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Article
Publication date: 7 November 2016

Muhammad Imran Zin Zawawi, Udayangani Kulatunga and Menaha Thayaparan

Lack of competition in procurement processes may affect the sustainable procurement due to overpriced and low-quality infrastructure. The purpose of this paper is to investigate…

Abstract

Purpose

Lack of competition in procurement processes may affect the sustainable procurement due to overpriced and low-quality infrastructure. The purpose of this paper is to investigate the current practices in Malaysian public-private partnership (PPP) in handling unsolicited proposals within PPP and to suggest ways in which the practices can be improved to achieve sustainability.

Design/methodology/approach

Case study was conducted within which 13 semi-structured interviews were carried out with different groups: the policy makers, the practitioners and the experts. The study also scrutinised published guidelines and relevant regulations used by in management of unsolicited proposals in Malaysian PPP.

Findings

The Government of Malaysia welcomes unsolicited proposals from the private sector, even though it does not publish any established mechanisms to handle such proposals. Lack of competition in unsolicited proposals is a major concern in achieving sustainable goals of procurement. This could be addressed by introducing a competitive element to unsolicited proposals.

Originality/value

There are limited study and reports on the implementation of unsolicited proposals by the Malaysian Government. Besides adding to the literature, this paper reveals the management of unsolicited proposals. Most importantly, it is useful in assisting potential Malaysian PPP stakeholders and investors in what to expect, based on findings from the actual practice.

Details

Built Environment Project and Asset Management, vol. 6 no. 5
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 28 March 2022

Muhammad Ayat, Azmat Ullah and Changwook Kang

The primary purpose of this study is to explore the relationship between the unsolicited proposal (USP) and the performance of private participation infrastructure (PPI) projects…

Abstract

Purpose

The primary purpose of this study is to explore the relationship between the unsolicited proposal (USP) and the performance of private participation infrastructure (PPI) projects in developing countries.

Design/methodology/approach

The main data set for this study was collected from the World Bank database consisting of 8,951 PPI projects that occurred in developing countries from 1996 to 2020. Hierarchical logistic regression was applied for investigating the effects of USPs on project success. Three moderators, namely, control of corruption, presence of local sponsor and project size were also included in the model to test the impact of their interactions with the USP on the performance of PPI projects. Further, to assess the impact of the effect of USPs, the average marginal effect was calculated. The framework used in this study consists of 18 control variables, three moderators and one noncontrolled independent variable (the USP).

Findings

The results of hierarchical logistic regression indicate that USPs have a significant and negative effect on the success of PPI projects occurring in developing countries. The negative effect of a USP weakens with the presence of local sponsors and stronger control of corruption in the host country. However, contrary to the authors’ expectations, the results show that project size does not significantly affect the association between USPs and the success of PPI projects. Moreover, the results of average marginal effects show that the negative impact of USP on the success of PPI projects ranges between 2.4% and 3.8%.

Originality/value

This study quantifies the negative impact of USP on the success of PPI projects in developing countries, which will be helpful for the practitioners to understand the associated risk with USP projects. Furthermore, it also identifies the moderating roles of control of corruption and the presence of local sponsors on the relationship between USP and the success of PPI projects.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 4 March 2019

Lawrence L. Martin

This exploratory study aims to look at the policy and public-procurement requirements set forth in state public-private partnership (P3) legislation and their relationship to P3…

Abstract

Purpose

This exploratory study aims to look at the policy and public-procurement requirements set forth in state public-private partnership (P3) legislation and their relationship to P3 project implementation.

Design/methodology/approach

The research uses both cross-sectional and longitudinal approaches. The paper begins by defining P3s and discussing their increasing importance as a form of private-sector delivery of public facilities and infrastructure. The major policy and procurement requirements of state P3 legislation are then identified. Using the public works financing database of 301 P3 project closures between 1996 and 2016, the relationships between state P3 legislative policy and procurement requirements and P3 project implementation are explored.

Findings

The study finds positive associations between 15 of 16 state P3 legislative policy and procurement requirements.

Originality/value

This is the first study of its kinds to explore the relationships between state P3 policy and procurement requirements and P3 project implementation (project closures).

Details

Journal of Public Procurement, vol. 19 no. 1
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 5 September 2016

Ranjith Appuhami and Sujatha Perera

The purpose of the study is to examine the use of management controls by a public partner to minimise risks associated with a public-private partnership (PPP) in a developing…

1097

Abstract

Purpose

The purpose of the study is to examine the use of management controls by a public partner to minimise risks associated with a public-private partnership (PPP) in a developing country.

Design/methodology/approach

Using case study method, management controls used in a power project formed as a PPP are examined based on data gathered from semi-structured interviews and documentary analysis.

Findings

The study reveals that the public partner of the PPP used multiple controls depending on the nature of risks in different phases of the project. While bureaucratic control was the predominantly used control pattern throughout the three phases (namely, selecting, building and operating) of the PPP, trust-based controls also played an important role. Market controls on the other hand played, somewhat, a nominal role, particularly in the selecting phase of the project. The study also highlights the problematic nature of forming PPPs in developing countries despite the various benefits associated with such organisational arrangements. Additionally, the study provides insights into how certain contextual features of developing countries affect the way in which controls are applied.

Practical implications

The insights provided in this paper would be beneficial to policy makers, in developing countries in particular, when making decisions in relation to implementation, management and risk control of PPPs.

Originality/value

This study makes an original contribution to the existing literature on PPPs by examining the way in which management controls are used to minimise risk in a PPP in a developing country.

Details

Journal of Accounting & Organizational Change, vol. 12 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 6 March 2019

Lissa Gomes Araujo, Ana Beatriz Souza Piña, Luiz Augusto Gimenez Aidar, Guilherme Oliveira Coelho and Michele Tereza Marques Carvalho

The purpose of this paper is to propose recommendations and guidelines for the initiation phase of a public–private partnership (PPP), focusing on the electricity sector in Brazil.

Abstract

Purpose

The purpose of this paper is to propose recommendations and guidelines for the initiation phase of a public–private partnership (PPP), focusing on the electricity sector in Brazil.

Design/methodology/approach

A literature review allowed gathering international best practices, while brainstorming meetings and document research permitted acquiring data from the Brazilian electricity sector through a multiple case study of 12 projects. By applying benchmarking principles to compare findings, the paper proposes guidelines and recommendations, which culminated in a final framework for implementing PPPs.

Findings

The created framework structures a series of recommendations with application in PPP projects. Also, the paper gathers worldwide best practices, which could increase the rate of success by avoiding problems throughout the other phases of a PPP project.

Research limitations/implications

This paper addresses the electricity sector. Due to the singularity of such infrastructure enterprises, it is possible that the framework suggested is not entirely applicable to other enterprises, being a suggestion for future studies to perform an adherent test. Also, validating this framework is not in the scope of this project.

Practical implications

The use of a framework on PPP implementations brings attention to necessary efforts on previous phases of projects, which can avoid financial and technical problems, improving the reliability of PPPs.

Originality/value

The application of guidelines and recommendations on the electricity sector has not appeared with such focus in previous studies. The paper provides a practical manner to upgrade the process and suggests a model for implementing PPPs.

Details

Built Environment Project and Asset Management, vol. 9 no. 2
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 1 April 2001

David S. Waller, Damien J. Cusick, Hamish D. Matheson and Matthew K. Miller

Advertising agencies, as communication professionals, should use “best practice” activities for promoting themselves to attract new clients. Presents the results of a survey of…

3068

Abstract

Advertising agencies, as communication professionals, should use “best practice” activities for promoting themselves to attract new clients. Presents the results of a survey of executives from the top advertising agencies in Australia to determine the activities the agencies use to promote themselves. Overall, it was indicated that “personal contact” and “positive recommendations of satisfied clients” were perceived to be the most effective for winning new clients. Other activities perceived to be effective were: responding to requests for new business presentations, publicity on recent successful campaigns and winning industry awards.

Details

Journal of Business & Industrial Marketing, vol. 16 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 28 January 2014

Fredy Kurniawan, Stephen Ogunlana and Ibrahim Motawa

The purpose of this paper is to explore stakeholders’ expectations in utilising PPP financial models in order to ensure that each stakeholder understands the expectations of…

1934

Abstract

Purpose

The purpose of this paper is to explore stakeholders’ expectations in utilising PPP financial models in order to ensure that each stakeholder understands the expectations of others before negotiating and reaching contract agreement by all the stakeholders.

Design/methodology/approach

Five common sets of 40 expectations have been identified through a systematic research approach, and their relative significances were verified based on pilot studies in India and the UK and expert opinion solicited worldwide through a structured questionnaire survey. The survey responses were evaluated by using statistical analyses.

Findings

The most important stakeholders’ expectations in utilising PPP financial models were identified at five different stages in a project. They are bankable (at the pre-proposal stage), assessment of project's ability to carry senior debt (at the contract negotiation stage), sensitivity analysis for key commercial issues (at the finance-raising stage), debt service evaluation towards cost overrun and other adverse events (at the construction stage), and assurance of secure operational cash flow (at the operation stage). Although some of the most important expectations are agreed on by all stakeholders, the disagreement of most important expectations should also be considered by the other stakeholder(s) in order to achieve effective and efficient negotiations.

Originality/value

The paper draws attention to stakeholders’ expectations in utilising a financial model that is arguably overlooked in evaluating PPP projects. It does so in order to speed up the negotiation process as a means of minimising cost and time expenditures on PPP contract negotiation.

Details

Built Environment Project and Asset Management, vol. 4 no. 1
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 10 August 2018

Robert Osei-Kyei, Albert P.C. Chan, Ayirebi Dansoh, Joseph Kwame Ofori-Kuragu and Emmanuel Kingsford Owusu

The purpose of this study is to explore the motivations of governments for adopting unsolicited proposals for public–private partnership (PPP) project implementation.

Abstract

Purpose

The purpose of this study is to explore the motivations of governments for adopting unsolicited proposals for public–private partnership (PPP) project implementation.

Design/methodology/approach

A comprehensive review of literature was conducted to derive a list of motivations for adopting unsolicited PPPs. Subsequently, an empirical questionnaire survey was conducted with international PPP experts. Inter-rater agreement analysis, mean significance index and independent two-sample t-test were used for data analysis.

Findings

Results reveal four very critical motivations for governments’ interest in unsolicited PPPs; these include: “enhanced private sector innovation and creativity in PPPs”; “lack of public sector capacity to identify, prioritise and procure projects”; “lack of private investors’/developers’ interest in projects at remote areas”; and “rapid implementation of PPP projects”. Further analysis shows that developing and developed countries view the significance of three motivations differently.

Research limitations/implications

The major limitation lies in the fact that this study only focused on the general motivations/rationale for using unsolicited PPP proposals and did not thoroughly examine and consider the inherent property of motivations (i.e. push and pull theories). Therefore, future studies should explore the “pull and push” motivations for adopting unsolicited PPPs within a specific country or region.

Originality/value

The research outputs inform international private developers of the key expectations of governments/public departments when submitting unsolicited PPP proposals for consideration by the public sector. Furthermore, the outputs will enable governments/public departments and private proponents to derive performance objectives and standards for unsolicited PPP projects.

Details

Journal of Financial Management of Property and Construction, vol. 23 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 23 November 2021

Varaprasad Mallisetti, Tharun Dolla and Boeing Laishram

The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public…

Abstract

Purpose

The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement.

Design/methodology/approach

Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement.

Findings

The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages.

Originality/value

The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.

Details

Journal of Financial Management of Property and Construction , vol. 27 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 March 2010

Sandeep Verma

Traditional models of full and open competition are generally applied for ordinary public procurement contracts, whereas special competitive procedures (such as unsolicited

Abstract

Traditional models of full and open competition are generally applied for ordinary public procurement contracts, whereas special competitive procedures (such as unsolicited proposals) are permissible under various international and domestic frameworks for “Public-Private Partnership” (PPP) contracts. In case of the latter category of contracts, some concerns about relative lack of transparency and competition in the award process have begun to surface, while they are being increasingly relied upon for development of public infrastructure and services. This paper focuses on certain aspects of competition and transparency in the award of PPP contracts, vis-à-vis normal public procurement contracts. To facilitate a sharper identification of legal issues, it compares the relevant regulations and case law in India applicable to unsolicited proposals (UNPs) with that in the United States and those under available international frameworks. It concludes with recommendations on identified legal dimensions of UNPs with reference to government obligations on transparency and competition, so as to adequately preserve these elements in procurement of PPP infrastructure projects.

Details

Journal of Public Procurement, vol. 10 no. 4
Type: Research Article
ISSN: 1535-0118

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