Although public-private partnership (PPP) is regarded as one of the key effective tools in the development of many countries, various challenges surrounding PPPs are not well understood. This paper explores nine key challenges in PPP implementation: (1) different organizational cultures and goals between the partners, (2) poor institutional environment and support, (3) weak political and legal frameworks, (4) unreliable mechanisms for sharing risk and responsibility, (5) inadequate procedures for the selection of PPP partners, (6) inconsistency between resource inputs and quality, (7) inadequate monitoring and evaluation of PPP processes, (8) lack of transparency, and (9) the inherent nature of PPPs. This paper aims to provide the perceptions in the existing literature on many of these challenges, as well as provide solutions to each challenge.
Developing Asia’s infrastructure gap results from both inadequate public resources and a lack of effective channels to mobilize private resources toward desired outcomes. The public-private partnership (PPP) mechanism has evolved to fill the infrastructure gap. However, PPP projects are often at risk of becoming distressed, or worst, being terminated because of the long-term nature of contracts and the many different stakeholders involved. This paper applies survival-time hazard analysis to estimate how project-related, macroeconomic, and institutional factors affect the hazard rate of the projects. Empirical results show that government’s provision of guarantees, involvement of multilateral development banks, and existence of a dedicated PPP unit are important for a project’s success. Privately initiated proposals should be regulated and undergo competitive bidding to reduce the hazard rate of the project and the corresponding burden to the government. Economic growth leads to successful project outcomes. Improved legal and institutional environment can ensure PPP success.
The PPP scholarly work has effectively explored the material values attached to PPPs such as efficiency of services, value for money and productivity, but little attention has been paid to procedural public values. This paper aims to address this gap by exploring how Enfidha Airport in Tunisia failed to achieve both financial and procedural values that were expected from delivering the airport via the PPP route, and what coping strategies the public and private sectors deployed to ameliorate any resultant value conflicts. Based on the analysis of Enfidha Airport, it is argued that PPP projects are likely to fail to deliver financial and procedural values when the broader institutional context is not supportive of PPP arrangements, and when political and security risks are not adequately counted for during the bidding process.
This paper assesses South Africa’s massive infrastructure drive to revive growth and increase employment. After years of stagnant growth, this is now facing a deep economic crisis, exacerbated by the COVID-19 pandemic. This drive also comes after years of weak infrastructure investment, widening the infrastructure deficit. The plan outlines a R1 trillion investment drive, primarily from the private sector through the Infrastructure Fund over the next 10 years (Government of South Africa, 2020). This paper argues that while infrastructure development in South Africa is much-needed, the emphasis on de-risking for private sector buy-in overshadows the key role the state must play in leading on structurally transforming the economy.
Despite the existence of a voluminous body of literature covering the impact of infrastructure public-private partnerships (PPPs) on public value within the context of Western countries, scant attention has been paid to this topic in the Middle East. Given that the region has hosted numerous PPP projects that were implemented even without the rudimentary legal and regulatory frameworks considered essential for such projects to succeed, a study of PPPs within that region would thus be particularly useful, since an unpacking of the success factors for PPPs in the Middle East can reveal important practical insights that will advance the knowledge of PPP success factors overall. This paper, therefore, explores the rehabilitation and expansion of Jordan’s Queen Alia International Airport via the PPP route. It finds that the factors contributing to the project’s successful implementation can be categorized into those on the macro level related to political support, and the micro level factors concerned with management of daily activities involved in the partnership between the public and private sectors.
This paper aims to explain the administrative and the Environmental, Social and Governance (ESG) of the Indonesian Spaceport Project in Biak, Papua, Indonesia, under the Public-Private Partnerships (PPP) scheme, particularly from the protest to fear of environmental damage and traditional rights. This paper analyzes the factors that cause the local society’s reluctance to accept the development of Indonesia’s very first commercial spaceport. This paper uses a doctrinal methodology, which examines changes in the trend of ESG in implementing PPP projects. The method used is a qualitative systematic review of national and international studies. This paper finds that the lack of legal certainty for administrative and ESG as the main factor contributing to the pitfall of the PPP project in Biak Papua. No clear Government Contracting Agency (GCA), plus the fact that the Indonesian government puts too much weight on business consideration in PPP while Papuan people need more ESG, especially considering the historical conflict in the region, has been the epicenter of the problem. Given the ESG-PPP regulatory failure of spaceport development in Biak, more focused studies using comparative study methodology are needed to propose a more robust and customized ESG in PPP regulations in a politically and historically sensitive area. The authors forward a regulatory reform to balance administration, ESG, and business considerations in PPP projects for a spaceport.
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