Analyzing the structure of Public-Private Partnership (PPP)projects using network theory
Journal
Proceedings of the 2nd International Postgraduate Conference on Infrastructure and Environment, IPCIE 2010
Journal Volume
1
Pages
129-139
Date Issued
2010
Author(s)
Chowdhury A.N
Abstract
Public Private Partnership (PPP) is a partnership for construction, operation and maintenance, and service delivery of public projects by the private sector. It is actually a nexus of contracts among various participants where the relationships among the participants are established through a variety of contractual agreements between financers, government, contractors, operators and customers. Raising funds, linking various participants legally and financially, assuring supply, producing and marketing products depend on well-established financial and legal structure of PPP. Though numerous research studies have been conducted to establish and justify the structure of PPP projects based on contractual agreements among participating stakeholders and on existing legal frameworks of a host country, there are still many questions left unanswered. What influences the structuring of PPP, who are the key players, and what are the roles of the various participants in the structure are all important subjects. However, not much work has been done. To fill the lack of documentation, we suggest the use of the network theory - which can identify and distinguish potential players in PPP affiliation and conduct an in-depth analysis of the relationships among participants. The analysis therefore demonstrates some important features such as core-peripheral players, relationship between participants rather than attributes of participants, significant intermediary participants and their interdependence, and, finally, influences of a PPP structure on its substantive outcome. With the introduction of the network theory, a more thorough analysis of PPP structures can be achieved. © 2010 Faculty of Construction and Land Use, The Hong Kong Polytechnic University.
Subjects
Network; Public-Private Partnership; Special purpose vehicle; Structure
Other Subjects
Contractual agreements; Important features; In-depth analysis; Legal frameworks; Operation and maintenance; Public private partnerships; Research studies; Service delivery; Circuit theory; Networks (circuits); Structure (composition); Mergers and acquisitions
Type
conference paper