Equitable Financial Evaluation Method for Public-Private Partnership Projects

The feasibility study of a public-private partnership （PPP） project is regarded as one of the critical factors for successful implementation, but unfortunately the common financial evaluation methods currently used only represent the benefits of the private sector. There is, therefore, an urgent need to develop an equitable financial evaluation method for PPP projects. This paper presents a comprehensive literature review that examines international practices. An equitable financial evaluation method was then developed taking into account the inherent characteristics of PPP projects using six separate indicators and Monte Carlo simulations. The result for a bridge project in Romania shows that the method combines the viewpoints of all the relevant stakeholders to achieve an equitable financial evaluation of PPP projects.

Uncertainty Analysis of Value for Money Assessment for Public-Private Partnership Projects

In recent years, private sectors are encouraged to take an active part in franchising of urban infrastructure investments and operations, which promotes the rapid development of public-private partnership(PPP)in infrastructure and public service supply. Value for money(VFM) assessment has been officially proposed to provide a reference for selection of projects planning to adopt PPP. Based on the bottlenecks of VFM application in China and the uncertainties for urban infrastructure PPP projects, a discounted cash flow(DCF) model is established for VFM of infrastructure PPP projects. Then, a Monte Carlo simulation model is established on the basis of uncertainty factors for VFM. Through the analysis of Huai'an trams PPP project, coping strategies of uncertainties for VFM are put forward. Findings of the research may propel the establishment of a complete VFM evaluation system for PPP projects. Key instructional functions of VFM during the process of decision-making can be brought into full play and PPP may develop orderly.

A Brief Analysis on Risk allocation for Public-Private Partnership Projects in China

Public-Private Partnership （PPP） financing modalily has the ability of alleviating the budgetary pressure to the government. fulfilling the need of infrastructure development, and improving the efficiency of investment and operation. However, the negotiations between the government and the investors are time-consuming and costly, due to the perspective differences in risk allocation and revenue distribution. Disputes often arise during concession period because of changes in various risks or non-performance of its obligalions, especially when one sector was forced to accept the requirements by the other as a result of the unequal status, the project urgency or other reasons. Only a few PPP projects in China could perform successfully. There is therefore a need to develop an equitable risk allocation mechanism for the delivery of PPP projects in China so as to improve the efficiency of private investment in infrastructure development.

Public-private partnership project success circumstances

The public-private partnership has been in use in the world for over 40 years, and has been growing at a varying rate and with mixed success in different countries. Based on the experience gained in selected countries, this article shows key success factors of the public-private partnership.

Public-Private Partnership Model Used in the Taipei Central Station Project Research

In view of the lack of financial aid and the migration of industries,the role of local governments shifted from social reproduction to development and production,which made the development of the local economy their main responsibility.The local governments hence have to face challenges in their management in regards to the arising changes and needs.This Taipei Central Bus Station Build Operate Transfer(BOT)project of urban formation and development is not only a trend in countries around the globe;it is also an area the Taiwan Residents governments are actively involved in.With the impact of urbanization,the size of highly functional cities has surpassed core city administrative regions;therefore,this has generated various planning,administrative and policy issues.This study examines the public-private partnership(PPP)views on urban development;the research methodology will be designed to focus on qualitative research,the following conclusions were made:(1)The basic goal of global city competitiveness of Taipei was promoted by implementing“qlubarnization”,a spatial development strategy dependent on intercalary abilities.(2)Taipei is located in the hub of Asia,linking China's Mainland and Taiwan,facing the world,peaceful and stable,rich and diverse in culture,such that adopting the“hybrid or mixed-use development model”will allow“the national gate of the country program—Central Station,Central Park”to become an international city brand.(3)Taking the“Taipei Main Station PPPs model development of the Taipei Central Bus Station BOT project of nine precincts specific land development projects”as a key success indicator,the government took privatization or PPP into consideration,loosened the monopoly on urban infrastructure,created infrastructure services and a maintenance market,positioned the city as a“supranational”entity in terms of capital flow,and sought a coherent land policy.

Mutual Efforts Restoring Growth in Education for Public-Private Sectors Partnership:Basis for a Proposed Action Plan

This study aimed to describe the responses of the participants to the Public-Private Sectors Partnerships(PPSP)in Education in DepEd Ibaan District,Province of Batangas,Philippines in order to achieve the schools’goals and sustain Public-Private Sectors Partnership engagement with schools in the district.This study employed the descriptive-qualitative research in which responses of 16 school heads of DepEd Ibaan District who were the respondents were coded,analyzed,and interpreted.School administrators,community stakeholders,future administrators and researchers may use the proposed plan of action as a guide in providing future directions for a Public-Private Sectors Partnerships(PPSP)in Education.

Emerging Challenges in the Completion of Construction Projects through Public Private Partnerships: Empirical Literature Review

The process of engaging private sector in the provision of public infrastructure can improve economic value in service delivery and enable the government to utilize the capabilities and expertise held by private sector. This has a positive impact on the public in terms of improving their well-being. This literature review attempts to compare the challenges encountered in implementation of PPP projects across the world, with a view to determining cross cutting challenges and recommendations for developing countries. A literature review was conducted for empirical studies focusing on construction projects. The studies are reviewed by analyzing the methodology used and conclusions made to identify the geographical study area, Public Private Partnership project financing model, emerging challenges and recommendation for future project management. The literature search was based on four keywords: construction projects, completion of construction projects, public private partnership, challenges in construction projects. Thus, a total of 11 empirical studies were identified for review in Europe, Asia and Africa. The review revealed that most risk factors affecting project completion can be categorized as human and organizational factors and unknown geotechnical conditions that were not known beforehand. Specifically, project owners’ interference was also attributable to delays with the delays having significant implications for project execution. Risks have great impact on the performance of construction projects because they affect their quality, time and cost. The general remedy to such potential risk factors is adoption of reliable prediction mechanisms which would estimate those factors using a probabilistic model that does not rely on expert judgments as they tend to be unreliable.

Public-Private Partnership Arrangement in <i>In-Situ</i>Housing for Slum Rehabilitation in Yenagoa, Bayelsa State, Nigeria

The provision of decent accommodation is a major challenge to government in the developing nations. It is a common phenomenon in the urban centres of the developing nations where most houses are in deplorable conditions. The houses are overcrowded with little or no air space between them. There is no basic sanitation in the urban centres as they lack flush toilet, some of the few available flush toilets are piped into seasonal streams, most houses lack defined kitchen areas and healthy sewage disposal method. The cities lack good access roads and functional drainage system with a common practice of environmentally-unfriendly solid waste management methods that create various health challenges to urban dwellers. The aim of the study is to show how in-situ Housing method of slum rehabilitation can be applied through Public/Private Partnership to upgrade houses within a major slum area in Yenagoa. This shall be done with an agreement between the property owners, Real Estate investors and the state government. Basic Research Methodology was applied using questionnaire, direct observation and personal interview techniques to collect data. Both qualitative and quantitative techniques were applied to analyse data through the use of tables and charts. The findings in the study showed that poor housing condition seriously degrade the environmental quality of the study area. The standard of living in the area is very poor as the people lack access to decent accommodation, basic sanitation and social amenities.

Enhancing Access to Bank Credit for Small-Scale Farmers in Kisumu and Kiambu Districts, Kenya Through Public-Private Partnership Initiative

In Kenya, small-scale fanning has immense potential in poverty reduction. The growth of farming activities requires sustainable access to affordable credit to boost and sustain production. This study is initiated to investigate factors influencing access to bank credit by small-scale farmers in Kisumu and Kiambu Districts, Kenya. It is necessitated by lack of a comprehensive study documenting the effectiveness of the partnership initiative in improving access to credit for small-scale farmers. The study seeks to address the following concerns： what factors influence access to bank credit by small-scale farmers under the initiative？ Are small-scale farmers in various parts of the country accessing bank credit equally？ Through which sources do farmers get to know about credit products provided through the initiative？ Primary data was collected from 144 farmers in Kiambu and 127 farmers in Kisumu, sampled using systematic random procedure. The cross-sectional survey design was applied to guide the research process. Quantitative analysis generated cross-tabulations with chi-square and binary logistic regression. The study found that out of 144 credit applicants in Kiambu about 56.3% were successful, while in Kisumu only 37.8% were successful. Access to bank credit was significantly associated with farmers＇ gender, education level, income level, farm size, and farming experience. Besides, women were 1.3 times less likely to access bank credit than men. In terms of regional variation, a Kiambu farmer was 2.7 times more likely to obtain bank credit than a Kisumu farmer. The initiative is an innovative approach for enhancing access to bank credit; however, its potential has not been fully exploited. The study recommends the need： to inform farmers about credit products to clear misconceptions and myths associated with bank credit; develop innovative financing packages for small-scale farmers that are also gender-sensitive; and to initiate a training program targeting farmers with appropriate information.

Public-Private Partnerships to Address Global Environmental Problem： Sino-US Cooperation on Climate Change and Energy

The study indicates that public-private partnerships （PPPs） can play ＂strategic＂, ＂practical＂, or ＂regulative＂ roles by making use of ＂instrumental＂, ＂institutional＂, and ＂normative＂ approaches in tackling political issues between countries. PPPs have often been discussed in studies of urban development, service provision, health care, and so on, but they have rarely been analyzed in terms of international relations and political problems on global environmental issues. This study takes an environmental problena---Sino-US energy and climate change cooperation--as a case study to inspect the possible roles and approaches of PPPs. Sino-US cooperation has been launched such as under the Strategic ＆ Economic Dialogue （S＆ED） by both administrations, which has significantly contributed to their reconciliation of domestic abatement policies in climate change, environmental protection, and energy. The establishment of schemes such as the Ten-Year Framework for Cooperation on Energy and Environment （TYF）, the EcoPartnerships, and wide-ranging dialogues and initiatives on clean energy and clean vehicles, in which both public and private actors participate, are among the important approaches of facilitating bilateral cooperation. The study concludes that these schemes have played strategic and practical roles in strengthening the degree of mutual trust and in facilitating the progress of cooperation, although more investigations are needed to considerate their regulative roles. The application of instrumental, institutional, and normative approaches have been observed through the implementation of the TYF and EcoPartnerships.

Implications from Park Public-Private Partnership(PPP)Initiatives in China and Japan

In this study,the statistical information of 166 park Public-Private Partnership(PPP)projects in China,such as investment,area,project stage,and locality area,was collected to analyze types of clusters and defined five types.For each type of cluster,it was possible to analyze the merits of park PPP projects in China.The case study also revealed the construction process of the entities that build,manage and operate the projects.With the findings from the analysis,it can present a perspective on Japan and China and compare park Private Finance Initiative(PFI)and PPP projects between Japan and China.

The Importance of Altruistic Empathy and Collaborative Negotiation in Public-Private Partnerships

The motivation in public-private partnerships （PPPs） is to harness the strengths of public and private partners to deliver essential public services. The ability to transfer risk to the private sector in PPP has been one of the reasons why the public sector relies on the private sector to participate in the development of infrastructure projects. In most instances, the public sector also believes that the private sector can fund the project at a lower cost. The private sector on the other hand, believes that they could achieve a strong financial return based on the concessions that the public sector will provide. If the sectors feel altruistic empathy to each other, they will realize that their original goals are not achievable. However, having understood the other sector＇s needs and constraints, collaborative negotiation will yield a set of common goals. There are no commonly agreed frameworks on collaborative negotiation before PPP is formally established. The objective of this paper is to use deductive analysis to develop a conceptual framework for inquiring into the motivations of the public and private sectors during negotiation. This framework will provide insights on the extent of altruistic empathy of both sectors at the onset and how this altruistic empathy frames collaborative negotiation. This paper shows that collaborative negotiation will influence the success of partnerships and altruistic empathy is an important preamble to collaborative negotiation. This paper provides a frame of reference for future study using other research methods for further validation.

A Public-Private Partnership Procurement Approach to Sustainable Transport—Zimbabwe Case

Zimbabwe has serious financial constraints so the only viable option to procure infrastructure is through engaging the private sector in public-private partnerships to enhance the chances of successfully undertaking public projects like sustainable transport. This study creates the basis for a potential public-private partnership with a trackless tram/solar energy project in Bulawayo which has multiple advantages for sustainable development goals. It identifies six other projects in Zimbabwe that can provide some guidance for developing an appropriate PPP that could assist procure such infrastructure. The projects are drawn from the three critical sectors of the economy: power generation, highways/transport, and water/sanitation. Empirical investigations of these projects reveal the effectiveness of the PPP concept to deliver infrastructure for emerging economies. This suggests an ideal PPP arrangement that increases the likelihood of getting projects like the proposed sustainable transport project in Bulawayo implemented quickly and efficiently, especially if formulated to incorporate the project’s local socio-economic dynamics.

Review on the Public-Private Partnership

Traditionally,public goods and services have been provided by the government.In recent decades,however,public-private partnerships(PPP)were created to assist the best use of both public and private sector resources to enhance and extend public infrastructure assets and services.Throughout history,although governments have adopted such a combination of public and private ventures,the 1990s and early 21st centuries have witnessed a clear trend of governments across the world making significant use of different PPP arrangements.The rapid growth of PPPs has occurred since the 1990s throughout the globe as it was considered the preferred tool for public procurement of infrastructure and services.This paper examines the relevant literature of PPP and attempts to identify the historical development,the major reasons,the main types,forms,benefits of building PPP,as well as challenging issues facing the implementation of PPP in today’s world.

城市更新投资项目经济评估问题

当前,城市更新作为我国城市空间发展的一项战略,已在全国各地实施。城市更新规划实施是以投资项目的形式落地的。但从规划到项目的过程中有一个非常重要的环节—投资项目经济评估—却没有得到应有的重视,甚至在决策流程中被完全忽略,很有可能导致经济低效或无效项目的实施,浪费国家资源。本文根据我国国情,参照国际经验,提出如何界定城市更新投资项目,探讨城市更新投资项目经济和财务可行性评估的流程和方法。目的是通过构建一个科学严谨的流程,为城市更新项目投资决策提供科学的依据,并合理界定政府与企业在城市更新项目中的作用和责任。

A fuzzy model for assessing the risk exposure of procuring infrastructure mega-projects through public-private partnership： The case of Hong Kong-Zhuhai-Macao Bridge

Considering the rapid urbanization growth rate particularly in developing countries, the number of infrastructure mega-projects over the past years has risen tremendously. Essentially, because infrastructure megaprojects require huge investment funds, better management skills, well qualified and experienced international expertise and technology innovation, they are mostly preferred to be procured using the PPP method compare to the use of the traditional bid-build system. In this regard, this paper aims to develop a fuzzy evaluation model for assessing the suitability of procuring infrastructure mega-projects through PPP by considering their risk exposure. The main body of Hong Kong-Zhuhai-Macao Bridge(HZMB)is used as a case project to demonstrate the practicality of the risk evaluation model. The risk evaluation model consists of four critical risk groupings, these include,construction and land risks, commercial risks, operational risks and political risks. Using the risk evaluation equation,a risk index of 4.53 out of 5.00 is computed for the selected project if it is procured through the PPP scheme. This outcome shows that the case project is not suitable for the PPP approach because its risk exposure is very high. The model developed will enable PPP practitioners to predict the likely risk exposure of procuring infrastructure megaprojects through the PPP scheme.

中国PPP项目商业模式创新的阻碍因素及对策研究——基于社会网络分析的视角

推动我国政府和社会资本合作模式(public-private-partnership,PPP)项目的商业模式创新的关键在于发现其阻碍因素并制定相应的破解对策。基于文献分析设计访谈提纲,通过对访谈资料的三级编码识别出PPP项目商业模式创新的20个阻碍因素;运用社会网络分析构建阻碍因素间的联动网络,并分析了节点度数、中间性中心度、亲密中心度等阻碍因素的联动网络特征,确定了7个关键阻碍因素:社会资本-项目运营经验不足,项目公司-合同设计欠完善、高管的作风保守、合作关系恶劣,政府部门-态度保守、过度干预、缺少政策支撑;据此提出了3条破解对策:完善PPP项目商业模式创新的政策环境、公私双方在PPP项目采购阶段做好相互选择、以按照贡献进行利益分配为核心原则设计合同。

中国情境下PPP项目商业模式创新意愿影响因素的系统动力学分析

新发展格局下,商业模式创新对推动政府和社会资本合作模式(public-private-partnership,PPP)可持续发展具有重要作用,因此,对其影响因素的分析具有重要意义。基于文献分析设计访谈提纲,通过对访谈资料的三级编码识别出PPP项目商业模式创新意愿的22个影响因素;采用系统动力学方法(system dynamics,SD)探究了PPP项目商业模式创新意愿的影响关系及路径,构建了SD模型并仿真模拟,确定了4个关键影响因素:创新政策、政府部门创新自由度、社会资本自身实力、项目公司运营维护能力;据此提出了3条管理启示:完善PPP项目商业模式创新的政策环境、公私双方在PPP项目采购阶段做好相互选择、提升项目公司运营维护水平。

矿山修复PPP项目风险的模糊决策评价研究

大量废弃矿山不仅影响生态环境和引发次生灾害,而且还存在资源浪费和价值损耗,因此亟需修复治理。目前我国通常采用PPP模式进行矿山修复,因其缺乏有效的风险决策定量评价方法,从而影响投资主体的参与积极性。针对矿山修复PPP项目中存在的风险问题,采用多分类Logistic线性回归模型对所提出的风险假设进行定量分析,在此基础上采用模糊认知图的方法对风险控制力及其影响因素进行动态分析,详细研究了PPP模式下核心利益者的风险转换机制和收益风险管控机制。结果表明,营商环境是提高PPP项目风险控制力的可靠方法。

The public-private partnerships in healthcare sector in China

This manuscript is a narrative review on experience in the healthcare public-private partnerships(PPP)field project in China.The PPP model allows healthcare officials to share the risk of building new facilities with the private sector.The objective of this study is to evaluate and to review the PPP of healthcare sector in China,and to investigate the critical success factors and best practice of PPP.We adapted the PPP evaluation framework of the World Bank Independent Evaluation Group as our conceptual framework to summarize the literatures.The current study systematically reviewed the evolution and current status of public and private hospitals development in China,and to investigate factors related to the successful and less successful deployment and performance of PPP in the healthcare sector of China,and to develop best practice models of PPP among hospitals of China.We found that the PPP organizations providing finance and political risk coverage,thus enabling specific PPP transactions to reach financial closure-potentially setting demonstration effects.Such PPPs may then contribute to improving access to infrastructure and social services,which drives economic growth and other optimal outcomes.