When are Public-Private Partnerships not an appropriate governance structure? case study evidence
Journal
2010 Construction Research Congress
Pages
817-826
Date Issued
2010
Author(s)
Abstract
While the higher efficiency due to better pooling of resources is largely emphasized in Public-Private Partnerships (PPPs), the impacts of transaction costs embedded in PPPs are often understated. In fact, excessively high transaction costs could render PPPs an inferior alternative for providing public infrastructures/services. In literature, there are some studies examining the intrinsic types and sources of transaction costs embedded in different governance structures for providing public infrastructures. Specifically, two major sources of transaction costs in PPPs have been suggested, namely, the principalprincipal problems and hold-up/renegotiation problems. This paper uses case study method to empirically examine the hypotheses concerning the transaction cost contingencies and whether PPPs are appropriate as a governance structure. The two cases are the Channel Tunnel project and the Taiwan High Speed Rail project, two of the largest and, yet, the most problematic and controversial PPP projects in the world. Copyright ASCE 2010.
Other Subjects
Governance structures; Higher efficiency; Ppp projects; Public infrastructures; Public private partnerships; Study methods; Taiwan high speed rails; Transaction cost; Tunnel projects; Railroad transportation; Research; Costs
Type
conference paper