Public-private Partnership Projects Research Articles

ECONOMIC FEATURES OF PUBLIC-PRIVATE PARTNERSHIP DEVELOPMENT: GLOBAL TRENDS AND DOMESTIC EXPERIENCE OF THE PRE-WAR PERIOD

In the conditions of globalization, the development of the knowledge economy, and the digitalization of all spheres of activity, the most effective form of cooperation between the state and business entities - business and private individuals in the field of education and science, and the way of financing educational and scientific projects is the public-private partnership (PPP).The development and implementation of effective mechanisms for the interaction of the state, science, and business on the basis of PPP, which would correspond to modern conditions, the search for effective forms and tools for financing PPP projects is an urgent task today.The analysis carried out in the article made it possible to single out 5 main trends in the development of PPPs (quantitative growth of PPPs in the world and in the EU; diversification of the PPP market by countries and sectors of the economy; infrastructural orientation of PPPs; state support of a certain type of PPPs either in a certain industry or in a certain direction; development PPP in the innovative sphere), which made it possible to reach a conclusion in the process of generalization about the areas in which PPP was concentrated in Ukraine. On the basis of the statistical data, the article identifies the main areas of concentration of PPP projects in Ukraine in the pre-war period.Considering the multi-component nature of PPP goals, the scientific work summarizes and details the scenarios of the activation of PPP relations in Ukraine (budgetary and financial, resource, innovation, and investment).

THE ECONOMIC IMPACT OF PUBLIC-PRIVATE PARTNERSHIPS IN INFRASTRUCTURE DEVELOPMENT: A STUDY OF URBAN INFRASTRUCTURE PROJECTS IN TAMIL NADU

This study explores the economic impact of Public-Private Partnerships (PPPs) on urban infrastructure development in Tamil Nadu, India. Through an analysis of both quantitative and qualitative data, the research assesses the contribution of PPPs to economic growth, employment generation, community development, and service accessibility. A total of 300 respondents were surveyed, and thematic analysis of interviews with key stakeholders, including government officials, private sector representatives, and community members, was conducted. The findings reveal strong positive correlations between PPP projects and economic indicators such as employment, income generation, and community development. Despite these benefits, challenges such as regulatory delays, financing issues, and community resistance were identified. The study highlights that while PPPs contribute significantly to infrastructure development and economic growth, there is a need for enhanced transparency, risk management, and community engagement to ensure sustainable and inclusive outcomes. This research provides valuable insights into the role of PPPs in urban development and offers recommendations for improving their implementation in Tamil Nadu's infrastructure sector.

Econometric models - a method for examining factors of implementation of public-private partnership projects in selected European countries

Modern science is based on the study of economic phenomena and tries to quantify them in a measurable way. Econometric models are used for this purpose. The object of this research was to develop econometric models that show the strength of the influence of various factors on the implementation of public-private partnership (PPP) projects in the area of transport infrastructure in France, GB, Germany, the Netherlands and Belgium. The models express the dependence of the value and number of PPP contracts on the value of measurable PPP success factors. Projects with a value of at least EUR40 million were included. A linear model and seven models transformable to linear were used. Four groups of factors were considered as explanatory variables. Fourteen indicators were obtained. Principal components determined based on covariance and correlation matrices were also used. The best models for the number of PPP contracts are linear and hyperbolic I models. For the value of contracts - linear and hyperbolic I and logarithmic models. The best models were indicated taking into account the type of explanatory variables and regardless of the type of explanatory variables. Nine criteria were used to assess the quality of the models. Factors having a significant impact on the value and number of PPP models were identified from the best models. Factors having no significant influence were also indicated.

AGENCY THEORY IN PUBLIC-PRIVATE PARTNERSHIP PROJECTS

This study aims to find out the agency theory perspective with special emphasis on the agency problem in public-private partnership (PPP) projects. In this study, we have reviewed relevant articles about agency theory application in PPP projects to specify the problem, gap, and application of the principal-agent concept. PRISMA (Preferred items reporting and systematic meta-analysis) has been used for the selection of articles. The study provides a fair review of the agency theory concept along with the agency problems in PPP projects to formulate a strong foundation of relationships amongst partners. The study finding will help practitioners and policymakers to work on PPP with a better comprehension of agency theory.

Impact of the profile of public-private partnership projects on the economic potential of Central Asian countries

The object of this study were projects based on public-private partnership. The results of the state of public-private partnership projects in various sectors of the economy of the Central Asian countries and the assessment of the prospects for their development are presented. The study uses a comparative public-private partnership project and a forecast analysis of the economic performance of the economies of the Central Asian countries. A comparative analysis revealed the predominant areas of public-private partnership projects. The Republic of Kazakhstan is ahead of other Central Asian countries in the implementation of public-private partnership projects with a total cost of USD 2. 863 billion. There are 136 projects in the Republic of Uzbekistan, dominated by the sphere of housing and communal services (collection, removal, sorting, and processing of solid household waste) and the field of culture and sports. There are three agricultural projects in the Kyrgyz Republic. In the Republic of Tajikistan, 32 projects are being developed, mainly aimed at the development of transport infrastructure. Turkmenistan is implementing two projects related to transport infrastructure and manufacturing. Forecast analysis of economic indicators of countries makes it possible to identify the prerequisites for the use of market mechanisms to improve the agriculture of countries and the prospects for development from implementation for the agro-industrial complex of the Republic of Kazakhstan. The most important task of the strategic development of countries with commodity economies is to increase food security. The creation of favorable conditions for the development of economic relations between the state and the private sector is inextricably linked with the need to provide state support measures and legal regulation

Evolutionary game analysis of low-carbon technology innovation diffusion under PPP mode in China.

With the Public-Private Partnership (PPP) mode playing an increasingly important role in the investment of infrastructure, promoting the diffusion of low-carbon technology innovation in PPP projects not only helps to reduce the carbon emissions of infrastructure, but also plays an important demonstration role in the low-carbon transformation of construction industry. In order to clarify the evolutionary mechanism of low-carbon technology innovation diffusion among stakeholders under the unique payment mechanism of PPP projects in China, the paper builds two different evolutionary game models respectively under government payment mechanism and consumer payment mechanism based on evolutionary game theory. The evolutionary relationship between the choice of behavior strategies and the change of influencing factors under different payment mechanisms are analyzed by numerical simulation. It is found that under government payment mechanism, the regulation cost of government to promote low-carbon technology innovation and the punishment of the superior regulatory authority for non-regulation behavior are the important factors affecting government's behavioral strategies. The low-carbon technology innovation cost of social capital and the intensity of government subsidy and punishment are the main factors affecting social capital's behavioral strategies; Under consumer payment mechanism, consumer becomes the ultimate payer of low-carbon products, and the income they get from purchasing low-carbon products and the subsidy provided by the government become the main factors determining consumer's behavioral strategies. Finally, from the perspective of government, social capital and consumer, countermeasures and management implications are put forward to effectively promote the diffusion of low-carbon technology innovation under different payment mechanism in PPP projects.

Analyzing the effects of government policy and solar photovoltaic hydrogen production on promoting CO2 capture and utilization by using evolutionary game analysis

This study aims at proposing a public-private partnership project including the government (GOVT), coal-fired power plant (CTPP) and solar photovoltaic power plant (PVPP) toward carbon emission reduction and neutralization in China. The project is formed using the CO2 capture and utilization (CCU) and solar PV hydrogen production technologies. When all the participators cooperate, the influence of typical factors on the project is evaluated using the evolutionary game theory method. The results show that increasing the CCU subsidy can strengthen the participating intention of the CTPP but will reduce that of the GOVT. Improving the green electricity subsidy can strengthen the participating intention of the PVPP but will decrease that of the GOVT. To ensure the smooth running of the project, a relatively higher carbon emission penalty and a higher sales price of methanol should be ensured, the PVPP should control its daily working hours appropriately, and the proportion of electricity quantity of the PVPP used for hydrogen production should be increased. In this study, the suggested ranges of CCU and green electricity subsidy coefficients are 0.03–0.05 $/kWh and 0.0035–0.0045 $/kWh, the carbon emission penalty coefficient should be greater than 11 $/t, and the suggested range of daily working hours of the PVPP is 7–8 h.

Public-private partnership management systems: analysis of foreign experience

The main purpose of this article is to evaluate and analyze foreign experience in the creation and functioning of public-private partnership (PPP) management systems, highlight their country-specific features and present the most successful practices of its development. The article presents foreign experience in the creation and functioning of public-private partnership (hereinafter PPP) project management systems, highlights their country-specific features and presents the most successful practices of its development. The authors touched upon aspects of legislative and regulatory support, principles of the PPP management and development system, long-term planning of infrastructure development, tools and methods, creation and organization of public administration bodies within the framework of PPP.The result of the article is the collection and study of data on the implementation and implementation of the PPP mechanism in foreign countries, based on the collected data, during the study of practical experience accumulated in the field of public-private partnership, to determine the main criteria for the success of public administration systems in the field of PPP. As part of the study methods of analysis, theoretical and logical methods of generalization, comparison and comparison, deduction and induction, methods of formalization, logical interpretation, methods of logical reasoning, the method of tabular representation of the results, analysis and evaluation were used. The main results and practical relevance of the work are systematized foreign practice of regulatory and legal support of the PPP project management system, the organization of the public administration system in the framework of PPP, which allowed to define the main criteria for the success of public administration systems in the field of PPP. The authors have made recommendations for improving the PPP system of the Republic of Kazakhstan.

RELATIONSHIP BETWEEN CRITICAL SUCCESS FACTORS FOR PUBLIC PRIVATE PARTNERSHIP (PPP) AND SUSTAINABLE PPP PROJECT PERFORMANCE

Sustainable public-private partnership project performance is great challenge for project management domain. This study aims to investigate relationship between critical success factors for public-private partnership & sustainable public-private partnership project performance. CSF theory has been used to evaluate relationship. Quantitative approach has been used to determine the link between the study variables. Cross-sectional data with a primary method for data collection is used. An adapted questionnaire is used to get the data. The correlation analysis between study variables provides empirical evidence about the significant relationship between CSFs and sustainable PPP project performance. The results therefore provide significant information in deciding about the desired relationship and reaching the conclusion. The study results can be used by researchers and policymakers for the sustainable PPP projects performance and based upon the relationship strength CSFs can be accorded preferences.

Public-Private Partnership Contracts and Projects and their Infl uence on the Local Economy Development in Serbia

Public-private partnership (PPP) is a relatively new legal institute and financing model in the legal system of the Republic of Serbia, which was created only after the adoption of the Law on Public-Private Partnership and Concessions in 2011. The basic elements of PPP are contracts and projects. When it comes to contracts, the legal nature of the public contract on PPP is still not sufficiently clarified. Although this contract has elements of an administrative contract, it still does not follow from legislation in Serbia. Therefore, in the future, special attention should be paid to harmonizing the regime of this contract with the regime of administrative contracts established in the Law on General Administrative Procedure. On the other hand, after ten years, PPP projects in Serbia are becoming an increasingly important instrument of local economic development. Until July 2022, the Commission for PPP of the Government of the Republic of Serbia gave a positive opinion for 227 public-private partnership projects. We will present why the legal nature of the public contract on PPP is important and how PPP projects encourage local economic development in the Republic of Serbia.

Evolutionary Game Analysis of Participations in Museum Public–Private Partnership Projects Based on System Dynamics

In China, the number of public–private partnership (PPP) projects in the museum field is relatively small, and the success rate is quite low, which highlights the drawback of an insufficient depth of overall promotion. To break through this dilemma, this paper objectively analyzes the interest demands and behavior-oriented conflicts between two stakeholders and constructs a game model based on limited rationality for the evolution of participation behaviors in museum PPP projects. In addition, different levels of government incentives are introduced along with the modeling and simulation of system dynamics (SD) to further clarify the dynamic evolution process of participants’ behavioral strategies. There are multiple complex scenarios associated with the system evolution according to the study. In a museum PPP project, the strategic choices of social forces and museums may have a mutual effect under different scenarios. Under the premise of guaranteeing the benefits of both sides of the game, there are two evolutionary stability strategies. Incentives from the government have a significant impact on the evolution of the game system at different stages of implementation. This paper hopes to provide reference and guidance to facilitate the formation of an appropriate action mechanism for participants and then ensure the sustainable promotion and development of the projects.

Implementasi Metode Project Development Routemap pada Proyek KPBU Di Indonesia

The availability of road infrastructure is one of the important aspects of accelerating the national development process. With all the fiscal limitations in financing the need for large infrastructure provisions, an optimal funding strategy is needed to achieve development goals through alternative financing of the Public-Private Partnership (PPP) scheme to bridge the financing gap through investment. However, the realization of infrastructure investment is a complex matter, so a quality PPP project preparation and planning process is needed so the project visions can be achieved effectively and efficiently. This study aims to observe the application of the Project Development Routemap Method on the Gedebage – Tasikmalaya – Cilacap Toll Road project which is a project carried out by PPP scheme. The Project Development Route map Method assessed the complexity and strategic risk of a project and assessed the capability of key areas of responsibility involved, as well as developed recommendations and action plans as research outputs. Based on the result of the study, it was found that The Gedebage – Tasikmalaya – Cilacap Toll Road is a high-complexity project. The capabilities of the stakeholders including Sponsors (PJPK), Clients (BUJT), Aset Managers (Operators), and Markets (Service Providers) are currently working appropriately, but there are still some areas that need to be improved. Six areas needed improvement, and three practices that were appropriate and needed to be continued.

Comparative analysis of the public–private partnerships framework: Case for South Africa and Brazil

Background: This article provides a comparative analysis of South Africa and Brazil’s municipal public–private partnerships (PPPs) framework with the objective of obtaining lessons for South Africa. Between 1995 and 2019, Brazil had 96 municipal water PPP projects in contrast to South Africa, which had only six municipal water PPP projects.Aim: The article through comparative analysis seeks to gain insights from the Brazilian PPP framework and then to deduce some lessons for South Africa. Brazil was chosen because it has similar developmental characteristics to South Africa.Method: This article relied heavily on secondary qualitative data to analyse both South Africa and Brazil’s municipal PPP frameworks.Results: South Africa needs to frequently review its PPP regulatory environment to determine its effectiveness and fit for purpose; create a framework for fast-tracking smaller PPP projects; and put in place mandatory ex-post evaluation of PPP.Conclusion: South Africa’s policymakers must redesign the municipal PPP framework and approval process to be able to respond to changing environments and address the underlying reasons for the low uptake of municipal infrastructure projects.Contribution: The article provides valuable lessons to policy makers especially in Africa, on how to design an effective regulatory framework to facilitate the speedy adoption of municipal PPPs in the water sector.

Pre-construction duration of public-private partnership projects: evidence from China

PurposePre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction. However, Private Public Partnerships (PPPs) have been subjected to a long pre-construction, thereby leading to an inefficient development process. Therefore, the purpose of this paper is to pay attention to the influencing factors elongating the pre-construction duration.Design/methodology/approachBased on data of 5,677 PPP projects between 2009 and 2021 in China, the authors adopt the Accelerated Failure Time (AFT) model in duration analysis to empirically analyze the following underlying dynamics determining the duration of PPP pre-construction stages: (1) policy uncertainty; (2) corruption; and (3) procurement method selection. To observe the influencing paths more specifically, the authors divided the pre-construction duration into the pre-tendering period and tendering period and regressed them separately.FindingsThe results indicate that the pre-construction duration is significantly prolonged with increased policy uncertainty and corruption degree as well as the use of tendering methods. Meanwhile, the above factors have a greater impact on the pre-tendering period than the tendering period.Originality/valueThe contribution of this study is twofold: (1) theoretically, this paper provides new evidence on the impact of PPP policy uncertainty, corruption and procurement method selection on the pre-construction duration. It complements empirical studies on the factors elongating the time efficiency of PPPs projects. (2) In practice, it provides a specific path for the government to improve the time efficiency of PPPs.

Risk resources management influence on public–private partnership risk management in construction industry. Confirmatory factor analysis approach

PurposeConstruction organisations cannot underestimate the improvement in public–private partnership (PPP) projects’ implementation. At the same time, construction organisations cannot overlook the risk arising from engaging in PPP construction projects. Hence, this study aims to establish the influence of risk resource management (RRM) in managing PPP risk in the construction industry in Ghana.Design/methodology/approachThe researchers adopted qualitative and quantitative research methods to achieve the aim of the study, in which Delphi questions and a close-ended questionnaire were developed. A total of 650 construction specialists, including procurement officers, consultants, project managers, quantity surveyors, site engineers and planning officers were chosen using random and purposive sampling techniques. Recovered data were analysed using descriptive statistics and confirmatory factor analysis (CFA). The CFA maximum likelihood estimation extractor compresses 19 variables into 3 pattern matrices.FindingsThe results of the study revealed three factors that measure RRM in Ghana’s PPP construction industry, including financial resource management which was influenced by communicating the budget to project team members and project partners understanding the budget, and material resource management which was influenced by the provision of materials transportation and provision of delivery programs and labour resource management which was impacted by a commitment to pay social security and taxes and provision of good salaries, to address RRM in PPP construction organisations.Research limitations/implicationsTo incessantly improve the PPP risk management (RM) in construction through RRM, there should be a strong liaison between the universities, government agencies and the construction industry, and such collaboration will assist the industry to obtain first-hand information regarding the study findings and how they can be implemented to help the development of RM in the construction industry. This study is limited to Ghana and CFA and further study should explore structural equation model to determine the structure and measurement model of the risk resource variables.Originality/valueThe study may be valuable to industry stakeholders looking for new approaches to improve RM in their construction activities, particularly in PPP projects. Also, to assist reduce PPP risk, construction companies should use RRM in their organisations.

Public–Private Partnerships and Their Limitations in Sustainable Public Sewerage Industry: A Comparative Analysis of Three Municipal Cases in Japan

Since the mid-1980s, many public water and sewerage business reforms have been carried out in countries around the world in the form of privatization and the introduction of market systems. In Japan, municipalities operate sewerage businesses as a public service, and their revenues are expected to decline in future due to a decrease in population and the deterioration of existing facilities and equipment. Therefore, in this study, we investigated the administrative reform of the public sewerage businesses in Japan as a means of increasing business efficiency and achieving sustainable management. For our research method, we conducted a case study of three advanced municipal sewerage business reforms, which were aimed at introducing outsourcing through long-term concessions, but two were abandoned by the local councils in the middle of the process. The research shows that the limiting factors for these sewerage business reforms include the uncertainty regarding the required investment for heavy rain and earthquake countermeasures. With growing awareness of disaster prevention and mitigation, municipalities are expected to mobilize maximum resources in an emergency. Furthermore, facilities that were constructed in the 1960s to meet the needs of a growing urban population have deteriorated and become an "unmeasurable risk." The second point is the uncertainty about the amount and duration of the central government subsidies provided to municipalities. Due to growing interest in environmental changes caused by global warming, severe weather events attract greater public attention. New capital investment is required to strengthen the capacity of sewerage systems, especially in densely populated urban areas. Under the principle that rainwater treatment is a public expense, about half of the construction cost of sewerage facilities for rainwater is subsidized by the central government. This is a customary yet unstable fiscal policy, making it an uncertain factor in implementing long-term public–private partnership projects.

Performance monitoring and evaluation of water environment treatment PPP projects with multi-source heterogeneous information

Effective measurement and monitoring of the quality of services from the private sector, in the terms of performance in water environment treatment public-private partnership projects (WETPs-PPP), is one of the keys to the success of these projects. Based on the deficiencies of performance monitoring and evaluation theory and the specific characteristics of WETPs-PPP, this study developed a performance monitoring and evaluation model for WETPs-PPP. First, through a literature analysis, a performance monitoring and evaluation index system of WETPs-PPP was constructed from eight dimensions including river embankment, bridges, river water, environment, garden facilities, garden plants, special purpose vehicle, hydraulic structure, and public satisfaction. Second, by combining the adaptive weighted fusion algorithm and Intuitionistic Fuzzy (IF) average operators, multi-source, multi-dimensional, and multi-spatio-temporal data were aggregated. Third, to improve the robustness of the performance monitoring results, the MULTIMOORA evaluation method with a defuzzification procedure under the IF environment was developed to conduct performance monitoring and evaluation for WETPs-PPP. Finally, a water environment treatment and ecological restoration project was used as an example to illustrate the feasibility and effectiveness of the proposed theoretical model.

An intuitionistic fuzzy weighting and ranking model to evaluate the financing challenges of urban development with public-private partnership projects

In today's world, one of the most important and basic parts in urban developments is related to the creation and development of a projects with an infrastructure nature. Meanwhile, these development projects can implement under the public-private partnership (3P) projects that financial challenges are the main factor that can affect the success of the project. In this paper, a novel intuitionistic fuzzy soft computing-based ideal solution based on criteria importance determination and experts’ weights computations is tailored. In this sake, the criteria importance is computed based on presented intuitionistic fuzzy preference evaluation method and also the experts’ weights are determined by proposing an intuitionistic fuzzy utility degree technique. Moreover, the proposed approach is developed based on last aggregation process to decrease the data loss and cover the preferences judgments of experts thorough the method execution. Finally, a real case study is provided to indicate the process of the method execution and assess the effective criteria in 3P projects of urban development. In addition, a comparative assessment and a sensitivity analysis is considered to show the applicability and sensitiveness/robustness of the proposed approach, respectively.

The demand hierarchy of the government and investors in PPP projects

PurposeThis paper aims to determine the demand category and level of government and investors in public–private partnership (PPP) projects. It emphasizes the importance of meeting the demands of stakeholders and controlling the unreasonable demands. This study aims to improve the demand management of stakeholders in the PPP project and lay a foundation for the research on behavior based on the motivation theory.Design/methodology/approachThis paper opted for a questionnaire survey to collect data based on indicators identified through literature. The participants come from the government and private sector (investors, contractors, operators, etc.) in China PPP Lecture Hall. The reliability, validity and variance analyses are used to test the reliability of data. Factor analysis and entropy method are used to determine demand categories and weights.FindingsThe government’s 14 demands are divided into four groups: satisfy public activities, self-interest, responsibility and relief financial pressure; 6 investor's demands are divided into development ability and satisfy social activities. The self-interest of government is higher than that of the publicity in PPP projects; investor's social reputation is most important, it is a foundation for obtaining external resources and achieving enterprise development.Research limitations/implicationsBecause of the chosen research approach, the demand indexes cannot be exhausted. Therefore, researchers are encouraged to enrich relevant contents further.Practical implicationsThis paper includes implications for a targeted demand control mechanism and for managing the unreasonable demand.Originality/valueThis paper comprehensively identifies the demand hierarchy of the government and investors, and provides the theoretical basis for the target management of stakeholders.

A Dysfunctional Legal Framework for Failed Public–Private Partnership Projects: Accounting or Economics?

Public–private partnerships (PPP) are complex long-term arrangements used in public infrastructure, public services or public facilities projects. To ensure that PPPs transfer enough risk to the private sector, European directives first and member states’ national legal frameworks later have modified how these projects are treated in the event of early termination. This paper aims to analyze said changes to determine if they well serve the public interest. The analysis is done by mapping the different alternatives a granting authority has when confronted with a PPP early termination, as stated by the law. We illustrate our analysis with a case study: The Móstoles-Navalcarnero railway, a Spanish PPP project that came to early termination during the construction stage. For this project, we determine the options available to the granting authority with the old Spanish legal framework (in force at the time the project was awarded) and with the new Spanish legal framework.