Public-Private Partnerships

Essay add: 28-10-2015, 12:52   /   Views: 342

The working title for the dissertation will be Public-Private Partnerships: A comparative study of PPP schemes in India.

Public Private Partnership (PPP) project which is based on a concession agreement between a government on one side and private sector company on other side, for delivering an infrastructure facility on payment of user charges. The objective is to combine the best abilities of public and private sectors for reciprocated benefit. PPPs are used to build new and upgrade existing public facilities. Compared with traditional model, in PPP private sector assumes a superior role in planning, financing, design, construction, operation and maintenance of these facilities.

PPP is becoming a progressively more significant vehicle to deliver public infrastructure development and public service facilities. In recent years countries around the world have met the challenge of expanding and maintaining decisive infrastructure by restructuring public utilities and intensifying private sector participation in the infrastructure sectors. Recognizing the significance of adequate infrastructure, and the given constrictions on public budgets to finance these rising infrastructure needs, governments have sought to transfer part of the burden of new infrastructure investment to private sector. The significance of involving public and private stakeholders and creating a juncture for dialogue is undeniably receiving growing identification.


In the refereed journal paper the author intends to identify the key critical success factors (CSF) and success sub factors (SSF) in order to determine the success or failure of PPP infrastructure projects. This has been achieved by carrying out literature review, taking experience from successful projects in different countries and conducting interviews with some PPP experts. At last the identified CSFs were classified into five main factors and a questionnaire survey was performed to request for worldwide expert opinions on the relative implication of the CSFs and SSFs. This paper has been selected because to understand the importance of CSFs used in PPP projects.

PPP is a proven procurement technique used to identify the alternative approaches for financing and delivering public infrastructure projects. It was argued that CSFs would enhance project value with improved quality of outcome, increase management success, economic feasibility, favourable investment environment and appropriate risk allocation [1]. In order to validate the theme of PPP improvement, CSFs concept is taken for the study through the referred journal (Critical Success Factors for Public-Private Partnerships in Infrastructure Development) stating that CSFs can encounter the competent procurement process through a model development for inclusion by utilizing questionnaire survey [2]. CSFs does not include the word effective procurement in ranking significance of success factors as effective procurement process demonstrates transparency and to be competitive throughout the entire procurement process and enhances project value for money. CSFs evaluation can also be done by using factor analysis method which identifies a relatively diminutive number of factor groupings that can be used to signify relationships among sets of several inter-related variables [3]. In addition economic efficiency of PPP for Infrastructure Development can be improved through contractual flexibility analysis which incorporates flexibilities into the contemporary way of contract structuring [4].Theoretically CSFs are identified based either on expert opinions or on quantitative measures. For example analytical hierarchy process is adopted on CSFs to determine the qualified importance of success related factors for construction projects [5]. The papers also reveals the CSFs for PPPs under Win-Win Principle that creates a favorable environment and provide needed support for private sector participation, and establishes valuable measures to ensure that privatized projects and services are delivered at public acceptable standards and quality. An effective legal and authoritarian framework should be established in favourable investment environment aspect to facilitate the formulation of successful contractual vehicles for PPPs that are attuned with a country's legal system [6].

The questionnaire survey model is well structured by calculating the relative significance indices of five CSFs and SSFs under each CSF separately. However for future development of PPP infrastructure projects factor analysis could be used to determine the main success factor groupings that motivate project procurement. In addition, sensitivity analysis and simulation methods should also be used in the economic appraisal of large infrastructure projects. (URL Link)

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