Water Public-private Partnerships Research Articles

Sustainability assessment of urban water public‐private partnership projects with environmental, social, and governance (ESG) criteria

AbstractWith the acceleration of urbanization, the sustainability of urban water infrastructure projects has become pivotal to social development. This research aims to construct a comprehensive sustainability assessment model for urban water public‐private partnership (PPP) projects based on the environmental, social, and governance criteria. First, a multi‐level assessment indicator system is established considering the economic, social, ecological, and governance sustainability dimensions. Then, the extended analytic hierarchy process is utilized to determine the weights of indicators based on expert scoring. To address the ambiguity of qualitative linguistic variables, the interval‐valued intuitionistic fuzzy set method is applied to aggregate expert assessments. An empirical case study of an urban water project verifies the feasibility of the proposed approach. Results demonstrate that experts emphasize economic sustainability, while social sustainability is an overlooked dimension that requires improvement. The research contributes to the field by developing an applied, industry‐specific sustainability evaluation model for urban water PPP projects using advanced decision‐making techniques. This model provides practical tools for stakeholders to enhance the sustainable performance of urban water infrastructure projects.

Risk assessment of public-private partnership water projects in Indonesia

Public-private partnerships (PPPs) are vital for infrastructure development in developing countries, integrating private efficiency with public oversight. However, PPP models often face risks, particularly in Indonesia’s water sector, due to its unique geographical and regulatory challenges. This study aims to identify and evaluate risk factors specific to drinking water PPP projects in Indonesia. Using a quantitative approach, structured questionnaires were distributed to experts in the sector, and the data was analyzed using a fuzzy evaluation method. Risks were categorized into location, design and construction, financial, operational, revenue, and political. The study emphasizes that effective risk management, including identification, analysis, and mitigation, is essential for project success. It highlights the importance of stakeholder involvement and flexible risk management strategies. Comprehensive and proactive risk management is key to the success of drinking water infrastructure projects. The research suggests that an integrated and collaborative approach among stakeholders can enhance risk management effectiveness. These findings provide valuable insights for policymakers, project managers, investors, and other stakeholders, underscoring the necessity for adaptable regulatory frameworks and robust policy guidelines to improve the sustainability and efficacy of future water-related PPPs.

‘You scratch my back, I'll scratch yours’: An examination of actor engagement in water public private partnerships

‘You scratch my back, I'll scratch yours’: An examination of actor engagement in water public private partnerships

Framework Model for Financing Sustainable Water and Sanitation Infrastructure in Zimbabwe

Financing frameworks for Public–Private Partnerships (PPPs) are lacking in developing countries. This study aims to develop a financing framework for adoption for water and sanitation PPP infrastructure projects in Zimbabwe. Using data covering a 25-year period from 1996 to 2021, Tobit econometric models are applied to the secondary data collected from both international and domestic sources. The results of this study confirm that capital market variables, bank market development, and economic affluence drive the financing of water and sanitation Public–Private Partnership infrastructure projects in Zimbabwe. It was also established that both public and private sources of finance are instrumental in financing water and sanitation PPP projects. The results inform our eventual framework model, which integrates the Public–Private Partnership (PPP) models, sources of finance for water and sanitation PPPs, and the drivers of water and sanitation PPP finance. This study recommends the application of the developed framework in the water and sanitation Public–Private Partnership infrastructure financing policy of developing countries so as to capitalise on the strengths, resources, and networks of the respective stakeholders in the PPPs.

Critical Success Factors of Water and Power Public–Private Partnerships in Developing Countries: A Systematic Review

Public–private partnerships (PPP) have evolved as a choice of infrastructure procurement for numerous developing countries, particularly in the water and power sectors, thereby capturing the interest of researchers. A rich body of literature exists in the field of PPPs, as well as their critical success factors (CSF). Despite the valuable insights garnered from individual studies, a research gap exists in conducting a meta-synthesis of the findings from multiple developing countries and investigating the broader elements and themes of power and water PPP CSF research. This systematic review employed the PRISMA protocol and identified 30 records. We explored the regions, sectors, yearly output, adopted research methods, key authors, and themes of the corpus reviewed. The review recognised four emerging trends in the records, which are identifying, ranking, exploring the interrelationship, or utilising CSFs. The review identified the top 30 frequent CSFs in the corpus, as well as their ranking by importance across multiple settings. The review concludes by addressing geographic and methodological limitations and proposing directions for future research.

STRUCTURAL EQUATION MODEL-BASED PERFORMANCE MEASUREMENT SYSTEM FOR TRANSFERRING PPP WATER PROJECTS: A CHINA PERSPECTIVE

A series of performance measurement need to be carried out throughout the project life cycle to ensure the successful transfer of public-private partnership (PPP) assets and meet stakeholder needs. More and more water projects are stepping into the transfer phase, but less studies carry out in-depth and systematic discussion on the performance measurement of PPP water projects at the transfer phase. Hence, to fill this gap, this research establishes a new performance measurement system (PMS) for evaluating the performance of the PPP projects stepping into the transfer phase based on the key performance indicators (KPIs). Through case study, expert interview and questionnaire, this paper formulates the logical basis behind PPP water projects at the transfer phase and subsequently constructs the transfer performance measurement system (TPMS) of these projects. Then, it conducts a confirmatory analysis of the impact relationship between the indicators based on structural equation modeling (SEM). Findings of expert interview and questionnaire indicate that there are 7 primary and 26 secondary indicators, and the model has a good fit. The TPMS will provide governments, operators and other stakeholders with a comprehensive and complete understanding as to indicators required of an effective performance measurement of PPP water projects.

Water Public-Private Partnerships from the Urban Regime Perspective: A Case Study of Jiangsu Province

Water Public-Private Partnerships from the Urban Regime Perspective: A Case Study of Jiangsu Province

Determinants of the successful signing of public–private partnership contracts for water and sanitation infrastructure financing in Zimbabwe

Abstract The private sector remains hesitant to invest in water and sanitation infrastructure in Zimbabwe. For policymakers and investors, it is pertinent to understand the factors that determine the signing of water and sanitation public–private partnership (PPP) contracts, in order to leverage expertise and resources to achieve the Sustainable Development Goal targets. This study applied count econometrics on data collected for the 25 years from 1996 ending in 2021, with the aim of investigating the determinants of the number of PPP contracts signed in Zimbabwe. Poisson regression estimations identified positive macroeconomic prospects, financial market development, and strong institutional governance environment as important determinants for PPP contracting in Zimbabwe. The number of PPP contracts is further confirmed to be dependent on the availability of inward foreign direct investment flows. The influence of institutional governance quality on the number of water and sanitation PPP contracts was tested using a composite index constructed using the principal components analysis technique. It is advised that the government of Zimbabwe should strengthen their governance institutions and further develop their capital and bank credit markets, so as to attract investors to take up the water and sanitation infrastructure PPP contract opportunities available in the country.

Optimization of Capital Structure for Urban Water PPP Projects Using Mezzanine Financing: Sustainable Perspective

An optimal capital structure can minimize financing cost and maximize project value. Most existing studies have focused on the equity-debt financing mode for public–private partnership (PPP) projects, neglecting the usage of mezzanine financing instruments. To bridge the gap, this study constructs a capital structure for urban water PPP projects that uses mezzanine financing called the Urban Water Project Mezzanine Financing (UWPMF) mode. Based on the requirements of sustainability, qualitative and quantitative methods are comprehensively adopted and validate the model using a PPP sewage treatment project in China. The contributions of the study are twofold. First, the introduction of a mezzanine financing tool in the context of a specific industry enriches theoretical research on PPP project financing. Second, sustainability data is included in the capital structure optimization for specific types of PPP projects, providing reference values for promoting the realization of the sustainability goals of PPP projects.

The Role of Stakeholders in the Adoption of Public–Private Partnerships (PPPs) in Municipal Water Infrastructure Projects: A Stakeholder Theory Perspective

South Africa receives insufficient rainfall to meet citizens’ water needs and this is compounded by deficiencies in infrastructure for water services because of inadequate investment and a lack of maintenance. Municipal public–private partnerships (PPPs) for water infrastructure are rarely utilised for several reasons. Central to this paper is the evaluation of the role played by various stakeholders in influencing the adoption and subsequent approval of municipal water PPP projects. This study critically examined the role of each stakeholder and how other stakeholders perceive their effectiveness during the approval process of water PPP projects. The conceptualisation and implementation of PPPs involves managing both the public and private stakeholders to achieve the desired outcomes. These diverse stakeholders have different values, anchored by the need for rent extraction (profit maximisation motive) or self-interest, as advanced by stakeholder theory. By means of structured interviews, participants highlighted the limitations of each stakeholder and how these contribute to the negative perception of future PPPs. The obtained data were triangulated with secondary sources. The findings confirmed the pursuit of self-interest by various stakeholders, impacting the pace of PPP adoption of municipal water projects.

Public–Private Partnerships: A Fresh Risk-Based Approach to Water Sector Projects

This study focused on the unbalanced relationships that can arise in current public–private partnership (PPP) risk management frameworks, especially in developing countries’ water sectors. Different stakeholders’ perceptions of risk management were examined by analyzing 15 interviews in Portugal and Mozambique. The hybrid method included semantic, descriptive statistic, content, and narrative analyses. To achieve the research objectives, the semi-structured interview transcripts were processed using quantitative and qualitative techniques to collate relevant actors’ opinions of risk management in PPP water projects. Five risk categories were identified. The interviewed experts ranked the financial risk category as the most crucial, followed by infrastructure, commercial, technical and operational, and context risks. However, when the transcripts were evaluated from a risk factor perspective, the context risk category unexpectedly jumped to first place. Twenty-five high-impact risk factors were isolated in the semi-structured interview contents. The top five most critical risk factors were political interference, no performance measurement baselines, an unfavorable private investment climate, nonpayment of bills, and water assets uncertain condition. The results comprise a fresh contribution to the existing knowledge about experts’ perceptions of PPP contract risks, including that prior research and specialists categorize financial risks as the most important. The findings further reveal that experts consider managing context risks to be the key factor in PPPs success in developing countries, as well as highlighting the need to explore these risks more fully in emerging economies’ water sectors. In addition, a complete risk management cycle is proposed based on the interviewed professionals’ opinions, in which risk assessment and risk treatment or mitigation measures are dealt with simultaneously.

Factors Underpinning the Successful Return of Public–Private Partnership Projects to Public Authority: Assessing the Critical Success Factors of the Transfer Phase of Chinese Water Projects

In China, public–private partnership (PPP) projects consist of six phases, from inception to completion. In the final phase, known as the transfer phase (TP), the project assets are transferred back to the government, and the project is effectively closed out. Although success factors (SF) covering the earlier phases of PPPs have been well-documented, little is known about the effective execution of the TP in China. The main reason is that PPPs are a relatively new phenomenon, with few having reached the end of their life cycle, although this is happening now. Consequently, the determination of critical success factors (CSFs) in the TP is of great interest. This study aims to identify those CSFs that are most impactful to the success of the TP. A total of 23 process factors, arranged in four factor groups, are taken from an earlier study. These factors were presented to China’s water PPP project experts in an online questionnaire, with 52 valid responses returned. Of the 23 process factors, 22 were revealed to be statistically critical to the success of the TP, which were identified as critical transfer success factors (CTSFs). The top five CTSFs are (1) contract system, (2) infrastructure, (3) transferred assets, (4) transfer acceptance criteria, and (5) overhaul information. The identification of the relative criticality of CTSFs and, in particular, the identification of the leading factors, can be expected to support the government and contractor entities in effecting the smooth transfer of many Chinese PPP water projects approaching maturity.

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.

Governance and effectiveness of public–private partnership in Ghana's rural-water sector

PurposeThis study examined the governance and implementation of public–private partnership (PPP) based on the management contract model in the water sector in rural Ghana.Design/methodology/approachIt employed in-depth interviews with key management officials and focus-group discussions among residents in selected water-stressed communities in the beneficiary District Assemblies. Thematic analysis was employed for the analyses.FindingsThe governance of the PPP project was characterized by a well-structured institutional arrangement and effective governance mechanisms. The PPP project has increased residents' access to potable and affordable water and facilitated local economic and social development in its catchment areas. However, insufficient funding, political interference, limited infrastructural capacity and pollution are threatening its success.Originality/valueThe study contributes to the literature on effective governance and performance of rural-based PPP water supply projects for the achievement of the sustainable development goals goal six on access to affordable and quality water.

Critical Risks Inherent to the Transfer Phase of Public–Private Partnership Water Projects in China

Public–private partnership (PPP) infrastructure projects progress through separate phases, with each phase subject to unique risks, thereby requiring a phase-based strategy for managing risks. To date, most research on PPP risk has emphasized phases, with an obvious neglect of the final, transfer phase (TP) of PPP projects, in which the project ownership reverts to government. This study identified and evaluated critical risk categories of the TP, using China’s PPP water sector as the context of analysis. A two-stage approach was adopted, including both qualitative and quantitative research methods. Seven critical transfer risk categories (CTRCs) were identified, namely overhaul risks, contract risks, posttransfer operation risks, residual value risks, political risks, information risks, and succeeding operator risks, of which three are unique to the TP. Expert recommendations were presented for the facilitation of a smooth transfer of water PPPs in China. The findings of this study contribute to the body of knowledge in PPP risk management, and the specialized research approach employed may be utilized in similar exploratory studies.

Critical Risk Factors of PPP Water Supply Project in Indonesia (Case Study: West Semarang Drinking Water Supply Project)

The increasing need for water cannot be denied, given the growing population and standard of living. Therefore, the Government seeks to involve the private sector through the Public-Private Partnership (PPP) scheme in the West Semarang Drinking Water System project to overcome the cost of providing a significant investment. In 2012 the West Semarang Drinking Water Supply Project (WS-DWSS) was developed by the Government. But in 2015, the project was stopped due to changes in the Law of the Republic of Indonesia Number 7 of 2004 concerning Water Resources. PPP schemes in the water sector are relatively new in Indonesia and often face many challenges in their implementation. Through the lens of a theoretical framework and by taking a qualitative and quantitative approach based on primary and secondary data, this thesis assesses the critical risk factors during project implementation in the perception of the public and private sectors. This thesis shows that the both sectors agree that there are 3 most critical risks for drinking water projects: availability of raw water (continuity/quantity), natural disasters, tariff setting & demand projection error. However, the two sectors also have different perceptions of critical risk factors. This difference shows that the two sectors have distinct views and goals as part of a collaborative project. By knowing the similarities and differences, mitigation efforts can be made to minimize the risk of drinking water projects with the PPP scheme.

Risks of water and wastewater PPP projects: an investors’ perspective

PurposeWater and wastewater (WW) projects are gaining attention in Iran because of shortages of water resources. However, these projects are lengthy and they are accompanied by numerous risks, such as lack of sufficient financial resources. Public–private partnerships (PPPs) are taken into account as a constructive approach to deal with the problem of insufficient government funds and they are increasingly being implemented to construct the required infrastructures in different countries. Although WW projects in PPPs can reduce the government’s debt, investors are still uncertain about this approach. Hence, this study aims to identify and evaluate the risk of all parties involved in WW-PPP projects, from the viewpoint of investor.Design/methodology/approachFirst, the risk factors which are involved in WW projects are identified by interviewing experts and reviewing the literature by means of fault tree analysis (FTA) tool. Second, the probability and effects of the risky factors which are related to specific event are evaluated and analyzed by hybridization of interval fuzzy Type-2 sets (IT2FS) and risk score formulation. Finally, some solutions are proposed to deal with the most challenging risks.FindingsSix gate events, namely, risks which are related to investors such as investor’s consultant-related risks, risky conditions from engineering, procurement, and construction (EPC) contractors’ point of view, risk factors which public sector takes into account, public sector’s consultant-related risks which public sector’s consultant consider challenging and external factors were defined according to the literature. From FTA tool and by interviewing the experts, 94 basic events were identified. Finally, from hybridization of IT2FSs and risk score formulation, top five risks are determined as “Difficulty of injecting financial resources into the project,” “Fluctuation in inflation rate,” “Poor decision-making process” in public sector, “Difficulty of importing the equipment which are required for the project (such as pumps, grain catchers, garbage collectors, etc.) from other countries” and “Impact of risky conditions in other projects on operation of PPP project.”Originality/valueIn the absence of a constructive approach for risk identification and a reliable model for evaluating the identified risks in PPP projects, this research project is one of the first research studies which used FTA for identifying risks and hybridization of IT2FSs and risk score formulation for evaluating the risks.

Public–Private Partnership Infrastructure Investment and Sustainable Economic Development: An Empirical Study Based on Efficiency Evaluation and Spatial Spillover in China

Public–private partnership (PPP), an innovative mode of infrastructure investment, has been widely applied in China and has become an essential policy tool with which to promote sustainable economic development. In order to comprehensively evaluate the economic consequences, using 31 provinces in China from 2003 to 2018 as samples, first, stochastic frontier analysis was performed to measure the input–output efficiency of infrastructure investment to evaluate the economic sustainability and efficiency of PPP compared to single government-led investment mode. Next, the overall economic growth effect of PPP was verified. Further, from the perspective of sustainable development of regional economies, the double-fixed effect spatial Durbin model was adopted to empirically test the spatial spillover effect of PPP and clarify its industrial heterogeneity. The results show the following. (1) The average input–output efficiency of infrastructure is 0.449, revealing a distribution law of decreasing from east to west and remarkable regional variation. However, a good trend of improvement emerged, reflecting the economic sustainability of infrastructure investment, and PPP has played a positive role in promoting it. (2) PPP has significant and positive economic growth and spatial spillover effects, which can promote regional economic integration, embodying its economic sustainability function. (3) The economic impact of PPP has significant industrial heterogeneity. Transportation PPP can bring greater economic benefits, confirming the vital position of transportation infrastructure in the sustainable development of regional economies. Energy and water PPP have positive externalities. All of this provides powerful and reliable proof of the realization of sustainable economic development under the regional virtuous circle driven by infrastructure investment through PPP.

A critical analysis of water PPP failures in sub-Saharan Africa

PurposeTop-down pressure from donors, public sector inefficiencies and fund deficits have steered the introduction of public–private partnerships (PPPs) in sub-Saharan Africa. However, PPP activities in the water sector have been quite insignificant compared to other infrastructure sectors in this region. In addition, a number of water PPPs have encountered great difficulties and subsequent failures. This study aims at unveiling the underlying reasons behind failures.Design/methodology/approachThis study has classified the failure types of water PPPs and reviewed the development of water PPPs in sub-Saharan Africa to identify failed ones. Eight failed case studies are completed through the rigorous approach of event sequence mapping.FindingsNine root causes of water PPP failure are identified through a thorough examination of these failed water PPP cases and the interrelationships between these failure causes are established. The failure causes are further generalized through literature focusing on water PPP failures in developing countries and problematic issues that hinder the implementation of successful water PPPs across different Sub-Saharan African countries. Recommendations are provided for future improvements in carrying out water PPPs in Sub-Saharan Africa by learning past lessons and drawing experiences.Originality/valueThis is the first case study on water PPP failures in Sub-Saharan Africa from a construction management perspective. This study will help governments and the private sector in developing stronger future water PPPs.

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

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