Critical performance factors of public sector organizations in concession-based public-private partnership projects

Abstract

Purpose The purpose of this paper is to evaluate critical factors that impact public sector organizations’ (PSOs) performance in PPP contracts with a view to improving their capabilities toward efficient project delivery and attracting more private sector investments. Design/methodology/approach The research methodology is a quantitative approach which commenced with an in-depth literature review that provided the basis for identification of the variables that were evaluated through a structured questionnaire. Respondents were professionals from stakeholders’ organizations that had been involved in PPP contracts in the Southwestern region of Nigeria selected using respondent driven sampling technique. These include industrial practitioners from governmental-based organizations (ministries, agencies, corporations/parastatals, etc.), private developers/concessionaires, law firms, and banks, among others. Data collected were analyzed using mean, relative significance index) and factor analysis. Findings The critical performance factors of PSOs in concession contracts clustered under nine components. These were technical, legal, political, finance, market maturity, economic, procurement process, performance guarantee and degree of regulation. PSOs’ capability development measure in countries newly experimenting with concession model is expected to focus on these factors for improved project delivery. Research limitations/implications The study provided implications for capabilities improvement, legislation and policy making with respect to PPP transactions in countries newly experimenting with PPP contracts. This is highly significant to improving the capabilities of PSOs and attraction of more private sector partnership in infrastructure delivery through the concession model. Practical implications The study provided implication for capabilities improvement, legislation and policing with respect to PPP transactions in countries newly experimenting with PPP contracts. This is highly significant to improving the capabilities of PSOs and attraction of more private sector partnership in infrastructure delivery through concession model. Originality/value Previous studies on PPP performance had either focused on the projects or generalized the performance assessment to PSOs and private investors. This study extended the researches on PPP performance by revealing factors specific to the public sector stakeholders.

Enhancing the decision-making process for public-private partnerships infrastructure projects: a socio-economic system dynamic approach

“…However, most of the SD studies conducted in the PPP literature have neglected some concession factors, such as the capital structure of the PPP agreements and the public subsidies. Hence, investigating the system from a holistic perspective, including significant financial and social components and parameters that significantly impact it, Quantitative approach Opawole et al [38] 12 Concession price System dynamic Xu et al [11,12] 13 Concession price Principal-agent theory Yuan et al [39] Subsidy and Concession Price System dynamic Yuan et al [26] 14 Concession period System dynamic Zhang et al [40] is pertinent to understanding how PPP can improve and sustain socio-economic variables. The SD model for developing PPPs needs to take most of the critical concession components such as the concession period, concession price (user-payment), government subsidy, and the capital structure into account to better examine the system from a socio-economic sustainability perspective.…”

Concession Mechanism For The Development Of Innovative Activities Of Electric Power Organizations

“…They are special socially-oriented tools of the market economy, contributing to the effective (innovative) development of the industry (Airapetyan, 2009;Federal Law of July 13, 2015No. 224-FZ, 2015Opawole, Jagboro, Kajimo-Shakantu, & Olojede, 2019).…”

Relationship Between Critical Success Factors for Public Private Partnership (Ppp) and Sustainable PPP Project Performance

“…The governments incorporate PPP projects for the delivery of public assets when the public budgets appear insufficient for this purpose (Liu, Love, Smith, Irani, Hajli & Sing, 2018). In order to achieve a successful PPP project, there exists a long list of critical success factors (CSFs) that are considered mandatory for successful PPP project implementation (Jamali, 2004;Li, Akintoye, Edwards & Hardcastle, 2005;Chan, Lam, Chan, Cheung and Ke, 2010;Babatunde, Opawole & Akinsiku, 2012;Cheung, Chan & Kajewski, 2012;Osei and Chan, 2015;Liu & Wilkinson, 2016;Opawole, Jagboro, Shakantu and Olojede, 2019). The critical success factors play a significant role in success of PPP projects (Opawole et al, 2019) and the literature has an abundance of studies that provide evidence regarding the influence of CSFs on project success.…”