Sustainable Public-private Partnerships Research Articles

Mitigating Financial Risks in Sustainable Public–Private Partnership Infrastructure Projects: A Quantitative Analysis

Economic recession from the coronavirus outbreak continues to have negative rippling effects on local and international financial investments in public–private partnership (PPP) projects in Ghana, a developing country. Together with poor reports on operating cash-inflows for PPP projects such as those covering schools, hospitals, railways, fishing harbors, cocoa warehouses, recreational parks and affordable housing, there is an urgent need to develop and institutionalise sustainable and robust financial risk management measures. These measures are meant to mitigate financial losses, promote sustainability practices and prolong the longevity of infrastructure developments within PPP pacts. Therefore, this study aims to assess the mitigation measures of PPP infrastructure management in Ghana. Primary data from survey questionnaires were utilised in this study, with the data obtained from PPP practitioners and experts. Data were grouped into project type, sectors and practitioners of PPP projects to aid the analysis using tools such as the Kruskal–Wallis test, the Mann–Whitney U test and factor analysis. The results demonstrate sustainable and green finance, the innovative skills and competencies of project teams, green financial risk models and inclusive cost reduction strategies as crucial to minimising financial risks in PPP project delivery. These findings have significant implications for PPP practitioners and researchers in Ghana and similar developing countries to understand and develop measures to respond to financial risks for sustainable PPP project development and future research studies.

Fuzzy Analysis of Financial Risk Management Strategies for Sustainable Public–Private Partnership Infrastructure Projects in Ghana

Public–private partnership (PPP) is a prominent tool for sustainable infrastructure development. However, the positive contributions of PPPs toward the attainment of sustainable, climate resilience and zero-carbon infrastructure projects are hampered by poor financial risk management. This problem is more prevalent in developing countries like Ghana where private investment inflow has plummeted due to the COVID-19 recession and poor project performance. Thus, this study aims to assess the key financial risk management strategies in ensuring sustainable PPP infrastructure projects in Ghana. The study utilised primary data from PPP practitioners in Ghana solicited through survey questionnaires. Factor analysis, mean scores and fuzzy synthetic analysis are the data analysis techniques for this study. The results revealed that sustainable and green funding models, effective cost-reduction initiatives, a competent team with committed leadership and emerging technologies and regulations constitute the key strategies for managing the financial risks of sustainable PPP infrastructure projects. Although future studies must expand the scope of data gathering, the findings of the study enrich the theoretical understanding of financial risks in sustainable investments in PPP infrastructures. Relevant remedies that will aid the development of practical financial risk management guidelines are also provided in this study for PPP practitioners.

Creating sustainable public private partnerships through corporate governance in the Sub-Saharan Africa (SSA)

Governments of Sub Saharan African (SSA) countries have struggled to successfully invest in capital intensive projects. As such, public private partnerships play a key role in redefining the role of Government in the context of infrastructure projects, by focusing on supervision and regulation and moving away from direct ownership and management. Sub Saharan African countries have seen such inclusive partnerships yielding some numerous benefits in different sectors. However, despite the salubrious benefits that PPPs have brought in different projects, PPPs in SSA countries are still dogged by a myriad of administrative, technical, financial and legal challenges. These corporate governance related challenges have made it difficult for these SSA governments to glean the full benefits of PPPs. The study is informed by the qualitative methodology with an extensive review of literature. Data was gathered from purposively selected written documents and these documents were analysed using thematic and content analysis techniques. The study established that there are some corporate governance deficiencies in most PPP projects in the SSA countries. Additionally, most of these public projects in the SSA lack adequate good corporate governance attention that is given to the PPP procedures and processes involved. The study therefore recommends that there is need for the full adoption of good corporate governance systems, practices, processes and procedures in the PPPs designing, financing, implementation and operationalisation in SSA.

Evolution of the concept of public-private partnership in the 1980-2020

The evolution of changes in the concept of public-private partnership is very relevant in today's world. The growth of global problems, such as financial crises, climate change, social imbalances and economic transformations, creates a need for new strategies and concepts of cooperation between different sectors of society. Public-private partnerships are a key mechanism to address these challenges, as they provide mechanisms for cooperation between public and private actors to achieve common goals. The purpose of the study is to substantiate the evolutionary changes of the concept of public-private partnership. Using bibliographic analysis and visualization of data from the Web of Science based on VOSviewer, ten research clusters were identified and analyzed, which reflect various topics and their interrelationships, contributing to the systematization of changes in the concept of public-private partnerships. Phases of the evolutionary transformation of the public-private partnership concept: Public-Private Partnership 1.0. Traditional Public-Private Partnership; Public-Private Partnership 2.0. People-first Public-Private Partnership; Public-Private Partnership 3.0. Climate-smart Public-Private Partnership; Public-Private Partnership 4.0. Sustainable public-private partnership for post-war reconstruction. It was determined that in the use of public-private partnership in industry, a change in the role of this sphere is observed. In the «Traditional Public-Private Partnership» industry has a key role in infrastructure construction, providing materials and advanced technologies for infrastructure projects; «People-first Public-Private Partnership» - ensuring quality medical care and improving the health care system; «Climate-smart public-private partnership» - reducing the impact of climate change on production through investments in environmentally friendly technologies and ensuring sustainability of food supplies; «Sustainable public-private partnership for post-war reconstruction» - post-war reconstruction, providing the necessary materials and resources for the construction and reconstruction of infrastructure. Also, during the COVID-19 pandemic, industry, particularly pharmaceuticals, is working with government and other sectors to develop new treatments and vaccines. These joint efforts help overcome crises and improve living conditions in affected areas. It was revealed that the concept of public-private partnership is insufficiently developed in Ukraine. «Traditional public-private partnership», despite 20 years of implementation, did not receive active implementation of infrastructure projects. «People-first Public-Private Partnership» is just beginning its development. It is noted that the «Sustainable public-private partnership for post-war reconstruction» is updated for post-war conditions, as it contributes to attracting international resources for economic and social recovery, but requires a systematic approach and adaptation to the specifics of the Ukrainian situation. The implementation of PPP in Ukraine requires systematic recommendations and consideration of international experience for effective use in the restoration and reconstruction of infrastructure and strategic objects.

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

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

Building upcycling or building reconstruction? The ‘Global Benefit’ perspective to support investment decisions for sustainable cities

Investment decisions on demolition and reconstruction vs. refurbishment of the existing building stock can extend beyond financial and economic criteria. However, they must involve energy savings, environmental preservation, material consumption, and waste management for sustainable cities. The regulatory framework used in the past decades and the correlated research seem more unbalanced toward the containment of building energy consumption than toward embodied energy (EE) management in production processes and environmental impact management. Foreshadowing the perspective of a more restrictive regulatory framework on EE, such as prohibiting the displacement of materials with residual energy potential, such as waste in landfills, some challenging frontier issues are involved when facing the limits of the economic evaluation methodologies for transformation projects. Thus, this study aimed to propose a reasoning and an operative modality to support urban governance policies and investment decisions involving private and public subjects in the construction sector. Circular economy and life cycle thinking principles, through life cycle costing (LCC) and life cycle assessment (LCA), are assumed and harmonized with the discounted cash-flow analysis (DCFA): (1) monetizing and modeling into the DCFA the EE and the embodied carbon (EC); (2) internalizing the Global Cost and the new ‘Global Benefit’ into the net present value (NPV) calculation; and (3) focusing on the residual end-of-life value calculation from the early design and investment decision stages. The reasoning can be extended to single buildings, the urban scale, or even entire portions of existing buildings in urban areas concerning typological sub-segments. The operative modality is yet to be explored in a concrete application for orienting urban governance policies and sustainable public–private partnerships, including environmental and, thus, social externalities even in the private real estate investment decision process, in the scope of evolving regulations.

A Study on the Impact of Team Interdependence on Cooperative Performance in Public–Private Partnership Projects: The Moderating Effect of Government Equity Participation

Sustainable collaboration among teams drives sustainable public–private partnership (PPP) projects, and the interactions, perceptions, and behaviors of project teams with ad hoc decision-making power critically impact collaborative performance in PPP contexts. While the role relationships between subjective interdependence, collective behaviors, team processes, and performance in PPP project teams are yet to be clarified, further validation is needed to embed this logic in project management. This study aims to clarify the role relationships among the four variables of team interdependence, team interaction, team performance, and government participation. Through an empirical investigation of the data of 367 samples of PPP project teams and data analysis by SPSS 26.0 and Amos 23.0, it is found that team interdependence (task interdependence, result interdependence) has a significant positive effect on cooperative performance, and team interaction plays a mediating role in this process. Compared with enterprises with low government share, team interdependence with high government share has a significant positive effect on the team cooperation performance of PPP projects and has a positive moderating effect on the influence mechanism of team cooperation performance. Based on this, this paper proposes strategies for PPP project team management and sustainable development. It suggests corresponding suggestions for improving PPP project team performance and sustainable development.

Awareness, practices and perspectives on ensuring access to ideally packaged iodized salt in Nigeria

Salt iodization is a positive exemplar of a sustainable public-private partnership in promoting better nutrition outcomes in many countries. However, the gains in the past decades are gradually being eroded, following laxity in policy implementation, monitoring and regulatory roles resulting in increasing access to non-labelled salt in the Nigerian market. This study was designed to evaluate the awareness, practices and perspectives on salt iodization and regulations among salt marketers and consumers in Ibadan, Oyo state.This mixed-method study was carried out in seven major markets across Ibadan metropolis. A three-stage sampling technique was used to select 77 salt users/clients, 103 salt vendors, 12 salt wholesalers and four regulators/producers. Interviewer-administered questionnaire was used to collect information on types/brands of salt, handling, retail practices, awareness, and salt purchase preference. Structured in-depth interview was used to elicit information on existing regulations, compliance level, and monitoring activities. Descriptive statistics were used to analyse quantitative data. Interviews were tape-recorded, transcribed verbatim and analyzed thematically.Males constituted 66.7%, 1.0% and 14.3% of respondents among wholesalers, retail vendors, and clients, respectively, with 100.0%, 58.3% and 84.4% having at least primary education. All wholesalers and 30.1% of retail vendors used shaded structure. About 67% of the wholesalers and 58.3% of the retailers sold branded salt. Clients’ basis for the use of non-branded salt included cheapness and greater quantity (54.5%), higher intensiveness/saltiness and greater quantity (22.1%), and cheaper cost (18.2%). Only 3% of the consumers were aware of mandatory salt iodization, 3.9% were aware of guidelines on salt marketing and only 18.2% handled salt safely. Safe handling practices were found among all wholesalers and 44.7% of the retailers. Qualitative findings revealed the existence of regulation on the production, packing and marketing of salts in Nigeria, however, enforcement and monitoring at the market level is weak.The demand and use of industrial salt in food preparation remain widespread among consumers in Ibadan, Nigeria following limited awareness of salt iodization programme and its benefits. Regulations on salt marketing should be enforced at all levels and nutrition education on salt iodization should be intensified.

Indicators, Strategies, and Rule Settings for Sustainable Public–Private Infrastructure Partnerships: From Literature Review towards Institutional Designs

Public–private partnerships (PPPs)-driven infrastructure projects frequently disappoint in terms of sustainability outcomes. This paper substantiates this. It develops and presents an institutional design that can integrate environmental and social sustainability principles into PPP infrastructure projects (sustainable PPPs). The institutional design includes principles for the planning processes (preparation, procurement, contracting) and outcome indicators. The paper builds upon and synthesizes extant research through a literature review that employs the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) statements. The review covers the appropriateness of the used indicators for the investigation and measurement of environmental and social sustainability policy strategies designed to enhance sustainability and institutional intercalation. About the latter, a specific lens to focus on the relationships between the institutional design characteristics (the rule settings) of planning processes and the sustainability outcomes is developed based on three variables within the institutional analysis and development (IAD) framework of Ostrom. Consequently, rule settings that enable the investigation of the institutional process preconditions for sustainable PPPs and the evaluation of the sustainability outcomes are amalgamated. Our study indicates that the IAD framework provides a useful theoretical lens to harmonize and categorize process principles to achieve the rule settings that guide involved actors towards sustainable PPPs and place lenses on the envisioned environmental and social sustainability outcomes.

Addressing Challenges and Enhancing Sustainability in Public Private Partnerships (PPPs) in China

This conceptual paper examines the challenges faced by Public Private Partnerships (PPPs) in China and proposes strategies to enhance their sustainability. Through an analysis of the background, factors, and aspects influencing PPPs, valuable insights are gained to contribute to the existing literature. The regulatory framework, risk allocation, and financial viability are identified as key challenges. Lessons from the literature emphasize the importance of a consistent regulatory framework, proper risk allocation, and realistic financial evaluations. Transparency, stakeholder engagement, and capacity building are crucial aspects for sustainable PPPs. The findings have implications for policymakers and practitioners, providing guidance for improving PPP practices. Future directions focus on strengthening transparency, stakeholder engagement, and capacity building to foster sustainable PPP implementation and management.

A multicriteria decision framework for governance of PPP projects towards sustainable development

The lack of a suitable decision framework for the governance of public-private partnership (PPP) projects in Africa, especially Ghana, is a major setback to project success, retarding sustainable development. This study develops a hierarchical decision framework for prioritizing project governance factors and their relationships using the Decision Making Trial and Evaluation Laboratory (DEMATEL) method. We employ 30 experts to evaluate two main PPP governance factors and eleven subfactors. We found that contractual governance factors of PPP are more prominent than noncontractual ones for sustainable PPP projects. However, noncontractual governance factors have the highest net effect on contractual factors. Again, policy diffusion is the contractual factor with the highest net effect, while best practice team norm is the noncontractual factor with the highest net effect. Additionally, effective risk allocation is the most prominent contractual subfactor of PPP, while effective communication of project information is the most prominent noncontractual governance factor. The results imply that PPP project managers should improve governance factors for the sustainable development of PPP projects in Africa. However, they should emphasize the prominent and high net effect governance factors but not wholly disregard the less prominent ones.

Critical managerial measures on financial risks of sustainable public–private partnership projects: a PRISMA review

Purpose Public–private partnership (PPP), a project financing arrangement between private investors and the public sector, has revolutionized the approach to the funding and development of public infrastructure worldwide. However, the increasing cases of financial risks and poor financial risk management related to the model threaten the sustainability and financial success of PPP projects leading to huge financial investment losses. This study aims to review existing literature to establish the key measures to control the financial risks of sustainable PPP projects. Design/methodology/approach A PRISMA-compliant systematic literature review method was used in this study. Data were sourced from academic databases consisting of 56 impactful peer-reviewed journal articles. Findings The review outcomes demonstrate 41 critical factors (measures) in mitigating the financial risks of sustainable PPP projects. They include minimum revenue guarantee, strategic alliance with private investors, financial transparency and accountability and sound macroeconomic policies. The principal results of the study were categorized and conceptualized into a financial risk management maturity model for sustainable PPP projects. Lastly, the study reveals that further studies and project policies must focus more on addressing financial challenges relating to climate risks, and health and safety concerns such as COVID-19 outbreak that have negative impacts on PPP projects. Research limitations/implications The results provide essential research gaps and directions for future studies on measures to mitigate the financial risks of sustainable PPP projects. However, this study used small but significant existing publications. Practical implications A checklist and a conceptual maturity model are provided in this study to help practitioners to learn and improve upon their practices to mitigate the financial risks of sustainable PPP projects. Originality/value This study contributes to managerial measures to reduce huge losses in financial investments of PPP projects and the attainment of sustainability in public infrastructure projects with a financial risk maturity model.

Exploring the major causes of PPP project failures - a survey

Over the last decade, there has been a growing incidence of public-private partnerships (PPPs) project failures leading to a wave of 'remunicipalisations' around the globe. Past studies on the subject of PPP failures have been mainly case studies, critical reviews and government reports. The views of PPP practitioners on causes of PPP failures has rarely been sought, a gap which this study seeks to fill. A survey questionnaire was used to collect data from PPP practitioners across public/private sectors. The results of the study found, using exploratory factor analysis and Monte Carlo parallel analysis, that the major causes of PPP failures include poor regulation, macroeconomic crisis, contractor bankruptcy, poor public sector skills and public opposition. The findings will help governments design more sustainable PPP contracts in order to prevent financial losses to stakeholders including governments, private sector, investors and taxpayers, resulting from cancelled PPP projects.

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.

OP8 Developing Sustainable Partnerships Between Pharmaceutical Industry and Public and Non-Profit Organisations: Report of a Roundtable Discussion

Public-private partnerships (PPP) are encouraged for their ability to create powerful synergies to boost innovations. However, creating a sustainable PPP can be challenging. Little is known and shared about conditions for effective partnership between pharmaceutical industry, public and/or non-profit sectors (e.g. payers).

Development of sustainable public–private partnership model for bus rapid transit system in Western India: a case study approach

Development of sustainable public–private partnership model for bus rapid transit system in Western India: a case study approach

Public private partnership model for sustainable bus rapid transit system in Ahmedabad, India

Sustainable transport is the need for an emerging economic nation like India. This paper aims at carrying out a socio-economic feasibility study for development of a sustainable Public Private Partnership (PPP) model for a megacity like Ahmedabad in India. The proposed model would operate on solar and electric modes. The charging of the batteries can be done with the solar panels installed at some designated bus stops. The primary sustainability components considered for the proposed PPP model include environmental, social, economic, system effectiveness and stakeholders perception. The total proposed network has a corridor of 486.7 km. The proposed model would need a soft loan of INR 55,000 million (USD 733.33 million) at 3% interest to be paid in five ten-yearly installments of INR 49,670 million (USD 662.26 million), investment of INR 75,000 million (USD 1000 million) at 8% interest in form of tax-free green bonds that can be liquidated every five years and annual profit of INR 2000 million (USD 26.67 million) to the private operators. Such a model is expected to generate an internal rate of return of 15.25%.

Risk Severity Matrix for Sustainable Public-Private Partnership Projects in Developing Countries

The concept of a Public-Private Partnership (PPP) is not new for developing countries, although many initiatives are being contemplated for potential implementation. This paper evaluates the crucial success factor for the effective execution of PPP projects and it also investigates the appropriate distribution of the risks involved in PPP projects. Quartile analysis of features has been made after a detailed literature review for risk identification. The risk severity analysis is done using a quartile assessment. The data is collected from various contractors working on PPP projects in Pakistan. The comparative analysis has been conducted using available research work on PPP in developing countries. A risk severity rank model is created using 47 key risks in PPP projects for developing countries. Finally, the top risks identified by this research are compared with the previous studies conducted in China, India and Egypt. It is concluded that inflation, revenue risk from end-user, foreign exchange fluctuation, political situation, law and order, and corruption are the major risks in developing countries for better management of PPP projects. Most of the PPP projects are public-oriented. The society of any city is directly affected by most PPP projects. This paper presents the identified key risks of PPP projects in developing countries which are mostly financial and public-oriented. This work will support the PPP concept significance, meeting United Nations Sustainable Development Goal (SDG) 8 and 11. Recent countries’ political and economic circumstances and sustainability have transformed PPP ventures into a successful way to support the governments to develop roads, energy and facilities through private partners’ financial and technological capacities. Although PPP is used worldwide, its effective utilization in developing countries is still lacking. This paper is an enhancement to its successful use of the PPP domain for developing countries.

Leadership roles and sustainable public–private partnership between technical universities and industry in Ghana

Public–private partnership (PPP) between Technical Universities (TUs) and industry is important for development. Although the typologies, benefits and the challenges in such partnerships have been studied in the past, the problem of lack of clarity of leadership roles along with the effects of leadership qualities necessary for sustaining PPPs between TUs and industry in Ghana persists, as it has not been well considered. In this paper, we investigate the leadership roles that sustain PPPs among TUs and related industries in Ghana. A conceptual model is proposed to identify leadership roles for sustaining PPPs between TUs and industry. Questionnaires were administered to 418 respondents selected using the stratified random sampling technique. Among these, data was gathered from 320 respondents who completed questionnaires. Having obtained 77% value for Cronbach Alpha to confirm reliability and acceptance of data, further statistical analysis was performed to obtain results for this study. In particular, descriptive statistics and chi-square tests were employed to determine the extent of relationships among the variables in the model. The results of the study revealed that leadership roles of negotiation skills, networking, planning, and monitoring significantly contributed to the sustainability of PPPs in TUs. Overall, the study suggests that leadership of TUs and industries should effectively carry out the roles of negotiation, planning, networking, monitoring, and evaluation in order to achieve sustainable partnerships.

Innovative Infrastructure Fund to Ensure the Financial Sustainability of PPP Projects: The Case of Chile

Recently, the Chilean government created the Chilean Infrastructure Fund (CIF) that will allow taking advantage of the value of existing infrastructure assets. The fund will enable the government to finance new infrastructure projects with the resources obtained from new concessionaires’ payments to the government for the value of retendering existing public-private partnership (PPP) projects. The purpose of this paper is to evaluate the contribution that this new public institution will bring to the financial sustainability of infrastructure in Chile, the opportunities and challenges for its implementation, and its economic value. The research has a qualitative and quantitative approach. Based on the understanding of the new concept of asset recycling, the application of economic foundations, and financial methodologies such as discounted cash flows and real options, the research assessed the institutional and economic value of the new Chilean Infrastructure Fund. The main findings are that the new Chilean Infrastructure Fund will create public value and public wealth since it will foster good governance, streamline the concession system, accelerate the implementation of sustainable PPP projects, and improve planning schemes among others. Other countries could follow this experience, promoting infrastructure funds to improve governance and accelerate the implementation of sustainable PPP projects.