Public–private Partnership Experts Research Articles

Mitigating Financial Risks in Sustainable Public–Private Partnership Infrastructure Projects: A Quantitative Analysis

Economic recession from the coronavirus outbreak continues to have negative rippling effects on local and international financial investments in public–private partnership (PPP) projects in Ghana, a developing country. Together with poor reports on operating cash-inflows for PPP projects such as those covering schools, hospitals, railways, fishing harbors, cocoa warehouses, recreational parks and affordable housing, there is an urgent need to develop and institutionalise sustainable and robust financial risk management measures. These measures are meant to mitigate financial losses, promote sustainability practices and prolong the longevity of infrastructure developments within PPP pacts. Therefore, this study aims to assess the mitigation measures of PPP infrastructure management in Ghana. Primary data from survey questionnaires were utilised in this study, with the data obtained from PPP practitioners and experts. Data were grouped into project type, sectors and practitioners of PPP projects to aid the analysis using tools such as the Kruskal–Wallis test, the Mann–Whitney U test and factor analysis. The results demonstrate sustainable and green finance, the innovative skills and competencies of project teams, green financial risk models and inclusive cost reduction strategies as crucial to minimising financial risks in PPP project delivery. These findings have significant implications for PPP practitioners and researchers in Ghana and similar developing countries to understand and develop measures to respond to financial risks for sustainable PPP project development and future research studies.

Factors influencing investment attraction in road infrastructure BOT projects: A comprehensive analysis in the southern key economic zone of Vietnam

Over the course of the last two decades, Vietnam has demonstrated a growing interest in public-private partnership (PPP) investments within the domain of road transport infrastructure. However, the overall success rate of these endeavors has remained constrained and, in fact, has displayed a propensity for decline. Understanding the primary determinants behind this phenomenon, particularly the internal factors within the management system, has been a perplexing and protracted process, hindering the development of viable solutions. This research employs a qualitative analysis approach, leveraging in-depth interviews conducted with 250 road traffic infrastructure PPP project managers and experts. The objective is to discern the factors that exert influence over the investment attractiveness of build-operate-transfer (BOT) projects in the vital Southern Key Economic Zone of Vietnam. Subsequently, utilizing the collated data, this study employs a quantitative methodology to measure the impact of these factors via a derived multivariate regression equation. The findings reveal the existence of five distinct groups of factors that affect the investment attractiveness of BOT projects in the Southern Key Economic Zone, classified by their respective levels of influence. These groups encompass factors relating to the role of the state, the legal framework, human resources engagement in PPP ventures, supportive financial instruments, and the allocation of risk. Notably, these outcomes align with previous research efforts, further substantiating the robustness and reliability of the findings presented within this study.

Strategies for Minimising Failure of Public-Private Partnership Infrastructure Projects in North Central Nigeria

The global adoption of the public-private partnership (PPP) concept has been driven by the growing demand for public infrastructure. However, many PPP projects have faced challenges and yielded unfavourable outcomes such as failures, delays, and concession revocations. This research paper aims to investigate the key factors influencing private investments in PPP markets in developing countries like Nigeria. The study employed an empirical questionnaire survey, collecting data from PPP experts involved in six PPP construction projects in northern Nigeria. Based on previous research, a set of 19 success factors and 21 failure factors were identified and used as the basis for quantitative data obtained. The data were analysed using the Failure Mode and Effects Analysis (FMEA) methodology. The findings of the study revealed that three critical failure factors (CFFs) played a role in the varying degrees of failure in the studied PPP projects. These factors include public sector corruption, lack of competition and transparency in procurement processes, and political interference during project implementation. On the other hand, six critical success factors (CSFs) contributed to the success of the PPP projects to different extents. These factors encompassed the availability of suitable financial markets, a favourable investment environment, appropriate risk allocation, competition in the procurement process, a comprehensive and realistic assessment of costs and benefits, and trust among stakeholders. The results of this study can serve as a valuable reference for PPP stakeholders seeking to minimize failure in the implementation of PPP infrastructure projects.

Identification of Various Execution Modes and Their Respective Risks for Public–Private Partnership (PPP) Infrastructure Projects

The public–private partnership (PPP) based model for the execution of infrastructure projects originated from Anglo-Saxon countries and was initially used in 1977 by the United Kingdom (U.K). Since then, its popularity has increased worldwide. Earlier studies by researchers and many other professional sectors and departments have introduced PPP contracts into different execution modes like Build, Operate, and Transfer (BOT); Build, Own, Operate, and Transfer (BOOT); and Build, Lease, and Transfer (BLT), etc. All definitions of PPP contracts are different but have a few common characteristics and risks. Previously, numerous pieces of literature were available on these common risks for various execution modes of PPP contracts. However, each PPP mode still has unique risks that must be identified to understand and successfully implement the PPP projects properly. This paper fills the gap mentioned above and aims to identify various commonly used PPP execution modes in infrastructure projects and their corresponding risks after placing the different PPP execution modes into four (04) different categories. Identified risks for the corresponding PPP categories were also divided into seven (07) stages of the PPP life cycle. Semi-structured interviews were conducted to gather information from thirty-four (34) PPP experts worldwide. Accordingly, interviews are transcribed and processed for thematic analysis in academic NVIVO software. These identified risks are further placed in the respective PPP category for the convenience and better understanding of the study’s outcome to the users and for the subsequent prioritization and allocation of these identified risks accordingly to the PPP parties during the finalization of the PPP execution mode.

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 state of South Africa’s public–private partnership practices in transport projects: Problems and potential

Background: Despite growing calls for public–private partnerships (PPPs) to supplement diminishing investment in South Africa’s transport sector, the uptake of transport PPPs in the country was low over the past 15 years compared with Brazil, Russia, India and China which performed well in this regard. This low uptake poses several consequences in light of the positive correlation between transport capital investment and economic growth. Objectives: The study aimed to describe the problems faced in the South African PPP process, firstly by comparing and contrasting PPP practices of South Africa to its counterparts in the Brazil, Russia, India, China and South Africa (BRICS) multilateral forum in view of understanding the reasons for the low uptake of transport PPPs in the country and, secondly, by interviewing transport PPP experts on their opinions on constraints and possible solutions for PPPs in the country. Method: In light of the limited research on transport PPPs in South Africa, as well as the low level of PPP implementation, secondary data analysis was followed by an exploratory qualitative research design used to obtain rich data from subject experts on the topic at hand. Results: The main findings reveal that the politicisation of infrastructure through party politics, political risk and domination of the state in the delivery of strategic infrastructure contributes to the low uptake of PPPs. Conclusion: A need exists to strengthen political commitment for PPPs by centralising and coordinating planning across different tiers of government, while easing the regulatory burden, making them simpler to implement and more attractive to investors and promoting inclusivity. Policymakers can utilise these findings to improve areas of practice requiring intervention.

Criticality analysis of financial risks of public-private partnership projects in a Sub-Saharan African country

Integrating sustainable and complex financial performance models into Public-Private Partnership (PPP) project management is a challenging task due to the sheer number of inherent financial risks. Financial risk is a key impediment in the development of public infrastructure projects in Ghana. Studies on PPP projects in the country have concentrated on critical success factors and stakeholder management with little in-depth assessment of financial risks. This study develops and analyses the key financial risks of PPP infrastructure projects in Ghana. The research methodology is set as follows. First, the identification of twenty-eight financial risks in institutional and project reports, and peer-reviewed articles. Second, collection of primary data via surveys from 126 PPP experts (academics, risk managers and project managers). Third, the development and testing of a novel quantitative model on the criticality of financial risks of PPP projects. The findings show high interest charges, excessive operating expenses, and huge construction material costs as some of the critical financial risks that must be tackled immediately in the country. The outcomes of this study broaden the understanding of financial risks of PPP projects, and it sets the stage for further research.

Critical success factors (CSFs) for motivating end-user stakeholder’s support for ensuring sustainability of PPP projects in Nigerian host communities

Purpose This study aims to investigate two public private partnership (PPP) road projects in Nigeria for exploring factors that can motivate end-user stakeholders for contributing towards sustaining a PPP project in the long-term. Design/methodology/approach Using a case study methodology approach, this study adopts two-way data collection strategies via in-depth interviews with PPP experts and end-user stakeholders in Nigeria host communities and a questionnaire survey to relevant stakeholders. Findings The study identifies an eight-factor structure indicating critical success factors for ensuring end-user stakeholders support PPP projects on a long-term basis in their host communities. Originality/value Results of the study have huge implications for policymakers and project companies by encouraging the early integration of far-sighted measures that will promote long-term support and sustainability for PPP projects amongst the end-user stakeholders.

Risk Assessment of Urban Rail Transit Project Using Interpretative Structural Modelling: Evidence from China

Public-private partnership (PPP) projects require comprehensive risk assessment and management, including Urban Rail Transit (URT). A more effective risk management can benefit from an accurate understanding of the two-way influence of PPP project risk factors. This paper uses the content analysis method to filter out, compare, and analyze PPP-related literature; 12 categories of 22 PPP risk factors are extracted and identified, and the possible correlations between these risk factors are judged preliminarily. With the knowledge and advice provided by PPP experts, the initial risk relationships are adjusted and supplemented, which then help to determine a reasonable logical relationship among risk factors. The logical relationship helps analyze the risk factors based on the ISM model analysis method and builds a hierarchical structure relationship of risk factors including 6 levels. Finally, the direct, intermediate, and autonomous factors that lead to problems or failures in PPP projects are analyzed which explains in detail the paths of risk transmission and risk prevention measures of PPP companies operating URT. It lays a foundation for PPP project companies operating URT to recognize, manage, and control risks in a targeted and systematic manner.

Risk allocation of PPP waste to energy projects in Indonesia: A research framework

Public-Private Partnership (PPP) scheme has been widely adopted in both developed and developing countries to fulfill the need of infrastructure facilities such as toll roads and water supply. In Indonesia, another sector that would be feasible to be developed using the scheme is the energy sector through Waste to Energy (WTE) projects. However, the lack of knowledge and experience of public sectors on the PPP field particularly risk-allocation issues may barrier the project success. This paper presents a research framework to develop a model of risk allocation decision making for PPP WTE projects in Indonesia. A combination of qualitative (literature review and semi-structured interview) and quantitative (Delphi survey) research method is utilized to identify critical risk factors in PPP WTE projects. To develop a risk allocation model, an Adaptive Neuro-Fuzzy Inference System (ANFIS) with two outputs (public and private risk share) is proposed. A set of surveys to collect data for training and checking will be distributed to PPP experts representing government and private sectors in Indonesia, while selected WTE projects are used for data testing. The proposed model is a novel approach in risk allocation PPP research and would be useful for local authorities in Indonesia in proposing the WTE project using the PPP scheme.

Success Factors for Public-Private Partnership Infrastructure Projects in Vietnam

Infrastructure projects require a great amount of capital investment resulting from their tremendous size, complexity, and risk. Due to the limitation of public finances, the private sector is invited to participate in infrastructure project development. The private sector can entirely or partially invest in an infrastructure project in the form of public-private partnership (PPP) scheme, which has been an attractive option for several developing countries, including Vietnam. Unfortunately, despite the PPP scheme will improve project efficiencies and attract capital investments of private investors, the success of PPP implementation is not guaranteed. This paper investigates the critical success factors (CSFs) of PPP infrastructure projects in Vietnam. Relevant data were collected through in-depth interviews with six PPP experts and questionnaire surveys with 150 interviewees, and then analyzed by the word cloud technique and the one-way analysis of variance (ANOVA) test. The CSFs were ranked based on the viewpoints of the public sector, the private sector, and the PPP consultants. The outcomes show that there was no significant difference in the perceptions of all three parties concerning the success factors for PPP infrastructure projects in Vietnam. The top five critical success factors are (1) timely land acquisition and appropriate compensation, (2) financial capacity of the private sector, (3) effective project management, (4) favorable and complete legal framework and regulations, and (5) financial feasibility and attraction. Recognizing the CSFs is indispensable to ensure the success of PPP infrastructure project implementation.

PUBLIC PRIVATE PARTNERSHIP AS A DETERMINANT FACTORS OF AFFORDABLE HOUSING IN ABUJA NIGERIA

Abstract. The implementation of Public-Private Partnership (PPP) in housing provision in Nigeria meant to increase urban housing provision and address housing affordability and accessibility problems. Consequently, the study aims to identify the critical success factors of Public-private partnerships for affordable housing provision in Nigeria. However, the data were obtained using interviews with PPP experts to build the questionnaire for affordable housing in Nigeria. Overall, 254 responses were obtained and analysed using smart PLS to identify PPP success factors for affordable housing in Abuja. The result shows that good governance, availability of financial markets, Sound economic policies, consistency monetary, a commitment of public and private sectors are the key parameters of PPP for affordable housing in Nigeria. Therefore, the main contributions of the article indicate that strong government intervention, dependent of foreign building materials, easier access to mortgage institutions, and provision of land at no cost are the challenges to address in order to succeed in providing affordable housing in Nigeria. It is therefore recommended that a good design a framework should put in place in order to achieve the desired aim of providing affordable housing in Nigeria.

Development and validation of public–private partnerships framework for delivering housing projects in developing countries: a case of Tanzania

The supply of adequate houses is still a big challenge in many developing countries, particularly in Africa, where the population and urbanization rate is continuously growing. Increasingly Governments in many developing countries have adopted public–private partnerships (PPPs) to meet their housing needs. However despite the adoption, problems still remain and the progress is slow. Various studies have examined the ranges of issues that have produced the poor results in delivering PPP projects in developing countries. However; no tool (framework) has been developed to address these challenges for a successful outcome. Therefore, the aim of this study was to present a validated PPP framework which will address the identified challenges in order to improve housing delivery. The proposed housing PPP framework was empirically validated by 12 PPP experts who were purposely selected in order to ascertain its applicability, effectiveness and adaptability. The results of the validation showed that the proposed measures within the housing PPP (HPPP) framework all rated above the test value, thus demonstrating its viability. The implication of the findings is the applicability of the HPPP framework in assisting the stakeholders address the existing challenges. Second, the framework has the potential of providing valuable guidance and roadmaps for successful delivery of PPP housing projects in developing countries.

Project selection index for unsolicited public–private partnership proposals

The careful assessment and evaluation of unsolicited public–private partnership (PPP) proposals prior to their implementation is very critical towards achieving effective outcomes including wider social benefits and value for money. This article aims to develop a pragmatic model (i.e. project selection index) that could be used to quantify the viability levels of unsolicited PPP proposals drawing on a well-defined set of evaluation criteria for unsolicited proposals. A questionnaire survey was conducted with experienced PPP experts and the fuzzy set theory was used to develop the model. The pragmatic model consists of three critical evaluation criteria groupings (CECGs); namely: value for money, financial feasibility and sustainable innovation. Among the three CECGs, value for money has the highest coefficient value of 0.36. The findings of this study will enable contracting authorities to objectively evaluate the viability levels of unsolicited PPP proposals prior to their implementations. In addition, proponents would be informed of the key and strategic areas to consider when preparing their unsolicited PPP proposals. Finally, this study contributes to the on-going international discussion on the effective ways of managing unsolicited PPP proposals.

Conflict prevention measures for public–private partnerships in developing countries

PurposeConflict between project parties is among the major risk factors in public–private partnership (PPP) in developing countries that has, in extreme cases, led to the failure or distress of many PPP projects. This paper aims to explore conflict prevention measures for PPPs in developing countries using Ghana as a case study.Design/methodology/approachFrom a comprehensive review of literature, a list of conflict prevention measures was derived; further, a questionnaire survey was conducted with PPP experts from Ghana. Kendall’s coefficient of concordance test, range normalization method and factor analysis were used for data analysis.FindingsResults show four significant conflict prevention measures for PPPs in developing countries, they include extensive stakeholder consultation in decision makings, clear goals and mutual benefit objectives, clarity of roles and responsibilities of parties and transparent appeal procedures. Using the factor analysis technique, the prevention measures are grouped into three unrelated categories, they are efficient communication structure and risk assessments, transparency and openness and proficient service delivery.Originality/valueThe research findings inform policymakers and local practitioners of the strategic measures and procedures needed to minimize the occurrence of conflicts in PPPs in developing countries.

Model for predicting the success of public–private partnership infrastructure projects in developing countries: a case of Ghana

ABSTRACTThis paper develops a practical tool for predicting public–private partnership (PPP) project success in developing countries using Ghana as example. The predictive model examines the causal relationship between CSFs and success criteria for PPP projects. First, a conceptual model for PPP projects success was proposed. Second, the theoretical model was tested by means of a questionnaire survey with experienced PPP experts. Using the regression analysis technique, a predictive model for PPP project success was developed. The regression model shows three best predictors of PPP project success in Ghana, these include; appropriate risk allocation and sharing, sound economic policy and right project identification. Various statistical tests including ANOVA, tolerance and variance inflation factor (VIF), homoscedasticity and Durbin–Watson tests confirmed the validity and goodness of fit for the model. The substantive model will enable PPP practitioners including designers, public clients and engineers in Ghana and other neighbouring developing countries particularly sub-Saharan Africa to predict the likely success of their PPP projects prior to their implementations.

Exploratory factor analysis of skills requirement for PPP contract governance

PurposeThe purpose of this paper is to explore the skills required for effective contract management of public–private partnership (PPP) projects over their contract duration. The growing body of literature indicating the lack of expertise in managing PPP-related projects within the public sector prompted this study.Design/methodology/approachThe study, being an exploratory one, relied on a survey of 207 survey responses from a sample of PPP experts across the globe. The data from the survey are a rich mix of responses from public policy experts, construction professionals, project finance experts, lawyers and academic researchers in PPP.FindingsIt was found through exploratory factor analysis that project management, financial engineering, negotiations, risk management, forecasting, stakeholder management and technical skills were very critical for successful contract management of PPP projects. It was also found that regional characteristics influence skills prioritisation.Research limitations/implicationsThe results of this study can be validated on larger data sets in specific countries and across regions, sectors and variety of PPP projects. Currently, the authors conducted a general survey using convenience sampling.Practical implicationsThe results send a clear signal to practitioners that infrastructure regulation training programs cannot be generalised. Training should be tailored to reflect regional and country-specific characteristics.Originality/valueThe increasing failures and remunicipalisations of privately financed infrastructures is a cause for concern. Little attention has been given to the complicity of PPP regulatory institutions responsible for contract governance of such projects. Studies are increasingly pointing to the absence of critical PPP skills among institutions responsible for managing PPP contracts. This lack of capacity has resulted in poor oversight of private companies providing public services resulting in poor services, and financial recklessness which threaten the sustainability of service provision.

Motivations for adopting unsolicited proposals for public-private partnership project implementation

PurposeThe purpose of this study is to explore the motivations of governments for adopting unsolicited proposals for public–private partnership (PPP) project implementation.Design/methodology/approachA comprehensive review of literature was conducted to derive a list of motivations for adopting unsolicited PPPs. Subsequently, an empirical questionnaire survey was conducted with international PPP experts. Inter-rater agreement analysis, mean significance index and independent two-sample t-test were used for data analysis.FindingsResults reveal four very critical motivations for governments’ interest in unsolicited PPPs; these include: “enhanced private sector innovation and creativity in PPPs”; “lack of public sector capacity to identify, prioritise and procure projects”; “lack of private investors’/developers’ interest in projects at remote areas”; and “rapid implementation of PPP projects”. Further analysis shows that developing and developed countries view the significance of three motivations differently.Research limitations/implicationsThe major limitation lies in the fact that this study only focused on the general motivations/rationale for using unsolicited PPP proposals and did not thoroughly examine and consider the inherent property of motivations (i.e. push and pull theories). Therefore, future studies should explore the “pull and push” motivations for adopting unsolicited PPPs within a specific country or region.Originality/valueThe research outputs inform international private developers of the key expectations of governments/public departments when submitting unsolicited PPP proposals for consideration by the public sector. Furthermore, the outputs will enable governments/public departments and private proponents to derive performance objectives and standards for unsolicited PPP projects.

PUBLIC PRIVATE PARTNERSHIP PROJECTS: CONCESSIONAIRE PERFORMANCE MEASUREMENT

Purpose - Public Private Partnership (PPP) has increased in popularity and is being used extensively in the construction market. For PPP projects already completed or for those in progress, the question is how effective are these projects? Do they meet their performance requirements and are they valuable to the stakeholders? How are PPP project performances assessed? The main target of this paper to cover the necessity of study key performance indicators (KPIs) that will measure and enhance PPP performance in Egypt. Design/methodology - A questionnaire survey was conducted to prioritize the main functional KPIs for PPP projects. Reliability analysis using the Cronbach’s alpha was performed to check the internal consistency and reliability of the results. Finding - The result of this research will be to contribute to the existing understanding of PPP performance measurement of developing countries, by providing a framework for selecting KPIs to measure the PPP concessionaire performance. Validation of results was done by PPP experts. Social - The partnership provides a competitive and transparent mechanism to pursue opportunities that bring together ideas, experiences and skills of both sectors and develop creative solutions to a community’s needs. Originally/value - It is targeted that government adopts an evaluation system of concessionaire selection based on performance. The results could be used to create prediction models for evaluating PPP project performance.

STAKEHOLDERS’ PERSPECTIVES ON THE SUCCESS CRITERIA FOR PUBLIC-PRIVATE PARTNERSHIP PROJECTS

Given the complexity and wide stakeholder interests in public-private partnership (PPP) projects, different parties have different expectations and definitions of PPP project success. This paper explores the perceptual differences on the success criteria for PPP projects among PPP stakeholders. A questionnaire survey was conducted with targeted international PPP experts from the academic, public and private sectors. The research findings show that each stakeholder group considers effective risk management as the most critical success criterion. Moreover, the public and private sectors consider meeting output specifications as the second most critical criteria, whereas the academic sector considers satisfying the need for public facility/service. Further analysis using non parametric tests shows significant differences on the ranking of the criterion, “satisfying the need for public facility/service” between the public and private sectors and between academic and private sectors. These research outputs provide significant insights into how PPP projects’ success is evaluated by various PPP stakeholders.