Bringing PPPs into the Sunlight: Synergies Now and Pitfalls Later?

Reyes-Tagle, Gerardo

doi:10.18235/0001240

2018

DOI: 10.18235/0001240

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Bringing PPPs into the Sunlight: Synergies Now and Pitfalls Later?

Gerardo Reyes-Tagle¹

Abstract: work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (https://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for… Show more

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Cited by 3 publications

References 26 publications

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Pandemics, public-private partnerships (PPPs), and force majeure | COVID-19 expectations and implications

Casady

Baxter²

2020

Construction Management and Economics

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The novel coronavirus (COVID-19) pandemic is placing unprecedented stress on public-private partnerships (PPPs), creating the real possibility of widespread project failures. The disruption and potential collapse of multiple PPP projects will likely trigger force majeure contractual provisions, but the applicability and efficacy of these generic catch-all clauses remain in question. This critical note therefore discusses the implications of force majeure contractual conditions on PPPs in the COVID-19 epoch. We first define the concept of force majeure as it pertains to pandemics. Next, we review a select number of international policies for such events, outlining their key features and glaring shortcomings. Then, we use Novia Scotia's Highway 104 Twinning Project as an illustrative case example of improved force majeure risk management. Finally, after reflecting on the three ironies of construction crisis management, we outline the need for swift trust in PPPs during this current pandemic and conclude by calling for a comprehensive revision of force majeure contract provisions.

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Pandemics, public-private partnerships (PPPs), and force majeure | COVID-19 expectations and implications

Casady

Baxter²

2020

Construction Management and Economics

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When new public management fails: Infrastructure public–private partnerships and political constraints in developing and transitional economies

Bertelli

Mele

Whitford³

2020

Governance

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Amidst calls for more scrutiny of the failure of infrastructure public–private partnerships (PPPs), uncertainty about how we can measure failure remains, and little systematic evidence illuminates its likelihood. Our mixed‐methods design explores the notion of failure and identifies the conditions under which it happens. The first phase of our research employs documentary analysis and semistructured expert interviews, and identifies project cancellation as capturing the most severe occurrences of failure. A second phase statistically analyzes a unique World Bank data set capturing the provisions of over 4,000 infrastructure PPPs launched between 1990 and 2015 in 89 countries. We find robust evidence supporting the theoretical claim that PPPs are less likely to be canceled in countries with more veto points among their political institutions to restrain politicians from intervening in policy implementation. Cancellation is a rare, but valid indicator of failure, and the importance of veto players clarifies how political risk operates in this context.

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Public-private partnerships in Mexico: Challenges and opportunities at local level

Fuentes

Mendoza

Montoya

et al. 2021

Competition and Regulation in Network Industries

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A specific challenge related to infrastructure creation that is faced by several countries has to do with the lack of participation to an optimal level of subnational governments in the development of Public Private Partnership (PPP) projects which, in turn, could offset the existing infrastructure limitations. In this article, we analyze the Mexican case, whose main feature is that, despite implementing the PPP scheme for almost 10 years and having technical assistance from international organizations to establish the required institutional framework (i.e. legal and technical dimensions), local governments have not been able to create the necessary competencies to carry out this type of project. In order to assess local governments on this subject, we conducted an analysis based on the model designed by the OECD in relation to the execution of PPP projects. A proposal to explain the lack of local government participation in PPP schemes, rests on the foundations of so-called “subnational authoritarianism.”

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Bringing PPPs into the Sunlight: Synergies Now and Pitfalls Later?

Cited by 3 publications

References 26 publications

Pandemics, public-private partnerships (PPPs), and force majeure | COVID-19 expectations and implications

Pandemics, public-private partnerships (PPPs), and force majeure | COVID-19 expectations and implications

When new public management fails: Infrastructure public–private partnerships and political constraints in developing and transitional economies

Public-private partnerships in Mexico: Challenges and opportunities at local level

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