Abstract: When public transportation projects were delivered through design-bid-build and later design-build, governments found a serious issue: inadequate funding. With population growth, governments began to develop new arrangements in which the private sectors were involved to cut the financial burden. This arrangement, Public-Private Partnership (PPP), has its own risks; however, performance outputs can motivate or discourage its use. On top of such output are time and budget, which can be affected by the type of project delivery methods. Project completion within or ahead of schedule as well as within or under budget is among any owner’s objectives. With a higher application of PPP in the highway industry in the US and insufficient research, the current study addresses the schedule and cost performance of PPP highway projects and determines which one outperforms the other. To meet this objective, after collecting performance data of all PPP projects, schedule growth and cost growth are calculated, and finally, statistical analysis is conducted to evaluate the PPP performance. The results show that PPP highway projects on average have saved time and cost; however, the main benefit is a faster delivery rather than an under-budget completion. This study can provide better insights to understand PPP highways’ performance and assist practitioners in applying PPP for transportation projects with the opportunity to save time and cost.
Abstract: The frequent occurrence of failures in PPP projects which caused great loss has raised attention from the government as well as the concessionaire. PPPs are complex arrangements for its long operation period and multiple players. Many types of risks in PPP projects may cause the project fail. The insurance is an important tool to transfer the risks. Through a comparison and analysis of international government PPP guidelines and contracts as well as the case studies worldwide, we have identified eight main insurance principles, discussed thirteen insurance types in different stages. An overall procedure would be established to improve the practices in PPP projects.
Abstract: In many countries, governments have been promoting the involvement of private sector entities to enter into long-term agreements for the development and delivery of large infrastructure projects, with a focus on overcoming the limitations upon public fund of the traditional approach. The involvement of private sector through public private partnerships (PPP) brings in new capital investments, value for money and additional risks to handle. Worldwide research studies have shown that an objective, systematic, reliable and useroriented risk assessment process and an optimal allocation mechanism among different stakeholders is crucial to the successful completion. In this framework, this paper, which is the first stage of a research study, aims to identify the main risks for the delivery of PPP projects. A review of cross-countries research projects and case studies was performed to map the key risks affecting PPP infrastructure delivery. The matrix of mapping offers a summary of the frequency of factors, clustered in eleven categories: construction, design, economic, legal, market, natural, operation, political, project finance, project selection and relationship. Results will highlight the most critical risk factors, and will hopefully assist the project managers in directing the managerial attention in the further stages of risk allocation.
Abstract: This paper examines the utilization of public-private
partnerships for the building and operation of wastewater treatment
plants. Our research focuses on risk allocation in this kind of projects.
Our analysis builds on more than hundred wastewater treatment
plants built and operated through PPP projects in Aragon (Spain).
The paper illustrates the consequences of an inadequate management
of construction risk and an unsuitable transfer of demand risk in
wastewater treatment plants. It also shows that the involvement of
many public bodies at local, regional and national level further
increases the complexity of this kind of projects and make time
delays more likely.
Abstract: Successful public-private-partnership (PPP)
implementation can not be achieved without the active participation of
private sector companies. This paper examines the decision-making of
private sector companies in public works delivered by the PPP model
on the basis of social responsibility theory. It proposes that private
sector companies should indentify objectives of entering into PPP
projects, and shoulder relevant social responsibilities, while a
minimum return should also be guaranteed in their favor, so as to
compensate for their assumed risk and support them to take on
responsibilities in the future. The paper also gives a calculation
regarding the appropriate scale and reasonable degree of private sector
involvement in PPP projects through the cost-benefit analysis in a
specific case study, with the purpose to guide the private sector
companies to create a cooperation environment resembling
“symbiosis" and facilitate the smooth implementation of public works
delivered by the PPP model.
Abstract: Any decision-making is based on certain theory. Taking
the public rental housing in Chongqing municipality as an example,
this essay states that the stakeholder theory can provide innovative
criteria and evaluation methods for Public Private Partnership (PPP)
projects. It gives an analysis of how to choose decision-making criteria
for different stakeholders in the PPP model and what measures to take
to meet the criteria to form “symbiotic" decision-making mode
through contracts and to boost the application of PPP model in
large-scale public programs in China.