countries (i.e. developing or developed countries).

From global savings glut to financing infrastructure

Summary Samama and Joseph Stiglitz?>This paper proposes an institutional solution that can help unlock the flow of low yielding long-term savings towards high-return infrastructure investments. The solution is to transform public–private partnerships (PPPs) in infrastructure as well as the classic model of multilateral development banks. Instead of thinking of PPPs as bilateral contracts between a private concession operator and a government agency, we argue that they should be conceived as partnerships that also involve a development bank and long-term institutional investors as partners. We propose a new model for development banks, which is to transform them into originate-and-distribute banks for PPP infrastructure projects. The new model allows them to conserve their valuable capital and leverage their expertise and capabilities by making them available to long-term institutional investors.

Negotiation system for PPP infrastructure contracts

The sophisticated negotiations during the final pre-contractual stage of public private partnership (PPP) infrastructure contracts are costly both in terms of time and resources. Thus, an early resolution of such issues brings significantly down the cost of this procedure. The proposed negotiation system aims to firstly set a common agenda of evaluated issues. The resolution of the algorithm used - based on tactics of experience (heuristics) - allocates the various issues to both contracting sides. The whole process results in apportionment of the issues that have been initially specified. Following that, each side has the right to 'define' - in the best way it believes - the various issues that have been appointed to it after the end of the procedure. This specific negotiation model rapidly provides a proposal for the allocation of complex issues between the involved parties, achieving a significant reduction in cost and resources spent.