Comparative study of governments’ reasons/motivations for adopting public-private partnership policy in developing and developed economies/countries
Over the last couple of decades, governments in developing and developed economies/countries have shown interest in the public-private partnership (PPP) policy. Different governments have different reasons for adopting the PPP concept. This paper aims to investigate the differences and similarities on the reasons for implementing PPP in develop-ing and developed economies/countries, represented by Ghana and Hong Kong. An empirical questionnaire survey was conducted with relevant experienced practitioners in both jurisdictions. One hundred and three completed questionnaires were returned for analysis. The results from the non-parametric test show five reasons with significant differences. Reasons related to the economic and social benefits of PPP are ranked higher in Ghana, whereas efficiency and quality service related reasons are ranked higher in Hong Kong. Further, two reasons for adopting PPP emerged as very important in both jurisdictions; these include: “promotes quick delivery of public infrastructure projects” and “allows for shared risks”. The outputs of this study contribute to the international best practice framework for PPP. International private investors would be informed of the expectations of governments when engaging in PPP arrangement particularly in Asia and Africa.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Akintoye, A., Beck, M., & Hardcastle, C. (Eds.). (2008). Public-private partnerships: managing risks and opportunities. John Wiley & Sons.
Almarri, K., & Bassam, A. (2017). A qualitative study for developing a framework for implementing public–private partnerships in developing countries. Journal of Facilities Management, 15(2), 170-189. https://doi.org/10.1108/JFM-07-2016-0031
Ameyaw, E. E., & Chan, A. P. C. (2013). Identifying public‐private partnership (PPP) risks in managing water supply projects in Ghana. Journal of Facilities Management, 11(2), 152-182. https://doi.org/10.1108/14725961311314651
Ameyaw, E. E., & Chan, A. P. C. (2015). Risk ranking and analysis in PPP water supply infrastructure projects: an international survey of industry experts. Facilities, 33(7/8), 428-453. https://doi.org/10.1108/F-12-2013-0091
Asia World Expo. (2010). AsiaWorld-Expo continues to add tremendous value to Hong Kong’s exhibition industry and economy. Retrieved from http://www.asiaworldexpo.com.hk/html/en/NewsRoom/PressReleaseDetail_ff73a51fda6e4a7383c60b-f523a605bf.html
Awortwi, N. (2004). Getting the fundamentals wrong: woes of public–private partnerships in solid waste collection in three Ghanaian cities. Public Administration and Development, 24(3), 213-224. https://doi.org/10.1002/pad.301
Bhatia, B., & Gupta, N. (2006). Lifting constraints to public-private partnerships in South Asia. World Bank, Washington, DC.
Carbonara, N., & Pellegrino, R. (2014). PPP for public infrastructure in Italy: opportunity and challenges. Managerial Finance, 40(11), 1078-1094. https://doi.org/10.1108/MF-03-2014-0074
Chan, A. P., Lam, P. T., Chan, D. W., Cheung, E., & Ke, Y. (2009). Drivers for adopting public private partnerships – empirical comparison between China and Hong Kong special administrative region. Journal of Construction Engineering and Management, 135(11), 1115-1124. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000088
Chan, A. P., Lam, P. T., Chan, D. W., Cheung, E., & Ke, Y. (2010). Potential obstacles to successful implementation of public-private partnerships in Beijing and the Hong Kong special administrative region. Journal of Management in Engineering, 26(1), 30-40. https://doi.org/10.1061/(ASCE)0742-597X(2010)26:1(30)
Chan, A. P. C., Yeung, J. F., Calvin, C. P., Wang, S. Q., & Ke, Y. (2011). Empirical study of risk assessment and allocation of public-private partnership projects in China. Journal of Management in Engineering, 27(3), 136-148. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000049
Cheung, E., Chan, P. C., & Kajewski, S. (2010). Suitability of pro-curing large public works by PPP in Hong Kong. Engineering, Construction and Architectural Management, 17(3), 292-308. https://doi.org/10.1108/09699981011038088
Cheung, E., Chan, A. P. C., & Kajewski, S. (2012). Factors contributing to successful public private partnership projects, Comparing Hong Kong with Australia and the United Kingdom. Journal of Facilities Management, 10(1), 45-58. https://doi.org/10.1108/14725961211200397
Cheung, E. (2009). Developing a best practice framework for implementing public private partnerships (PPP) in Hong Kong (PhD thesis). Queensland University of Technology, Australia.
Cheung, E., & Chan, A. P. C. (2011). Evaluation model for assessing the suitability of public-private partnership projects. Journal of Management in Engineering, 27(2), 80-89. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000044
Cheung, E., Chan, A. P. C., & Kajewski, S. (2009a). Enhancing value for money in public private partnership projects: findings from a survey conducted in Hong Kong and Australia compared to findings from previous research in the UK. Journal of Financial Management of Property and Construction, 14(1), 7-20. https://doi.org/10.1108/13664380910942617
Cheung, E., Chan, A. P., & Kajewski, S. (2009b). Reasons for implementing public private partnership projects: perspectives from Hong Kong, Australian and British practitioners. Journal of Property Investment & Finance, 27(1), 81-95. https://doi.org/10.1108/14635780910926685
Chou, J. S., & Pramudawardhani, D. (2015). Cross-country comparisons of key drivers, critical success factors and risk allocation for public-private partnership projects. International Journal of Project Management, 33(5), 1136-1150. https://doi.org/10.1016/j.ijproman.2014.12.003
Chou, J. S., Tserng, H. P., Lin, C., & Yeh, C. P. (2012). Critical factors and risk allocation for PPP policy: comparison between HSR and general infrastructure projects. Transport Policy, 22, 36-48. https://doi.org/10.1016/j.tranpol.2012.05.009
Dixon, T., Pottinger, G., & Jordan, A. (2005). Lessons from the private finance initiative in the UK: benefits, problems and critical success factors. Journal of Property Investment & Finance, 23(5), 412-423. https://doi.org/10.1108/14635780510616016
Dulaimi, M. F., Alhashemi, M., Ling, F. Y. Y., & Kumaraswamy, M. (2010). The execution of public–private partnership projects in the UAE. Construction Management and Economics, 28(4), 393-402. https://doi.org/10.1080/01446191003702492
Economic Corporate Network. (2015). Spanning Africa’s infrastructure gap: how development capital is transforming Africa’s project build-out. Retrieved from http://ftp01.economist.com.hk/ECN_papers/Infrastructure-Africa
Efficiency Unit. (2001). Serving the community by using the private sector. HKSAR Government, Hong Kong.
Efficiency Unit. (2003). Serving the community by using the private sector – an introductory guide to public private partnerships (PPPs). Hong Kong Special Administrative Region Government, Hong Kong.
Efficiency Unit. (2007). Serving the community by using the private sector policy and practice (2nd ed.). The Hong Kong Special Administrative Region Government, Hong Kong.
Efficiency Unit. (2008). Serving the community by using the private sector – an introductory guide to public private partnerships (2nd ed.). The Hong Kong Special Administrative Region, Government.
George, D., & Mallery, P. (2003). SPSS for windows step by step: A simple guide and reference. 11.0 update (4th ed.). Boston, MA: Allyn & Bacon.
Hayllar, M. R. (2010). Public‐private partnerships in Hong Kong: good governance–the essential missing ingredient?. Australian Journal of Public Administration, 69(s1), S99-S119.
Hodge, G. A., Greve, C., & Boardman, A. (2010). International handbook on public-private partnerships. Edward Elgar Publishing. https://doi.org/10.4337/9781849804691
Ismail, S. (2013). Positive and negative factors for the successful adoption of public private partnership (PPP): evidence from Malaysia. Public Private Partnerships (PPP): Malaysian studies (pp. 65-81). Kuala Lumpur: IIUM Press.
Jamali, D. (2004). Success and failure mechanisms of public private partnerships (PPPs) in developing countries, insights from the Lebanese context. International Journal of Public Sector Management, 17(5), 414-430. https://doi.org/10.1108/09513550410546598
Javed, A. A. (2013). A model of output specifications for public-private partnership projects (PhD thesis). The Hong Kong Polytechnic University, Hong Kong.
Ke, Y., Wang, S., Chan, A. P. C., & Cheung, E. (2011). Understanding the risks in China’s PPP projects: ranking of their probability and consequence. Engineering, Construction and Architectural Management, 18(5), 481-496. https://doi.org/10.1108/09699981111165176
Kumaraswamy, M. M., & Zhang, X. Q. (2001). Governmental role in BOT-led infrastructure development. International Journal of Project Management, 19(4), 195-205. https://doi.org/10.1016/S0263-7863(99)00069-1
Li, B., Akintoye, A., Edwards, P. J., & Hardcastle, C. (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), 125-148. https://doi.org/10.1108/09699980510584485
Liu, T., Wang, Y., & Wilkinson, S. (2016). Identifying critical factors affecting the effectiveness and efficiency of tendering processes in public–private partnerships (PPPs): a comparative analysis of Australia and China. International Journal of Project Management, 34(4), 701-716. https://doi.org/10.1016/j.ijproman.2016.01.004
Liu, T., & Wilkinson, S. (2011). Adopting innovative procurement techniques: obstacles and drivers for adopting public private partnerships in New Zealand. Construction Innovation: Information, Process, Management, 11(4), 452-469. https://doi.org/10.1108/14714171111175918
Marin P. (2009). Public-private partnerships for urban water utilities: a review of experiences in developing countries. World Bank publications, Washington D.C.
Mak, C. K., & Mo, S. (2005). Some aspects of the PPP approach to transport infrastructure development in Hong Kong. March. Highways Department, Government of the Hong Kong Special Administrative Region, Hong Kong, China.
Ministry of Finance and Economic Planning (MOFEP). (2011). National policy on public – private partnerships. Government of Ghana, Ghana.
Norusis, M. J. (2008). SPSS 15.0 guide to data analysis. Upper Saddle River, NJ: Prentice Hall.
Osborne, S. (2002). Public-private partnerships: theory and practice in international perspective. Routledge.
Osei-Kyei, R., Dansoh, A., & Ofori–Kuragu, J. K. (2014). Reasons for adopting public–private partnership (PPP) for construction projects in Ghana. International Journal of Construction Management, 14(4), 227-238. https://doi.org/10.1080/15623599.2014.967925
Osei-Kyei, R., & Chan, A. P. C. (2015). Review of studies on the critical success factors for public–private partnership (PPP) projects from 1990 to 2013. International Journal of Project Management, 33(6), 1335-1346. https://doi.org/10.1016/j.ijproman.2015.02.008
Osei-Kyei, R., Chan, A. P. C., & Dansoh, A. (2017). Public-private partnership in Ghana. In A. Farazmand (Ed.), Global encyclopedia of public administration, public policy, and governance. Springer publications. https://doi.org/10.1007/978-3-319-31816-5_3414-1
Osei-Kyei, R., Chan, A. P. C., Ayirebi, D., Ofori-Kuragu, J. K., & Oppong, D. G. (2018). Strategies for effective management of unsolicited public-private partnership proposals. Journal of Management in Engineering, 34(3), 04 018 006. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000598
Osei-Kyei, R., & Chan, A. P. C. (2017a). Implementation constraints in public-private partnership: empirical comparison between developing and developed economies/countries. Journal of Facilities Management, 15(1), 90-106. https://doi.org/10.1108/JFM-07-2016-0032
Osei-Kyei, R., & Chan, A. P. C. (2017b). Implementing public-private partnership policy for public construction project in Ghana: critical success factors and policy implications. International Journal of Construction Management, 17(2), 113-123. https://doi.org/10.1080/15623599.2016.1207865
Osei-Kyei, R., & Chan, A. P. C. (2016). Developing transport infrastructure in Sub-Saharan Africa through public–private partnerships: policy practice and implications. Transport Reviews, 36(2), 170-186. https://doi.org/10.1080/01441647.2015.1077288
Oteng-Ababio, M. (2010). Private sector involvement in solid waste management in the Greater Accra Metropolitan Area in Ghana. Waste Management & Research, 28(4), 322-329. https://doi.org/10.1177/0734242X09350247
Shen, L. Y., Platten, A., & Deng, X. P. (2006). Role of public private partnerships to manage risks in public sector projects in Hong Kong. International Journal of Project Management, 24(7), 587-594. https://doi.org/10.1016/j.ijproman.2006.07.006
Sheskin, D. J. (2011). Handbook of parametric and nonparametric statistical procedures (5th ed.). Chapman and Hall/CRC, FL.
Szolnoki, G., & Hoffmann, D. (2013). Online, face-to-face and telephone surveys – comparing different sampling methods in wine consumer research. Wine Economics and Policy, 2(2), 57-66. https://doi.org/10.1016/j.wep.2013.10.001
Thomas, A. V., Kalidindi, S., & Ganesh, L. S. (2006). Modelling and assessment of critical risks in BOT road projects. Construction Management and Economics, 24, 407-424. https://doi.org/10.1080/01446190500435275
World Bank. (2011). PPIAF assistance in Ghana. Public-private infrastructure advisory facility (PPIAF). Washington D.C.: The World Bank.
World Bank Group. (2015). Data: population total. Retrieved from http://data.worldbank.org/country
World Bank. (2016). GNI per capita, Atlas method (current US$). Retrieved from http://data.worldbank.org/indicator/NY.GNP.PCAP.CD
Yuan, J., Zeng, A. Y., Skibniewski, M. J., & Li, Q. (2009). Selection of performance objectives and key performance indicators in public-private partnerships projects to achieve value for money. Construction Management and Economics, 27(3), 253-270. https://doi.org/10.1080/01446190902748705
Zhang, X. Q., & Kumaraswamy, M. M. (2001). Hong Kong experience in managing BOT projects. Journal of Construction Engineering and Management, 127(2), 154-162. https://doi.org/10.1061/(ASCE)0733-9364(2001)127:2(154)
Zhang, X. Q. (2005). Critical success factors for public-private partnerships in infrastructure development. Journal of Construction Engineering and Management, 131(1), 3-14. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:1(3)