Exploring Public-Private Partnerships in Singapore

Abstract

This chapter is basically motivated by the need to answer the question: -Why Public-Private Partnerships (PPPs) have received remarkably greater attention in practice and research?‖ This chapter first overviews the historical background of PPPs and then explores global trends and features of PPPs by region and service area (sector). In addition, this chapter summarizes how scholars have viewed and described this worldwide phenomenon in defining PPPs and how they have specified various types (forms) of PPPs in the literature. Next, the chapter reviews recent studies regarding the determinants of PPPs. The chapter then discusses both the advantages and disadvantages of PPPs, which continue to be controversial and the subject of ongoing debate among scholars and practitioners in the public administration and policy field. Lastly, the chapter provides a comprehensive review of major theoretical approaches to the study of PPPs.

A closer look at risk factors for public-private partnerships in Singapore: six case studies

“…Since the 1990s, in order to both improve Singapore's competitiveness in the global market and ensure a modern welfare state in response to rapidly changing demographics (e.g. an aging population), Singapore's political leaders have embraced NPM-inspired best practices and experiences in their reform efforts, including the forming of partnerships with the private sector (Kim & Kwa, 2020;Lam, 2004). More notably, however, despite its healthy financial status with budget surpluses and its small geographical size compared to other neighbouring states, the Singapore government has had difficulty overcoming worldwide issues like the Asian financial crisis and the Severe Acute Respiratory Syndrome (S.A.R.S.)…”

“…More notably, however, despite its healthy financial status with budget surpluses and its small geographical size compared to other neighbouring states, the Singapore government has had difficulty overcoming worldwide issues like the Asian financial crisis and the Severe Acute Respiratory Syndrome (S.A.R.S.) outbreak in the early 2000s (Deep et al, 2019;Kim & Kwa, 2020;Lam, 2004;Ling et al, 2011). To maintain its status as a financial hub for the Asia-Pacific region and to advance its long-term economic stability, Singapore became one of the first Southeast Asian countries to adopt PPPs for its urban planning and social infrastructural development (Han, 2016;Kim & Kwa, 2020, p. 28).…”

“…According to the PPP handbook published by the MOF (2012, p. 4; p. 7), the 'Best Sourcing Framework' PPP model allows private sector providers to deliver non-core public services that exclude relatively sensitive service areas, such as public security, health and safety. Most PPP projects have been developed using the Design-Build-Finance-Operate (DBFO) model or the Design-Build-Operate (DBO) model (Han, 2016;Kim & Kwa, 2020;MOF, 2012). This means that for a typical PPP project, the private sector takes a leading role initially in the design-build-finance-operate procedures, and the public sector (government agency) then purchases the services provided by its private sector counterpart at the most cost-effective price (MOF, 2012, p. 4;p.…”

“…Notwithstanding its relatively brief experience with PPPs to this point, starting with the desalination and sewerage treatment plants in the water services sector, 1 the Singapore government has gradually extended the PPP model to other sectors, including but not limited to: IT, medical services, residential services, education, military/defense, and sport stadiums (Kim & Kwa, 2020). As shown in Table 1 below, approximately 38 PPP The end date refers to date for successfully completed projects or termination/completion date for failed projects (year).…”

“…Specifically, the potential barriers (risks) to the successful operation of PPPs are often financial corruption, an unstable political environment, unexpected (hidden) costs, fluctuations of demand forecast, an immature regulatory framework, and lack of experience in PPP projects, to name a few (e.g. see Bae & Joo, 2016;Baker, 2016;Burke & Demirag, 2019;Kim & Kwa, 2020;Yang et al, 2013). As these potential obstacles are not easy to control and analyze, without proper ex ante management (including allocation and transfer) of risk factors, government agencies may be faced with high component (extra transaction) costs and time delays in project design or construction/building (Hwang et al, 2013;Jin, 2010).…”