Experience Of Public-private Partnerships Research Articles

Reviewing Airport Privatization: An Experience of India

This study has reviewed the airport privatization scenario in the Indian context. It has examined the circumstances of airport infrastructure under the Public-Private Partnerships (PPPs) model. The Government of India (GoI) is justifying the development of airports through PPP mode due to their necessity to provide standard services and efficiency of the projects. However, the deficiency in investments and viability gap are being levy in the form of development. It has synthesized several works of literature. It looks at the historical changes and the ways that evidenced the changes. It has reviewed the developing scenario of airport PPP in India. During the 1990s economic liberation, the activities of PPPs emerged in the airport and aviation of India. India has 24 years history of airport PPPs. This study aims to provide a review of airport PPP experience in India. PPPs in the Indian airport industry are examined in sound regulation. The Government of India has adopted PPP schemes instead of going into full privatization of airports. Since the 2000s, PPP models have been adopted in the development of new airports and the reformation of operational and nonoperational airports. In the year 2006, Indira Gandhi International Airport, (IGIA) in Delhi, and Chhatrapati Shivaji International Airport (CSIA) in Mumbai were partially privatized. After the successful implication of PPPs, in the airport infrastructure the numbers are growing. In the year 2020, six airports were privatized through the PPP model by Adani Enterprises. To date, there are 21 airports in the pipeline of privatization.

From Loan-Financed to Privatised Infrastructure? Tracing China's Turn Towards Public–Private Partnerships in Africa

Waning debt sustainability has challenged the debt-financed, infrastructure-led global expansion of Chinese capital. This article traces the gradual shift in the financial governance of the Belt and Road Initiative towards public–private partnerships (PPPs). We first document China's domestic PPP experience and its failure to check the unsustainable indebtedness of sub-national governments. We then conceptualise China's “turn” towards PPPs in Africa as an attempt at “metagoverning” its current growth model. Analysing official Chinese sources, we discern dominant Chinese narratives that present PPPs as panaceas for African debt problems. However, Chinese risk perceptions and empirical examples, such as the Nairobi Expressway, the Tanzania–Zambia Railway, and the Congolese Kolwezi–Kasumbalesa toll road, reveal that China's experimentation with PPPs in Africa engenders new challenges, including popular contestation, controversies over financial terms and corruption. Furthermore, contrary to the official Chinese narrative, profit imperatives behind PPP investments and potential financial complications that were widespread in China's domestic PPP experience risk adding to the financial burdens of African governments and populations.

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.

Principal Risks Associated with Public-Private Partnership Projects in Uganda

Public-Private Partnerships (PPPs) have been adopted globally to reduce funding gaps amidst an increasing need for public infrastructure. However, they are prone to several risks. Little attention has been paid to this crucial phenomenon in Uganda, despite the rising interest in the use of the PPP model. Through a questionnaire survey with PPP experts in Uganda, 34 principal risks were identified of which the top 10 are construction completion, government corruption, construction cost overrun, land acquisition, delay in project approval and permits, high financing cost, operation cost overrun, inadequate tender competition, procurement risk, and inability to service debt risk. Most of these were found to arise from inadequate experience in PPPs, the complexity of the PPP model, high levels of corruption and the immature domestic financial market. The knowledge of these risks can guide PPP contract negotiations and potential investors in their investment decisions, especially the objective assessment of PPP projects.

The experience of public-private partnership in Kazakhstan: modern approaches

The goal is to identify the features of public-private partnership (PPP) as an effective tool for solving the problems of economic, social and environmental development of various sectors of AIC of the republic, including grain product subcomplex. Research methods – analytical, allowing to study the processes of strengthening the PPP mechanism, increasing the efficiency of public support, which had a positive impact on growth in cost of gross crop production, new approaches to the relationship between the state and rural producers; observation and selection of facts, establishing links between them; and synthesis. Results – the prerequisites and incentives for expanding public-private partnerships are considered; industry specifics and national peculiarities of using this tool are shown; priority areas and risks of using PPP projects are identified, taking into account the experience of foreign countries; factors and conditions that ensure effective solutions to socially significant tasks of agricultural sector and stability of development of agro-industrial complex of Kazakhstan based on the implementation of the parity of national interests and private entrepreneurs are substantiated. Conclusions – based on the analysis of a representative information base, the authors state that in order to maintain positive trends in the growth of innovative sectoral structures that ensure the country's food security, it is necessary to improve existing ones and develop new forms of interaction between the State and representatives of agribusiness, including replacement of the system of subsidizing agricultural entities which is not always effective with their indirect support, with an emphasis on the most promising areas of PPP, more rational use of available resources and attracting private investment. One of the motives for the use of public-private partnership in agro-industrial production is the need to introduce advanced technologies, the lack of own resources.

Public-Private Partnerships in Infrastructure Projects: The Role of Ida Status of a Country

Public-private partnerships (PPPs) are increasingly promoted by advocates as an innovative policy tool for redressing inefficiency in traditional public procurement mechanisms. Governments, operating on razor-thin budgets in many developing countries, also pursue PPPs on the grounds that they will bridge their countries' infrastructure gaps. This paper empirically investigates the main incentives that motivate both public and private entities to pursue PPPs as an infrastructure investment tool, focusing on the International Development Association (IDA) status of a country. This study uses a cross-country panel regression for 36 developing countries over 1990-2019, where the outcome variable is the project count as well as the level of PPP investment (PPI). For the regression of the former the study applies Zero Inflated Poisson (ZIP), while for the latter it uses tobit model. While IDA status is negatively associated with PPPs, GDP per capita, economic growth, market size, M2 money supply and inflation are all positively related with PPPs. While volatile exchange rates discourage risk-averse investors, fuel export and foreign aid encourage them to participate in PPPs. Findings also suggest that private investors are less inclined toward PPPs in highly indebted and effectively governed countries. Although the years of PPP experience initially attract more PPPs, further experiences are proving to be frustrating and discouraging of future PPPs. The size of the market, purchasing power in terms of per capita GDP, and inflation all emerge as the most relevant factors in attracting PPPI. Countries with substantial foreign exchange reserves and higher fuel exports are found to attract greater PPPI. Similarly, crisis-ridden nations also pursue more PPPIs. Finally, government effectiveness is found to exert a negative impact on PPPI. The findings could be useful for governments of these countries to guide the design and implementation of policies conducive to a sound investment environment. The prevalence of PPPs in richer countries and the private sectors' preference for higher inflation and less effective government hint a rent-seeking motive on the part of private entities. Alternatives should, therefore, be investigated before pursuing the PPP route. If governments opt to engage in PPPs, they have to pay attention to certain macro conditions.

Human capacity building strategies for improving PPP implementation in Tanzanian construction projects

PurposeImplementation of public–private partnerships (PPPs) in African projects is inundated with a number of capacity building challenges which affects growth and project performance. Further, there is paucity of empirical studies on the strategies for overcoming these challenges. Therefore, this research addresses that knowledge gap by examining the human capacity building (HCB) strategies for improving PPP implementation in construction projects in developing countries, with a focus on Tanzania.Design/methodology/approachHCB strategies identified from the scoping review were administered to 81 handpicked Tanzanian practitioners attending PPP training course. To examine the differences in the perception of the identified HCB strategies, and the relationships between different pairs of the HCB strategies, the data were subjected descriptive statistics, parametric tests, Kendall’s concordance and Pearson correlational analysis, including group wise correlation analysis.FindingsBased on the overall sample, “Engagement of stakeholders on capacity development”, “Organization of PPP seminars and training” and “Introduction of in-house training to Public institutions expected to undertake PPP projects” are the top ranked HCB strategies. “Development of study tours to stakeholders involved in PPP projects” is the least ranked. Significant differences between the sub-groups of “no PPP experience” and “some PPP experience” were evident for “Invitation of International experts to share experiences” and “Sharing of responsibilities” HCB strategies. The “no PPP experience” group rated both strategies higher than those with “some PPP experience”.Practical implicationsThe identified HCB strategies can be used as a “road map” for the development of appropriate engagement strategies with various stakeholders for the successful implementation of PPP thereby, enhancing the performance of the construction firms.Originality/valueEight strategies have been identified from the literature and tested for the Tanzanian context. The uniqueness of Tanzanian PPP implementation context arising from varying cultural, organizational, political and economic conditions differentiates the priority of HCB strategies when compared to other contexts where these strategies were investigated. This is germane to the PPP research.

Turkey’s public–private partnership experience: a political economy perspective

ABSTRACT Public–private partnerships (PPP) are the contractual arrangements between public and private parties to deliver infrastructure and services in which costs, risks, and benefits are shared. Good governance of PPPs, traditionally associated with an effective regulatory and institutional framework, appropriate risk-sharing, competitive and transparent procurement have recently been broadened to include citizens’ perspectives. Turkey uses PPPs to deliver public infrastructures such as airports, energy plants, highways, bridges, and hospitals. Our first section into Turkey’s PPP experience explores how the partnership between state and capital is instituted. We reveal nine crucial governance problems: Complexities of megaprojects, fragmented legal and regulatory framework, weak institutional capacity, risk-sharing discrepancies, poor value for money, non-affordable public services, lack of transparency, limited accountability, and disregard for environmental sustainability. We maintain that a deeper understanding of PPPs requires complementing this governance analysis with insights from critical political economy. Accordingly, we draw a critical political economy framework to explain why, when, and how PPPs in Turkey are utilized in our second section. We underline the neoliberal transformation and financialized capital accumulation dynamics. We argue that PPP projects have fuelled the construction-led economic growth model, distributed resources to pro-government capital groups, and reproduced political power in Turkey.

Foreign partner choice in the public interest: Experience and risk in infrastructure public–private partnerships

Infrastructure public–private partnerships (PPPs) are collaborative agreements between a public sector entity and private sector firm that are designed to build and operate infrastructure projects. This study explores how public-sector entity experience and institutional concerns impact the choice of a local or foreign private sector partner. We find that the public entity’s prior infrastructure PPP experience has a U-shaped relationship with the likelihood of partnering with a foreign private sector firm. Meaning, we find that public entities with low and high levels of infrastructure PPP experience tend to partner with foreign private sector firms, whereas public entities with moderate levels of infrastructure PPP experience tend to partner with local private sector firms. Moreover, we find that financial risk associated with the infrastructure project moderates this relationship such that public entities with low or high levels of prior infrastructure PPP experience tend to partner with foreign private sector firms when the infrastructure project is highly leveraged. Our analysis of a global sample of project finance investments shows statistical support for our arguments. These findings regarding the determinants of PPP partner choice are significant given the massive investment in infrastructure development that is planned throughout the globe in the coming years.

Experience of public-private partnership in security sector of EU countries

Experience of public-private partnership in security sector of EU countries

Foreign concessions in the USSR textile industry in the 1920s and early 1930s: The public-private partnership experience

Despite the Soviet government’s declarative efforts to engage foreign capital in rebuilding the economy during the 1920s, most concessions did not last long and were liquidated before the respective contracts expired. This article considers the conditions and key outcomes of concession enterprises, as well as the reasons and mechanisms for their premature liquidation, using the textile industry as an example. The main focus is on the indicators and reasons for the high profitability of these enterprises, lending issues and Soviet methods for limiting the growth of foreign concession operator profits.

Análisis de la primera colaboración público-privada en asistencia maternal en atención primaria y especializada en España: una aplicación del análisis de redes sociales

El Hospital Universitario de La Ribera (Alzira, Valencia) fue la primera experiencia de colaboración público-privada en el Sistema Nacional de Salud español. Además de la necesidad de coordinar dos niveles de atención sanitaria (primaria/especializada) hubo que coordinar dos modelos de gestión de recursos humanos (público/privado). Para ejemplificar esta complejidad, se toma el colectivo de matronas del área de salud, analizando sus pautas relacionales mediante la aproximación metodológica del Análisis de Redes Sociales. En cuanto a resultados, de una población de 31 matronas, las del modelo público ocupan posiciones periféricas y cooperan poco, tanto interna como externamente. Las del modelo privado constituyen un subgrupo cohesivo, que supone tanto una fortaleza como una debilidad. Las matronas de Atención Primaria y modelo privado constituyen puentes entre subgrupos. Por tanto, la presencia de dos modelos de gestión condiciona la eficiencia de la atención maternal más que la división de la atención en dos niveles.

Identification of critical capacity building challenges in public-private partnerships (PPPs) projects: the case of Tanzania

This study investigates and ranks the critical capacity building challenges (CBC) impacting the Tanzanian public–private partnerships (PPPs) projects. The strength of interactions between CBC is established, with practical solution proposals offered and benchmarked with previous studies. A total of 8 CBC were identified from a scoping review. Data was then collected from 81 PPP practitioners, and subjected to descriptive and inferential statistics. The results demonstrated a disparity of ranking of the 8 CBC among those with and without PPP experience, with the most highly ranked 4 CBC identified as ‘limited local people with experience’, ‘lack of resources’; ‘lack of successful PPP projects’, and ‘lack of permanent PPP trainers’. The least ranked was ‘lack of political will for promoting PPPs’. Strong and positive correlation between ‘inadequate qualifications’ and ‘lack of hands-on training’ was established. Suggested solutions were broadly classified in the following four categories: (1) Training and education; (2) Benchmarking and lessons learnt; (3) Knowledge transfer and experience sharing; and (4) Institutional reforms; and supportive enabling environments. The results of this study foster better understanding of the facets of capacity building, provides PPP stakeholders with solutions for mitigating and addressing the challenges during the PPP project lifecycle.

Data-driven quantification of public–private partnership experience levels under uncertainty with Bayesian hierarchical model

Public–private partnership (PPP) is increasingly encouraged to deliver public services in developing countries. Many studies have been conducted to identify factors that affect PPP contract failure. Although a country’s PPP experience is of great importance in controlling the contract failure rate, most of the current studies are based on a qualitative perspective. This research develops a data-driven approach to quantify countries’ PPP experience levels through the Bayesian hierarchical model with uncertainties considered. First, detailed data exploration and selection have been carried out to clean the data source. Second, the number of change points in the dataset is identified based on the binary segmentation method. Third, the Bayesian hierarchical model is developed to locate the positions of the change points, and different experience levels are divided based on the location of change points. Findings show that: (i) PPP experience level is widely varying depending on PPP sectors. Four experience levels are suggested for the energy sector, while five levels are found for the transportation sector, and water & sewerage sector, (ii) PPP experience level is dispersed around the world, for example, Latin America and Caribbean (LAC) and East Asia and Pacific (EAP) regions have higher PPP experience levels than other regions, (iii) a country may have various experience levels in different sectors, such as India, and (iv) the learning rate will decreases as more PPP projects are initiated. This research can contribute to (a) a novel approach that could detect the change points in PPP project experience, and (b) support investors in the decision making process, such as selecting the most appropriate investment direction, contributing to the development of PPP projects in developing countries.

Evolution of public-private partnership: the UK perspective through a case study approach

Purpose Since the 1990s, the National Health Service (NHS)advisory officers have developed considerable expertise in managing the process of specifying, procuring, contracting and running public–private partnership (PPP) projects. However, there has been a relatively consistent trajectory in the findings of studies and evaluation of PPP from its initial introduction in the health sector in 1992 to the present time. Therefore, the purpose of this study is to critically evaluate the PPP experience in the UK context using a case study in the NHS. Design/methodology/approach The partnership literature is primarily focussed on process issues, and the impact of partnerships on improving outcomes cannot be assumed. By conducting a critical review on most updated research studies and innovative approaches in this area, the literature as to the place of PPPs in health in the context of the UK is critically explored and whether they have a role in system resilience is examined. A case study has be used as well to describing the processes of a PPP arrangement. Findings Health-care PPP is one of the options relating to health system resilience. However, their contribution in the NHS has been mixed, with success noted in short-term clinical and services contracts while in the long-term the value for money argument has not been proven. In theory, the role of PPPs in bringing together ingredients supporting system resilience such as finance, management and innovation in the UK has not always been successful, and NHS providers have taken the approach to exit such arrangements. Research limitations/implications More research work is needed to capture the 21st-century challenges and critical success factors during its implementation. Practical implications The creation of strong partnerships is moving service delivery away from a project-by-project approach to one that includes strategic and policy developments for long-term results. Originality/value This is a fresh discussion in the role of PPP in system resilience in the UK perspective through a case study describing an exit from a PPP arrangement.

A closer look at risk factors for public-private partnerships in Singapore: six case studies

ABSTRACT Despite its global popularity over the past few decades, the public-private partnership (PPP) has not always led to successful outcomes, due largely to a number of risk factors associated with the projects. To explain how and why PPPs sometimes fail, this study considers the success-failure continuum of Singapore’s recent PPP experience from 2000 to 2019. After taking a critical, close look at the six failed cases, we identify the following latent risk factors: unstable financial capacity during the execution period of a project, force majeure unforeseen problems that arise, a lack of technical and/or financial foresight, poor corporate management (e.g. delays in construction and poor-quality service delivery), and an unfavourable investment environment stemming from the lack of a clear and supportive governance framework. In addition, we find that most risk factors tend to appear during the contract management (pre-operation) and project management (operation) phases. Such risks seem to drive the operational failure and subsequent contract termination of multiple unsuccessful PPPs, simultaneously (and sometimes sequentially) rather than in isolated fashion. All in all, this study offers for policymakers that better risk allocation and proper, mutual coordination between the public and private partners represent essential factors for PPP success.

Public-private partnerships in airports: the Turkish experience

Public-Private Partnerships (PPPs) have become a prevalent method to fund transport infrastructure around the world. PPPs have emerged in airports as an alternative to public airports and complete privatisation of airports. PPPs in airports have a history of 25 years in Turkey. This paper aims to provide an up-to-date review of PPP experiences in Turkish airports. With a case study design, PPPs in Turkish airports are examined in the context of policy, legal grounds, and implementations. PPPs are the main method adopted especially in the funding and operation of new airports and/or terminals in Turkey. Besides the successes, there are also areas to be improved regarding PPP design and implementation. More transparent, comprehensive, and structured contract terms, proper risk assignment, more accurate demand forecasting, and efforts to overcome certain public interest concerns are identified as the main requirements for future policy actions.

Public–private partnerships as a governance response to sustainable urbanization: Lessons from China

This paper proposes public–private partnerships (PPPs) as a governance response to achieve sustainable urbanization. We first articulate an analytical framework on sustainable PPPs from three perspectives—resources, institutional roles, and institutional rules-in-use—and then apply it to examining China's PPP experience and identifying the ways to steer China's PPP development toward sustainability. Our analyses show that an off-balance-sheet treatment is critical for PPPs to function as a sustainable financing approach; the choice of PPP governance structure- is a tradeoff between safeguarding public values and improving efficiency; and PPP policy design should shift from a finance-oriented or an efficiency-oriented to a sustainability-oriented approach. An examination of China's PPP developmental trajectory yields some significant policy implications for achieving sustainable urbanization through PPPs: achieving off-balance-treatment, differentiating private-finance initiatives and concessions, supporting underdeveloped areas, actively involving private enterprises, using joint ventures extensively, facilitating public participation, and adopting value-for-people tests. As China has become the world's biggest laboratory for PPP development, the upgrade of China's PPP policies can have significantly impacts on sustainable urbanization.

The Private Scope in Public–Private Collaborations: An Institutional and Capability-Based Perspective

There has been a growing interest in the organization of business activities at the public interface as illustrated by the emergent phenomenon of public–private partnerships (PPPs). In this study, we analyze the determinants of private scope in partnering with public actors—that is, the extent to which private actors are involved in multiple, consecutive value-creating activities in the partnership. Based on a unique data set of public–private agreements worldwide over two decades, we find that institutional and capability-based determinants jointly affect the extent of private scope in public–private collaborations. Our results highlight the contingent role of the quality of the institutional environment. Institutions not only facilitate greater private scope directly but also, moderate the effect of public and private capabilities on private scope. We find that prior public experience in PPPs enhances private scope in settings with high-quality institutions while having an opposing effect in low-quality environments. Moreover, public governance capabilities accumulated via units designed to deal with PPPs seem to substitute for the lack of high-quality institutions, suggesting that, even under weak institutional settings, countries can foster high private scope with the creation of pockets of specialized public capabilities. In contrast, private capabilities in PPPs, expressed as firm engagement in recurring government cofunded projects, seem to have a complementary effect: they help to increase private scope in PPPs but only when domestic institutions are of high quality. By highlighting the determinants of private actor involvement in public sector activities, our study offers important implications for the theory and practice of hybrid (cross-sector) organizational forms. The e-companion is available at https://doi.org/10.1287/orsc.2018.1251 .

ГОСУДАРСТВЕННО-ЧАСТНОЕ ПАРТНЕРСТВО: МИРОВОЙ ОПЫТ И ПЕРСПЕКТИВЫ РАЗВИТИЯ В РОССИИ

The article examines the nature and world experience of public-private partnership (PPP). The advantages of PPP for the state and for private business, types of contacts and the most popular spheres of application of public-private partnership are considered. The essence of concession is considered as one of the most widespread types of public-private partnership, as well as features of concession contracts. Prospects of application of concession relations in Russia are analyzed. The article analyzes the conditions of occurrence and the main stages of development of partnerships between the state and the private sector. The features of functioning of public-private partnership (PPP) in developed and developing countries are investigated. The world experience of PPP projects implementation is summarized and practical recommendations on the establishment and development of the public-private partnership institute in Russia are presented.