Public-private Partnership Projects Research Articles

Public Private Partnership to Brownfield Remediation Projects in China: A Combined Risk Evaluation Approach

Brownfields have been receiving significant attention all over the world because of their potential threats to the environment and public health. However, a funding shortage constitutes the main obstacle to the brownfield remediation (BR). In China, to ease financial dilemmas, the governments seek collaborations with private-sector companies, i.e., the Public Private Partnership (PPP) mode. Despite all the benefits, BR and PPP contain high risks, making stakeholders extremely cautious about investing in such projects. To support the decision-making process of the public and private parties, this paper designs a comprehensive approach to evaluate the risks of BR PPP projects in China. In more detail, several commonly used risk methods, such as TOPSIS, GRE, and FSE, are employed to construct a combined risk evaluation process, which applies multiple combined evaluation techniques to iteratively integrate individual results from those methods until a valid common result is achieved. To show the practical implementation procedure of the proposed combined approach, a hypothetical case study is performed to assess the risks of seven BR PPP projects. The analytical process also verifies that the consistency and reliability of the risk evaluation result can be achieved effectively and efficiently by jointly deploying multiple risk methods through combined techniques. The proposed decision framework facilitates a novel research idea in evaluating complicated risk situations, and can be applied to other similar scenarios where uncertainties and inconsistencies are inevitable.

Ex ante required rates of return and related factors in Indonesian PPP infrastructure projects

PurposeThis paper delves into the ex ante rates of return demanded by the private sector in Indonesian public–private partnership (PPP) infrastructure projects and the manifold factors emanating from project attributes that can influence these rates.Design/methodology/approachThis paper analyzes feasibility studies of 37 PPP projects across different sectors. The studies were carefully selected based on relevance, completeness and validity of data. The analysis uses statistical techniques, including Levene’s tests, t-tests, ANOVA tests, Cohen’s effect size and Pearson correlations, to explore differences in cost of capital and excess returns across various attributes.FindingsBased on the statistical analysis, no significant difference exists between the excess return of 200 basis points (bps) and the equity excess return of 0 bps. This suggests that the eligibility criteria for PPP projects require an internal rate of return (IRR) equal to the weighted average cost of capital plus 200 bps or an equity IRR equal to the cost of equity. The variations in the tested variables among diverse project attributes do not exhibit statistically significant disparities, even though specific attributes display moderate to high effect sizes.Originality/valueThis paper represents one of the first attempts to examine the rates of return demanded by the private sector in the context of Indonesian PPP projects. It comprehensively explores the factors that influence these rates, drawing on insights derived from feasibility studies.

Risk-based integrated performance assessment framework for public-private partnership infrastructure projects

Abstract Public-private partnerships (PPPs) play a pivotal role in global infrastructure development, significantly impacting economic growth. However, a notable research gap exists in addressing risk management adequately within the performance assessment of PPP projects, particularly in developing nations like Pakistan. This study aims to address this gap by developing an integrated performance assessment framework (IPAF) in order to fill the deficiency of structured risk management in PPP project evaluations. Therefore, the purpose of this study is to devise a systematic methodology for assessing PPP project performance, with a keen emphasis on robust risk management criteria. Employing a comprehensive approach, the methodology integrates 16 performance measures (PMs) aligned with key performance indicators (KPIs), covering the triple constraints of projects (cost, time and quality) during the project feasibility, execution and operation and maintenance phases of project life cycle. Additionally, it incorporates an analysis of 10 prominent risks, spanning financial, environmental, operational, construction, legal and governmental dimensions inherent to PPP projects. The IPAF not only identifies these risks but also offers calculated mitigation strategies to enhance overall project performance. Emphasising alignment with project objectives, stakeholder engagement and contextual factors, the framework aids decision-makers, project managers and policymakers in making informed decisions throughout the project lifecycle. Furthermore, this study contributes by providing a systematic approach to address the critical bond between risk management and project performance in PPP projects. By bridging this gap, the IPAF fosters enhanced project outcomes, thereby contributing to the advancement of infrastructure development practices in both developed and developing contexts.

Examining the Relationship between Risks Associated with Public-Private Partnership Projects in Emerging Markets Using Fuzzy Cognitive Mapping Methodology

Objective: The adoption of Public-Private Partnerships (PPPs) has sparked a surge in research interest in this area in recent years. This study aims to identify and prioritize the risks associated with PPP projects. Methodology: A questionnaire was designed to assess the significance of each of the 35 research variables (risks) derived from the literature in explaining the risks associated with PPP projects. The respondents included experts in risk associated with PPP-based projects in emerging markets, specializing in policy making, production, sales, and export. These experts were considered knowledgeable due to their practical experience in management, expert, academic, and research activities related to risks and emerging projects and markets. Using purposive sampling and following a snowball method, semi-structured in-depth interviews were conducted with 19 experts until theoretical saturation was achieved. Findings: The results were analyzed using the methodology of fuzzy cognitive maps, and the relationships between the research factors were examined. Conclusion: The analysis revealed that financial constraints risk, demand risk, and government support risk are of high importance in the context of PPP projects.

Analysis of Public-private Partnerships in the Transport Sector of Eurasian States

This study is aimed at studying the public-private partnership (PPP) market of the Eurasian continent, best practices in the field of transport development, comparison of national regulations and the level of government regulation, as one of the important areas of socio-economic development of the member countries of the Eurasian Economic Union (EAEU).Aim . To propose the use of Singapore’s public-private partnership experience for the Russian Federation in the field of transport infrastructure projects.Tasks. Consider the experience of using PPP projects in different countries, highlight key features, analyze the legislative framework and regulatory support in this area, conduct a comparative analysis of PPP projects in the transport sector of Singapore and the Russian Federation and propose successful practices for solving this problem.Methods. Various general scientific and special methods of scientific knowledge are used, among which are analysis, synthesis, analogy, as well as descriptive and system-functional methods. To compare the practices of Singapore and the Russian Federation, the comparative analysis method was used.Results . Based on specific examples, the effectiveness of PPP in infrastructure and social projects in Singapore is substantiated and recommendations are formulated for applying successful experience and scaling it up in the Russian Federation.Conclusion. Using the experience of Singapore’s public-private partnership will help increase the efficiency of PPP projects in the Russian Federation, improve the investment attractiveness of this segment of the economy and, as a result, develop the state’s transport infrastructure and improve the quality of life of the population.

THE EFFICIENCY OF OPERATIONS MANAGEMENT OF CONSTRUCTION ENTERPRISES IN CONDITIONS OF PUBLIC-PRIVATE PARTNERSHIP

This article explores the operational management of construction enterprises within the framework of public-private partnerships (PPP). It describes the theoretical foundations of operational management, main tasks, methods and tools, as well as the specific features of operational management in PPP construction enterprises. The main tasks of operational management include timely and cost-effective project execution, risk minimization, resource optimization, ensuring construction quality, and meeting customer needs. The authors discuss methods of performance evaluation, coordination, and control mechanisms in managing construction projects under PPP. The article proposes a performance evaluation system for construction enterprises from the perspective of PPP. Emphasis is placed on the importance of risk management in PPP projects. A model of the impact of risk assessment on management decision-making in PPP is formulated. A combined approach to risk assessment is proposed, integrating elements of sensitivity analysis, simulation modelling, and expert evaluation. Recommendations for improving the operational management system and enhancing risk management in PPP are provided. Keywords: operations management, construction enterprise, management tools, strategic partnership, public-private partnership, risk management, performance evaluation, coordination, control.

THE EFFICIENCY OF OPERATIONS MANAGEMENT OF CONSTRUCTION ENTERPRISES IN CONDITIONS OF PUBLICPRIVATE PARTNERSHIP

This article explores the operational management of construction enterprises within the framework of public-private partnerships (PPP). It describes the theoretical foundations of operational management, main tasks, methods and tools, as well as the specific features of operational management in PPP construction enterprises. The main tasks of operational management include timely and costeffective project execution, risk minimization, resource optimization, ensuring construction quality, and meeting customer needs. The authors discuss methods of performance evaluation, coordination, and control mechanisms in managing construction projects under PPP. The article proposes a performance evaluation system for construction enterprises from the perspective of PPP. Emphasis is placed on the importance of risk management in PPP projects. A model of the impact of risk assessment on management decisionmaking in PPP is formulated. A combined approach to risk assessment is proposed, integrating elements of sensitivity analysis, simulation modeling, and expert evaluation. Recommendations for improving the operational management system and enhancing risk management in PPP are provided. Keywords: operations management, construction enterprise, management tools, strategic partnership, public-private partnership, risk management, performance evaluation, coordination, control.

Examining Risk Perception and Cost of Capital in Emerging Market Projects Using the DCC-GARCH Model

Objective: The aim of this study is to accurately estimate the cost of capital and manage risk in energy projects based on public-private partnerships (PPP) in emerging markets. Methodology: To explore the mechanism of determining capital costs and evaluating capital budgeting, Dynamic Conditional Correlation (DCC) and Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models were employed. Additionally, the pure-play method was used as a tool for measuring systematic risk in energy-related projects in emerging markets. Findings: The results showed that the DCC-GARCH model is capable of more accurately predicting volatility and capital costs in emerging markets. Moreover, the use of the pure-play method for calculating systematic risk led to reduced volatility and improved capital cost estimation. The findings also indicated that market volatility and risks associated with economic and financial policies in emerging markets have a significant impact on capital costs. Conclusion: This study demonstrates that the application of advanced financial models such as DCC-GARCH and the pure-play method can lead to more accurate capital cost estimations in PPP projects and provide a better understanding of risks in emerging markets. These models offer valuable tools for risk management in the dynamic economic conditions of emerging markets.

Public-Private Partnership Projects and Digital Innovation within the Framework of Local Development in the Tunisian Territory

Public-Private Partnership Projects and Digital Innovation within the Framework of Local Development in the Tunisian Territory

THE USE OF MECHANISMS OF PUBLIC-PRIVATE PARTNERSHIP IN THE FORMATION OF ENVIRONMENTAL INFRASTRUCTURE

The public-private partnership project should be carried out with the inclusion of socio-economic tasks i.e. the tasks of protecting the environment, ensuring environmental desolation and rational use of Natural Resources. The establishment of PPP in the environmental sphere in our country and a wider understanding of the goals of PPP.

К ВОПРОСУ РАЗВИТИЯ ИННОВАЦИОННОЙ ДЕЯТЕЛЬНОСТИ В РАМКАХ РЕАЛИЗАЦИИ ПРОЕКТОВ КОСМИЧЕСКОЙ ПРОМЫШЛЕННОСТИ

The article explores the organizational and economic mechanism with a high component of innovative activity for the implementation of public-private partnership (PPP) projects in the space industry. The author draws attention to the outflow of foreign capital and highly qualified specialists from Russia, and proposes to use public-private partnerships for the sustainable development of the country and intensification of innovation activities. The article emphasizes that the integration of public and private enterprises in the space industry will allow them to combine their resources, overcome industry problems and reduce the costs of producing space products. The importance of granting rights to use state infrastructure, preferential lending to small and medium-sized businesses, marketing activities and improving industrial management within the framework of the organizational and economic mechanism is also discussed.

Project finance through Infrastructure Investment Trust: Legal and regulatory analysis

Structured finance, private equity, and public offerings drive a new global real estate and infrastructure age. Given the necessity for increased capital in funding infrastructure projects, a range of equity instruments can be employed to attract institutional investors in both advanced and emerging economies. In recent years, infrastructure sectors, including roads, highways, ports, power, and real estate, have seen increased financial demand and investment trusts have become critical in meeting India’s infrastructural needs. Especially in India, Infrastructure Investment Trusts (InvITs) play a vital role in establishing a well-balanced risk management system, which is essential for addressing infrastructure needs and fulfilling the financial requirements of developers. InvITs were established under the Securities and Exchange Board of India (SEBI) Regulations, 2014, to attract global and local long-term investments for public-private partnership (PPP) and infrastructure projects and to fill gaps in traditional project financing. Despite initial expectations, few projects have utilized this structure since its inception. The author’s review, incorporating doctrinal legal research, analyzes the regulatory framework surrounding InvITs in India. The paper contributes to the literature, emphasizing evidence of India’s programmatic approach to enhancing infrastructure financing and showcasing structural and financial reforms in InvITs governance as integral components of the nation’s strategy.

РОЛЬ ГЧП В ФОРМИРОВАНИИ ИНВЕСТИЦИОННОЙ ПРИВЛЕКАТЕЛЬНОСТИ КРЫМА

The current investment policy of the Republic of Crimea is analysed in the article. The authors evaluate the regulatory and legal framework that contributes to enhancing investment attrac-tiveness of the region. The results of the National investment climate rating of the Russian Federation constituent entities indicate that Crimea is quite attractive for investors, despite the international envi-ronment (over the past 84 years the Republic of Crimea has risen from 5th to 76th rating position). Ac-cording to the Investment Portal of the Republic of Crimea, the most popular areas with private investors are tourism, construction and agriculture. However, there is still a need for financing of such socially important areas as infrastructure and ecology. After assessing the implemented investment projects, it was revealed that the projects prove to be relatively financially efficient but it is imperative to ensure that they are more in line with the needs of the local population. The authors consider the mechanism of public-private partnership (PPP) as a tool to reconcile these issues. Only PPP can provide such advantages for investors as reduced risks and state guarantees, including guarantees of return on investment, for achieving not only economic but also social effects. The government, in its turn, obtain an expensive infrastructure facility without huge budget spending. The priority areas for PPP project execution in Cri-mea are water supply and wastewater disposal, road transport infrastructure and solid waste manage-ment, concession agreement is the main form of their implementation. The results of the ranking of the Russian Federation constituent entities by level of the public-private partnership development and the Investment climate rating show that PPP development in Crimea is at a rather low level (XNUMXth place), nevertheless the region has significant potential. In terms of the state of the regulatory environment the Republic is ahead of St. Petersburg, one of the traditional leaders. The position of Crimea in the ranking can be explained by the lack of implemented projects. The authors make an attempt to identify factors, hindering the development of PPP in the Republic of Crimea, and suggest possible solutions.

Государственная поддержка развития транспорта на современном этапе: влияние на транспортный комплекс Дальнего Востока

The article studies the methods of state stimulation of transport development at the present stage. Under the conditions of the «Turn to the East» and geopolitical changes occurring since 2022, Russia's foreign trade flows are being reoriented from European to southern and eastern directions. This has increased the workload of the Far East transportation complex, which provides Russia's access to the markets of Asia-Pacific Region countries (primarily PRC). The increasing scale of cargo flows revealed imbalances in the operation of transportation and aggravated the issue of infrastructure development. The state has developed a system of measures to stimulate the development of transportation. The article suggests their grouping based on the object of influence, market segment and form of regulation. It has shown that the state uses various mechanisms to stimulate private investment in infrastructure development: public-private partnership (PPP), infrastructure bonds, budget loans, etc. The article presents the application of public-private partnerships (PPP) in the Far Eastern Federal District (FEFD) in the field of transport: 16 projects are being implemented, the total investment capacity of which amounts to 223.0 billion rubles. The analysis of the project structure allowed to identify their peculiarities. PPPs are used to implement projects significant for the integrated development of transport in the macro-region, characterized by a significant investment capacity and a long payback period. Examples of such projects are the construction of the cross-border road bridge Blagoveshchensk (RF) - Heihe (PRC), modernization of the international airport «Khabarovsk» (New) named after G. I. Nevelskoy. In general, when implementing PPP projects in the field of transportation, the key role remains with the state, which degree of participation is increasing due to a number of factors: 1) increase in the number of projects in which public sector companies (established by government agencies or development corporations) act as concessionaire; 2) expansion of support mechanisms applied.

ПРОБЛЕМЫ РАЗВИТИЯ ОТЕЧЕСТВЕННЫХ ПРЕДПРИЯТИЙ СЕРВИСА И ТОРГОВЛИ В УСЛОВИЯХ НОВЫХ ВЫЗОВОВ И ЦИФРОВИЗАЦИИ ЭКОНОМИКИ

Based on a survey of respondents from among the heads, deputies, managers of structural divisions, leading specialists of service and trade enterprises of the Donetsk People’s Republic, an analytical review of the problems of their development was conducted. It has been established that the main problem of the development of service and trade enterprises of the Donetsk People’s Republic in the context of digitalization is the continuation of the military conflict. In turn, insignificant problems in the development of service and trade enterprises of the Donetsk People’s Republic in the context of digitalization for the respondents turned out to be: an insufficiently high level of “digitalization” of the population (colleagues) in the Donetsk People’s Republic and skepticism about digital technologies for ordering services and goods for managers and their deputies; a lack of public-private partnership projects for entrepreneurship development and digitalization of the economy for managers of structural divisions; the controversial nature of the provisions of the regulatory and reference information.

ЗАЛУЧЕННЯ ІНВЕСТИЦІЙ НА ЗАСАДАХ ДЕРЖАВНО-ПРИВАТНОГО ПАРТНЕРСТВА В УМОВАХ ПОВОЄННОЇ РОЗБУДОВИ НАЦІОНАЛЬНОГО ГОСПОДАРСТВА: ПЕРЕДУМОВИ ТА ІНСТРУМЕНТАРІЙ

The prerequisites for the implementation of the public-private partnership mechanism in the domestic economy are revealed, with an emphasis on the processes of national economy recovery in the post-war period. The importance and functional role of public-private partnership in building effective investment attraction strategies is argued, with the hypothetical assumption of their promotion of rapid modernization and development of key sectors of the national economy. The public-private partnership in various socio-economic and political environments was analyzed and it was established that it should be considered an adaptive system that uses a mechanism of its implementation adequate to the situation. It has been established that in many countries of the world, public-private partnership is currently recognized as an important socio-economic concept, which, moreover, with the change of socio-economic and political parameters in the world space, acquires new forms of its application, in particular methods of financing the development of infrastructure or providing higher quality and volume of various types of public services. The existing state of domestic legislative regulation of public-private partnership is summarized and the appropriate stages of its implementation in the processes of post-war recovery of the Ukrainian economy are given. Separate directions for creating a favorable investment climate in the post-war period are argued, which relate to the provisions of the legal framework and institutional infrastructure, investment guarantee criteria. It is substantiated that they are critically important for reducing risks for domestic and foreign investors, a factor in increasing the attractiveness of public-private partnership projects. It has been established that the Strategy for the implementation of public-private partnership in the process of socio-economic recovery of Ukraine should primarily be based on the rational planning of the stages of recovery work both for infrastructure projects important for the national economy, as well as the provision of public services and stimulation of economic growth, the application of regulatory mechanisms aimed at ensuring transparency, accountability and fair distribution of risks between public and private participants.

Planning a Risk Management System for PPP projects to Increase the Competitiveness of Business Structures

This article addresses the critical need for effective public-private partnership (further - PPP) models amidst economic, social, and political challenges in Kazakhstan. The results of the study are aimed at improving the identification of risks for making informed decisions. It delves into scientific achievements relevant to assessing business activity and nurturing entrepreneurial culture. Employing comparative analysis, the research examines domestic PPP practices, drawing insights from statistical data. The findings emphasize PPP's role in ensuring national economic competitiveness, with legislative improvements positively impacting growth. The analysis of foreign practices critically examines the evolution of public-private partnership (PPP) development in Kazakhstan by juxtaposing it with the experiences of leading nations. The United Kingdom has demonstrated successful partnership models based on transparency, clear terms, and mutually beneficial relationships, serving as an example for Kazakhstan in enhancing collaboration between the public and private sectors. The SWOT analysis identifies inefficiencies, stressing the importance of transparent project teams and systematic risk management. Sectoral insights highlight a decline in private sector involvement, emphasizing the need for regulatory improvements and risk reduction in PPP implementations. The study emphasizes PPP's indispensable role in Kazakhstan's socio-economic development, advocating for continuous reforms and advanced risk management. The proposed PPP project management algorithm aims to foster efficiency, address challenges, and stimulate economic activity, paving the way for sustainable infrastructure development.

Evolution of Theoretical Approaches to the Analysis of State and Business Cooperation in the Infrastructure Sphere

The classification of historical periods in the evolution of cooperation between the state and business in the infrastructural sphere by stages and forms of cooperation has been improved: antiquity (use of buyouts; competitive construction of post offices with cities, ports and harbors (manceps); infrastructural construction (precarium)) of the Middle Ages ("casual » application of PPPs; buyouts; concessions; "regalia"); the period of colonization (use of concessions for the development of new land colonies and international trade; involvement of private armed ships with their owners to solve military and trade "tasks" at sea); the origin and development of capitalism, industrialization (systematic concession legislation; capital-intensive projects; attraction of private capital in the form of concessions for the development of the utility sector); the modern stage from the middle of the 20th century. (transition from the policy of "public administration" to the "new public administration" model; "private financial initiative"; development of public-private partnership (PPP) regulation worldwide (in more than 120 countries); launch of cross-border PPP projects and projects with attracting direct foreign investment). It was determined that in France during the Middle Ages and the reign of mercantilism, the predominant role of the state in economic development, including infrastructure development, was emphasized. The state attracted private business and financed the works. Unlike mercantilists, representatives of the school of physiocrats believed that the state should not interfere in the field of entrepreneurship at all. The idea of state cooperation with private business in the development of industry by means of optimal regulation and protection from foreign competition, especially at the initial stage, was also reflected in the works of the German scientist F. List. Implementation of projects through the transfer of infrastructure objects under concession conditions to private companies allows to significantly increase their efficiency. The example of the railways of Belgium, Germany, Austria-Hungary and Switzerland shows that this form of PPP is quite competitive during the implementation of large infrastructure projects. At the same time, in order to achieve economic efficiency, such projects must be accompanied by strict state control. After the Second World War, the doctrine of a socially oriented model and a concerted strategy of economic development (concerted economy) came to the fore in economic thought. The positions of J. Keynes and moderate supporters of state intervention in the economy were dominant until the 70s. 20th century, when the ideas of "state capitalism" reached their peak. It is also necessary to note the role played by the theory of the public sector in justifying the role of the state in the economy at various stages of economic development. The state takes an active role in areas that are not attractive to private actors and are related to the generation of "public goods" to increase the level of well-being.

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.

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.