Public-private partnerships from budget constraints: Looking for debt hiding?

Buso, Marco; Marty, Frédéric; Tra, Tran-Phuong

doi:10.1016/j.ijindorg.2016.12.002

Cited by 73 publications

(54 citation statements)

References 43 publications

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“…Considering PPP literature Buso et al (2017) utilized this method to examine under what conditions public authorities are more likely to use a PPP rather than traditional procurement methods. However, to the Author's best knowledge, there is no prior application of such models to the analysis of PPPs duration.…”

Section: Research Methods and Datamentioning

confidence: 99%

“…We can identify a range of economic, social and political reasons and motives for the growth of PPPs. For example, there is a growing body of evidence-based literature attempting to explain why in some cases public authorities are more willing to choose this organizational form of delivering infrastructure services (Hammami et al, 2006;Galilea & Medda, 2010;Buso et al, 2017;Moszoro et al, 2014).…”

Section: Ppp As a Subject Of The Researchmentioning

confidence: 99%

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Does experience exert impact on a public-private partnership performance? The case of Poland

Węgrzyn

2018

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Research background: Researchers traditionally assume that learning is a product of experience. In general, it means that learning can only take place through the attempt to solve a problem and therefore only takes place during activity (Arrow, 1962). On the ground of organizational theory, it has two implications. First, we can agree that repeated activity requires less effort. Second, we can argue that firms undertake activities, with which they have been the most successful in the past and that they expect to be the most successful in the future. Purpose of the article: The aim of the research is twofold. Firstly, this article aims to investigate if we can identify a relationship between the experience in PPP projects and the performance of initiatives of this kind. Secondly, the article aims to provide an interpretation of the relationship between experience and PPP performance. Methods: This research investigates factors influencing the survival of PPP projects in Poland over the period 2009–2015. Cox proportional hazard model is utilized to distinguish between PPPs that succeeded to the operation phase and those that were canceled on the procurement stage. Findings & Value added: The research confirms the existence of a positive relationship between experience in PPP and the outcome of a PPP development.

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Section: Research Methods and Datamentioning

confidence: 99%

Section: Ppp As a Subject Of The Researchmentioning

confidence: 99%

Does experience exert impact on a public-private partnership performance? The case of Poland

Węgrzyn

2018

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“…The great majority of the screened studies find a relationship between the choice of PPPs and the government's budgetary constraints (Broadbent and Laughlin, 2002;Spackman, 2002;Benito et al, 2008;Cruz and Marques, 2011;Fernandes et al, 2015;Reeves, 2015;Bergere, 2016;van den Hurk, 2018) and some of them also provide for econometric evidence, which is collected for PPPs involving local governments (Antellini Russo and Zampino, 2012;De Marco et al, 2012;Buso et al, 2016). One study considers that the same strategy of avoiding excessive public borrowing and the consequent credit rationing has guided UK PFI refinancing deals (Toms et al, 2011).…”

Section: How Relevant Is the Off-balance-sheet Motive In Ppp Adoption?mentioning

confidence: 99%

“…The bias introduced by the accounting criteria was particularly relevant before the crisis, which brought to an end the "unlimited credit" that PPP had allowed (Cruz and Marques, 2011). One econometric study (Buso et al, 2016) concludes that debt hiding is relevant, but not sufficient to explain the PPP choice. For some specific sectors and countries, instead, the choice of PPPs, risk transfer, and specific financial instruments (e.g., cheap loans to the private partners or Special Purpose Vehicles) seem to be tied more to the possibility of off-balance-sheet registration than to the project's merit or value for money (Acerete et al, 2010;Akbiyikli et al, 2011).…”

Section: How Relevant Is the Off-balance-sheet Motive In Ppp Adoption?mentioning

confidence: 99%

Public Private Partnership and fiscal illusion: A systematic review

Cepparulo

Eusepi

Giuriato³

2019

J Infrastruct Policy Dev

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Public-Private Partnerships (PPPs) are mostly presented as a means to introduce efficient procurement methods and better value for money to taxpayers. However, the complexity of the PPP mechanism, their lack of transparency, accounting rules and implicit liabilities make it often impossible to perceive the amount of public expenditure involved and the long-run impact on taxpayers, providing room for fiscal illusion, i.e., the illusion that PPPs are much less expensive than traditional public investments. This psaper, thanks to a systematic review of the literature on the EU countries experience, tries to unveil the sources of this illusion by looking at the reasons behind the PPPs’ choice, their real costs, and the sources of fiscal risks. The literature suggests that PPPs are more costly than public funding, especially when contingent liabilities are not taken into account, and are employed as mechanisms to circumvent budgetary restrictions and to spend off-balance. The paper concludes that the public sector should share more risks with private sectors by reducing the amount of guarantees, and should prevent governments from operating through a sleight of hand that deflects attention away from off-balance financing, by applying a neutral fiscal recording system.

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“…In other works [see 5,6,7,8,9,10] different aspects of PPP such as prices for services in PPP projects in traditional sectors, the impact of public sector reforms on PPP, budget constraints on PPPs, risk transfer and stakeholder relationships, the influence of trust and established relationships, and regulatory regulation of PPP contracts are covered. Regional-specific experiences have also been analyzed, e.g assessing the effectiveness of PPPs in the construction of toll roads in the United States, implementing an integrated urban mega-project in the city of New Songdo in South Korea, and institutional and strategic barriers to PPP in the Netherlands [see 11,12,13].…”

Section: Introductionmentioning

confidence: 99%

Public-Private Partnerships: Does Russian Practice Follow International Experience?

Markovskaya¹,

Holodkova²,

Radushinsky³

2019

КФ

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Business partnerships between state agencies and private sector entities represent one of the most common forms ofinteraction between government and the business sector. Moreover, these public-private partnership (PPP) projects canbe a major and effective catalyst for significant social and commercial development in the public sphere.This article is devoted to an analysis of recent changes in the legislative base concerning PPP in the Russian Federation.We intend to identify pragmatic approaches toward assessing the economic effects of PPP involvement for potentialstakeholders, as well as constructing models of financial frameworks for mapping the PPP project implementation. Thisarticle presents the result of testing the financial model that we propose. The ultimate intention is that this model can beused in the preparation of concession agreements and negotiation in the preparation of PPP projects.To achieve this, we analyze the legal framework and development trends of public-private partnership projects,both theoretically and practically. We consider and evaluate PPP from the point of view of 3 aspects: organizational,methodological and managerial. To achieve this, we must identify the interests of the various stakeholders who aredirectly or indirectly interested in the practical results of the project in both a material and a sociopolitical sense.For each of the stakeholders, we identify areas for them to evaluate in the process of analyzing potential PPP projects.This includes the potential quantitative and qualitative results of a project that can be identified and, as a rule, measured,which allows for a standard approach to political and commercial evaluation. As a result, we present an algorithm forbuilding a financial model which accounts for material and seemingly immaterial variablesIt is suggested that this approach to building a financial model and evaluating the effects of PPP projects provides auniquely useful perspective on the field. We utilize the most modern methods for assessing risks, benefits and effects forvarious stakeholders of projects implemented in the form of PPP, and as a result this paper provides ample opportunityfor further development of research. The presentation of the evaluation algorithm for PPP stakeholders takes intoaccount the complex structure of the partnership participants and will be useful for academic, commercial, andadministrative parties.

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Public-private partnerships from budget constraints: Looking for debt hiding?

Cited by 73 publications

References 43 publications

Does experience exert impact on a public-private partnership performance? The case of Poland

Does experience exert impact on a public-private partnership performance? The case of Poland

Public Private Partnership and fiscal illusion: A systematic review

Public-Private Partnerships: Does Russian Practice Follow International Experience?

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