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Tips and Pitfalls in PPP design

Author

Listed:
  • Emile Quinet

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • David Meunier

    (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École des Ponts ParisTech, INRETS - Institut National de Recherche sur les Transports et leur Sécurité)

Abstract

The Public-Private-Partnership (PPP) procedure is a very appealing model, but as it becomes more and more used in practice, problems and failures have been observed in the management of many projects. Many of these unfortunate experiences are consequences of errors in the implementation of the procedure, but in other cases, clear errors of conception were the cause. Indeed, there are many ways to structure a PPP and PPP is not the only way to manage an infrastructure scheme. It is thus an important task to provide guidelines on whether to use PPP or other types of procurement and, in case a PPP is preferred, on how to design it. The aim of this chapter is to contribute to this task, trying to combine theoretical knowledge and practical experience. After a review of the variety of economic characteristics of transport infrastructure and their procurement conditions, we recall the reasons that may justify this association of public and private management which is the characteristic of PPP, outlining the limits of using pure private or pure public procurement. Then an analytic process is proposed, screening the parameters which matter most for choosing the PPP procedure among many possible ones, depending on the specificities of the various transport modes. This process gives also indications on key elements for implementing a PPP. Finally, the analytic process proposed is used for a generic analysis of, respectively, the motorways and port sectors, so as to test its practicability and customizing capability for the use of public authorities.

Suggested Citation

  • Emile Quinet & David Meunier, 2010. "Tips and Pitfalls in PPP design," PSE-Ecole d'économie de Paris (Postprint) halshs-00754415, HAL.
    • Handle: RePEc:hal:pseptp:halshs-00754415
    DOI: 10.1016/j.retrec.2010.10.013
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    Citations

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    Cited by:

    1. Juli�n Sierra Tamayo & Jose Manuel Vassallo & María de los Ángeles Baeza, 2014. "Unbundling tolls from contracts: a new road PPP model," Public Money & Management, Taylor & Francis Journals, vol. 34(6), pages 447-451, November.
    2. Páez-Pérez, David & Sánchez-Silva, Mauricio, 2016. "A dynamic principal-agent framework for modeling the performance of infrastructure," European Journal of Operational Research, Elsevier, vol. 254(2), pages 576-594.
    3. Ahmadabadi, Ali Akbari & Heravi, Gholamreza, 2019. "The effect of critical success factors on project success in Public-Private Partnership projects: A case study of highway projects in Iran," Transport Policy, Elsevier, vol. 73(C), pages 152-161.
    4. Qiang Wang & Thomas Dogot & Yueling Yang & Jian Jiao & Boyang Shi & Changbin Yin, 2020. "From “Coal to Gas” to “Coal to Biomass”: The Strategic Choice of Social Capital in China," Energies, MDPI, vol. 13(16), pages 1-22, August.

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