Abstract:World Bank Working Papers are published to communicate the results of the Bank's work to the development community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally-edited texts. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Intern… Show more
“…There have been reports of such frustrations in Latin American countries, where approximately half of the concession contracts signed since the mid‐1980s eventually were renegotiated (Guasch ). One of the adverse consequences of such cases is the decrease of private investment in public infrastructure in transition countries (Noel and Brzeski ).…”
Section: Literature Reviewmentioning
confidence: 99%
“…The profitability of a specific PPP market is an essential consideration for private enterprises (Scharle ), for which the natural monopoly of public goods and stable returns on investment are the triggering incentives for their involvement in public facilities and services. A mature financial market can assist enterprises in raising funds at lower costs with less risk, which may, in turn, contribute to lowering the cost of public service delivery and thereby maximizing public welfare (Noel and Brzeski ). These intricacies are summarized in our first hypothesis: Hypothesis 1 : The availability and identification of a market is positively related to PPP adoption. Hypothesis 1a : The prospect of profitability is positively related to PPP adoption. Hypothesis 1b : The availability of and access to domestic and international capital are positively related to PPP adoption.…”
This article develops a generic framework to explain the environment for public–private partnership (PPP) development in transitional economies. The framework stands on a tripod that includes the market, the operating environment, and the government, each containing several factors that support aspects of PPPs. The authors apply the framework to analyze the results of a multicountry survey in an effort to identify key factors that facilitate PPP development in transition countries. The identified factors are market potential, institutional guarantee, government credibility, financial accessibility, government capacity, consolidated management, and corruption control. The framework and identified factors may serve as effective tools to diagnose and monitor PPP development in a broader array of countries. The framework is applied in analyzing data from four transitional economies and several advanced economies. The efficacy of the framework is further justified by its explanatory power of PPPs’ practicality and is largely confirmed by results from a sensitivity test.
“…There have been reports of such frustrations in Latin American countries, where approximately half of the concession contracts signed since the mid‐1980s eventually were renegotiated (Guasch ). One of the adverse consequences of such cases is the decrease of private investment in public infrastructure in transition countries (Noel and Brzeski ).…”
Section: Literature Reviewmentioning
confidence: 99%
“…The profitability of a specific PPP market is an essential consideration for private enterprises (Scharle ), for which the natural monopoly of public goods and stable returns on investment are the triggering incentives for their involvement in public facilities and services. A mature financial market can assist enterprises in raising funds at lower costs with less risk, which may, in turn, contribute to lowering the cost of public service delivery and thereby maximizing public welfare (Noel and Brzeski ). These intricacies are summarized in our first hypothesis: Hypothesis 1 : The availability and identification of a market is positively related to PPP adoption. Hypothesis 1a : The prospect of profitability is positively related to PPP adoption. Hypothesis 1b : The availability of and access to domestic and international capital are positively related to PPP adoption.…”
This article develops a generic framework to explain the environment for public–private partnership (PPP) development in transitional economies. The framework stands on a tripod that includes the market, the operating environment, and the government, each containing several factors that support aspects of PPPs. The authors apply the framework to analyze the results of a multicountry survey in an effort to identify key factors that facilitate PPP development in transition countries. The identified factors are market potential, institutional guarantee, government credibility, financial accessibility, government capacity, consolidated management, and corruption control. The framework and identified factors may serve as effective tools to diagnose and monitor PPP development in a broader array of countries. The framework is applied in analyzing data from four transitional economies and several advanced economies. The efficacy of the framework is further justified by its explanatory power of PPPs’ practicality and is largely confirmed by results from a sensitivity test.
“…In transitioning or developing economies, despite the potential for PPP arrangements to finance and develop public projects, the use of PPPs has been slow and limited (Yang et al , 2013). While the factors for successful PPPs apply to both advanced and developing countries, the latter are lacking in many governance capabilities compared to the former (Noel and Brzeski, 2004). For instance, scholars emphasize the need to develop political will and leadership, requisite legal and regulatory frameworks, and economic and political stability to ensure effective PPP adoption and implementation (Ménard and Shirley, 2002; Osei-Kyei and Chan, 2017a, b; Queiroz, 2007).…”
Section: Facilitators Of and Barriers To Pppsmentioning
Purpose
Mounting fiscal constraints and increasing complexity of public services have led governments to search for alternative service delivery mechanisms. The public–private partnership (PPP) is one type of service arrangement in which the public and private sectors enter into a long-term cooperative relationship for the purpose of delivering a public good or service. Despite increasing private sector participation in developing nations, there is a need for more systematic assessment of PPPs in such countries. The purpose of this paper is to explore the factors that affect the adoption and implementation of projects in the context of developing countries.
Design/methodology/approach
A multiple case holistic design is employed to analyze 19 select projects across several developing countries to identify and pool clusters of variables that facilitate or impede PPPs.
Findings
The results indicate five broad categories of political, economic, legislative, financial and management requisites.
Research limitations/implications
A limitation of this research is that the cases were not selected at random. However, the projects are spread across several areas such as public health, public utilities, public works, transportation and water/wastewater infrastructure in different countries. This allows the authors to examine how the common factors apply across different contextual settings.
Originality/value
This paper seeks to contribute to the literature by examining several developing countries to identify and pool clusters of variables that facilitate or impede the effective implementation of PPP projects in the context of such regions.
“…This, it is observed leads to inefficiencies and mounting debts (Adenikinju, 2005;Estache, 2005; Onuaha, 2010). Attracting the private sector therefore is hinged on moving tariff up towards cost recovery level which will enable investors to recover both their investment and operational costs (Baughman andBuresch, 1994: Noel andBrzeski, 2005). However while it may seem to appeal to the investors sentiment, raising tariff to cost reflectivity has to be based on affordability and access considerations otherwise a large segment of the citizens will be priced out of the electricity services(World Bank, 2005;, Estache,2006).…”
The Nigerian economy has been experiencing severe electricity supply crunch which has negatively impacted on the operation of the economy and the people's wellbeing. For decades the industry, dominated by the government SOE (NEPA and now renamed PHCN) provides epileptic service to the economy that has failed to meet the electricity needs of Nigerians. Government introduced industry reform captured in the 2005 EPSR ACT. The reform seeks to open the market for private investment in the generation segment and promote competition with the ultimate aim of increasing generation and supply of electricity to the national economy. To attract the private sector to the Nigerian Electricity Supply Industry (NESI) the government introduced gradual tariff review called Multi Year Tariff Order (MYTO) .The paper assesses the impact of MYTO on the flow of private investment to NESI. Questionnaires were used to generate data from sampled respondents. Simple regression analysis was used for data analysis and hypothesis testing. The result of the analysis indicates that tariff review has a positive and significant impact on the flow of private investment to NESI though it explains only about 3% of the variation in the dependent variable (FPI). This shows that investors' response to the government tariff review has been very slow. Government therefore needs to take another look at the current tariff adjustment order (MYTO) as a way of fast-tracking the flow of private investment to the industry for enhanced electricity supply to the Nigerian economy.
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