Private Partnership Projects Research Articles

Navigating Public–Private Partnership success: A cross‐country study of key factors in Nigeria and South Africa

AbstractPublic–private partnership (PPP) has delivered expected results on a number of significant projects. Yet, despite the growing appeal, problems have been encountered which have either resulted in slow progress or the total failure of such arrangements. This study offers a comparison between Nigeria and South Africa focusing on several identified critical success factors (CSFs) for PPPs. We rely on secondary data to compare Nigeria and South Africa based on the top ten ranking CSFs identified in the literature. Findings reveal that both countries account for the highest number of PPP projects in Africa but have not recorded huge successes as a result of their shortcomings in important CSFs responsible for the success of PPPs. Nigeria, for instance, is still being challenged with poor energy supply, bad road networks, and ineffective waste management practices, among others. South Africa appears to have had better success in PPP delivery due to a suitable financial market, stable economic policy, favorable legal framework, and a transparent procurement process. We conclude by highlighting the key CSFs for PPPs in Nigeria and South Africa and emphasize the need to address the identified shortcomings. The relevance of this study is in its contribution to the understanding of CSF in PPP projects thereby offering useful insights for policy makers and administrators in improving the success rate of PPPs and enhancing the delivery of public services in these countries.Related ArticlesIkeanyibe, Okechukwu Marcellus. 2018. “Bureaucratic Politics and the Implementation of Liberalization Reforms in Nigeria: A Study of the Unbundling and Reorganization of the Nigerian National Petroleum Corporation.” Politics & Policy 46(2): 263–94. https://doi.org/10.1111/polp.12249.Iwuoha, Victor Chidubem, Nneka Ifeoma Okafor, and Emmanuel Ifeadike. 2022. “State Regulation of Nigeria's Maritime Ports: Exploring the Impact of Port Concession on both the Regulator and the Operators.” Politics & Policy 50(5): 1032–52. https://doi.org/10.1111/polp.12495.McNamara, Madeleine W., John C. Morris, and Martin Mayer. 2014. “Expanding the Universe of Multi‐Organizational Arrangements: Contingent Coordination and the Deepwater Horizon Transportation Challenges.” Politics & Policy 42(3): 346–68. https://doi.org/10.1111/polp.12073.

RECONSTRUCTION OF THE NATIONAL THEATRE OF JAPAN AND KABUKI: CONTEMPORARY INTERDEPENDENCIES AND PROSPECTIVE CHALLENGES

In pursuit of its mission to preserve traditional Japanese performing arts, the first National Theatre of Japan predominantly showcased Kabuki performances since its establishment in 1966. This article examines the proposed redevelopment concept for this theatre within the context of the current landscape of Kabuki productions. It sheds light on the Japanese government’s inclination to diminish its role in the future National Theatre’s construction scheduled to open in 2029, opting to realize it as a Private Partnership Project. This strategic shift underscores a focus on the tourist appeal of the rebuilt theatre while concurrently preserving its interdependent relationship with Shōchiku in Kabuki productions.

Legal Guaranteeing for Providing Socially Significant Medical Services During Martial Law and Post-War Recovery of Ukraine

Objective: The purpose is define the perspective legal models for the formation of powerful healthcare sector in Ukraine capable to ensure timely provision of socially significant medical services in terms of the martial law and post-war recovery.
 
 Method: The authors of the article have used such research methods: systematic analysis, method of deduction, formal and logical method.
 
 Results: The authors have analyzed positive and negative aspects of co-payment mechanisms for the provided medical services, the possibilities of their application in Ukraine. It has been indicated that the receipt of highly specialized medical care by Ukrainians affected by the war requires the urgent creation of appropriate medical infrastructure. Such a task can be accomplished only due to the optimal combination of new tools for providing socially significant medical services, provision of financing within the sector and appropriate regulatory legal support.
 
 Conclusions: The authors substantiated the need to improve legal regulation of public and private partnership considering the peculiarities of medical activity and specifics of public and private partnership projects in the healthcare sector. The authors made conclusions and formulated suggestions regarding the development and implementation of legal mechanisms of various forms of co-payment for medical services, public and private partnership to ensure the provision of socially significant medical services.

An Analysis of the use of Toll Concession Public Private Partnership Projects(PPP) in the Road Sector

An Analysis of the use of Toll Concession Public Private Partnership Projects(PPP) in the Road Sector

Exploring the social legitimacy of urban road PPPs in Nigeria

Abstract Public–private partnerships (PPPs) have become an effective and efficient contractual agreement between the state and the private sector for providing infrastructure services. Yet, their social acceptance and legitimacy are questionable. Communities accept such changes to their social contract with the government only if the PPPs are perceived to be legitimate as public institutions are not trusted by the communities. As a result, the disappointments and controversial underperformance of PPPs in Nigeria, like most developing countries, have been generally associated with community opposition due to any agency or competence-related failure. Hence, the need for this study. Drawing on data from two urban road PPPs in Nigeria, we identify the following three deeply internalised shared beliefs that shape a community group’s perceptions and attitudes towards an infrastructure built by PPPs in their neighbourhood: the public services should be provided for free, PPPs are created mainly to serve perceived ‘corrupt’ politicians and public institutions are not effective and efficient in service delivery. These beliefs, combined with the community’s structural power, explain why some community groups oppose (or support) infrastructure PPPs within their proximity, and the growing legitimacy challenge PPPs face. Our paper in this regard provides a guidance for designing effective and targeted community engagement strategies for PPP projects and contributed to PPP stakeholder management and mainstream stakeholder management research.

Assessing effects of moral hazard -related behaviours on quality and satisfaction of public-private-partnership (PPP) construction projects: case study of Ghana

Purpose This study aims to investigate the effects of moral hazard on quality and satisfaction of public–private–partnership (PPP) construction projects in Ghana. Design/methodology/approach After undertaking a literature review, questionnaires were used to elicit responses from respondents. Population consisted of quantity surveyors, project managers, procurement officers, consultants, public agency officers involved in PPP projects, private partners and contractors. A total of 211 questionnaires were received from 250 distributed. Purposive and snowballing sampling techniques were adopted. Analytical tools were Cronbach’s alpha for testing reliability, regression, mean score ranking and relative importance index. Findings Reduced mutual trust and respect, poor clarity of project objectives; consequence on decision-making; less effective construction process; and increased construction risks were the significant effects of moral hazard on satisfaction of PPP construction projects. Value-based effects; manufacturer-based effects; product-based effects; user-based effects; and transcendent-based effects were the significant effects of moral hazard on quality of PPP construction projects. Practical implications Construction stakeholders involved in delivering PPP projects ought to take note of the findings and recommendations arising. Further studies should explore the effects on other project performance indicators apart from satisfaction and quality. Originality/value This paper extends knowledge in the area of exploring the effects of moral hazard on PPP project satisfaction and quality. The findings are beneficial to both academia and industry practitioners.

Современные аспекты развития инфраструктуры городов с использованием государственно-частного партнерства

The purpose of the article is to study modern aspects of the development of the infrastructure of Russian cities by means of public and private partnership. The paper identifies and systematizes the advantages and risks for the state, business and the population connected with the use of public and private partnership in urban infrastructure. This research made it possible to develop measures aimed at the reduction of the exposure of public and private partnerships to these risks (improvement of risks distribution and obligations, creation of an effective motivation system, reference forecasting use, and so on). The analysis and assessment of the current state of public and private partnership in the urban infrastructure of Russia are made and then measures are suggested to overcome obstacles in achievement of high ranks of cities in terms of infrastructure development. It is concluded that public and private partnership in urban infrastructure contributes to a successful creation of a number of risks connected with modern challenges (adverse climate change; environmental, energy and pandemic crises) and, as a result, lays the foundations for the creation of infrastructure with high economic, social, environmental and institutional sustainability. Modern challenges in conditions of extremely high instability make it necessary to improve state approaches to planning and regulation of public and private partnership projects in urban infrastructure, in particular, by improving the quality of legal support and institutional environment, as well as the effectiveness of the process of creation and adaptation of targeted qualitative and quantitative public and private partnership facilities in urban infrastructure, and so on. At the same time, it is important that these projects have such characteristics as inclusiveness, focus on sustainable (including green) development, viability, flexibility. The methodological basis of the research presented in the article consists of general scientific methods of cognition of economic and financial phenomena and processes. The methods of analysis, synthesis, observation and others are used in the paper. The practical applicability of the materials presented in the article lies in the possibility of their use in decision-making to ensure sustainable infrastructural development of Russian cities using public and private partnership.

The Effects of Investment in Major Construction Projects on Regional Economic Growth Quality: A Difference-In-Differences Analysis Based on PPP Policy

The investment in Major Construction Projects (MCPs) has a counter-cyclical impact on quantitative GDP increases during the recession period. However, its impact on the quality of economic growth is still unknown. Based on the data of prefecture-level cities in China from 2008 to 2017, we construct an economic Quality Growth Index (QGI) including sustainable development factors and take the PPP (Public–Private Partnership projects) policy as a quasi-natural experiment to design a Difference-In-Differences (DID) strategy for the first time to estimate the effects of the MCPs investment on the sustainable development of regional economies. We find that the MCPs investment can significantly improve the quality of regional economic growth. The MCPs investment can improve the quality of regional economic growth by enhancing innovation and entrepreneurship at the regional levels. Our findings may provide empirical evidence to support the policy of increasing investment into infrastructure constructions to promote sustainable development in the current economic recession under the COVID-19 pandemic.

Evolutionary game analysis of opportunistic behavior of Sponge City PPP projects: a perceived value perspective

Sponge City Public Private Partnership (PPP) project is a significant step to promote the construction of resilient city and sustainable development. Private companies take advantage of information asymmetry and regulatory loopholes to take opportunistic behavior, which affects the project delivery quality and public interests. In order to reveal the decision-making mechanism of the main stakeholders, this paper constructs an evolutionary game model of private companies, citizens and the government from a fresh perspective of perceived value. First, the traditional payoff matrix is modified by combining Prospect Theory and Mental Accounting. Next, this paper analyzes the strategic evolution law and stability conditions of game players by replicated dynamic equation. Finally, Nanganqu project is used for empirical simulation to verify the effectiveness of this model. Results indicate that, (1) due to the complexity of the project and the bounded rationality of the participants, there is no evolutionary stable strategy in this game system. (2) The behavioral decision of participants is affected by perceived incomes and perceived costs. (3) Government punishment and reputation loss can effectively curb the opportunistic behavior. All above studies are expected to improve the management of Sponge City PPP projects, providing theoretical guidance for the government to make scientific decisions.

The Conditional Configuration Path for Private Enterprises Participating in PPP: A Fuzzy-Set Qualitative Comparative Analysis

Public–private partnership (PPP) projects have been widely applied in infrastructure construction. Leveraging private capital is the key to promoting the high-quality development of PPP projects. This study examines the combined effect of seven factors determining private enterprises that participate in PPP and collects materials from 102 PPP sewage treatment projects to examine the causal configuration path of private enterprises participating in PPP (PEP3P) from an overall perspective by using necessary condition analysis (NCA) and fuzzy-set qualitative comparative analysis (fsQCA). The findings support the fact that any single antecedent condition is not a necessary condition for PEP3P and is instead the combined effect of different factors that commonly form the diversified causal configuration paths of PEP3P. There is an obvious asymmetry between the configuration paths of the high participation and low participation of private enterprises. The enterprise technology level (ETL) and doing business (DB) are important internal driving forces and give external traction for PEP3P, while the enterprise credit level (ECL) and project investment scale (PIS) are important factors that restrict private enterprises from participating in PPP. This research fills a theoretical gap for PEP3P and can be applied to developing strategies for attracting private enterprises to participate in PPP.

Государственно-частное партнерство в обеспечении устойчивого развития регионов России: современное состояние, проблемы и перспективы

The purpose of the article is to study the current state, current problems and prospects of public and private partnership as a way to ensure the sustainable development of Russian regions. The paper draws conclusions about significant achievements in the field of sustainable development of the regions of Russia, obtained through the use of public and private partnership. As an example, the high results in healthcare and ecology achieved through public and private partnership are presented. Based on the identified organizational, economic, financial, and legal issues of public and private partnership in healthcare, practical recommendations for their elimination are given (development and implementation of a federal model and uniform standards for the implementation of public and private partnership in healthcare at the regional level; development and application of economically sound ways to ensure the return on investment due to income from the guaranteed flow of patients and the tariff of compulsory medical insurance, etc.). With regard to public and private partnership in ecology, conclusions are drawn about the need to improve legislation in the regulating directions of public and private partnership models, developing methodological, informational and other support for public and private partnership, taking into account the specifics of environmental science. The mentioned above, together with the analysis of the structure of the Russian public and private partnership market, allowed us to identify the principles of sustainable regional development based on public and private partnership (compliance, transparency, stability, etc.), as well as growth points (formation of a systematic approach to the development plans of public and private partnership, increase in information openness of sustainable public and private partnership projects, etc.) and public and private partnership prospects (in particular, due to the need to improve the quality of urban infrastructure and the development of digital technologies). The methodological basis of the study was the general scientific method of dialectical cognition of economic and financial phenomena. The methods of analysis, synthesis, expert evaluation, etc. are used in the article. The practical applicability of the materials presented in the article lies in the possibility of their use in decision-making to ensure the sustainable development of Russian regions with the help of public and private partnership.

Accountability Paradox for the Success of Public Private Partnership (PPP) Projects in developing Countries

PPP projects are now being considered as a financing option for infrastructural development across the globe. The study was guided by accountability theory. The successful adoption of PPP projects in developing countries has been hindered by different poor accountability mechanisms. The main objectives of the study are to examine the relevance of accountability theory in adoption of PPPs and to analyse the issues of accountability for PPP projects in developing countries. Data collected through review of scholarly literature and documents review was analysed using narratives. The Study findings revealed that accountability theory is highly relevant to the adoption of PPP projects and that accountability is very fundamental for effective adoption of PPPs in developing countries. It was concluded that accountability theory should always be put into consideration if PPPs are to succeed. It was recommended that developing countries need to ensure a conducive accountability mechanism for successful adoption of PPPs.

Influence of trust networks on the cooperation efficiency of PPP projects: moderating effect of opportunistic behavior

ABSTRACT Current studies on trust relationships and their impact on project cooperation efficiency tends to start from a binary perspective of project owners and contractors; however, this viewpoint is problematized with the concept of network-level trust. This study attempted to reveal the relationship between trust networks, opportunistic behaviours, and cooperation efficiency among all participants of public–private partnership (PPP) projects and to fill in the research gaps. PLS-SEM was used to analyze 189 valid questionnaires from PPP projects of China urban rail transit. Data analysis found that opportunistic behavior is negatively correlated with project cooperation efficiency, and its moderating effect on the relationship between trust network density and project benefits efficiency is supported by data. Trust network density is positively correlated with cooperation efficiency, and negative correlation with opportunistic behavior is supported by data. There is a positive correlation between trust network centralization and opportunistic behavior, and a negative correlation between trust network centralization and cost efficiency is supported by data. The relationship between network centralization and benefits efficiency has not been supported. These conclusions can help optimize cooperation efficiency from the perspective of stakeholder management and trust networks governance.

The combined effect of marginal social and private benefit on the socially optimal equity structure of PPP projects

Although bundling in public–private partnership (PPP) projects fosters cost savings in the provision of public services, such savings might come at the expense of social benefits due to the low quality of non-contractible services and the incompleteness of the contract. A game model is presented to analyse how the equity allocation between private partners—typically, building firms and operating firms—indirectly influences their incentives, in order to improve the quality of non-contractible services. The findings show that the equity structure can effectively compensate for the incompleteness of the contract. When the equity structure is privately negotiated by private partners whose only concern is private benefits, a loss of social benefits due to the low quality of non-contractible services occurs because the penalties are not enforceable. A socially optimal equity structure, which depends on the combined effects of marginal social and private benefits, plays a role in aligning these social and private benefits, thereby providing private partners with appropriate incentives to improve non-contractible services. These findings provide insights into the regulation of the equity structure for PPP projects providing services in diverse sectors.

Legal Basis of State Support for Creating Innovative Medicinal Products

The study is focused on the legal regulation of state support for the creation of innovative medicinal products. Establishment of the measures of state support for scientific research for creating innovative medicinal products within legislative acts and by-laws should help to increase the competitiveness of the pharmaceutical industry in Ukraine. The government declares the provision of support for scientific research in the field of creating innovative medicinal products. The legislation establishes the conditions for registering an innovative project, provides the maintenance of the Register of scientific institutions that received the state support. A detailed characteristic of the existing means of the state support for scientific research in the pharmaceutical industry is provided. The state supports innovations by establishing tax incentives for research institutions and providing funding for some innovative projects. Support for innovations is carried out by the State Innovative Financial and Credit Institution, the National Research Fund of Ukraine and the Innovation Development Fund. Funding for the creation of innovative medicinal products can be realized through public and private partnership. The scholars have declared their propositions regarding the introduction of specific measures of the state support for innovations in the field of creating new medicinal products. It has been offered to amend the current legislation on the issues of state funding of scientific research in the sphere of developing new medicinal products. It is necessary to delineate the competence of various funds for promoting innovations in relation to supporting innovations in the field of pharmacia. It is important that the law should provide the procedure and conditions for supporting public and private partnership projects at the expenses of funds for promoting innovations.

RISK MANAGEMENT IN PUBLIC-PRIVATE PARTNERSHIP AND OTHER MAJOR INFRASTRUCTURE PROJECTS

ABSTRACT Any public infrastructure project, and especially a public–private partnership (PPP) project, is a complex project with many different obligations. It weaves together the interests of a wide range of participants: public and private partners, governmental authorities, and public organizations, the private partner’s shareholders, banks, and other financing entities, contractors, suppliers, operators, and insurers, as well as the interests of third parties such as consumers, and public organizations affected by the project in one way or another.These circumstances predetermine the large number of risks the private and public partners face in implementing a project, including construction and operating risks, tax, financial, market, political, legal, information, and other risks.Many of these risks are manageable and can be prevented or identified at the stage when they can be kept from materializing and resulting in specific adverse consequences such as breach of obligations and, in the worst-case scenario, default on the project. Both the private and the public partner should consider and control these risks. Proper risk management is also an important factor in reaping financial and operating benefits.The article’s objective is to promote modern approaches to risk analysis and risk-oriented decision-making when implementing PPP projects.

PUBLIC AND PRIVATE PARTNERSHIP IN THE TOURISM INDUSTRY AS A FACTOR OF SOCIO-ECONOMIC DEVELOPMENT OF RURAL AREAS

The paper defines the concept of and private as an effective form of interaction between public authorities and private business, identifies its features common with the term public-private and considers these terms as synonyms. The classification of public and private partnership forms on the basis of the analysis of the key legislative acts regulating their activity is presented in the paper. A statistical analysis of public and private partnership agreements has been conducted with the emphasis on the social component of partnership projects in the rural tourism. The components of the tourist cluster model with the advantages of introducing public and private partnership mechanisms into their structure are substantiated. The paper lists the problems in rural tourism development and their solution largely depends on the state authorities participation in the implementation of joint projects. Features of rural tourism as a type of business activity that has a stable socio-economic effect are considered in the paper. The relationship between the entrepreneurial activity in the field of rural tourism effectiveness and socio-economic development of rural areas is determined. The positive impact of public and private partnership projects in the field of rural tourism on the socio-economic development of rural areas is substantiated. The list of the basic directions of public and private partnership joint projects realization in the field of rural tourism which can have the most positive result is offered. The common interest of the community and business tourism is related to the planning and implementation of national infrastructure development programs. These programs include road infrastructure and public transport improvement, training in tourism business, support for rural tourism financing; establishment of tourist information centers, where tourists can get information about local tourist sightseeings, historical and cultural events, as well as about national ethnocultural, household, religious features of communities. In addition, these centres can provide business partners with information about the tourist market development and the existing tourist routes, transport and trade network, food and accommodation facilities, which can help provide additional services to tourists.

A Survey Analysis on Institutional Challenges in implementing Public Private Partnership (PPP) Projects: A perspective from a developing economy of Ghana

There is an increasing demand for infrastructure projects all over the world. One important model adopted in providing them is Public –private partnership. To this end, this study aims at identifying the most influential factors as well as new factors that will serve as barriers against the adoption of PPP as a model in procurement of social projects in Technical Universities in Ghana. Using a survey questionnaire, appropriate data were obtained from Ghanaian Technical Universities. In all, a total of 152 questionnaires were collected from the participants. The research found that `lack of governmental guidelines and procedures’ was perceived as the most important factor with a mean score of 4.12. The remaining four factors in descending order include; ‘high risk relying on the public sector, high charge to direct users, very few scheme reach the contract stage and high participation cost. These are depicted with the following mean scores (4.10, 4.02, 4.01 and 3.99 respectively. The factors considered as neither most important nor least important include; less employment positions, lack of experience and appropriate skills, a great deal of management time spent on contract transactions and lengthy delays in negotiations. Interesting enough, the factors that are considered as least important include; excessive restrictions on participations for PPP with a mean score average of 3.67. Also, high project cost and political instability were also perceived as least important. This shows that these two factors were not seen as the same most important hindrances. The results shows that practitioner’s (public institutions and private investors) should consider these key factors as barriers to be address for adoption and implementation of a successful achievement of PPP projects.
 Citation: Mumuni Ishawu, Chen Guangyu, Emelia Darko Adzimah, Aliu Mohammed Aminu. A Survey Analysis on Institutional Challenges in implementing Public Private Partnership (PPP) Projects: A perspective from a developing economy of Ghana, 2020; 5 (2): 24－35.
 Received: April 14, 2020 Accepted: June 30, 20

Bond Index Approach to the Evaluation of Transportation P3 Market in the U.S.

Private investment through revenue bonds has become an important source of financing for public agencies seeking to implement public–private partnership (P3) projects. It has been a long-standing assumption that private financing exceeds the limited investment opportunity attributed to P3 projects in the pipeline. This assumption, however, remains unexamined. Basic economics theory states that prices go up if demand exceeds supply. Therefore, this study presents the construction and performance of the P3 surface transportation bond index to evaluate private capital for P3 projects. The index will help encourage private investment in P3 projects in addition to measuring the return of such investment on a market basis. The index can also disclose the risks of P3 revenue bonds and potentially offer an investment instrument in the secondary market.

Failure Mechanisms in International Water PPP Projects: A Public Sector Perspective

AbstractPublic–private partnerships (PPPs) have been embraced by governments worldwide for better project governance and improved value for money by sharing risks and rewards with the private secto...