Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30458
Modelling the States of Public Client Participation in Public Private Partnership Arrangements

Authors: Eisa A. Alsafran, Francis T. Edum-Fotwe, Wayne E. Lord

Abstract:

The degree to which a public client actively participates in Public Private Partnership (PPP) schemes, is seen as a determinant of the success of the arrangement, and in particular, efficiency in the delivery of the assets of any infrastructure development. The asset delivery is often an early barometer for judging the overall performance of the PPP. Currently, there are no defined descriptors for the degree of such participation. The lack of defined descriptors makes the association between the degree of participation and efficiency of asset delivery, difficult to establish. This is particularly so if an optimum effect is desired. In addition, such an association is important for the strategic decision to embark on any PPP initiative. This paper presents a conceptual model of different levels of participation that characterise PPP schemes. The modelling was achieved by a systematic review of reported sources that address essential aspects and structures of PPP schemes, published from 2001 to 2015. As a precursor to the modelling, the common areas of Public Client Participation (PCP) were investigated. Equity and risk emerged as two dominant factors in the common areas of PCP, and were therefore adopted to form the foundation of the modelling. The resultant conceptual model defines the different states of combined PCP. The defined states provide a more rational basis for establishing how the degree of PCP affects the efficiency of asset delivery in PPP schemes.

Keywords: Infrastructure Development, public private partnership, asset delivery, public client participation

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1123558

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 981

References:


[1] Abednego, M.P. & Ogunlana, S.O., 2006. Good project governance for proper risk allocation in public–private partnerships in Indonesia. International Journal of Project Management, 24(7), pp.622–634.
[2] Akintoye, A. et al., 2003. Achieving best value in private finance initiative project procurement. Construction Management and Economics, 21, pp.461–470.
[3] Al-Azemi, K., 2012. Risk management for build, operate and transfer projects within Kuwait. Ph.D Thesis, Loughborough University.
[4] Al-azemi, K. & Bhamra, R., 2014. Risk management for build, operate and transfer (BOT) projects in Kuwait. Civil Engineering and Management, 20(3), pp.415–433.
[5] Alharthi, A., Soetanto, R. & Edum-Fotwe, F., 2014a. Revisiting client roles and capabilities in construction procurement. In Proceedings of the International Conference on Construction in a Changing World - CIB W92 Procurement Systems. Sri Lanka: CIB General Secretariat, pp. 1–12.
[6] Alharthi, A., Soetanto, R. & Edum-Fotwe, F., 2014b. The changing role of the public client in construction procurement. In Proceedings of the 30th Annual ARCOM Conference. Portsmouth, Uk: ARCOM, pp. 404–412.
[7] Al-Mubarak, S., 2003. Build Operate Transfer Project Delivery System in Saudi Arabia. Master Thesis, King Fahd University of Petroleum and Minerals. Available at: http://faculty.kfupm.edu.sa/CEM/assaf/Students_ Reports/Build,-Operate-and-Transfer_2.pdf (Accessed December 12, 2014).
[8] Asenova, D. & Hood, J., 2006. PFI and the Implications of Introducing New Long- Term Actors into Public Service Delivery. Public Policy and Administration, 21(4), pp.23–41.
[9] Askar, M.M. & Gab-Allah, A.A., 2002. Problems facing parties involved in build, operate, and transport Projects in Egypt. Journal of Management in Engineering, 18(4), pp.173–178.
[10] Beck, B., 2010. PPP in Sweden and Germany. Bachelor of Science thesis, KTH Royal Institute of Technology. Available at: https://www.kth.se/polopoly_fs/1.144253!/Menu/general/column-content/attachment/43.pdf (Accessed February 25, 2015).
[11] Bing, L. et al., 2005. The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1), pp.25–35.
[12] Burnes, B. & Anastasiadis, A., 2003. Outsourcing: a public-private sector comparison. Supply Chain Management: An International Journal, 8(4), pp.355–366.
[13] Carrillo, P. et al., 2008. Participation, barriers, and opportunities in PFI: The United Kingdom experience. Journal of Management in Engineering, 24(3), pp.138–145.
[14] Daube, D., Vollrath, S. & Alfen, H.W., 2008. A comparison of Project Finance and the Forfeiting Model as financing forms for PPP projects in Germany. International Journal of Project Management, 26, pp.376–387.
[15] Demirag, I. et al., 2011. Risks and the financing of PPP: Perspectives from the financiers. The British Accounting Review, 43(4), pp.294–310.
[16] Fahad Al-Azemi, K., Bhamra, R. & Salman, A.F.M., 2014. Risk management framework for build, operate and transfer (BOT) projects in Kuwait. Journal of Civil Engineering and Management, 20(3), pp.415–433.
[17] Faisol, N., 2010. An investigation of relational contracting norms in construction projects in Malaysia. PhD thesis, Loughborough University. Available at: https://dspace.lboro.ac.uk/dspace-jspui/handle/2134/5918 (Accessed November 9, 2014).
[18] GOV.UK, 2013. PFI-PPP procurement and contract management guidance. HM Treasury, Infrastructure UK. Available at: https://www.gov.uk/government/publications/procurement-and-contract-management (Accessed February 25, 2015).
[19] Grimsey, D. & Lewis, M.K., 2005. Are Public Private Partnerships value for money? Accounting Forum, 29(4), pp.345–378.
[20] Helmy, M., 2011. Investigating the Critical Success Factors for ppp projects in kuwait. Master of Science Thesis, KTH Royal Institute of Technology. Available at: http://www.diva-portal.org/smash/record.jsf?pid=diva2:491653&dswid=-6475.
[21] HM Treasury, 2012. A New Approach to Public Private Partnerships. (December). Available at: http://www.nationalarchives.gov.uk/ doc/open-government-licence/ (Accessed April 13, 2015).
[22] HM Treasury, 2003. Appraisal and Evaluation in Central Government. Evaluation, (October 2002), p.118. Available at: http://www.hm-treasury.gov.uk/d/green_book_complete.pdf (Accessed March 26, 2015).
[23] Hooijberg, R. & Choi, J., 2001. The Impact of Organizational Characteristics on Leadership Effectiveness Models: An Examination of Leadership in a Private and a Public Sector Organization. Administration & Society, 33(4), pp.403–431.
[24] Kartam, N.A. & Kartam, S.A., 2001. Risk and its management in the Kuwaiti construction industry: a contractors’ perspective. International Journal of Project Management, 19(6), pp.325–335.
[25] Li, B. et al., 2005. Perceptions of positive and negative factors influencing the attractiveness of PPP/PFI procurement for construction projects in the UK: Findings from a questionnaire survey. Engineering, Construction and Architectural Management, 12(2), pp.125–148.
[26] Masterman, J.W.E., 2002. An Introduction to Building Procurement Systems, Routledge. Available at: http://books.google.com/books?hl =en&lr=&id=Pi-CAgAAQBAJ&pgis=1 (Accessed November 12, 2014).
[27] McCowan, A.K. & Mohamed, S.A.M., 2002. Evaluation of build-operate-transfer (BOT) project opportunities in developing countries. Available at: http://www98.griffith.edu.au/dspace/handle/10072/1496 (Accessed December 12, 2014).
[28] Pietroforte, R. & Miller, J., 2002. Procurement methods for US infrastructure: historical perspectives and rece...: EBSCOhost. Building Research & Information, 30(6), pp.425–434.
[29] PTB, 2012. Partnerships Technical Bureau | Legislation. Available at: http://www.ptb.gov.kw/en/Legislation (Accessed July 14, 2015).
[30] Robinson, H.S. & Scott, J., 2009. Service delivery and performance monitoring in PFI/PPP projects. Construction Management and Economics, 27(2), pp.181–197.
[31] Shen, L.Y., Li, H. & Li, Q.M., 2002. Alternative concession model for build operate transfer contract projects. Journal of Construction Engineering and Management, 128(4), pp.326–330.
[32] Smyth, H. & Edkins, A., 2007. Relationship management in the management of PFI/PPP projects in the UK. International Journal of Project Management, 25(3), pp.232–240.
[33] The American Institute of Architects, 2014. Public-Private Partnerships for Public Health. State Public -Private Partnership Elements, pp.1–52. Available at: http://www.aia.org/aiaucmp/groups/aia/documents/pdf/ aiab104939.pdf (Accessed April 20, 2015).
[34] Walker, D. & Rowlinson, S., 2008. Procurement systems: A cross-industry project management perspective. Project Management Journal, 39(4), pp.114–114.
[35] Walls, A., Collins, N. & Pitt, M., 2006. The private finance initiative and value for money. Journal of Property Investment & Finance, 24(4), pp.363–373.
[36] Yang, J.-B., Yang, C.-C. & Kao, C.-K., 2010. Evaluating schedule delay causes for private participating public construction works under the Build-Operate-Transfer model. International Journal of Project Management, 28(6), pp.569–579.