Two sets of External Variables influencing the Partnership Arrangements, Dynamics and Performance levels in Public Private Partnerships Projects

Abstract

Private financing of large-scale infrastructure projects through public private partnerships (PPPs) has grown in recent decades. This involves long term, complex and very challenging contractual and partnership arrangements and relationships between the relevant public entities and private consortium, which will be influenced by many external and internal variables. The concept of PPP partnership arrangements and dynamics is explored in the context of three dimensions: resources, activities and personal linkages. These three dimensions are conceptualized to cover the entire „linkage‟ spectrum between the public and private parties; and will thus be influenced by many factors and variables. The aim of this paper is to investigate the impacts of two sets of relevant external variables from above that are hypothesized as critical: (1) the level of importance assigned by, and any consequential pressures from the central government; and (2) the extent of any positive and negative public pressures. These can have significant influence on the partnership arrangements and dynamics between PPP project parties, and in turn eventually on the success/ performance levels of the PPP project itself. The reported findings are based on data collected through a wide literature review and interviews of PPP experts in Australia, Singapore, Greece and China.