Public-private Partnership Policy Research Articles

Why Are PPP Projects Stagnating in China? An Evolutionary Analysis of China’s PPP Policies

The Public–Private Partnership (PPP) model has significantly contributed to global infrastructure and public service provision. The evolution of the PPP model closely aligns with policy directives. China’s PPP policy evolution has included five stages: budding (1986–2000), fluctuating (2001–2008), steady (2009–2012), expanding (2013–2018), and stagnating (2019–present). This study employs bibliometric analysis and co-word analysis to examine 407 policies enacted by the Chinese government from 1986 to 2018. By extracting policy text keywords at various stages and constructing a co-word network matrix, this study delineates the distinctive characteristics of Chinese PPP policies across different epochs. It can be found that critical areas such as “government credit”, “contract spirit”, and “power supervision” are still underappreciated. The challenges confronting China’s PPP model are multifaceted, stemming from policy gaps that have led to substantial project difficulties. Although the government proposed a new mechanism for franchising in 2023, the new mechanism is only for new PPP projects, and the difficulties of existing PPP projects have not been solved. This study advocates for enhancements in project bankability, regulatory clarity, institutional environment improvement, contract spirit defense, and the development of the PPP-REITs model to address these issues.

Effect of Public-Private Partnership Policy on Affordability of Housing in Federal Capital Territory

The study investigated the effect of public-private partnership policy on the delivery of affordable housing in the Federal Capital Territory, Abuja-Nigeria. Also, other objectives include examining the impact of management contracts on the delivery of affordable housing in Nigeria and identifying the effect of joint ventures on the delivery of affordable housing in Nigeria. The study adopted a survey research design, and a structured questionnaire was used as an instrument for data collection. Data were analysed using descriptive statistics of percentages as well as chi-square analysis. The results showed that there is a significant effect of management on the delivery of affordable housing in FCT, and there is a positive effect of joint ventures on the delivery of affordable housing in FCT. The study concludes that for public-private partnership policy to prosper and achieve these objectives, any partnership must establish metrics for success, be able to quantify and track their accomplishments and be able to identify and address emerging problems. It was recommended that given the positive impact of management contracts and joint ventures on the delivery of affordable housing in FCT, housing developers and policymakers should encourage their use in future projects, as this could be done through incentives such as tax breaks or streamlined approval processes.

Governance Framework and Public–Private Partnership for Universal Health Coverage: Findings from India’s Federal Health Structure

Abstract Background: The role of private health sector in advancing universal health coverage is being recognised globally. A number of public–private partnership (PPP) strategies have been implemented across the states in India. States are primarily responsible for health service delivery in India. Objectives: To summarise various PPP schemes and projects in health sector across the states in India and to understand the ecosystem, i.e. policy, legal and institutional framework that are critical for effectively governing the partnerships. Materials and Methods: The study was carried out in two stages: a comprehensive desk review, followed by field visits for in-depth interviews (IDIs) of key stakeholders in selected states. A total of 52 IDIs were conducted from various levels of stakeholders. Results: Nearly 250 PPP initiatives in health sector across all Indian states were identified and studied. Partnership with the private sector was predominantly in the areas of emergency transport and laboratory diagnosis and in the delivery of selected primary care services. PPPs in health infrastructure (hospitals and medical colleges) and purchasing arrangements are rapidly emerging across most states. However, only few Indian states have health sector-specific PPP policy or legal and/or institutional framework governing PPPs and organisational units implementing partnership schemes. The capacity to conceive, design, implement and manage PPPs in health sector was found either absent or insufficient in most states. Conclusion: There is a need for developing mechanisms for effective and functional partnerships with the PHS for achieving national health policy goals in India. There is a need for well-enunciated policy and governance framework for private sector engagement. Indian union and state governments need to do detailed assessment of the PHS market behaviour; legal, regulatory and oversight mechanisms; building organisational structures with capacities and developing platforms for stakeholder dialogue. Findings from the Indian context could offer useful insights for other low- and middle-income countries aiming to advance towards achieving universal health coverage.

How do Public-Private Partnerships Affect Public Service Principles? A Case of City Hospitals in Türkiye

Public-private partnership (PPP) policies have been on the Turkish Government’s healthcare agenda for a long time. Türkiye has implemented a series of policies with various elements of neoliberal reforms over the last 20 years and the Turkish Government initiated the PPP policy in 2013 as the final step of the Health Transformation Program. This article reviews the policy process that led to extensive collaboration with the private sector in public health and also examines the effect of the policy on the principles of public service. Türkiye’s policy experience has elements that reinforce the principles of continuity, variability, and equality in many ways. However, this policy was found to have weakened the long-term financial viability of healthcare and led to its fragmentation and the government eventually abandoned this policy in the construction of new hospitals. Türkiye’s experience demonstrates that governments seeking to establish sustainable PPP policies for healthcare must consider the unique dynamics inherent to public service.

Examining the relationship among critical success factors (CSFs) for delivery of sustainable public-private partnership projects

Purpose The sustainable development goal (SDG 17) is to strengthen the means of implementation and revitalise the global partnership for sustainable development. Partnership is a key strategy for acquiring skills, information and private finance for developing critical infrastructure projects. Existing studies have mostly concentrated on identifying critical success factors (CSFs) for successfully delivering public–private partnerships (PPPs) projects, but the interrelationships among CSFs expected from stakeholders have garnered less attention. The purpose of this study is to examine the interconnections among CSFs of PPP projects while keeping the public in mind, as well as the influencing routes that contribute to success in the PPP implementation process. Design/methodology/approach The study uses a mixed-method approach that involves both quantitative and qualitative methods of data collection. The data for the study were collected through a well-structured questionnaire from the respondents who are directly or indirectly associated with the PPP project implementation process. The CSF’s framework was built using a literature study and expert interviews; nine hypotheses were developed and evaluated using structural equation modelling. Random and purposive sampling techniques were used for the respondents who were directly or indirectly associated with the PPP project implementation process. Findings The findings of this study reveal that the relationship between public and private partners is more adherent than collaborative, with unequal responsibilities, powers and resources distributed among the parties involved. The relevance of state rules, the PPP directive and policies in PPP implementation is supported by the positive connection between favourable environments (Fav_Env) and government attributes (Gov_Atr; the path coefficient is 0.405). Moreover, government attributes have a favourable influence on private company attributes (Pvt_Atr; the path coefficient is 0.198), showing that the state plays a substantial role in the private sector’s decision-making process in PPP. The long-term sustainability and success of a PPP project are dependent on the established interrelationships between CSFs. Practical implications The established interrelationships between CSFs will contribute to the long-term viability and success of a PPP project. Since PPP is still in its infancy in India, the study of CSFs in PPPs and their interrelationships will help policymakers and other stakeholders better understand the major individual factors impacting the success or failure of PPP initiatives. Originality/value Because PPP is still in its infancy in India, the study of CSFs in PPPs and their interrelationships will help policymakers and other stakeholders to better understand the major individual factors impacting the success or failure of PPP initiatives. A key implication of the study borders on providing a better understanding of the relationships between CSFs and public engagement. This is also critical for the long-term viability of PPPs and the enhancement of public service quality.

Integrating Public Private Partnership Strategy for Sustainable Students Skills Development in Technical and Vocational Education and Training in Zimbabwe

Traditionally, Public-Private Partnerships(PPPs) are known to contribute to infrastructure development in diverse socio-economic sectors. It is a misconstruction that PPPs are streamlined to a single functioning of developing and improving infrastructure yet this strategy can be adopted to integrate PPP for sustainable skills development in Technical and Vocational Education and Training (TVET) with a view of responding to the labour market demand realities. Using a mixed methods approach the study sought to establish the feasibility of PPPs for sustainable skills development in TVET by soliciting data from institutions of higher learning and industry. A simple random sampling of 5 TVET institutions and 10 lecturers,5 administrators, and 5 captains of industry were purposively sampled to respond and participate in the study respectively. The data were descriptively and thematically analyzed for a balanced view of the findings. The results revealed that TVET institutions did not consider PPPs as a strategy for sustainable skills development for employability. Also established was policy inconsistency at the government level which hampers possibilities of partnerships in skills development. The results further show that industry plays an important role in skills development through internship, traineeship, and on-the-job education and training. The study recommended government through the relevant ministry and agents expedite the PPPs policy framework to include skills development as a standalone component. There is a need for government to incentivise private sector players to have PPPs in sustainable skills development for increased return on investment and subsequently economic growth.

A Qualitative Study : Critical Success Factors of Public Private Partnerships in Indonesia

This research aims to analyze the Critical Success Factors (CSF) of Public Private Partnership (PPP) Indonesia that are very significant due at the ontological level and sociological level. The problem is very interesting to be analyzed by conducting qualitative research method.  Data were collected through indepth interview, documentation and observation. Data were analyzed by using data reduction, data display and data verification and supported by triangulation. The results are categorized into several themes. Based on these results as per ontological level and sociological level are useful for improving Public Private Partnership policy and practice and providing information to stakeholders related as inputs for making better regulation on Public Private Partnership as well as for public officials and practitioners.

Legislative framework for public–private partnerships in the Sultanate of Oman

An effective regulatory framework is essential to attract international investment in infrastructure development and public services through public–private partnerships (PPPs). A transparent and predictable regulatory environment makes PPPs work in the long term, as this enables private sector participants to manage long-term risks in the most effective and efficient way. The legal framework for PPPs in Oman consists of four key pieces of legislation. The Foreign Capital Investment Law (Royal Decree 50/2019) outlines the procedures for application of an investment project licence and provides for investment incentives and guarantees to international investors. The Law of Privatization (Royal Decree 51/2019) provides a transparent framework for awarding of privatisation contracts. The Public Private Partnership Law (Royal Decree 52/2019) outlines the procedures for tendering and award of PPP projects and the essential elements of PPP contracts. The Bankruptcy Law in Oman (Royal Decree 53/2019) updates the law on corporate distress and introduces the concepts of corporate restructuring, preventative composition and bankruptcy-filing procedures. These four royal decrees are evaluated in this paper. The royal decrees promulgated in succession by the Sultanate of Oman bring privatisation and PPP policy in line with international best practice and constitute a central component of the nation’s strategy and supply side reforms to diversify the economy.

Where is the evidence supporting voluntary and public-private partnership policies for promoting healthy food environments? Findings from four evidence syntheses

Where is the evidence supporting voluntary and public-private partnership policies for promoting healthy food environments? Findings from four evidence syntheses

Neoliberalism and New Public Management: decision-making and accountability in a public–private partnership

PurposeThe purpose of this paper is to investigate public disclosures and accountability for government decision-making in the case of a major prison project delivered through a Public–Private Partnership (PPP) in the State of Victoria (Australia).Design/methodology/approachThe study explores a unique case to provide insights into public disclosures for PPPs in a jurisdiction that is a recognised leader in PPP policy and practice. The analysis is theoretically framed by an understanding of neoliberalism and New Public Management, and draws on data from case-specific reporting, media reporting and public policy, to examine interconnections between accounting, public discourse and accountability.FindingsThe analysis shows how publicly available information relating to key government decisions routinely lacked supporting evidence or explanation, even though areas of subjectivity were recognised in public policy. Accounting was deployed numerically and discursively to present potentially contestable decisions as being based on common-sense “facts”. The implied “truth” status of government reporting is problematised by media disclosure of key issues absent from government disclosures.Social implicationsUnder neoliberalism, accountingisation can help depoliticise the public sphere and limit discourse by constructing ostensible “facts” in an inherently contestable arena. By contrast, democratic accountability requires public disclosures that infuse a critical dialogical public sphere.Originality/valueThe paper shows how neoliberalism can be embedded in public policies and institutional practices, and buttressed by the use of accounting. The analysis illuminates the persistence and “failing forward” character of neoliberalism, whereby crises are addressed through further neoliberalisation.

Determinants of the formation process in public-private partnership projects in developing countries: evidence from China

ABSTRACT Public-private partnerships (PPPs) are expected to play a pivotal role in mobilising financial resources for infrastructure. However, the promotion of PPPs has faced challenges to their success in many countries. This study empirically analysed the determinants of initiation and adoption in PPP projects. It employed Tobit regression models with a Chinese provincial-level panel dataset from 2009 to 2019 for evaluating how government, market, and operating environment affect the number and investments in PPP projects. The results unveiled that local governments are motivated by fiscal pressure to initiate PPP projects. They also showed that the successful adoption of PPPs is associated with the activeness of private capital in local markets while neither PPP policy nor PPP fund at provincial level could facilitate the formation of PPPs. This study distinguished the initiation of PPP projects from their adoption, through which the truly key determinants of formatting PPPs were successfully identified.

The Scaling Down of SAGCOT Public Private Partnerships

Abstract This study analyses SAGCOT’s public-private partnership policy, which anticipated attracting external investors in large-scale nucleus farms to commercialise smallholder farmers. Data were collected from a review of SAGCOT policy documents, a compilation of SAGCOT registered partners and qualitative interview data collected from private companies, government officials, farmers and outgrower associations. The majority of SAGCOT registered commercial partners are small- to medium-scale and most of them were already operating in the area before SAGCOT was established. We conclude that the SAGCOT investment strategy, in practice, has been linked to small- to medium-scale operations and also mainly to already existing enterprises, which stand in contrast to the initially envisioned model of attracting new large-scale farming enterprises to the region. We argue that there is a need for SAGCOT and policy makers to learn from this dissonance between initial policy ambition and actual outcomes of SAGCOT public-private partnerships.

Assessing the Effectiveness of Public Private Partnership (PPP) Models in China: A Comparative Study

This conceptual research study aims to evaluate the effectiveness of Public Private Partnership (PPP) models in China through a comparative analysis of case studies. PPPs have gained prominence in China as a means of infrastructure development and service delivery, and this research seeks to assess the performance and outcomes of different PPP models in sectors such as transportation, energy, healthcare, and education. By analyzing the strengths and weaknesses of these models, the research aims to provide insights into which models are most effective in different contexts. The findings of this research will inform the design of PPP policies and regulations, procurement guidelines, performance evaluation mechanisms, and transparency measures in China. The study also contributes to the existing body of knowledge on PPPs by providing a comparative analysis of case studies specific to the Chinese context.

Assessing Critical Success Factors of Public-Private Partnership Projects in Afghanistan

Since governments around the globe are established to facilitate and provide a comfortable living standards to its citizens, they are working in various fields and their responsibilities are increasing day by day. In some areas, the governments cannot provide proper services to their citizens/people due to the lack of skills and sufficient budget. For this reason, it shares some of its activities with the private sector for a long period. This action is called Public-Private Partnerships (PPPs). This structure was first introduced to Afghanistan with the help of Dr. Ashraf Ghani in 2016 by announcing the PPPs Policy. Currently, in Afghanistan, there is very little or even no information available about the Effectiveness of the PPPs Project and programs. Hence, this research was conducted in order to explore the topic and investigate the critical success factors of PPPs Projects that were implemented in Afghanistan. The study is analytical and data are collected through a self-administered questionnaire and analyzed through SPSS and statistical tools. the sample size was determined by using Krejci and Morgan's (1970) table. The findings of this research show that (6) success factors (Political support, Appropriate risk allocation, Good Governance, Availability of Financial Market and Transparency in the procurement process) out of (16) have a significant impact on PPPs project Implementation in Afghanistan.

The Distortion of Public–Private Partnerships in China: An Institutional Perspective of Central–Local Government Relations

How to explain the distortion of public–private partnerships (PPPs) is underexplored. Drawing on principal–agent theory, this article proposes an institutional incentive-driven framework. Based on a case study of PPPs in China, this article finds that central–local government relationships play a crucial role in shaping PPP performance. Goal incongruence and information asymmetry lead to two types of distortion. First, PPPs become a political task for local governments to respond to higher-level governments’ needs. Second, PPPs serve as financing tools to create political achievements. These opportunistic behaviors violate the goals of the central government’s PPP policy and increase government debt risks.

THE RELATIONSHIP BETWEEN SUPPORTING FACTORS AND PUBLIC-PRIVATE PARTNERSHIP IN INDONESIA: A POLICY PERSPECTIVE

This research aims to predict and analyze the successful of public-private partnership (PPP) based on several supporting factors: administrative system, legal system, market system, and institutional system in Indonesia. This research is very significant for improving public-private partnership policy at the ontological and sociological levels. The problem is very interesting to be analyzed by conducting quantitative research. The data were collected through survey questionnaires related to administrative system, legal system, market system, institutional system, and successful public-private partnership in Indonesia. The data were statistically analyzed using partial least square (PLS) models and SmartPLS. The administrative system, legal system, the market system, and institutional system have positive effects on successful PPP. The results are useful for improving public-private partnership policy and practice at the ontological and sociological levels and stakeholders related as inputs for making better regulation on public-private partnership policy and practice, public officials, and practitioners. Keywords: Public-Private Partnership, Administrative System, Legal System, Market System, Institutional System DOI： https://doi.org/10.35741/issn.0258-2724.58.2.68

ANALYSIS OF CRITICAL SUCCESS FACTORS OF PUBLIC-PRIVATE PARTNERSHIPS IN INDONESIA: A QUALITATIVE STUDY

This research analyzes the critical success factors (CSF) of public-private partnership (PPP) in Indonesia that are very significant at the ontological and sociological levels. The problem is very interesting to analyze by conducting qualitative research. The data were collected through in-depth interviews, documentation, and observation. The data were analyzed using data reduction, display, and verification and supported by triangulation. The results were categorized into several themes. These results are useful for improving public-private partnership policy and practice at the ontological and sociological levels and providing information to stakeholders related as inputs for making better regulation on public-private partnership, for public officials, and practitioners. Keywords: Public Policy, Public-Private Partnership, Critical Success Factors DOI： https://doi.org/10.35741/issn.0258-2724.58.2.69

Fiscal Pressure and Public–Private Partnership Investment: Based on Evidence from Prefecture-Level Cities in China

Public–private partnership (PPP) policy is essential to alleviating the local government debt burden and improving resource allocation efficiency. This paper empirically examines the impact of fiscal pressure on PPP investment in Chinese prefecture-level cities from 2014 to 2019 using the ordinary least-squares (OLS) module. Moreover, we also investigate how fiscal pressure influences PPP investment and test the influenced mechanism from other perspectives. The results show the following. (1) Fiscal pressure on the government has a significant positive effect on PPP investment at the prefectural level. (2) The marketization process is the mediated effect of the relationship between fiscal pressure and PPP investment. Fiscal pressure will stimulate the regional marketization process, thus promoting PPP investment. (3) Fiscal pressure has a significant positive effect on PPP investment in the middle region, while the effect is not significant in the eastern and western regions. Meanwhile, the effect is not significant in central cities, but there is a significant positive effect in ordinary cities. (4) The effect of fiscal pressure on PPP investment is not significant in the private reward mode of government payment, but there is a significant positive effect in the mode of user payment and feasibly insufficient subsidies. Our studies could also provide practical suggestions for sustainable development of PPP policy and solving the fiscal pressure of the current economic recession under the COVID-19 pandemic.

Identifying Measures of Effective Risk Management for Public–Private Partnership Infrastructure Projects in Developing Countries

The inadequate risk management of public–private partnership (PPP) projects is a principal cause of project distress or failure. This research seeks to identify and empirically validate measures of effective risk management (ERM) in the context of PPPs in a developing country, a subject that has received scant attention in the extant literature. The research is based on a comprehensive literature review, expert interviews and a questionnaire survey. Mean score ranking and factor analysis were employed to rank and group the identified measures, respectively. Tests were performed to determine the respondents’ agreement and establish the reliability and validity of the survey instrument. Analysis results indicate that all identified measures are important, are distributed over the entire project’s life cycle and exhibit a multi-organizational focus. The most significant measures focus on PPP-specific artifacts and procurement activities that are vital for ERM. Factor analysis established six critical underlying dimensions for the ERM of PPP projects. The extracted factors generally acknowledge the need for expert public- and private-sector project stakeholders with mature organizational structures, business processes and relevant experience to successfully handle and deliver PPP projects. Furthermore, a comprehensive PPP policy and sound legal and regulatory frameworks are essential for supporting the ERM of PPP projects. The findings will enable a better understanding of factors that influence the quality and outcomes of risk management efforts and promote sustainable infrastructure development via PPPs, where the success of a project strongly relies on positively managing a project’s risks in the economic and the social domains.

Do public-private partnerships help improve road safety? Finding empirical evidence using panel data models

Despite the not-a-long history of public-private partnerships (PPPs) in South Korea for about 20 years, they play a significant role and share in the highway sector. Road safety is one of the most critical public values in the construction and operation of highways. However, the safety achievement of the PPP projects has not been paid enough attention to and comprehensive and objective evaluation efforts were insufficient. This study investigates the evidence of whether the PPP highways in Korea have experienced a higher degree of road safety compared to the public highways through an empirical analysis. To this end, several crash-frequency prediction models were estimated for all toll highways in the country, including 18 PPP highways opened between 2000 and 2018. The numbers of accidents and casualties, annual traffic volume, and other roadway or PPP-project characteristic data for the five years were collected and organized as unbalanced panel datasets. To account for the unobserved heterogeneity and temporal correlation among the analysis units, i.e., highway segments, panel data models were estimated and compared with cross-sectional models. The modeling results showed that the positive effect of PPPs on road safety in terms of the number of accidents and casualties for the toll highways in Korea exists. The findings of this study offer important policy implications for countries that are pursuing to extend the partnerships with private sectors by helping policymakers to refine or improve the existing PPP policies.