PPP Projects Research Articles

An Empirical Study of Determinants of Pay-for-Performance in PPP Procurement

Pay-for-performance is important in procuring Public–Private Partnership projects to which existing research has not paid enough attention. We took 884 ecological construction and environmental protection PPP projects (eco-environmental PPPs) as a sample and used the fuzzy-set qualitative comparative analysis method to discuss the links among technological, organizational, and environment in pay-for-performance procurement based on technology–organization–environment frameworks. We found the following: (1) A single condition alone does not constitute a necessary condition for the high-level pay-for-performance of PPP projects. The multiple concurrencies of technology, organization, and environmental conditions form three configurations that drive the pay-for-performance of PPPs with the same effect. (2) The existence of attention distribution and institutional regulation are crucial for optimizing pay-for-performance. To improve pay-for-performance, local governments should combine their own conditions to strengthen the synergy of technology, organization, and environmental conditions. In addition, the leader’s attention distribution and institutional regulation should be taken seriously. The contributions of this study are twofold: (1) Theoretically, this study provides new evidence of the determinants of pay-for-performance in PPP procurement, complementing empirical studies on the factors facilitating its implementation. (2) In practice, it provides a specific path for the government to improve the performance of eco-environmental PPPs.

Применение государственно-частного партнерства в сфере информационных технологий

The purpose of the article is to study the modern practice of public-private partnership (hereinafter – PPP) in the field of information technology. The paper identifies and systematizes the advantages and risks of using PPP in the field of information technology. Barriers in the development of the field of information technology based on PPP are identified (imperfection of legislation, lack of elaboration of issues related to the PPP projects’ payback in the field of information technology, lack of boxed solutions for PPP projects that fully take into account the specifics of this area and more). Measures aimed at their elimination are presented (comprehensive study of legal issues related to the specifics of establishing the exclusivity of information technology facilities created within the framework of PPP projects and the possibility of concessionaires implementing similar projects on the territory of different subjects of the Russian Federation; assistance in ensuring the return on investment of investors in PPP projects; development and implementation of boxed solutions for PPP projects, taking into account the specifics of the field of information technology and more). The work uses analysis, synthesis, observation and other methods. The practical applicability of the materials of the article lies in the possibility of their use in decision-making to ensure the progressive development of the information technology sector of Russia on the basis of PPP.

RS-SVM Machine Learning Approach Driven by Case Data for Selecting Urban Drainage Network Restoration Scheme

ABSTRACT Urban drainage pipe network is the backbone of urban drainage, flood control and water pollution prevention, and is also an essential symbol to measure the level of urban modernization. A large number of underground drainage pipe networks in aged urban areas have been laid for a long time and have reached or practically reached the service age. The repair of drainage pipe networks has attracted extensive attention from all walks of life. Since the Ministry of ecological environment and the national development and Reform Commission jointly issued the action plan for the Yangtze River Protection and restoration in 2019, various provinces in the Yangtze River Basin, such as Anhui, Jiangxi and Hunan, have extensively carried out PPP projects for urban pipeline restoration, in order to improve the quality and efficiency of sewage treatment. Based on the management practice of urban pipe network restoration project in Wuhu City, Anhui Province, this paper analyzes the problems of lengthy construction period and repeated operation caused by the mismatch between the design schedule of the restoration scheme and the construction schedule of the pipe network restoration in the existing project management mode, and proposes a model of urban drainage pipe network restoration scheme selection based on the improved support vector machine. The validity and feasibility of the model are analyzed and verified by collecting the data in the project practice. The research results show that the model has a favorable effect on the selection of urban drainage pipeline restoration schemes, and its accuracy can reach 90%. The research results can provide method guidance and technical support for the rapid decision-making of urban drainage pipeline restoration projects.

Влияние государственно-частного партнерства на решение проблем развития культуры в России

One of the factors in achieving the national development goals of Russia is the level of cultural development. The current state of culture is characterized by the presence of organizational and managerial, logistical, financial, economic and socio-labor problems. An important role in solving these problems is played by public-private partnership (hereinafter – PPP), through which the resources and competencies of business representatives are attracted for the creation and preservation of cultural objects. The purpose of the article is to study the impact of PPP on solving urgent problems of cultural development in Russia. The conducted research allowed us to draw conclusions about the positive effect (social, economic, cultural and educational) of the use of PPP in the field of culture and its direct connection with a comprehensive system for ensuring such a partnership, including regulatory, organizational, managerial, logistical and other elements. Emphasis is placed on the need to take into account the principles of PPP in the field of culture (legality, unification, distribution, and others). Practical measures have been developed aimed at improving these results in the future (eliminating the shortage of ready-to-launch PPP projects, ensuring the coincidence of interests and opportunities of potential participants in PPP projects, achieving a balance between measures encouraging business representatives to invest in the field of culture, and restrictions in the implementation of projects PPP). The work uses analysis, synthesis, observation and other methods. The research materials can be used in making decisions on the development of the cultural sphere in Russia on the basis of PPP.

How Did Balance Loss Occur? A Cross-stakeholder Analysis of Risk Misallocation in a Sponge City PPP Project

How Did Balance Loss Occur? A Cross-stakeholder Analysis of Risk Misallocation in a Sponge City PPP Project

Application of BIM Technology in the Transformation of PPP Project Investment Management

Application of BIM Technology in the Transformation of PPP Project Investment Management

Effects of Different Face-Saving Concerns on the Escalation of Commitment between State-Owned and Private Investors in PPP Projects

Effects of Different Face-Saving Concerns on the Escalation of Commitment between State-Owned and Private Investors in PPP Projects

Macroeconomics Indicator, Institutional Quality, and Public Private Partnership: A Case of Indonesia

Objective: This study aims to provide empirical evidence about the effect of macroeconomic conditions (inflation and GDP growth) and governance (control of corruption, stability politics, and voice and accountability) on private participation in PPP infrastructure projects in Indonesia as proxied by a total investment of PPP project. Design/Methods/Approach: This study uses secondary data with annual data for the period 2003 to 2019. The data sources are obtained from the World Bank Database (WGI, WDI, and PPI). Findings: The results show that inflation, GDP growth, and stability politic have no significant effect on the total investment of the PPP in Indonesia. Meanwhile, control of corruption has a significant positive effect on the total investment of PPP, and voice and accountability have a significant negative effect on the total investment of PPP projects in Indonesia. Originality: This study differs from previous research since variables such as inflation, GDP growth, political stability, corruption control, voice, and accountability have never been used in the Indonesian context. Practical/Policy implication (optional): These findings are likely to imply government to improve corruption control so that private participation in PPP projects increases and increasingly involves citizens' participation in PPP projects.

Formation and Implementation of Public-Private Partnership Projects in the Agricultural Sector

Existing mechanisms for integrating state and public resources with opportunities and business resources to achieve critical social goals need significant changes. This fully applies to the goals, functions, and mechanism of public-private partnership projects, the advantage of which is the involvement in traditional public sectors of the economy of private business practices, as well as the desire to eliminate the shortcomings of both methods of management through optimal allocation of resources, responsibilities, and risks. The article analyzed the current state of public-private partnerships in terms of periods, geography, and industries in the article. The recent positive changes related to PPP have been identified and analyzed. The authors proposed methodological bases for assessing the feasibility of PPP projects and proposed a system of indicators of the effectiveness of PPP projects and conceptual principles for creating a favorable environment for implementing public-private partnership projects in the agricultural sector in Ukraine.

Consistency measure of the WH-PLPR under the risk identification of PPP projects

Consistency measure of the WH-PLPR under the risk identification of PPP projects

Research on the Relationship Between Flexible Contract Term Setting Method and Setting Effect of Environmental Protection PPP Project

Environmental protection PPP projects (EP-PPP) are subject to uncertainty during the project cycle, setting flexible project contract terms in their contracts can help establish and maintain an effective partnership. This article aims to reveal the contract flexibility mechanism of EP-PPP projects by studying the relationship between flexible contract term setting methods and their effects. Questionnaires, case studies and structural equation modeling (SEM) are applied to conduct quantitative analysis. The research shows that although some flexible terms have been adopted in current EP-PPP contracts, there is still much room for improvement. In order to deal with unforeseen risks and challenges, it is necessary to consider: (1) List uncertainties as much as possible and set up response methods accordingly; (2) Guarantee a certain degree of flexibility in uncertainty response methods; (3) Give the project itself a certain degree of autonomous response power; (4) Leave plenty space for changes that may be needed in the future. The study results can help project practitioners enhance their understanding of flexible contract terms and help to promote contract flexibility in EP-PPP projects in a context-specific manner, thereby facilitating project success.

Social aspects of economic security

Economic security serves as the foundation and material basis of national security. Manifesting itself in the spheres of influence of other types of security, penetrating into them and interacting with them, accumulates their effects. The methodological foundations of economic security concepts have ancient origins, since there has always been a desire of more developed countries to use their competitive advantages in the level of economic development in relation to less developed countries. In accordance with Russian legislation, economic security is a state of protection of the national economy from the possibility of harming objectively significant economic needs of the country, which ensures the independence of the state in conducting domestic and foreign policy, taking into account international obligations, the unity of its economic space, conditions for the implementation of strategic national priorities of the Russian Federation. In this article, among other tasks to be solved, the role of public-private partnership as a tool for the implementation of economic security issues is substantiated. Using the example of infrastructure construction and other PPP projects, it is shown that the key to economic development in the next decade is due to the creation of new jobs, reduction of travel time and transport costs in the structure of the cost of goods and services. It is concluded that PPP projects, including the creation of new high-speed transport corridors, will ensure targeted economic growth and an increase in the level and quality of life of the population, which is a priority of state policy.

Research on the Identification Model of Interest Conflict Influencing Factors in PPP Projects Construction of Smart City

To systematically adjust and coordinate interest conflicts, it is necessary to identify the influencing factors of interest conflicts comprehensively and accurately. Based on theoretical and practical research, this paper initially screened 52 factors affecting the interest conflict in the construction of smart city PPP projects, and then conducted expert interviews and questionnaire analysis to adjust and revise the index system, and finally formed 27 relevant index systems. In order to further identify the key influencing factors and clarify the importance of the factors, the interval gray number-DEMETAL method is used to identify the key factors that induce multiple interest conflicts in the construction of smart city PPP projects to enhance the identification effect. The research shows that: the complexity of the project, the comprehensive quality of project personnel, and the differences in ideological and cultural concepts have become the main factors. Project social benefit, project quality compliance rate, project profit rate or rate of return become the most important result factors. Government behavior is the primary influence and restriction of the interest conflict in the construction of smart city PPP projects. In addition, interest conflicts are closely related to other project stakeholders, especially the private sector, social capital, and public behavior. Therefore, the government's decision-making behavior and incentive and restraint mechanism must first examine the interests of stakeholders and their behavior strategies, especially the behavior evolution trend under the government's incentive and restraint mechanism, which implement a flexible incentive and restraint mechanism.

The main directions of development and measures to support public-private partnership in the context of new economic sanctions

The article highlights the main directions of development and measures to support public-private partnership in the context of the introduction of new anti-Russian sanctions. In the context of economic turmoil, the need to optimize and search for additional points of contact between the state and business is increasing, which can serve as a catalyst for restoring the economic balance. The article assigns the leading role to the state in partnership with business as a guarantor of state and economic security. It was noted that in the current economic situation, PPP projects for the development of the social sphere, infrastructure, IT-sphere, and tourism acquire particular relevance.

Mathematical Models for Analysis the Impact of Institutional Quality and Multilateral Financial Institutions on the Success of Green PPP Projects

Green PPP projects are of great significance to green infrastructure construction and green economic development. This study analyzes 552 Green PPP projects related to sewage treatment and clean energy in African countries during 2005-2019 to determine how institution quality and multilateral financial institutions influence Green PPP projects’ success. We find that (1) successful (failed) Green PPP projects experience increase (decrease) new Green PPP projects’ success rate. (2) Higher private capital risk-taking degree increases the likelihood of failure. (3) Institution quality affects project success through a mixed effect on private capital’s risk-taking degree: rule of law, government effectiveness, control of corruption, and regulatory quality positively promote private capital’s risk taking; voice has an opposite effect. (4) Multilateral financial institutions’ participation in Green PPP projects promotes higher private capital risk taking.

Optimal Capital Structure of PPP Projects: A Review of the Literature

Public-private-partnership mode helps to better solve the problems in financing, technology, and management of public goods by effectively utilizing the respective advantages of government and private sector. There are myriad researches on risk-sharing, benefit distribution, asset securitization, and capital structure of PPP projects these days. In this paper, we provide analysis and discussion for the research methods of selected literature which applied the most used method for measuring the optimal capital structure of public-private-partnership projects. By analyzing these studies, we can identify the potential problems of present research methods, and we can also provide research suggestions for future researchers to promote and enhance their research methods of optimal capital structure of public-private-partnership projects and make the methods more practicable and reality-adaptive.

Вопросы оценки рынка и прогнозы его развития – как важный составной элемент для реализации проектов государственно-частного партнерства в системе здравоохранения (сообщение 1)

This article is based on original research and analysis conducted in the framework of a comprehensive examination of the state of the market for the provision of dialysis services to citizens suffering from chronic renal failure (CRF) stage 5 in the Kyrgyz Republic (KR). A comprehensive examination was conducted to identify opportunities and ways to achieve it, including the best ratio of price and quality, at the organization of dialysis services using advanced models of public-private partnership (hereinafter - PPP). The quintessence of the work carried out was the development and preparation of a feasibility study. Feasibility study (feasibility study) is an important regulatory document that is necessary for the initiation of PPP projects, in accordance with the current legislation of the Kyrgyz Republic. The process of approval of the feasibility study by the state authorized body in the field of PPP should be considered as a trigger for the subsequent practical implementation of the project, including the assessment of the market and the forecast of its development for the next decade.

Research on the Financial Risk Management Mode of PPP Project

Research on the Financial Risk Management Mode of PPP Project

Research on Enterprise Avoiding Financial Risk in PPP Project

Research on Enterprise Avoiding Financial Risk in PPP Project

Impediments to Public-Private Partnership Projects In Aftermath of Covid-19 Pandemic

India has enjoyed impressive economic growth over the past two decades. The country possesses the world’s second-largest road system, fourth-largest rail system, and fifth-largest electric power generating manufacturing capability. Despite progress and good prospects for the future, investors continue to face many challenges, which have worsened after Covid-19. Nearly 90% of the world’s population has faced travel restrictions, a sharp decline in the global economy during the Covid-19 pandemic. There had been significant downward trend in the infrastructure investment during Pandemic, keeping in view the slowdown of private investment in infrastructure; the present study was carried out to investigate the complexities in PPP infrastructure projects by looking at the elements that impede the successful implementation of PPP in India. The study relies on primary and secondary data. To better understand the constraints to PPP implementation, a questionnaire survey was performed to collect the viewpoints of partners who have a good grasp of the PPP concept and have worked on PPP projects in India. There was a total of 94 valid submissions. The overall findings show that the top five challenges for speeding PPP in India are ‘Inefficient and inequitable risk allocation in PPPs,’ ‘Over leveraged debt and paucity of equity,’ ‘Weak regulatory and institutional frameworks,’ ‘Delay in issuing clearances by authorities,’ and ‘Land selection and acquisition.