Public-private Partnership Projects Research Articles

Research on Project Management Based on PPP Model

With the continuous development of the global economy, the public-private partnership (PPP) model is increasingly used in the field of project management. Through in-depth cooperation between the government and social capital, the PPP model achieves optimal allocation of resources and reasonable sharing of risks, brings new solutions to infrastructure construction and the improvement of social public services, and achieves a win-win situation. This article analyzes the main characteristics of the PPP model through the literature review method, discusses the main advantages of PPP project management, focuses on the existing problems of PPP project management, and proposes specific solutions to the problems to help project managers carry out projects under the PPP model. Scientific and efficient project management provides theoretical support and practical guidance to ensure that enterprises maximize economic benefits, improve project quality, and promote the healthy and sustainable development of the PPP model in more fields.

Filling the Gap: Explaining Foreign Participation in China’s Water PPP Projects from a Local Government Perspective

Foreign capital has dominated over half of the public–private partnership (PPP) projects in developing countries over the past three decades. As such, attracting and regulating foreign participation in water PPP projects presents a critical challenge for both practitioners and scholars. Using a dataset of 2024 water PPP projects from 1994 to 2021, this study investigates foreign participation and its fall in China’s water PPP projects. Our findings highlight three key points: First, the proportion of projects undertaken by foreign capital decreased from 100% to less than 0.5%, with Chinese domestic capital taking its place. Second, resource dependence on foreign capital and the local government’s need for control lead to four types of foreign participation: financing water plants under user-pays, financing and operating water utilities under government-pays, participating with mainly an O&M role, and nearly no participation. Third, a better balance between efficiency gains and control needs via cooperation with domestic capital by local governments had driven the decline in foreign participation. This study makes two key contributions: (1) it is one of the pioneer studies on systematically tracing the evolution of foreign participation in PPP projects, and (2) it explains the fall of foreign participation from a local government perspective, complementing market-based explanations.

Is the mortgage model appropriate for financing hospitals? A case study

ABSTRACT Objective To evaluate the cost–benefit of a PPP (Public Private Partnership) model -mortgage model- compared to traditional budgeting method funding models based on traditional public budgets (TM). Methods The economic-financial evaluation of the construction has been carried out under the PPP model of a hospital in the Northern Galicia–Portugal–Euroregion by performing a simulation analysis. This comparison involves an analysis of the life project, expressed in terms of net present value (NPV) of the costs and benefits of the project proposed compared to the costs and benefits of the provision of the service by the traditional budgeting method (TM). A simulation analysis has been also performed. Results The PPP (Public Private Partnership) project does not offer more value for money than the traditional budgeting funding model (Public Budget –TM-) – defined as an alternative to the public sector for the provision of the same services. Conclusion The best option would be the creation of a public company (Public Society of Investment –SPI-) to finance the construction and commissioning of the hospital.

Evolutionary game model for the behavior of private sectors in elderly healthcare public–private partnership under the condition of information asymmetry

Chinese elderly healthcare services face problems of poor service quality, difficulty in eliminating hidden quality risks, and inadequate government supervision, primarily due to information asymmetry and insufficient supervision among providers, users, and regulatory bodies. The study addresses two key questions: How does information asymmetry influence private sector strategies in elderly healthcare public–private partnership (PPP), and what regulatory models can overcome the potential shortcomings? The study examines the influence of information asymmetry, particularly on "experience" and "credence," crucial for governance and service quality in elderly healthcare PPPs in China. By developing the novel methodology of evolutionary game theory and employing MATLAB simulations, this study analyzes private sector behavior under two distinct regulatory models. The research findings reveal a significant disparity, under the traditional "single" model; private sectors often prioritize low-quality services driven by self-interest or inadequate penalties, while the collaborative model incentivizes them to deliver higher-quality services influenced by factors such as public participation, reputational incentives, and penalties. Therefore, the paper proposed a multifaceted regulatory model based on strengthening third-party evaluation mechanisms, encouraging public participation, and refining reward and penalty systems. This proposed model will not only significantly contribute to regulatory effectiveness and quality services within elderly healthcare PPP projects, but will also serve as a reference point for government decision-makers responsible for quality services within PPP projects.

Reforming legal and regulatory structure of public–private partnerships in Sri Lanka

PurposeThis paper aims to investigate the current practices and deficiencies in the legal and regulatory structure of public–private partnerships (PPPs) in Sri Lanka and explore recommended practices by international model laws and guidelines addressing such deficiencies.Design/methodology/approachFirstly, a desk study review was conducted to explore the current practices of PPP in Sri Lanka. Secondly, nine expert interviews were conducted to comprehend further current PPP practices and identify the deficiencies of legal and regulatory structure of PPP in Sri Lanka, and content analysis was used to analyse the interviews findings. Finally, international model laws and guidelines were reviewed to explore recommended best practices.FindingsThe research explored non-existence of a national PPP policy, lack of clarity of executing a project’s preliminary affordability, and lack of guidance on risk assessment and feasibility studies as current major deficiencies of PPP legal and regulatory structure in Sri Lanka. Further, findings showed that setting-up two project governance structures, a steering committee and a project team, and develop clear guidelines and standard forms can be adapted to strengthen the PPP legal and regulatory structure.Research limitations/implicationsThe findings of this study may be useful to policy makers in tracing essential reforms to PPP legal and regulatory structure. This study is limited to legal and regulatory structure of first three phases of the PPP project life cycle: project identification, project preparation and project procurement.Originality/valueThis paper establishes a novel framework to visualise the current practices and deficiencies in the PPP legal and regulatory framework in Sri Lanka, and the way of incorporating recommended practices by international model laws and guidelines for its future reformations.

Evolutionary Mechanism of Trust for Public–Private Partnership Projects with Public Participation

Trust plays a pivotal role in sustaining cooperative relationships and serves as the cornerstone of successful cooperation among participants in public–private partnership (PPP) projects. A decline in trust can result in unethical behavior, fractured relationships, and even project failure. Despite its critical importance, there is an insufficiency of research exploring the evolutionary dynamics of trust, particularly from the perspective of public participation. To address this, an evolutionary game model is constructed to analyze the evolution of behavioral strategies and identify their stable state from a dynamic perspective. The model examines the influence of trust levels and public participation on cooperation, revealing that trust asymmetry negatively impacts collaborative outcomes in PPP projects. There is an optimal trust level: trust positively influences cooperation up to a certain peak, beyond which excessive trust becomes detrimental and hinders cooperative outcomes. When trust levels are equal, the selection of behavioral strategies is influenced by the initial willingness of participants. A threshold exists for this initial willingness, above which cooperation is more likely to succeed. Additionally, public participation is found to significantly enhance cooperation. These conclusions advance the theoretical advancements of trust in PPP projects and offer valuable insights for policymakers and stakeholders in addressing trust-related challenges, thereby fostering sustainable collaboration.

Public-private partnership in modern conditions

The article examines the prospects for the development of public-private partnership (PPP) using the example of the construction of road transport infrastructure facilities. According to the authors, PPP projects imply increased responsibility on the part of business, since the customer here is the state, and the implementation of the project is calculated in the perspective of several years.

Risk analysis of PPP financing for toll road project

The Indonesian Government has limited funds to provide infrastructure facilities for its population of 261 million people, which requires an investment of US$ 6.445 trillion. Only 37% of this can be covered by government funds, necessitating the use of private funds for the remaining 63%. Public-Private Partnership (PPP) offer a solution for infrastructure development in Indonesia, where the government collaborates with the private sector to provide public infrastructure. However, PPP implementation faces challenges, such as changes in bank financial policies that affect financing schemes. The purpose of this study is to analyze the feasibility and variable risks of project funding through sensitivity analysis. A single case study approach was used to gather data. The results indicate that the Serang-Panimbang toll road project is feasible. Additionally, three parameters are identified as high risk: investment cost, income, and interest rate. The findings of this study are beneficial for the government and construction service actors involved in PPP projects. They also serve as a valuable literature review for academics studying PPPs.

Public, Private Partnerships Framework in the United Kingdom, China, and Oman: Theories and Motivations

This paper will explore Public-Private Partnership (PPP) projects by focusing on two main aspects: the underlying theory of PPPs and the factors that encourage and drive their implementation [1]. In the first section, we will provide a thorough explanation of the theory behind Public-Private Partnerships, including an analysis of the legal framework that governs these initiatives and the essential requirements for their establishment. Following this, the paper will examine key factors influencing PPPs, featuring a comparative assessment of how these partnerships are managed in three distinct countries: the United Kingdom, China, and the Sultanate of Oman [4]. This comparative analysis will highlight both the similarities and differences in the governance of PPPs across these nations. The third section will delve into the practical application of Public-Private Partnerships in the Sultanate of Oman. A real-world case study will be presented to illustrate how PPPs are executed within this context [6]. By integrating both theoretical insights and practical examples, this paper aims to provide a comprehensive understanding of the operation and functionality of Public-Private Partnerships. It will address critical elements of the PPP model and its application across various legal and economic systems [3]. Ultimately, the paper will offer valuable insights into the mechanics of Public-Private Partnerships, emphasizing legal frameworks, motivating factors, and specific case studies from the United Kingdom, China, and the Sultanate of Oman [8].

Public-private Partnerships in Croatia

Public-private partnerships (PPPs) are versatile business models aimed at creating and offering public goods and services by combining the advantages of public and private sectors. Altough they are widely accepted and used globally, public-private partnerships vary greatly in their structures, mutual risk distribution and sector applications. In Croatia, the PPPs have been insufficiently investigated and implemented, even though there have been significant project investments in the education, sports and transport sectors. This article presents a systematic literature review with the aim of filling the knowledge gap by analyzing all of the literature published so far on PPP projects in Croatia. By using the PRISMA methodology, it analyzes and identifies the dominant topics, sectors and methodological approaches in this literature, while at the same time giving indicating gaps and opportunities for the advancement of research and practice of PPPs in Croatia.

Critical Success Factors of Public Private Partnership (PPP) Implementation inBangladesh

Research on key success factors (CSFs) for public-private partnership (PPP) initiatives in developing nations is lacking, especially in South Asian countries like Bangladesh, despite the necessity of such studies. The purpose of this research is to learn how different public and private sector actors in Bangladesh view the CSFs and how those views affect the implementation of PPP projects in the country's infrastructure. To learn how public and private sector actors view the CSFs and SSFs of PPP projects, a questionnaire survey was used. After reviewing the literature, we were able to identify CSFs and SSFs and test the level of agreement between public and private sector respondents. We utilized SPSS software to rank the CSFs and SSFs and look at the perceived disparities between the sectors; 59 responses were usable in total. According to the findings, "economic viability" was the most important criterion, followed by "suitable risk allocation," "sound financial packages," "promising investment environment," and "dependable concessionaire" in that order. The perceptions between the sectors are likewise found to be mixed. In Bangladesh, key parties must be engaged and consensus must be reached over this finding

FEATURES OF GOAL-SETTING OF PUBLIC-PRIVATE PARTNERSHIP PROJECTS

The public-private partnership mechanism brings together different organizations in the process of project implementation, the initial goals of which may not coincide, which reduces the possibility of achieving the maximum value of the project. Therefore, the strategic context of agreeing on the common goal of the partnership between the public and private sectors is fundamental to its viability. In this article, the authors describe the process of goal-setting for PPP projects and present a model for setting goals and negotiations in PPP projects. Authors consider that the agreement on a common goal should be achieved in the process of negotiations between the participants, taking into account the interests of each party and ensuring the necessary combination of private and public interests to justify the performance indicators of PPP. Purpose. Determine the optimal mechanism for coordinating the interests of the parties participating in public-private partnership projects in the process of setting a common goal for the project. Materials and methods. The results of the analysis of the works of both domestic and foreign scientists, specialists in the field of development and implementation of public-private partnership projects are used as the theoretical and methodological basis of the study. In the process of conducting the study, general and special methods of scientific knowledge were used, including a systems approach, grouping and classification. Results. The article presents a general mechanism and principles of goal-setting in the development of public-private partnership projects, the use of which contributes to the achievement of key project indicators and the implementation of the interests of all parties involved in it. The independent variables described in the work, influencing goal setting and negotiations in PPP projects, provide the basis for making decisions on financing PPP projects. Practical implications. The main results of the study may be of interest to both theoretical scientists and practitioners involved in the development and implementation of public-private partnership projects, as well as assessing their effectiveness.

Impact of Tax Reductions on Public–Private Partnership Projects: Evidence from Comprehensive Implementation of China’s Business Tax to Value-Added Tax Reform

Impact of Tax Reductions on Public–Private Partnership Projects: Evidence from Comprehensive Implementation of China’s Business Tax to Value-Added Tax Reform

Risks with Cost Overruns and Project Completion in Public-Private Partnerships: An Examination of the Sondu-Miriu Hydropower Project

The onset of PPP as a strategy in the management of public service and projects was concisely presented in 1990s as the cornerstone for promoting sustainable development for low income countries (World Bank Report, 1993). This combination is expected to enhance time, quality and cost efficiency of resultant projects (Savas, 2000). The study was anchored on the principal agent theory while adopting pragmatic paradigm to determine the extent to which construction cost overrun related risks influence completion of Public Private Partnership Project in Kenya. The study tested the null hypothesis that: Construction cost overrun related risks do not significantly influence completion of Public Private Partnership Project in Kenya. The study targeted the entire management of Sondu- Miriu Power project totaling 85 obtained from the contracting parties where a sample of 71 was selected through proportionate sampling. Questionnaires and interview schedules were used for data collection while Cronbach Alpha was used as a measure of reliability and established that the overall questionnaire reliability was α = 0.730. Quantitative and qualitative techniques were used in analysis where regression analysis was used to establish the relationship between the variables. The null hypothesis was tested at 95% confidence level and found that there was a strong negative correlation between the variables, r (38) = -0.682 (p<.05) with regression showing that construction cost overrun related risks explained up to 46.5% [R square = .465, F (1, 37) = 32.153; p < .05].This implies that construction cost overrun significantly influences completion of construction projects through PPPs. Thus, the null hypothesis was rejected. The study recommends that the project stakeholders should minimize the number of contractors by vetting and prequalifying contractors with capability to deliver the services. This will prevent outsourcing and minimize cost overrun.

Повышение инвестиционной привлекательности проектов государственно-частного партнерства в Кыргызской Республике

According to the Program for the Development of Public-Private Partnership in the Kyrgyz Republic for 2022-2026 [1], the Kyrgyz Republic is making the necessary efforts to ensure investment and improve the capacity of government agencies to develop the necessary economic and social infrastructure, with a significant strengthening of the role of the private sector. Achieving the key development priorities of the Kyrgyz Republic related to sustainable economic growth, economic development, and improving the standard of living of the population presupposes high dynamics of investment processes based on the pooling of private and public assets for the implementation of the most important infrastructure projects. A necessary condition for the large-scale attraction of foreign investment in public-private partnership (PPP) projects is adequate legal regulation in this area, consistent with the best world practices and satisfying the needs of investors.

Quantitative Analysis of Critical Success Factors in the Development of Public-Private Partnership (PPP) Project Briefs in the United Arab Emirates

This paper presents the research findings on Public-Private Partnerships (PPP) brief development in the United Arab Emirates. A questionnaire survey was conducted to assess and rank the relative importance of the Critical Success Factors (CSFs) identified in PPP brief development in the UAE. A quantitative analysis was then conducted on the data gathered from the survey, and the results of the analysis are described. The processes of purifying and computing the measurement instruments are also explored using Cronbach’s alpha to assess the reliability of scale measurements. The statistical analysis focuses on the importance and ranking of the identified thirty-eight (38) CSFs and their Sub-Success Factors (SSFs). The overall assessment of these factors highlights their importance in a brief development process. Accordingly, these factors are grouped into seven categories, and the developed CSF framework is presented. The categories, listed in descending order, are Regulatory and Legal Factors; Finance and Economic Factors; Risk-Related Factors; Public Sector Capacity-Related Factors; Procurement-Related Factors; Stakeholder-Related Factors; and Social, Cultural, and Ethical Factors. The research findings offer a comprehensive framework of CSFs for brief development tailored to the unique PPP environment of the UAE to ensure project success.

Assessment of stakeholders’ responsiveness in public–private partnership projects: perspective from Nigeria

PurposeThe purpose of this paper is to evaluate stakeholders’ responsiveness as an important factor of public–private partnership (PPP) projects performance.Design/methodology/approachPrimary data were collected through the administration of structured questionnaires on the key stakeholders (public sector authorities, concessionaires, local lenders (financiers), consultants and contractors) involved in the identified 24 PPP projects so far initiated by Lagos State government in Nigeria. As such, 37 managerial officers (public sector), 20 concessionaires, 17 financiers, 22 contractors and 19 consultants (private sector) were purposively selected. These give a total number of 115 sample size. Out of this, 81 valid responses were received and used for the analysis. The elicited data were analysed using frequency distribution, percentile, mean item score and analysis of variance statistics.FindingsThe findings show that the responsiveness of stakeholders to identified responsibilities can only be said to be fair on the part of two primary stakeholders: government and concessionaires, while others, financiers, consultants, contractors and end-users, exhibit low level of responsiveness in PPP projects.Originality/valueThe paper empirically gauges how stakeholders respond to their responsibilities in PPP project. The study also provided insight from both theoretical and empirical perspective and the effect of stakeholders’ responsiveness on the performance of PPP projects. This study has implications for PPP project performance.

Implementation of public-private partnership projects in the field of healthcare: Problems and prospects

Implementation of public-private partnership projects in the field of healthcare: Problems and prospects

Public-private partnership in the field of cybersecurity

The article provides a comprehensive analysis of the legal framework for public-private partnership relations in Ukraine. The author considers the main conceptual approaches to understanding the concept of “public-private partnership”, which allows clarifying its legal nature as a form of cooperation between public authorities and private entities to solve socially important tasks. Particular attention is paid to the historical and legal grounds for the emergence of public-private partnership, which is the result of a long process of evolution of relations between the State and private entities in the context of jointly addressing key socio-economic issues. The author identifies a number of problematic aspects which complicate the effective implementation of public-private partnership mechanisms in economic relations in Ukraine. In particular, these include imperfections in the legal framework, insufficient transparency of the procedures for concluding public-private partnership agreements, limited financial resources and low level of trust between public authorities and private partners. The article proposes ways to improve domestic legislation, in particular, to clarify the procedural support for the implementation of public-private partnership projects, increase transparency, and introduce clear mechanisms for monitoring the fulfillment of the terms of such agreements. The author analyzes in detail the peculiarities of legal regulation of public-private partnership in the field of cybersecurity in Ukraine. It is shown that domestic practice is still at the stage of formation, which requires the introduction of a systematic approach to the development and implementation of relevant projects. The relevance of this area in the context of ensuring Ukraine’s cybersecurity and integration into the European and international cyber defense system is determined. Specific recommendations for improving current legislation are proposed, in particular, to strengthen legal guarantees for partnership participants, develop mechanisms to encourage the private sector to participate in public-private partnership projects in the field of cybersecurity, and implement best practices in cyber risk management. Thus, the article not only summarizes the current state of development of public-private partnerships in Ukraine, but also identifies priorities for its improvement, especially in the field of cybersecurity, which is a key component of national security in the face of current challenges.

Does opportunism always reduce stakeholder satisfaction in public-private partnership (PPP) projects? A theory of benign opportunism

Regarded as a troublesome source of ‘behavioral’ uncertainty in transactions, opportunism has drawn wide scholarly attention with an almost unanimous argument that opportunism is detrimental to performance outcomes. However, recent advancements also highlight the bright side of opportunism and especially when combined with the particularities of project context, which further requests a critical revisiting of the role of opportunism for project-related outcomes. With the aim of addressing the nuanced understanding of opportunism in projects, we conduct survey-based quantitative research to investigate the relationship between opportunism and stakeholder satisfaction in public-private partnerships (PPP). The research findings suggest that passive opportunism under new circumstances by a private party (OPNP) is positively related to stakeholder satisfaction. Our research findings shed light on the project governance literature by challenging the conventional wisdom on opportunism outcomes in PPP projects.