Success Of Public-Private Partnership Projects Research Articles

Governing Public–Private Partnerships of Sustainable Construction Projects in An Opportunistic Setting

Government-sponsored public–private partnership (PPP) projects in the United Kingdom face particular complexity and uncertainty challenges because of the country’s specific socioeconomic context. This research investigates the role of governance and stakeholder management in PPP-based sustainable projects by conducting a mixed methods approach, which includes a quantitative survey and a qualitative case study inference. The results show that project governance and stakeholder management have a significant positive impact toward sustainable development and PPP project success. Whereas the negative impact of opportunism over contractual governance and stakeholder management is insignificant. Similarly, the negative effect of project uncertainty over contractual governance is insignificant toward sustainable development.

Optimal operation mode selection of sponge city PPP projects using IFSS-prospect theory and VIKOR approach: a case study in China.

The construction of sponge city (SC) public private partnership (PPP) projects is considered to be a feasible measure to solve the "water problems" in China. To ensure the success of SC PPP projects, how to select an appropriate operation mode for SC PPP projects is an urgent problem to be solved. In this paper, first, the evaluation index system of operation mode is established from the aspects of project characteristics, government capabilities, project benefits, project implementation, and cooperative partnership. Second, the DEMATEL method and entropy method are introduced to overcome the drawbacks of a single method, and the combination weights are calculated by game theory. Finally, the decision-making model based on intuitionistic fuzzy soft set (IFSS)-prospect theory and VIKOR approach is constructed to select operation mode for SC PPP projects. In this paper, the framework is applied to select an operation mode for the Qingshan demonstration zone project, and its feasibility and effectiveness are verified through sensitivity analysis and comparative analysis. The results show that BOT is the optimal operation mode for SC PPP projects, and government capabilities and project implementation are critical factors to be considered when selecting an operation mode. This study can provide guidance to the government in the OMS of SC PPP projects and improve the sustainability of the projects.

An assessment of facilitative leadership, communication quality and trust on public-private partnership success

PurposeThis study aims to test a public–private partnership (PPP) success model by examining the direct effects of two input factors (facilitative leadership and communication quality) on an outcome factor, namely, PPP success (PPP project success and PPP relational success), as well as the mediating effect of trust as a process factor on these relationships.Design/methodology/approachThe present research uses the sociotechnical systems theory as the guiding framework. This is a quantitative study that uses a questionnaire survey and purposive sampling. The respondents comprise 266 public and private sector employees who have been involved in various PPP projects. The data gathered from the survey are analysed using SPSS and structural equation modelling (AMOS version 23.0).FindingsThe findings of this study indicate that facilitative leadership, communication quality and trust are positively correlated with PPP success, that is, PPP relational and PPP project success. Trust is found to mediate the relationship between facilitative leadership and communication quality with PPP success.Practical implicationsThis paper upholds the importance of facilitative leadership, communication quality and trust in a PPP setting.Originality/valueThis study enriches the knowledge of PPP projects regarding facilitative leadership, communication quality and trust. It also discusses the vital role of these variables in ensuring PPP success.

Evaluation of Risks Involved in Housing Projects Procured by Public Private Partnership in Kebbi State, Nigeria

Studies have shown that the adoption of Public Private Partnership (PPP) system which is expected to enhance the provision of affordable housing with diverse arrays of benefits, have failed to accomplish this task due to hindrances from several risk factors. The study evaluated the risks involved in housing projects procured by PPP in Kebbi State with a view to providing better housing delivery. Data were collected using questionnaire administered on professionals in 25 construction firms registered with the Kebbi State Ministry of Land, Housing and Urban Planning, and 15 purposively selected occupiers of PPP housing projects. Analysis of data was undertaken with the use of Mean Item Score (MIS) and Relative Importance Index (RII). The study revealed that the most important reason for the adoption of PPP procured housing projects was “Reduction in the size of inefficient bureaucracy” (RII = 0.87); the most critical risk associated with PPP procured housing projects was “Completion Risks” (MIS = 4.12); the factor leading to the success of PPP housing projects with the highest value was “Stable economic system” (MIS = 4.52; average MIS = 3.96), thus implying that the projects were successful; and Occupiers were satisfied with the conditions surrounding the Gesse Phase I and Phase II PPP Housing Estate in Birnin Kebbi, Kebbi State (MIS = 3.68 and 3.60 respectively). It was concluded that the risks involved in PPP housing projects in Kebbi State are fairly critical and can be effectively managed by adopting the drivers of the success of PPP projects and preventing the occurrence of the barriers to the success of PPP projects in Kebbi State, Nigeria. The major recommendation from the study was that the Government should focus more attention on implementing the strategies of “Stable economic system”, and “Avoidance of bribery and corruption among contracting parties”, so as to mitigate the barriers to the success of PPP housing projects in Kebbi State, Nigeria.

Assessment of the efficiency of implementation of public-private partnership projects taking into account their life cycles and key stakeholders’ interests

Objective: to develop criteria for objective and comprehensive assessment of the success of public-private partnership (PPP) projects.Methods: in the process of the research, the method of systematic literature review was used.Results: as a result of the study, it was concluded that the success of a PPP project is a relative concept and requires detailing (1) from the viewpoint of which particular stakeholder the project is evaluated and (2) relative to which stage of the project life cycle the assessment is made. This understanding allowed proposing a universal approach to assessing the success of PPP projects, based on the criteria assessment matrix developed by us, which takes into account the stages of the project life cycle and the interests of its stakeholders.Scientific novelty: the systematization of studies available in the Russian and world literature concerning the assessment of the success of both investment projects in general and PPP projects in particular allowed identifying a universal set of criteria for such an assessment. This, in turn, contributes to a more adequate and clear interpretation of the conclusions made by a wide range of authors of research in the field of PPP, who quite often refer to “successful” PPP projects, without giving their own understanding of the criteria for determining success.Practical significance: the developed criteria matrix for assessing the success of PPP projects can become a starting point for improving methodological approaches and normative-legal documents regulating the implementation of PPP projects at the federal and regional levels. Regional and municipal executive authorities planning the implementation of new PPP projects can use the proposed matrix for assessing the success of PPP projects in their work in order, on the one hand, to increase the investment attractiveness of the projects being developed, and on the other hand, to ensure better and objective control over their further implementation.

The impact of economic and political imperatives on the successful use of public-private partnership (PPP) in projects

This study presents empirical research examining how economic and political imperatives impact prospects for successful use of Public-Private Partnerships (PPP) to deliver projects in Saudi Arabia. A conceptual model and several hypotheses are developed. A questionnaire survey obtains data from two hundred and fifty-seven (257) project management practitioners involved in projects being procured using PPP within Saudi Arabia. Data is analysed using Structural Equation Modelling (SEM). The conclusion is that economic, but not political imperatives moderate the relationship between Critical Success Factors (CSFs) and PPP project success in Saudi Arabia. To an extent, these findings offer a risk-focussed typology for exploring conditions for PPP project success.

Identifikasi Risiko pada Proyek Waste to Energy Melalui Kerjasama Pemerintah dengan Badan Usaha di Sumatera Barat

Waste to energy (WTE) project is a solution to solve energy crisis and at the same time may resolve the waste problem. Public private partnership (PPP) scheme has been widely used to deliver WTE project. The success of PPP projects heavily relies on the advisability of management and risk sharing.  Risk management needed to conduct in order to understand specific risks, examine risk sharing between government and public sector and analyze risk mitigation for preventing and rectifying the impact. The effective decision on risk needed to improve decision-making process that may occur in the WTE projects. Therefore, this study identify risk probability in PPP WTE projects in West Sumatera. This probability relying on expert judgement were collected via an empirical questionnaire survey. The respondents were invited to rate a total of 21 risk factors that impact the success of PPP WTE projects as gleaned from previous research. The overall result ranked risk probability factors that land acquisition and administration approval risk, public opposition, construction cost overrun, operating cost overrun, and design/construction/commissioning performance risk are the top five risk factors affecting the sustainable development of PPP WTE Projects. A better understanding of the risk may improve project feasibility and attract private sector for investing in WTE projects.

The Evolution of Opportunistic Behavior of Participating Subjects during the Operation Period of PPP Projects.

Most of the public-private partnership (PPP) projects have entered the operational period in China. Due to information asymmetry, opportunistic behavior exists in the operation period of PPP projects. The opportunistic behavior of the participating subjects is an obstacle to the success of PPP projects and one of the root causes of low project performance. To investigate the evolutionary law of this behavior, the payment matrix of the strategic interaction between the investors and the government is constructed based on evolutionary game theory. Using MATLAB to simulate the evolutionary state and through the analysis of the evolutionary behavior of the interaction process, the influence of individual strategy choice on group behavior is revealed. The results show that the path evolution system of opportunistic behavior during the operation period of PPP projects can converge in two states, “good” and “bad,” and the determining factor is the relative returns of investors under various strategies. Reasonable incentives and penalties and reduced regulatory costs can effectively discourage opportunistic behavior. By regulating the parameters, the path evolution of opportunistic behavior can be optimized, and the group behavior can be induced to a good state. The research results can provide a reference for reducing the opportunistic behavior of participating subjects and improving the success rate of the PPP projects.

How do adoption choices influence public private partnership outcomes? Lessons from Spain and Portugal transport infrastructure

Purpose Maximising real efficiency benefit (REB) is currently being replaced with access to private finance as core public–private partnership (PPP) adoption motive. This later choice focusses on short-term performance, compromising REB and the procurement of infrastructure that meets the need of the present and future generations, which the former accomplishes. The paper aims to review these observed changes to understand the rationales and significance behind such switch.Design/methodology/approach Secondary data powered exploratory study. Deployed X-inefficiency theory to triangulate and reduce bias and select country cases to provide the proper foundation for the descriptive “what happened?” question, such as “what was the failure concerns with a particular adoption choice?”Findings The shift to accessing private finance adoption motive against REB failed to improve PPP project performance or meet efficiency and sustainability. Instead, it allows the private sector to assume financial risk without synergistic monitoring from the government to determine their contractual and commitment trust level, which would help achieve the five-dimensional sustainable performance measurement system for PPP. This led to the struggles of PPP projects in Portugal and Spain, where cost overruns and high demand forecast led to project failures. A recommendation, blended finance with its technical assistance additionality, is considered pivotal to addressing access to private finance motive shortcomings.Originality/value This study improves best practices for new and existing adopters by systematically establishing that adoption ideology is a cardinal variable that influences PPP project success. When not correctly adopted, it can make the most successful structured projects face complexities and uncertainty.

Can Private Public Partnership Pullout Lebanon Out of Its Worst Economic Crisis?

Lebanon is grappling with the worst economic crisis in decades. One cannot escape the reality that Lebanon is broke and is set to face an even more agonizing economic downturn. While Lebanon has lost many past opportunities to develop its infrastructure including its energy, waste management, water, and transport, it is high time that authorities roll up their sleeves and give development a fillip in the country through Public Private Partnership (PPP). Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place. Public-private partnerships allow large-scale government projects to be completed with private funding. The success of PPP project is defined on the basis of repayment of loans without recourse to public sector guarantees or tax revenues and the provision of public services without inflicting a direct or indirect burden on the population, that is already encumbered with huge debt as in the case of Lebanon. On one hand, establishing a railway network in Lebanon via PPP will not only enable mass public transportation but will add significantly to economic growth in the country. Electricity, as well, in the heart of the economic crisis, the government should consider partnering with green power producers via PPP to resolve this issue. Furthermore, Lebanon had two oil refineries, renovating those refineries will allow Lebanon to secure its needs of oil and then eventually to export its surplus. Likewise, Special Economic Zones play a key role in rapid economic development of a country. Hence, upgrading the infrastructure of Tripoli and its port has numerous benefits especially with the intent of reconstructing Syria.

MACROECONOMIC ASPECTS OF PUBLIC-PRIVATE PARTNERSHIP

Public-private partnership (PPP) has been getting momentum in market economies since the 1990s. Originally, it was created as a way of financing infrastructure projects, but its application since then has covered areas such as education, healthcare, high technology and many others. As the bulk of research in the domain of PPP is on the microeconomic impact and the analysis of the success of concrete PPP projects, the aim of this paper is to integrate these findings into a broader framework depicting macroeconomic aspects of public-private partnership. The existing literature, although not as extensive, points to several aspects that may affect economic development on the local, regional, and national levels, with greater adoption of PPP projects and their implementation. The paper introduces explanations for the elements of risk sharing between public and private partners, economic benefits, and costs in PPP, as well as the specific PPP channels of influence on the national economy and the PPP system dynamic model. One of the objectives is the analysis of the existing concept for estimating macroeconomic impacts of PPP, which could be used for evaluating its potential contribution to the growth and development of the national economy.

Critical success factors of public-private partnership from 2000 to 2019: A literature review

Public-Private Partnership (PPP) is one of the schemes that have inspired many countries in infrastructure development. One of the most discussed PPP topics by researchers is the concept of Critical Success Factors (CSF). Therefore, this study examines CSF publications for PPP projects from selected journal sites from 2000-2019. The results showed that research on CSF in PPP began to increase in 2012. The most identified CSFs were appropriate risk allocation and sharing, competitive and transparent procurement processes, favorable and efficient legal frameworks, commitment and responsibility of the public and private sectors, and a robust and reliable private consortium. Furthermore, it was also found that most countries that were the objects of research on PPP CSF were China, followed by Hong Kong and Australia. The results also show that the dominant research focuses on multi-sector types of infrastructure where CSF can be applied to all infrastructure sectors. The findings obtained in this study can provide an overview of CSFs for projects with PPP schemes in the future. Besides, the identified CSFs can be applied to any PPP infrastructure sector. They can assist stakeholders in increasing the likelihood of PPP project success and can be adopted for further research

Evaluating critical success factors in public – private partnership water supply infrastructure projects

Research background: Public-private partnership (PPP) has been implemented in Vietnam since 1995 in the field of water supply. It is worth noting that not all governments are successful in implementing the PPP policy. According to studies in many countries in the region on the factors affecting the success of a PPP project, there are many similarities. However, differences in politics and administrative systems of each country can lead to changes in the influencing factors, changes in the degree of influence of the above factors on the success of the PPP project. Purpose of the article: This article aims to identify critical success factors (CSFs) that enable successful project execution, contributing to knowledge for practitioners in assessing the likelihood of success in executing a public-private partnerships PPP water supply project. Methods: In-depth interviews with PPP specialists in the water supply sector have confirmed the list of CSFs, after which the attributes are weighted to evaluate among different types of PPP by applying the AHP approach. The influences of CSFs were evaluated by data collected using a sample survey of 20 experts involved in the water supply sector and PPP projects in Vietnam. In Vietnam, the study finds seven CSFs affecting the success of PPP projects in the domestic water supply sector, including political environment, commitment of partners, strong consortium, asset quality/social support, national PPP unit, good governance, and project feasibility. Findings & Value added: The results reveal that the political environment is CSF that has the strongest impact on the success of the projects. As suggested by AHP, the BOO contract type of a PPP project in Vietnam water supply industry is chosen above the BOT contract.

Framework for public sector participation in public-private partnership projects in Nigeria

The establishment of an appropriate guide for the participants in the implementation of public-private partnership projects is considered very important to the success of the process. The objective of this study is to identify the factors required for successive management of public-private partnership projects and develop a framework that will guide public sector participants in order to create innovation in the process. A qualitative research approach was used through case study analysis and an extensive review of past studies to determine the parameters that are required for the success of public-private partnership projects. The practices and status in some selected countries were reviewed to understand the process and establish best practices from those experiences. Also, three local cases were analysed to determine the parameters responsible for success and failure of those projects. The framework developed was then validated through questionnaire survey using the experts on public-private partnership projects. This study produced a public-private partnership implementation framework for the public participants in the project delivery. This framework also proposed a new agency to audit the projects' implementation process.

A framework to assess success criteria performance of public private partnership (PPP) toll road projects in Indonesia

Public Private Partnership (PPP) is widely used to bridge infrastructure projects in the world. PPP arises as a result of the ongoing budget constraints faced by various governments and part of the limited private sector opportunities in infrastructure development. In Indonesia, the implementation of PPP has not been successfully implemented. In 2017, 22 PPP projects were offered, but only 5 projects were signed. According to previous studies, there are some problems related to PPP implementation in Indonesia. Referring to this, PPP project success criteria are very important to be defined to assess the success of this type of project. Data collection procedure consists of preliminary survey involving experts in the field to verify the research attributes, followed by main survey to collect respondents’ perception regarding the attributes using Likert Scale. Importance Performance Analysis (IPA) is proposed to measure the performance of each success criterion in each respondent sector and followed by gap analysis to investigate critical gaps between them. The results of this paper are a methodological framework model that presents a gap implementation and a performance of the successful PPP criteria for toll road projects in Indonesia. These results can be used to assess the performance of PPPs in Indonesia.

SUCCESS FACTORS FOR STAKEHOLDER MANAGEMENT FOR PUBLIC-PRIVATE PARTNERSHIPS INFRASTRUCTURE PROJECTS

Public-Private Partnership (PPP) has been identified as a procurement method that brings the public and private sectors together to facilitate the delivery of infrastructure projects and services. PPP manages complex projects and involves multiple stakeholders. Stakeholders in the PPP project need to be properly managed to achieve the project goals, minimising risk and accommodate stakeholder interest. Stakeholder management is about the relationship between organisation and its stakeholders. Poor management of stakeholder could lead to project failure. This paper aims to identify the success factors for stakeholder management in PPP infrastructure projects in Malaysia. A qualitative methodology which involved structured interviews with expert panels in PPP was conducted to validate the stages obtained from the primary and secondary data. The findings highlighted on the four (4) stakeholder management stages which involves stakeholder analysis, stakeholder engagement, stakeholder management action plan and stakeholder management monitoring. The needs for a having a clear understanding of the role of the project among stakeholders is crucial. Good stakeholder engagement is an essential part of project stakeholders’ engagement. It also appears that the regulatory plan would be implication to contribute stakeholder management to achieve the success of PPP project. In addition, stakeholder must monitor the work on site in order to achieve project success. The success factors towards achieving a successful stakeholder management process have been identified. Improvement in these stages will lead towards better presentation and improvement of the success factors of stakeholder management process in PPP infrastructure projects in Malaysia.Keywords: Stakeholder Management; Public-Private Partnerships, Stakeholder Management stages

Measuring the success level of public-private partnership transportation infrastructure projects in vietnam using fuzzy topsis method

Public–Private Partnership (PPP) has emerged as an effective procurement in delivering infrastructure and public service in many countries over the world since last few decades. It brought more benefits for sustainable development compared to traditional procurement in many developing countries. However, in order to determine whether a project is successful or not has still remained an ambiguous perception. Therefore, this study will rank the successful level for PPP transportation infrastructure projects in Vietnam via case studies. Fifteen success criteria were identified by the comprehensive review. The fuzzy TOPSIS method was then applied to evaluate and rank the success level for case studies. The result showed that project 2 is considered as the most successful until this recent time with a satisfactory degree of 0.489. Project 1 and project 3 are ranked second and third with a satisfactory degree of 0.482 and 0.435, respectively. Although the projects were judged as effective. Nevertheless, the success index of these expressway project still lower than 0.5. Therefore, project managers need to propose effective solutions to improve the success of these projects in the future. This result can help participants to be a good insight into the PPP project success in developing countries in general and Vietnam in particular.

Evaluation of success and risk factors for highway project performance through integrated analytical hierarchy process and fuzzy interpretive structural modelling

Public Private Partnership (PPP) models for highway projects in India face huge uncertainties throughout all phases of the project. This paper aims to identify and evaluate the different success and risk factors that play an important role in determining the success and failure of PPP projects in the western part of India. In this paper, the authors evaluate 73 success and risk factors, using two multi-criteria decision making methods. Based on literature and authors personal experience, these 73 factors have been identified from five different phases of the project under study. Analytical Hierarchy Process has been used for evaluation of the identified factors, and ranking has been done accordingly. After that, Fuzzy Interpretive Structural Modelling has been applied to 16 factors which have been identified through authors personal experience to quantify the level of risk involved in all those factors. Problem pertaining to land acquisition (F10) is evaluated as the most critical factor due to its very high risk level. Similarly, the other two factors are resettlement and rehabilitation problems (F11) and delay in approval of detailed project report (F4). These issues should be considered by the authorities for formulation of model concession agreements of future PPP road projects.

Capability development measures adopted by public sector organizations in PPP projects delivery in developing countries

PurposeThe purpose of this paper is to evaluate the measures practiced by public sector organizations (PSOs) to develop their capability and strength toward attaining the skills requirements for public-private partnership (PPP) program.Design/methodology/approachThe study adopted a quantitative approach based on primary data obtained via questionnaire survey. The literature review provided the basis for identification of variables that were evaluated through structured questionnaire survey. The respondents were professionals in PSOs that have procured PPP projects in Southwestern Nigeria. These were sampled through the drawing of referral chain, involving respondents-driven sampling technique. The data collected were analyses using descriptive and inferential statistics.FindingsThe capability development measures of PSOs in PPP projects delivery clustered around five components: conventional practices, training and development, organizational practices, human capital enhancement and government-aided intervention. These five components of capability development measures are expected to be focused with adequate and equal interest and embraced by PSOs in countries with evolving PPP markets.Social implicationsThe study provides implications for domestic human capital strengthening for enhanced infrastructure delivery in countries with evolving PPP markets.Originality/valueThis study contributes to the existing literature on capabilities improvement on PPP projects. This was achieved by providing empirical evidences with respect to human resource boost for enhanced performance of public sector organizations in their partnership with their private sector counterparts for PPP project success.

Understanding leadership roles and competencies for public-private partnership

Purpose The purpose of this study is to explore the roles of public–private partnership (PPP) leaders and the vital skills and competencies that PPP leaders should possess to ensure the success of PPP projects in Malaysia. Design/methodology/approach This study adopted an exploratory qualitative research design using an in-depth interview technique. Ten informants who were involved in the PPP projects from the public and the private sectors participated in this study. Data gathered from the in-depth interview were analysed using the constant comparative method. Findings The findings of this study show that among the main roles of PPP leaders are building a collaborative culture, leading and influencing the partnership process by developing trust and encouraging commitment and fairness. Key competencies were sensitivity of the cross-cultural issues between the public and the private sector, communication and PPP technical skills. Practical implications This paper outlines key competencies for the training and selection of PPP leaders and team members. Originality/value This paper enriches the existing body of knowledge on Malaysia’s PPP with regard to PPP leadership roles and their competencies.