South African public private partnership (PPP) projects

The purpose of this thesis is to disseminate research work done towards a higher degree and report on the findings of the research that was conducted relative to South African Public Private Partnership (PPP) projects. The research investigated perceptions of PPP actors on the performance of operational PPP projects. The aim of the research was to fulfil the requirements for the award of the degree of philosophiae doctor in construction management; contribute to the PPP body of knowledge; contribute further understanding of the performance of PPP projects in South Africa; and develop a systemic model for a sustainable PPP system within the country and beyond. All the aforementioned have been achieved, despite the research limitations as indicated in Chapter 1. A case study approach was adopted to examine various performance aspects of operational South African PPP projects. The research was a multi-case study design. Each individual case study consisted of a ‘whole’ study, in which facts were gathered from the selected PPP projects and conclusions drawn on those facts. A web-based questionnaire was used to capture the experiences and perceptions of various actors involved directly, or indirectly in selected PPP projects. The sample stratum consisted of all operational PPP projects registered in accordance with Treasury Regulations as of December 2005 and other projects that reached financial closure before the Public Finance Management Act of 1999 became effective. PPPs involve highly complex procurement processes, are relatively new in South Africa and to date have attracted limited investigation to refine our understanding of the operational performance of PPP projects. This is notable, as significant financial and other resources are involved, and the perception exists that service delivery in most parts of the country is poor. Key empirical evidence from the research indicates that South Africa has developed a robust policy and regulatory framework for PPPs; has an inadequate level of PPP awareness and training; and lacks the project management capacity to facilitate deal flow. It is suggested that further research be conducted on a yearly basis, preferably every six months, so that trends can be established concerning various aspects of other operational PPPs. Further, it is recommended that the PPP Unit commission sector-specific studies that will conduct further research, to compare research across PPP and non-PPP contracts. The choice to conduct a multi-case study required extensive resources and time beyond the means available to the researcher. Further, the sensitive nature of PPP projects made it difficult to obtain required data at the first attempt. However, the researcher made several follow up calls and reminders before eventually obtaining the required data from the respondents. A systemic PPP model has been developed for PPP implementation and management. This model was tested for appropriateness by conducting a further survey on PPP participants attending an international conference on 'Financing of Infrastructure Development in Africa through Public Private Partnerships’ staged in August 2007, in the St. George Hotel, Johannesburg, South Africa. The findings from this research make an invaluable and original contribution to the PPP body of knowledge, provide insight for further research in this important field, refine the understanding of operational PPP projects, and provide direction for policy and decision makers in the public and private sectors, within South Africa and beyond

Determination a Reasonable Concession Period for (PPP) Projects

Public Private Partnership (PPP) are agreements where public bodies enter into long term contractual with private entities for construction or management the public sector facilities, or provision services to the community. Internal rate of return (IRR), pay back regime or tariff, and the concession period (CP) are essential items to success (PPP) projects. This research presents a systematic approach for a win-win partnership contract determined on a quantitative basis, by informing the partnership parties how long contract period should be made.  Essence of the proposed methodology is that project completion time should allow a competent contractor to complete the project on schedule and operation period should be long enough to enable the concessionaire to achieve a reasonable return, but not too long such that concessionaire’s return is excessive and public sector’s interests are sacrificed. A case study of a PPP project in Mayoralty of Baghdad was conducted to evaluate performance of the developed mathematical models. The determined concession period (CP) has found to be approximately equal to actual concession period (CP) granted to the private sector.  Evaluation shows the possibility to adopt the proposed approach to determine the concession period (CP) more effectively. Instead of opportunism policy, the proposed methodology enables local government of Baghdad province to enhance its policies of awarding the partnership projects to increase private sector participation in infrastructure development. Finally, the proposed method can be used by investment practitioners as a decision support tool for contract concession period (CP), and is worth popularizing to design the contracted concession period (CCP) for partnership projects in Iraq, and also can use as a methodology to assess the critical aspects which related to partnership projects in general

Interface-tuned epoxy/clay nanocomposites

Though interface has been known for a critical role in determining the properties of conventional composites, its role in polymer nanocomposites is still fragmented and in its infancy. This study synthesized a series of epoxy/clay nanocomposites with different interface strength by using three types of modifiers: ethanolamine (denoted ETH), Jeffamine� M2070 (M27) and Jeffamine� XTJ502 (XTJ). XTJ created a strong interface between clay layers and matrix because it bridged the layers with matrix by a chemical reaction as proved by Fourier transform infrared spectroscopy; M27 produced an interme-diate interface strength due to the molecular entanglement between grafted M27 chains and matrix molecules; the interface made by ETH was weak because neither chemical bridging nor molecular entanglement was involved. The studies of mechanical and thermal properties and morphology at a wide range of magnification show that the strong interface promoted the highest level of exfoliation and dispersion of clay layers, and achieved the most increment in Young’s modulus, fracture toughness and glass transition temperature (Tg) of matrix. With w1.3 wt% clay, the critical strain energy release rate G1c of neat epoxy improved from 179.0 to 384.7 J/m, 115% improvement and Tg enhanced from 93.7 to 99.

Policy Issues in U.S. Transportation Public-Private Partnerships: Lessons from Australia, Research Report 09-15

In this report, the authors examine Australia’s experience with transportation public-private partnerships (PPPs) and the lessons that experience holds for the use of PPPs in the United States. Australia now has decades of experience in PPP use in transportation, and has used the approach to deliver billions of dollars in project value. Although this report explores a range of issues, the authors focus on four policy issues that have been salient in the United States: (1) how the risks inherent in PPP contracts should be distributed across public and private sector partners; (2) when and how to use non-compete (or compensation) clauses in PPP contracts; (3) how concerns about monopoly power are best addressed; and (4) the role and importance of concession length. The study examines those and other questions by surveying the relevant literature on PPP international use. The authors also interviewed 23 Australian PPP experts from the academic, public and private sectors, and distilled lessons from those interviews

PPP: a risk approach in the water sector

Objective: This thesis provides a theoretical and managerial contribution on how PPP can address risk in the water sector in developing countries. Three thesis objectives support the results. The first identifies literature contributions, the second is related to the perception of risk management by different stakeholders, and the third concerns the risk approach in PPP water contracts in developing countries. Design: A hybrid method combining systematic, semantic network, and narrative analysis review of previous research supported the first objective. To answer the second thesis’ objective, a semi-structured interview using quantitative and qualitative analysis identified the perception of risk management in PPP water projects. To support the third objective, a case study provided interesting insights regarding the risk approach in PPP contracts Findings: From a total of 122 studies, the first objective, identified five main PPP research domains: risk management, contracts, infrastructure, governance, and financing and tariffs. Twenty-five risk factors with high impact were established as a result of the semiinterviews. The top-five critical risk factors are related to political interference, no baselines for performance measurement, unfavourable global private investment climate, non-payment of bills and water asset condition uncertainty. The case study showed how PPP contracts can fail for not having risk management concerns and we have underestimated risks as conflicts between partners. The traditional risk management approach in PPP contracts showed that there is space to improve. The key risk indicators approach was proposed. Originality: Research outputs showed that PPP laws and sector legislation should be permanently adapted to the local needs. The traditional risk management framework fails to provide a solution. The key risk indicators introduce a paradigm shift, which provides useful guidelines for future studies.Objectivo: Esta tese tem como objetivo ser uma contribuição teórica para a abordagem de como os contratos de Parcerias Públicas Privadas (PPP) abordam a gestão de risco no sector da água em países em vias de desenvolvimento. Os três objetivos da tese suportam os resultados apresentados. O primeiro identifica as contribuições da literatura, o segundo recai sobre a perceção de especialistas sobre a abordagem do risco e o terceiro capta a abordagem do risco dos contratos do tipo PPP em países em vias de desenvolvimento. Metodologia: Com o objetivo de responder ao primeiro objetivo da tese, foi aplicada uma metodologia híbrida através da combinação de uma revisão bibliográfica sistemática, semântica e análise narrativa. Os contributos do segundo objetivo da tese, suportaram-se em entrevistas semiestruturadas através do recurso à estatística descritiva e análise de conteúdo. O terceiro e último objetivo teve como base um estudo de caso. Resultados: A revisão da literatura identificou um total de 122 estudos e a existência de cinco campos relevantes nos contratos do tipo PPP: gestão de risco, contratos, infraestruturas, governança, aspetos financeiros e tarifas. O resultado do segundo estudo identificou vinte e cinco fatores de risco. Os cinco fatores que apresentaram uma maior frequência foram: interferência política, ausência de bases de medição do desempenho, um contexto de investimento desfavorável, o não pagamento das faturas e o desconhecimento do estado de preservação das infraestruturas. Os resultados do terceiro estudo mostraram que o sucesso de um contrato do tipo PPP pode ser comprometido na ausência de uma gestão de risco adequada, onde as gestões de conflitos entre parceiros sejam subestimadas em termos contratuais. A temática gestão de risco nos contratos do tipo PPP tem oportunidades de melhoria. Assim, propõe-se a introdução de indicadores chave de desempenho do risco. Originalidade: As leis com impacto nos contratos do tipo PPP devem ser continuamente atualizadas e adaptadas às distintas realidades. É proposta uma alteração de paradigma através da introdução dos indicadores chave de desempenho do risco, fornecendo possíveis linhas orientadoras para pesquisa futura

Sustainability best practice in PPP: Case study of a hospital project in the UK

Globally, sustainable development has been given high priority for the Government agenda in order to achieve a balance of social, economic and environmental factors. The UK government realise the importance and criticality of sustainable development and they intend to use the public procurement power to demand more sustainable public building development to improve energy efficiency and reduce carbon emissions. Public Private Partnership (PPP) is an effective procurement tool for the government to deliver the provision of public services. In the UK, the most common PPP form is Private Finance Initiative (PFI). Up until March 2012, a total of 717 PFI projects have been delivered to sustain social and economic development in the UK (HM Treasury, 2012). There is potential to use PPP to incorporate the sustainability agenda and support low carbon economic development. However, little research has been conducted to demonstrate the benefits and advantages of the PPP procurement system incorporating sustainable development. This paper aims to demonstrate best practice in sustainable development through PPP (PFI) procurement system in the UK. It initially illustrates the relationship between PPP and sustainable development and then uses a case study of one of the largest PPP hospital projects in the UK, utilising interviews and secondary data to show evidence of how the sustainability issues have been addressed within the procurement process and the advantage and limitations of using the PPP procurement system in delivering sustainable development. The results show best practice across different strands of sustainability through contribution to local employment and the local economy, a high percentage of waste recycling, dust and noise reduction and technical innovations such as green roofs, natural ventilation and a focus on occupant comfort

PPPs in the EU: a critical appraisal

The full critical overview report on PPPs in Europe, as presented at the ASPE conference in St Petersburg November 2008. This report examines the experience with PPPs in Europe. It is presented in six sections: - Concept and definitions of PPPs - Overview of development of PPPs in Europe - EU laws and policies in relation to PPPs - Myths about PPPs - Evaluating PPPs – a framework covering cost of capital, construction costs, operating costs, transaction costs, and uncertainty - The lessons of the Metronet failure in the U