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Evaluation of Public Private Partnership in Infrastructure Projects

Karthikeyan Loganathan, Mohammad Najafi, Vinayak Kaushal, Pius Agyemang

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Abstract

Public private partnership (PPP) has over the years proven to be a good procurement method for infrastructure projects. This partnership combines the efficiency, expertise, and innovation of the private sector as well as appropriate risk allocation. PPP provides an alternate avenue for capital needed for major engineering projects. The objectives of this paper are to highlight the effectiveness of implementing PPP by looking at past experiences in infrastructure projects, to investigate the conditions under which PPP is appropriate, and to identify the benefits, success, and difficulties of PPP. The results of this paper show that most experts in the infrastructure industry are aware of the effectiveness of PPP but are unable to determine how to maximize its success. This paper further identifies the various factors needed for a successful PPP, such as risk allocation and a good partnering plan for a successful execution of the project.

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What this paper is about

Public private partnership (PPP) has over the years proven to be a good procurement method for infrastructure projects. This partnership combines the efficiency, expertise, and innovation of the private sector as well as appropriate risk allocation. PPP provides an alternate avenue for capital needed for major engineering projects. The objectives of this paper are to highlight the effectiveness of implementing PPP by looking at past experiences in infrastructure projects, to investigate the conditions under which PPP is appropriate, and to identify the benefits, success, and difficulties of PPP. The results of this paper show that most experts in the infrastructure industry are aware of the effectiveness of PPP but are unable to determine how to maximize its success. This paper further identifies the various factors needed for a successful PPP, such as risk allocation and a good partnering plan for a successful execution of the project.

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Available abstract

Public private partnership (PPP) has over the years proven to be a good procurement method for infrastructure projects. This partnership combines the efficiency, expertise, and innovation of the private sector as well as appropriate risk allocation. PPP provides an alternate avenue for capital needed for major engineering projects. The objectives of this paper are to highlight the effectiveness of implementing PPP by looking at past experiences in infrastructure projects, to investigate the conditions under which PPP is appropriate, and to identify the benefits, success, and difficulties of PPP. The results of this paper show that most experts in the infrastructure industry are aware of the effectiveness of PPP but are unable to determine how to maximize its success. This paper further identifies the various factors needed for a successful PPP, such as risk allocation and a good partnering plan for a successful execution of the project.

Key concepts: General partnership, Procurement, Public–private partnership, Plan (archaeology), Business, Public infrastructure, Private sector, Finance

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