Public-private Partnership Arrangements Research Articles

Critical Success Factors for Public–Private Partnerships in Urban Regeneration Projects

Public–Private Partnership (PPP) arrangements are used in different sectors in the provision of infrastructure and public services. The use of PPP agreements in urban regeneration projects, although more recent, has been gaining prominence in different contexts. However, in many cases, PPP projects have a controversial implementation, often not achieving the proposed objectives and presenting negative results. Their controversial implementation is the result of a lack of knowledge and lack of application of the best practices and Critical Success Factors (CSFs) associated with them. Based on this, the present study aims to identify and analyze the CSFs for PPP arrangements in urban regeneration projects. The study was conducted in two distinct parts. The first part consists of a literature review on the PPP CSFs in general. The second part consists of the development of a questionnaire seeking to identify the CSFs of PPP arrangements for urban regeneration projects. Based on the literature review and the questionnaire answers, the main success factors of PPP projects for urban regeneration were identified and structured in the framework with five main clusters: two related to the external environment (enabling environment and exogenous factors) and three related to the internal environment (preparation phase, procurement phase, and contract management phase).

Public–Private Partnering in Nuclear Reactor Development—Historical Review and Implications for Today

Abstract The dominant nuclear reactor technologies that comprise the current global operating fleet were developed and deployed over a relatively short, midtwentieth century, period spanning the 1950s and 60 s. Four of these technologies were deployed at fleet scales and commercially exported. The historical record indicates a remarkably consistent process of phased technology development that enabled the commercialization of designs that would define the global nuclear marketplace, beginning with research and development (R&D) and advancing through test reactors, small and large demonstration reactors, and first commercial-scale units. Following proof-of-principle R&D, historical commercialization lead times (from decision to construction of a demonstration reactor to first commercial launch) ranged from 12 to16 years for these four commercial technologies. Key factors contributing to successful commercialization included durable government support for early R&D and varying degrees of public–private partnering through commercial launch. This partnering included arrangements for technical support, siting, facility ownership, nuclear material provision, and cost sharing. The policy environment was characterized by unambiguous government support; stabile, effective and informed government program management and oversight; and flexibility in the public–private partnership arrangements to promote technology development and demonstration. Government advocacy was structured to support progressively increasing industry independence and self-sufficiency. This experience is documented and analyzed in this paper to provide salient lessons and example program elements for contemporary efforts to stimulate development and commercialization of a new generation of advanced nuclear technologies through collaboration and public–private partnerships.

Public reaction to public-private partnerships (PPPs): citizen assessments of four different types of PPPs and policy support

ABSTRACT Solving problems through collaborative efforts of public, private, and nonprofit groups has become more important in recent years. One type of public-private partnerships (PPPs) has been studied in some depth – government-business contracts for transportation infrastructure. Little is known, however, about other types of partnership arrangements that deal with other community issues or services and may involve different combinations of actors. And there is little information on how the public views any of the available PPP options and arrangements for possible transportation infrastructure design, development and implementation. This article focuses on the public's views of four PPP transportation infrastructure options. The overall results show that respondents’ do differentiate between types of PPPs and that respondents’ PPP preferences are associated with their views on community engagement policy on infrastructure.

Reviving Public Service Delivery at the Grassroots through Public-Private Partnership in Nigeria’s Fourth Republic

The paper examines the performance of local governments in Nigeria with special reference to their service delivery responsibilities. Local government is described as a veritable instrument of socio-economic development at the grassroots and it was for this purpose that it became constitutionally recognised as a level of government through the 1976 Local Government Reform. However, the capacity of the Nigerian local governments to carry out responsibilities assigned to them has been jaundiced by the unbridled attack on their finances by higher public authorities, particularly state governments. Specifically, local governments’ share of revenue from the federation account and other sources of revenue have regrettably been annexed by the state governments, thereby reducing local authorities to governments on papers only. Using the secondary sources of data, the article examines how local government service delivery responsibilities can be resuscitated through the Public-Private Partnership (PPP) arrangement. The paper revealed general absence of standard framework for the adoption of PPP to tap into the available huge private investment for public service delivery at the grassroots. The paper recommends active collaboration of the stakeholders in grassroots development toward developing a standard framework for PPP to restore the status of Nigerian local governments as primary providers of public services.

Public-private partnership in municipal solid waste management in the Sunyani municipality of Ghana

Purpose Poor municipal solid waste management is a major characteristic of urban development in Africa. In Ghana, local governments are mandated to ensure the collection, treatment and disposal of solid waste. However, this has been a herculean task for local governments in Ghana, owing to inadequate resources and weak technical capacities. This has prompted calls for, and actual involvement of the private sector through public-private partnerships (PPPs) in municipal solid waste management, particularly in the urban areas. This study aims to assess the roles, effectiveness and challenges of PPPs in urban waste management in the Sunyani municipality of Ghana. Design/methodology/approach Adopting a case study design, the study used a qualitative research approach to provide in-depth insights into PPPs in municipal solid waste management in the Sunyani municipality of Ghana. Therefore, key informant interviews and two focus group discussions were conducted. Findings The study revealed that some policies and actions of the local government (Assembly) do not positively facilitate the effective functioning of PPPs in municipal solid waste management. There is also lack of effective stakeholder consultation, collaboration and grassroot inclusion in the PPPs which affect the effective management of the increasing volumes of solid waste being generated within the municipality. Practical implications To achieve the objectives of the PPP arrangements, local authorities should initiate steps to effectively coordinate all the involved private companies. There must also be ways of involving the beneficiaries in the design and implementation of PPPs on waste management to allow for effective grassroots and participatory monitoring and evaluation. Originality/value The uniqueness of the case study being a mid-sized and secondary city in a developing country enhances the value of the findings and the application of recommendations in cities with similar characteristics and initiatives in improving PPPs in municipal waste management.

Investigating risk of public–private partnerships (PPPs) for smart transportation infrastructure project development

PurposeThe purpose of this paper is to rank critical risks and determine major categories of risks to be considered by public–private partnerships (PPPs) investors when investing in “smart” transportation infrastructure. Such investment is sorely needed in many mega cities around the world currently suffering from serious impacts of traffic congestion, pollution and lack of usability of transport systems.Design/methodology/approachThe study used literature review focused upon smart transportation infrastructure projects financed by PPP arrangements to create a questionnaire which was refined by subject matter experts and then completed by 126 experienced respondents. Exploratory factor analysis was used to create major categories emerging from the collected data. Interviews with ten experts were used to validate the findings.FindingsThe most highly major ranked risks shared by these participants were lack of expertise in complex project implementation, political interference, lack of PPP project data and lack of a collaboration mechanism between government and private sectors. Factor analysis showed that in terms of risk likelihood, stakeholder engagement, implementation process issues, the natural environment, data-sharing and technology complexity emerged. In terms of risk impact, major factors were stakeholder engagement, trust versus resistance issues, the natural environment and factors concerning uncertainty.Originality/valueThis paper addresses a somewhat unexplored area, the risks involved in investing in PPP smart transportation infrastructure. Such infrastructure projects are embedded in their environments, and approaches using a complexity lens can emerge overriding risk concerns for investors when undertaking such projects.

Desalination of seawater in Morocco: Case study of Chtouka and Dakhla public‐private partnership projects

AbstractSituated between the southern Mediterranean and the Sahara Desert, Morocco has a semi‐arid climate characterized by low and irregular rainfall and a succession of dry years. With demographic and economic growth, the country's water needs are constantly increasing. The desalination of sea water is an option adopted by the government to cope with the drying up of water resources. A number of projects have been launched to secure the country's drinking water and irrigation needs. In this study, the contributions of the public‐private partnership (PPP) set‐up are assessed from the institutional, financial, technical, and management points of view, as well as the contribution of this set‐up to the success of major desalination projects for irrigation. To achieve the objective, the study focused on two desalination projects for irrigation, one in the Chtouka plain and another in the Dakhla area, based on an assessment of the various components of the two projects, and the key success factors for each of them. The study reveals that the PPP arrangement brings several advantages to these desalination projects for irrigation, principally: the participation of the private partner in the financing, the sharing of risks between the two public and private parties, and the sustainable management of the various components of the project. The Dakhla project also offers added value compared with other desalination PPP projects, because it is the first project to be included in Law No. 86‐12 on PPP contracts. At the same time, the PPP structure presents risks in terms of controlling delays caused by external events. Thus, the inauguration of new desalination PPP projects, as part of the Generation Green strategy, is proving to be a relevant solution for guaranteeing additional resources for irrigation and improving the technical, economic, and financial conditions for managing the irrigation water service.

Large investors’ involvement in Ireland's primary care centres

Abstract Background In 2001, Ireland announced a Primary Care Strategy that has led to the implementation of primary care centres (PCCs) throughout the country. This presentation examines the nature and extent of private sector involvement in establishing the PCC network since 2001, focusing on large global investors. Methods A dataset on all primary care centres in Ireland was constructed, comprising information on geographical location, the year that it became operational, and its delivery mode (public procurement, lease, or public-private partnership). A survey of large investment patterns was also conducted through the grey literature and news reports. Results By 2023, 172 PCCs are planned to be operational, developed through public, leased or public-private partnerships arrangements. Before 2009, PCCs were delivered by traditional public procurement, but since 2009, private delivery methods have been prioritized. Leased primary care centres have been attractive for large institutional investors attracted by stable rental income. This paper surveys the patterns and trends involved. Conclusions Trends in large multinational and domestic investments in the primary care market should be documented systematically because they have the potential to transform the existing PCC network and primary care system.

Cost of farm operations for major cereals in Nigeria

This study assessed the cost of farm operations for major cereals in Nigeria. Secondary data obtained from the Annual Agricultural Performance Survey Report of the National Agricultural Extension and Research Liaison Services (NAERLS) was used to compute the cost of 12 farm operations as well as the percentage change in the cost from 2021 to 2022. Results showed that the cost of farm operations for producing major cereals recorded a very high increase across the states in Nigeria. The percentage increase in the cost of farm operations for producing a hectare was higher for maize (25.4%) than rice (18.3%). Furthermore, the percentage increase in the cost of farm operations for producing a hectare of maize was higher in the Northern region (34.9%) than in the South (17.2%). For rice, the percentage increase was higher in the Southern region (21.8%) than in the North (13.7%). The cost of farm operations has generally increased thereby threatening food prices. Efficient tractor-hiring services should be made available at subsidized rates at all LGAs through public-private partnership arrangements in Nigeria.

Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective

As a model for delivering infrastructure initiatives, public–private partnerships (PPPs) have gained significant popularity in recent years. The globalization of PPP has exposed them to elevated risks emanating from the international real economy and financial market, which can ultimately result in project cancellations or distress. This study analyzes risk factors affecting the sustainable outcomes of global PPP projects from a stakeholder perspective. After identifying the interests of key stakeholders and examining how various risks influence stakeholders’ interests, a two-step binomial probit model is used to investigate domestic and international risk factors in PPP arrangements based on the World Bank PPI database. The empirical results indicate that inflation has a substantially positive effect on project failure, while factors such as PPP experience, central government involvement, exchange rate fluctuations, etc., significantly contribute to PPP success. In addition, the study demonstrates that trade openness and net foreign direct investment (FDI) inflow are crucial for the transmission of global risks. The study also provides policy implications and recommendations from a risk allocation–stakeholder relationship perspective to enhance the resilience of PPP initiatives based on these findings.

Policy Note: Government Linked Companies (GLCs) as Investors in Water Sector in China: Implications for Public–Private Partnership (PPP)

This paper investigates the role of government-linked companies (GLCs) in public–private partnerships (PPPs) for urban water supply in China. GLCs are corporations in which the government has significant ownership, control and influence while being registered under the same corporate law as private companies. Separate from local governments that own water utilities, they form contractual relationships with local governments (or water utilities owned by local governments) under PPP arrangements, rendering them more accountable and profit-driven. We analyze an emerging PPP model in China’s water sector, where GLCs serve as major investors, and assess their effectiveness and limitations. Our findings indicate that the involvement of GLCs improves water utilities’ performance, and the quality of their water supply services, while offering potential advantages such as stronger financial capability, higher political risk resistance capacity, and mitigation of public tension. However, concerns persist about risk-sharing, political interference, and local government control. This research contributes to understanding the evolving landscape of PPPs in China’s water sector and the potential implications of GLC involvement for urban water supply systems globally.

Towards an Integrated Approach to Solid Waste Management in Ghanaian Cities

Solid Waste Management (SWM) in cities has become a theme of utmost importance in urban geographycompared to studies in rural areas which have smaller population sizes and limited consumption optionsthat are relatively more manageable. Existing studies reveal that integration of formal and informal SWMactors is the needed mechanism to overcome SWM challenges. Integration is also at the heart of the 2012Ghana National Urban Policy, yet urban spaces are zoned under public-private partnership (PPP)arrangement with private formal SWM actors. How to integrate the burgeoning numbers of privateinformal SWM service providers still remains unaddressed owing to a host of disparate institutional,political, and socio-economic factors. Using field-based data collected in three open-air markets in Accra,this paper examines the integration pathways used to include informal SWM actors in the context of PPPand thence argues for the need to rethink current SWM approaches in a participatory manner since mostGhanaian cities are facing limited financial and infrastructural resources, growing inequalities andincreasing informality regarding urban metabolism flow.

Public-Private Partnership Arrangements for Boosting the Supply of Affordable, Adequate and Quality Houses: Lessons for Papua New Guinea

Providing adequate, quality and affordable housing for its population have been a long-standing issue for governments of some countries. To address the issue, some of the governments have adopted Public-Private Partnership (PPP) with the hope of improving housing delivery. However, identifying the most suitable PPP arrangement for providing houses is often problematic. This paper reports on a study of the different PPP arrangements that can be applied in housing delivery, critical success factors and challenges associated with the arrangements. It also reports lessons that Papua New Guinea (PNG) can draw from other countries that have applied PPP extensively in housing delivery. The study is based on a historical narrative literature review that was analysed using manifest qualitative content analysis. The findings revealed that there are several PPP arrangements that can be used in providing houses such as the direct relationship ownership housing which is similar to the build-lease-operate-transfer. Another type of arrangement is the direct relationship rental housing which is similar to the build-own-operate. Critical success factors for a PPP project include the need for transparency at all stages of the PPP, risks must be allocated properly between the public sector and the private sector, the PPP should have adequate political and community support. The performance of a PPP arrangement can be restricted by high transaction costs, poor contracting and procurement procedures, the dominance of the public sector in the arrangement, poor communication between the partners and inadequate legal frameworks. The lessons that PNG can draw from other countries include the identification of PPP arrangements that are most suitable for the country and how to implement the arrangements in an effective manner. The findings provide more understanding on the application of PPP arrangements in housing delivery by considering the challenges and success factors associated with the arrangements.

Inclusion of “managing flexibility” valuations in the pricing of PPP projects: a multi-objective decision-making method

PurposeThe Public–Private Partnership (PPP) modality plays an important role in the procurement of global infrastructure projects. Regarding PPP's complex transaction structure, pricing of a PPP project is critical to both parties where the government pursues a high value for money (VFM) and the investor strives to maximize its financial gains. Despite the straightforward win–win principle, a formidable compromise is often the case to end up with a fairly acceptable price, subject to many determinants such as the risk profile, expected return, technological innovation and capacities of both parties. Among them, this study chooses to examine the “managing flexibility” (MF) capacity of investors in pricing of a PPP project, in light of the widely recognized importance of a real-option perspective toward the long term, complex and uncertain PPP arrangement. This study addresses two major questions: (1) how is MF in PPP projects to be valued and (2) how are PPP projects to be priced when considering a project's MF value.Design/methodology/approachA binomial tree model is used to evaluate the MF value in PPP projects. Based on the developed MF pricing model, net present value (NPV) and adjusted VFM value are then calculated. Finally, a multi-objective decision-making method (MODM) was adopted to determine the optimal level of returns based on invested capital (ROIC), return on operation maintenance (ROOM) and concession period.FindingsThe applicability and functionality of the proposed model is investigated using a real project case. For a given return, extended NPV and adjusted VFM value were calculated and analyzed using sensitivity analysis. Factor influence is shown by the model to be dependent on factor impact on cash flow. Subsequently, a multi-objective decision-making (MODM) model was adopted to determine the optimal level of returns, where the solution approximates the real-world bidding price. Results confirm that the pricing model provides a reliable and practical PPP proposal pricing tool.Originality/valueThis study proposes an integrated framework for valuing MF in PPP projects and thus more accurately determine optimal pricing of PPP projects than revealed in extant research. The model offers a practical tool to aid in the valuation of PPP projects.

Benefits and Challenges to Implement Public-Private Partnerships in Water Infrastructure Development in Zimbabwe

The rationale of the study was built on the water infrastructure challenges in Zimbabwe and the challenges in government policies and capacity that demand the participation of public private partnerships (PPPs) in the development of water infrastructure in Zimbabwe. The study adopted the qualitative research approach, and the information is compiled through literature review. Through conceptual and document analysis of information, the study also recognised that there are challenges in the existing PPP arrangements in Zimbabwe that require improvement for their absolute contribution to the management of water resources in the country. The data generated by this study were used to understand the complexities and contestations in Zimbabwe and enrich the body of knowledge and literature about water-related PPPs. Effective PPPs for improved urban water infrastructure cannot be achieved by chance. Effective PPPs require deliberate efforts and comprehensive reforms. The study, therefore, posits that with an environment conducive to operating PPPs, in addition to proper planning and meticulous implementation, Zimbabwe has a high chance of successfully implementing such partnerships for improved urban water infrastructure.

Public–Private Partnership Highway Projects: Identifying Project Selection Factors

Among various project delivery methods, there is a growing tendency to deliver transportation infrastructure projects, particularly highway projects, through public–private partnerships (PPPs). This necessitates further investigations on PPP arrangements. Despite previous research efforts, a question remains unanswered: What are the contributing criteria for selecting projects that fit the PPP method, and of these, which factors play key roles? This study aims to address such a question through a Delphi study approach. To meet this objective, experts at state DOTs participated in interviews and questionnaire surveys during two rounds of a Delphi study. After achieving a consensus among responses, this study identified factors: the PPP project’s screening factors and characteristics, requirements for an evaluation panel to assess a potential project, common risks, risks needed to provide appropriate incentives to private parties, requirements for involved staff, specializations required in PPP units to facilitate project phases, roles of the public sector or federal government or state, associated factors to enabling legislation, economic analysis, and suitable project size. Some of the major findings are that PPPs are suitable for large projects, the value of money should be a mandatory study, an economic analysis must be performed by comparing different delivery methods, and it should be determined whether PPPs are legal (and allowed) in the state. The primary contribution of this research to the body of knowledge is to focus academicians’ and industry professionals’ attention on PPP highway project selection criteria and the factors that are required to maximize project performance and benefits.

Infrastructure and Manufacturing Sector Performance in Nigeria

The objective of this study was to investigate the effect of infrastructure (electricity consumption and paved roads) on manufacturing sector performance in Nigeria for the period 1981-2019. The ex post facto research design was adopted for the study, using a combination of the traditional Ordinary Least Squares (OLS) econometric method, and the Augmented Dickey-Fuller unit root test for robust and valid estimation results. The co-integration test showed that the equations in the model were integrated. The study findings revealed that infrastructure, proxy by electricity supply had an adverse but not significant effect on manufacturing sector performance while paved roads had a positive and significant impact on manufacturing performance in Nigeria. The study recommends a total overhaul of the electricity sub-sector and targets increased supply specifically for industrial consumption as well as exploring alternative options to increase the road network such as public-private partnership arrangements given its importance to industrial performance.

Who does it better and why? Empirical analysis of public-private partnership in infrastructure in Asia-Pacific

PurposeThis research has two primary goals: first, to develop a composite index that evaluates the degree to which Asian–Pacific economies are prepared to engage in public–private partnerships (PPPs), and second, to investigate the factors that have been most influential in the formation of PPP arrangements in the nations' infrastructure over the course of the period 1995–2016.Design/methodology/approachThe study constructs sectoral and overall index of possible determinants of PPP. Subsequently, it examines each constructed index's role in PPP investment. The author also conducted a panel data analysis to understand the role of each of the potential determinants on PPP projects and investments. This paper analyzes the author’s empirical models using a range of cross-section and panel estimators, including Poisson, zero-inflated Poisson and fixed effect.FindingsThe study’s results based on cross-section analysis suggest that regulatory and institution quality, institutional arrangement and regulatory frameworks, financial market development and macroeconomic stability positively impact investment in PPP. Moreover, the results depict that financial market development has the most substantial impact on PPP investment, followed by macroeconomic stability and prior experience with PPPs. The panel data analysis shows that per-capita income, financial development, inflation, debt, resource import and fuel export are crucial determinants of PPP in Asian–Pacific economies.Practical implicationsGovernments of the countries should promptly amend the important policies outlined in this study and adopt a more robust strategy to foster a competitive PPP environment. This will aid in maintaining transparency and gaining the confidence of investors. The study’s findings may assist policymakers in focusing on specific areas in need of improvement. Social welfare and industrialization are ultimately enhanced by the formulation of such policies and by attracting additional infrastructure investment.Originality/valueThis is the first attempt to rank countries on the basis of PPP enablers. Unlike previous studies, this study examines the role of a large number of indicators in determining PPP investment and projects in cross-section as well as panel data framework. The study also investigates the effects of PPP specific provisions and rules. Furthermore, the focus is specifically on Asian–Pacific countries, which are a mix of third-world, emerging, developing and developed countries. Focusing on Asia–Pacific is also crucial because the region is home to most of the world's population, and the region's infrastructure outcomes significantly impact their lives.

Exposure of Public Sector with the Quasi-market Through Outsourcing: A Case Study in Iran

Background: Outsourcing as an efficiency-oriented approach was introduced to elevate productivity in the public sector. This strategy as a public-private partnership (PPP) arrangement was coined to increase efficiency and quality in public organizations. Objectives: In this study, we aimed to investigate the quantity of applying common outsourcing models at Bushehr University of Medical Sciences (BUMS). Methods: This descriptive and cross-sectional study was conducted in 2020 at BUMS. The research population was all BUMS deputies, hospitals, and health networks. This study was carried out in three stages, including a literature review, the construction of a checklist and finally the quality assurance of gathered data. Descriptive indices were calculated using excel software version 2016. Results: Results showed a total of seven various outsourcing models on which 189 cases of services had been outsourced. Of the 189 cases, 108 were clinical, and the rest were non-clinical. Among the outsourcing models, the service purchasing model was the most typically used, and leases and divestitures were the two least used models. Conclusions: Although various outsourcing models are available, they have been disproportionately utilized, showing that to spread the domain of penetration of this strategy, we need to tackle the obstacles ahead of its successful implementation. Increasing the knowledge of managers could be an effective solution. Furthermore, capacity–building toward raising the number of private healthcare providers could facilitate the implementation of an outsourcing policy.

Impacts of Government Credit on Government Performance of Public-Private Partnership Project in China: A WSR System Theory Perspective

To alleviate project financial pressure and improve performance, the public-private partnership (PPP) arrangement was introduced by the central government of China to facilitate the sustainable development of infrastructure. However, arising government credit crisis from the PPP project may damage both the private’s and public’s interests, and affect the government performance of PPP projects consequently. In order to understand the influence between government credit and performance, we constructed a government credit evaluation index system by using the Wuli-Shili-Renli system theory, and conducted a questionnaire survey among people related to PPP based on 359 valid questionnaires. The results firstly indicated that government credit and performance of PPP projects are optimistic in China. Secondly, the institutional environment, financial situation, management technology and internal and external communication of government credit all have a positive impact on the government performance of PPP. Thirdly, the government credit and performance of PPP projects can be increased by the improvement of regional economic and social development. These findings enrich the knowledge system of the relationship between government credit and performance of PPP projects and contribute to clarifying the influence of government credit and performance, thus provide the basis for the government to guide PPP practice effectively.