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1 – 10 of over 1000Maximising real efficiency benefit (REB) is currently being replaced with access to private finance as core public–private partnership (PPP) adoption motive. This later choice…
Abstract
Purpose
Maximising real efficiency benefit (REB) is currently being replaced with access to private finance as core public–private partnership (PPP) adoption motive. This later choice focusses on short-term performance, compromising REB and the procurement of infrastructure that meets the need of the present and future generations, which the former accomplishes. The paper aims to review these observed changes to understand the rationales and significance behind such switch.
Design/methodology/approach
Secondary data powered exploratory study. Deployed X-inefficiency theory to triangulate and reduce bias and select country cases to provide the proper foundation for the descriptive “what happened?” question, such as “what was the failure concerns with a particular adoption choice?”
Findings
The shift to accessing private finance adoption motive against REB failed to improve PPP project performance or meet efficiency and sustainability. Instead, it allows the private sector to assume financial risk without synergistic monitoring from the government to determine their contractual and commitment trust level, which would help achieve the five-dimensional sustainable performance measurement system for PPP. This led to the struggles of PPP projects in Portugal and Spain, where cost overruns and high demand forecast led to project failures. A recommendation, blended finance with its technical assistance additionality, is considered pivotal to addressing access to private finance motive shortcomings.
Originality/value
This study improves best practices for new and existing adopters by systematically establishing that adoption ideology is a cardinal variable that influences PPP project success. When not correctly adopted, it can make the most successful structured projects face complexities and uncertainty.
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Nicholas Chileshe and Neema Kavishe
The purpose of this paper is to examine the Tanzanian practitioner’s readiness assessment for public–private partnership (PPP) adoption. This study is important as the readiness…
Abstract
Purpose
The purpose of this paper is to examine the Tanzanian practitioner’s readiness assessment for public–private partnership (PPP) adoption. This study is important as the readiness assessment enables the stakeholders to assess their capability and current status quo to implement new ideas such as PPPs.
Design/methodology/approach
Underpinned by the theoretical lenses of innovation diffusion theory (IDT), this research undertakes semi-structured interviews with PPP practitioners within the Tanzanian affordable housing sector. The content analysis was used for the data as collected.
Findings
“Lack of awareness and usage of PPPs framework models during the feasibility and subsequent implementation process”, “Limited knowledge and skills required for PPP practitioners”, “Poor capacity building”, “Lack of engagement of experts during the viability and assessment process” and “Poor selection process of private partners giving rising to unsolicited proposals” are the main PPP features influencing the readiness process and fostering of innovation.
Practical implications
The identification of the readiness approaches would support PPP policymakers and stakeholders with the government mechanisms for identifying the key areas needed to be addressed to improve the PPP implementation performance.
Originality/value
Outputs of this study provide insights on how to foster a better understanding of the readiness assessment strategies and approaches for successfully implementing PPP in affordable housing projects.
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Nunzia Carbonara and Roberta Pellegrino
The purpose of this paper is to provide a comprehensive understanding of the Public Private Partnerships (PPP) in Italy in order to highlight challenges and opportunities for a…
Abstract
Purpose
The purpose of this paper is to provide a comprehensive understanding of the Public Private Partnerships (PPP) in Italy in order to highlight challenges and opportunities for a more effective adoption of PPP in Italy. In particular we analyze three key aspects that affect the PPP adoption and implementation, namely the institutional, organizational, and financial ones, and their changes over time.
Design/methodology/approach
To reach the aim, we have conducted an empirical research, gathering qualitative and quantitative relevant information, to characterize three key dimensions affecting the PPP adoption and its effective implementation, namely the institutional, organizational, and financial dimension.
Findings
The analysis of PPP in Italy reveals that, although it is a relatively recent practice, its use is widely spread in delivering public infrastructures. Nevertheless, there are still some shortcomings, related to administrative, financial, and legal issues, that make the application and use of PPP, although considerable in size, less effective and efficient in Italy than in some other countries. In order to overcome these limitations, different interventions are required in order to strength the practices and advance the body of knowledge.
Practical implications
The study formulates useful recommendations for an effective implementation of PPP based on the analysis of the main constraints for the PPP's development in Italy.
Originality/value
The study overcomes the gap of the existing literature on the Italian PPP that have analyzed the phenomenon under two different approaches. Some researchers have investigated the key aspects characterizing PPPs, by adopting a mono-dimensional perspective. Other studies have analyzed the extent of adoption and diffusion of PPP in Italy, by presenting data on PPP projects by sector and/or by types. This paper contributes to fill this gap by providing both a comprehensive analysis of PPP, based on three key dimensions characterizing the PPP adoption and implementation, as well as by presenting an updated picture of the PPP in Italy.
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Tingting Liu and Suzanne Wilkinson
Although public‐private partnerships (PPPs) have been used internationally, the New Zealand Government has only recently started to consider using PPPs to deliver public assets…
Abstract
Purpose
Although public‐private partnerships (PPPs) have been used internationally, the New Zealand Government has only recently started to consider using PPPs to deliver public assets and services. However, there is uncertainty about whether the New Zealand Government should actively enter into PPP arrangements. The government lacks a robust decision‐making tool for assisting with choosing alternative procurement methods. PPPs are seen as risky, but innovative procurement options, with obstacles to overcome before they use can become common place. Nervousness about the use of PPPs requires the New Zealand Government to have a thorough understanding of the drivers and obstacles, and also to understand the applicability of international PPP experience to New Zealand. The purpose of this paper is to investigate the drivers and obstacles for adopting PPPs in New Zealand and provide details on how these obstacles might be overcome by using innovative country‐specific solutions.
Design/methodology/approach
Semi‐structured interviews with senior industry players and round table discussions are the research methods used.
Findings
The research found that the drivers for PPP adoption include acceleration of infrastructure provision, better risk allocation, whole of life cost savings, improved quality of services, access additional revenue sources, benefits for local economic and social development, and improved project scrutiny. The results show that the drivers appear to be more than securing private financing for public infrastructure. Greater efficiency in the use of resources has been emphasised by New Zealand practitioners. With regard to the apparent obstacles, research showed these to be: political, social and legal risks, unfavourable economic and commercial conditions, high transaction costs and lengthy lead time, problems related to the public sector and problems with the private sector. Possible solutions to these obstacles are derived from national and international research and assessed for their applicability to New Zealand.
Research limitations/implications
The paper presents discussion on the concerns expressed by the New Zealand industry about PPPs at strategic, institutional, and industry level. The identified obstacles and suggested solutions provide some initial guidance on how to proceed with PPP implementation in New Zealand. More research needs to be done to understand the various key facets identified here (e.g. tendering process, contractual arrangement, and risk allocation) and their wider effects. The research is based on interviews with a limited number of senior industry respondents, along with the general results of three industry round table discussions. Therefore, follow‐on interviews need to be conducted with private sector partners, sponsors and funding bodies, in order to gain a wider view of the issues under investigation.
Originality/value
The findings of the research are of assistance to decision makers in both the public and private sectors in New Zealand. By understanding the drivers and obstacles for PPP adoption, and posing solutions to these obstacles, the New Zealand construction industry might be in a better position to adopt PPP schemes.
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Suhaiza Ismail and Fatimah Azzahra Haris
The purpose of this paper is to study two objectives. First, it intends to scrutinize the challenges in implementing Public Private Partnership (PPP) by examining the factors that…
Abstract
Purpose
The purpose of this paper is to study two objectives. First, it intends to scrutinize the challenges in implementing Public Private Partnership (PPP) by examining the factors that hinder the successful adoption of PPP in Malaysia. Second, it aims to investigate the differences in the perceptions of the government and the private sector pertaining to the hindrance factors.
Design/methodology/approach
A questionnaire survey was used to elicit the perceptions of the public and private sectors concerning the constraints of PPP implementation in Malaysia. A total of 122 usable responses were obtained, which were analysed using Statistical Package for Social Sciences software. The mean score and mean score ranking were used to examine the importance of the hindrance factors based on the overall responses as well as on the respective responses of the public and the private sectors. An independent sample t-test was used to examine the differences in the perceptions between the two sectors.
Findings
The overall results show that “lengthy delays in negotiation”, “lack of government guidelines and procedures on PPP”, “higher charge to direct users”, “lengthy delays because of political debate” and “confusion over government objectives and evaluation criteria” are the top five constraints for adopting PPP in Malaysia. In terms of the differences in the perceptions between the public and private sector groups, the statistical test results indicate that there are only significant differences in the perceptions for two hindrance factors.
Originality/value
The paper contributes to the existing literature on PPP, which is currently limited, by focusing on the challenges of implementing PPP in a developing country (i.e. Malaysia). More importantly, this paper provides evidence concerning the differences in the opinion of two key players (i.e. the government and the private sector) on the PPP hindrance factors.
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The Su Nyein and Bonaventura H.W. Hadikusumo
To provide low-cost housing, the Myanmar Government is attempting to use public–private partnership (PPP) to attract private investors. However, there is little information…
Abstract
Purpose
To provide low-cost housing, the Myanmar Government is attempting to use public–private partnership (PPP) to attract private investors. However, there is little information concerning the influencing factors for implementing PPP low-cost housing projects in Myanmar. This paper, therefore, aims to identify and analyse these factors.
Design/methodology/approach
A total of 51 in-depth interviews were conducted with interviewees involved in various kinds of housing projects implemented through the adoption of PPP or other approaches. The methods of data collection and the analysis are based on grounded theory (GT) methodology.
Findings
Using the GT method to analyse the interviews, five categories emerged from 50 influencing factors regarding the establishment and implementation of the PPP model for low-cost housing in Myanmar: provision of incentives; obstacles in implementing PPP for all stakeholders; barriers to private sector participation; public sector responsibilities and challenges; and attraction factors and challenges for financial institutions. Among 12 newly found factors, the three most important for PPP low-cost housing in Myanmar are the availability of project funding, the resolution of land-acquisition issues and the development of a sound financing system.
Research limitations/implications
Our findings strengthen previous studies by identifying factors affecting PPP low-cost housing either specific to Myanmar or common among other countries. Of the 50 factors identified, 38 factors were found in previous studies, but 12 are likely specific to Myanmar.
Practical implications
Our findings can be used by governments, particularly the Myanmar Government, and financial agencies to understand the low attractiveness of PPP low-cost housing for investors and to develop/improve policies to stimulate PPP low-cost housing, especially in Myanmar.
Originality/value
Many previous studies have been undertaken to identify factors that influence the implementation of PPP for low-cost housing. However, to the best of the authors’ knowledge, there are no prior studies specific to Myanmar in this context.
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Soojin Kim and Yujin Choi
This paper investigates the internal factors driving public-private partnership (PPP) adoption for water services in South Korea and Singapore.
Abstract
Purpose
This paper investigates the internal factors driving public-private partnership (PPP) adoption for water services in South Korea and Singapore.
Design/methodology/approach
This study utilizes a comparative cross-national case study of PPPs in the area of water services by focusing on the similarities and differences between the two countries.
Findings
The findings show that while South Korea has employed the PPP model mostly to expand and modernize their sewage systems, Singapore has used PPPs to build and operate desalination facilities that produce potable water through the treatment and filtration of wastewater. The study also demonstrates that fiscal stress and political incentives stemming from socio-economic pressures are the respective critical factors in South Korea and Singapore’s execution of PPP-driven water infrastructure.
Originality/value
Through exploring why and how PPPs have been adopted in the specific context, this paper might be helpful to enhance our understanding of the variations and common factors in the policy adoption process within the Asian context.
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Job Taiwo Gbadegesin and Bioye Tajudeen Aluko
The purpose of this paper is to investigate the factors that influence the adoption of private finance initiatives (PFIs) for infrastructure projects in tertiary institutions of…
Abstract
Purpose
The purpose of this paper is to investigate the factors that influence the adoption of private finance initiatives (PFIs) for infrastructure projects in tertiary institutions of learning. It also determines the relationship between the levels of awareness, years of experience and the identified factors.
Design/methodology/approach
Data for this study were gathered from administration of questionnaires. The instruments were administered after validation on the stakeholders in the concerned departments. Data collected were analyzed using descriptive, cluster and correlation analyses.
Findings
There is a high level of awareness and experience in public private partnerships (PPPs) among the respondents on the initiative. It is found that nature of project, risk involvement and the technical capabilities are the three most influential factors. There is correlation between the identified factors. There is also a significant relationship between the respondents’ years of experience in PPP and “technical capabilities factors.”
Research limitations/implications
The study is limited to four selected public tertiary institutions in a single geo-political zone (six states) in southwestern Nigeria, out of four geo-political zones in Nigeria. Southwestern Nigeria is a major zone where tertiary institutions embrace PPP/PFIs initiative.
Practical implications
Empirically, PPPs in the educational sector of a developing economy have been explored and consequently implied that there is a relationship among the factors that determine the adoption of PPP. Hence, findings would be useful for the policy makers and stakeholders on decision relating to infrastructure provision in tertiary institutions.
Originality/value
This study is one of the few empirical studies in relation to educational sector in developing/emerging economies on the subject of PPP/PFIs for infrastructure projects.
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Moses Onyoin and Christopher Bovis
This paper explains the evident disproportionality in the levels of adoption of the modality of public–private partnerships (PPPs) in Uganda by tracing the peculiar preconditions…
Abstract
Purpose
This paper explains the evident disproportionality in the levels of adoption of the modality of public–private partnerships (PPPs) in Uganda by tracing the peculiar preconditions and enablers of the model's relative high adoption in the electricity sector.
Design/methodology/approach
Key conceptual suggestions from historical institutionalism (HI), critical juncture and path dependence are used to orient the data collection and analysis. The direct experiences and perceptions of key informants involved in policy, regulation and operations in the electricity sector are thematically analyzed.
Findings
The primacy of specific policy, institutional decisions and actions sequentially undertaken at the international, national and sectorial levels in shaping the conceivability and possibility of PPP modality is foregrounded. In particular, international advisory for the changed role of the state and the government's subsequent decision to enact and reenact specific institutional frameworks at the national and sectorial levels created important disruptions to the status quo and paved a new and relatively stable institutional path conducive for private sector participation.
Research limitations/implications
Theoretically, the paper demonstrates the ability and power of HI to support the exploration and framing of multilevel and path-dependent explanations of institutional development and policy adoption. Practically, suggestions in terms of policy, legal and regulatory enablers for the adoption of PPP are made to shape practitioners' decision-making
Practical implications
Practically, suggestions in terms of policy, legal and regulatory enablers for the adoption of PPP are made to shape practitioners' decision-making.
Originality/value
The importance of considering factor combinations and sequences in explaining the emergence, adoption and proliferation of public policy instruments and phenomena is underscored. In addition, the discourse on PPPs is moved beyond rationalization on how to even out their adoption (and subsequently the associated benefits) across sectors.
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The goal of this chapter is to respond to the theoretical inquiries by scholars who are interested in how the public–private partnership (PPP) models adapt to China’s context…
Abstract
The goal of this chapter is to respond to the theoretical inquiries by scholars who are interested in how the public–private partnership (PPP) models adapt to China’s context where political power dictates economic strategies. We also want to provide suggestions to policy designers who aim to promote a sustainable investment environment for domestic and international investors. We review the literature that explains the upside and downside of PPP projects in contemporary China. (1) We classify the trajectory of PPP evolution into four phases, i.e., emergence, growth, recession and revival. (2) We note that private companies take a disadvantageous position in the partnership compared with governments and state-owned enterprises because of a lack of specialized legislation, unequal competition between private companies and state-owned enterprises and the opposition from the civic society. (3) We identify political risks as the most influential risks. Political risks also lead to the misallocation of other risks between public and private parties that contributes to the high failure rate of China’s PPP projects. Based on these findings, we recommend governments to draft specialized legislation, stabilize the political environment and provide favourable subsidies to local governments to limit the risks involved in PPP projects. We also advise private enterprises and state-owned enterprises to focus on negotiating over task and risk division with governments when they make decisions to participate in PPP projects. This full review of studies on PPP development in China provides reliable recommendations to scholars, governments and enterprises.
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