Examining the Value for Money of Deals Under the Private Finance                 Initiative/Public Private Partnership

Colman, Jeremy

doi:10.1177/095207670001500405

Cited by 6 publications

(7 citation statements)

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“…The findings are aligned with the literature about the meaning and principal advantages of the PPP arrangements: it is the private partner's initiative driven by the profit motive that permits a PPP to find the most efficient business solutions and cut costs whilst it delivers the public service (Colman, 2000;Hofmeister and Borchert, 2004;Klijn, 2010;.…”

Section: Participantsupporting

confidence: 75%

“…However, most interviewees took a different view, i.e., that a PPP should be able to set wage rates on its own, based on prevailing market rates in order to attract the most capable employees. The findings are aligned with the literature about the meaning and principal advantages of the PPP arrangements: it is the private partner's initiative driven by the profit motive that permits a PPP to find the most efficient business solutions and cut costs whilst it delivers the public service (Colman, 2000;Hofmeister and Borchert, 2004;Klijn, 2010;. Once this initiative is constrained, the core advantage of engaging the private sector partner in the delivery of public services becomes severely undermined (Wettenhall, 2003;Williams, 2003).…”

Section: Public-private Partnership Governancesupporting

confidence: 71%

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Legal and regulatory barriers to effective public-private partnership governance in Kazakhstan

Mouraviev

Kakabadse

2015

International Journal of Public Sector Management

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Purpose – The purpose of this paper is to provide a critical assessment of legal and regulatory impediments to effective governance of public-private partnerships (PPPs) in Kazakhstan. Design/methodology/approach – The qualitative study develops propositions from the PPP literature and then tests them against findings from in-depth interviews. Interviewees have been selected by a purposeful sampling from PPP projects in Kazakhstan as well as from national and regional PPP centres. Findings – The identified barriers to effective PPP management include irregularities in the PPP legal framework, such as lack of legal definition of a PPP and controversy with the government guarantee’s legal status for its long-term payments to partnerships; bureaucratic tariff setting for partnership services; non-existent opportunity for private asset ownership; and excessive government regulation of PPP workers’ wage rates. Practical implications – The partners’ opposing perspectives on a number of PPP issues show that management needs to identify and carefully reconcile stakeholder values in a partnership in order to achieve more effective PPP governance. Practitioners, particularly those in the public agencies, have to be concerned with ways to reduce the government overregulation of the private operators, which is likely to result in greater PPP flexibility in management and, ultimately, higher efficiency in delivering the public services. Originality/value – By elucidating multiple examples of overregulation and PPPs’ inefficiency, the paper demonstrates that the government dominance in PPP management is conceptually inappropriate. Instead, the government should adopt the concept of co-production and manage its relations with the private sector partner in a collaborative fashion.

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Section: Participantsupporting

confidence: 75%

Section: Public-private Partnership Governancesupporting

confidence: 71%

Legal and regulatory barriers to effective public-private partnership governance in Kazakhstan

Mouraviev

Kakabadse

2015

International Journal of Public Sector Management

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“…aiming to economise on budget expenses and attract private funding), governments also pursue a broader political agenda by trying to get a better deal for the taxpayers (Hodge et al 2018). Colman (2000) warns that if VfM is dropped as a critical criterion, the public-sector partners might focus on the process and reaching an agreement that is deemed acceptable, rather than the one that delivers the best deal to the taxpayer.…”

Section: A Conceptual Framework For Analysing Ppp Deploymentmentioning

confidence: 99%

“…Assessing the pressure on regional governments, it is worth emphasising that this pressure contradicted the fundamental reason due to which a PPP is normally chosen as a method of public service delivery (Morallos and Amekudzi 2008). Th is reason is that a PPP should yield VfM, that is, a PPP should be deployed when the PPP's total whole-of-life cost is smaller than the cost of in-house public service delivery by the public sector (Colman 2000;Mouraviev 2012). Pressure to deploy a certain number of PPPs without regard to each PPP's cost eff ectively means that VfM was not used as the principal justifi cation for PPP deployment.…”

Section: Th Ey Knew That the Central Government Wanted Many More Ppps Than The Handful That We Had Earlier (Interviewee 19)mentioning

confidence: 99%

Rapid Public-Private Partnership Deployment in Kazakhstan: Enablers and Implications

Mouraviev

2021

NISPAcee Journal of Public Administration and Policy

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Public-private partnerships (PPPs) are a relatively new phenomenon in Kazakh-stan – their development began in 2005 in the transport and energy sectors. Initially sluggish growth transformed into rapid PPP deployment from 2016 to 2019 when hundreds of PPPs were launched in many industries (infrastructure, hospitals, schools), which was in sharp contrast to just a handful of PPPs formed prior to 2016. Rapid PPP deployment raised deep concerns whether the government’s supporting schemes and PPP launch procedures are appropriate and whether they may backfire for the government in the form of increasing debt. This paper aims to investigate the enablers and implications of accelerated PPP formation. The study is based on semi-structured in-depth interviews with a range of actors in the field, including PPP operators (railroad, energy company, kindergarten), regional and local governments, national and regional PPP centres, lawyers and private investors, which afforded an opportunity to mitigate bias in opinions. The study has identified three principal enablers: simplified procedures for a PPP launch, pressure exerted on regional governments, and extensive government financial support to PPPs. By making use of agency theory, property rights theory and the value-for-money concept, the paper offers a conceptualisation of rapid PPP growth in Kazakhstan in recent years and argues that growth was disproportionally fast and unintended. Policy implications include a need to re-establish the value-for-money approach to PPP formation, a significant increase in government liabilities to PPPs, and a misconception regarding the role of PPP collaborative governance.

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“…The study found trivial problems with the appraisal mechanism used at that time. Likewise, Colman (2000) and Coulson (2008) closely examined the UK treasury guidelines for assessing the VFM of PFI proposals and projects. Coulson (2008) commented on the quantitative elements of the public sector comparator (PSC) including risk transfer, transaction costs, imputed lifecycle and discounted cash flows and he concluded that in reality PPP may not always give better VFM.…”

Section: Literature Reviewmentioning

confidence: 99%

Performance indicators for public private partnership (PPP) projects in Malaysia

Mohamad

Ismail

Said

2018

JEAS

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Purpose The purpose of this paper is twofold: first, to identify the important performance indicators used in assessing public private partnership (PPP) performance in terms of the two aspects of PPP which are “financing and markets” and “innovation and learnings”; and second, to investigate the differences in the perception between public and private sectors on the importance of performance indicators in terms of the two aspects of PPP. Design/methodology/approach Using a questionnaire survey, 237 completed questionnaires were received representing 51.52 per cent response rate. In examining the importance of performance indicators, the descriptive statistical tests of mean, standard deviation and mean score ranking were used. The independent t-tests were conducted to investigate the differences in the perceptions between the two respondents’ groups on the importance of performance indicators. Findings In relation to the two areas of indicators used in assessing PPP performance, the findings show that the top three important performance indicators for financing and markets are: “Operational cost”, “Construction cost” and “Construction period”. While the top three important performance indicators for innovation and learning are: “Technology innovation”, “Employee training” and “Financial innovation”. In terms of the differences in the perceptions between the public and private sector groups, the test results indicate that there is only one significant statistical difference for each aspect of performance indicators. Originality/value This study offers empirical evidence on key financial performance indicators for PPP projects as perceived by two key parties in a PPP contract that are public and private sectors.

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Examining the Value for Money of Deals Under the Private Finance Initiative/Public Private Partnership

Cited by 6 publications

References 0 publications

Legal and regulatory barriers to effective public-private partnership governance in Kazakhstan

Legal and regulatory barriers to effective public-private partnership governance in Kazakhstan

Rapid Public-Private Partnership Deployment in Kazakhstan: Enablers and Implications

Performance indicators for public private partnership (PPP) projects in Malaysia

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