“Contract-type public private partnerships in services”, Ronald W. Mcquaid
RONALD W. MCQUAID
Stirling Management School University of Stirling Stirling FK9 4LA, Scotland, UK email@example.com
Purpose: Public Private Partnerships (PPPs) have been used in attempts to improve efficiency, effectiveness and innovation in infrastructure and services, and to enlarge public budgets in the short-term. There appears to be large potential scope for the greater use of PPPs in many countries, but it is crucial that the mistakes made elsewhere are avoided and that there is a transparent and robust system of regulation and support. This paper critically assesses some of the micro- and macro-economic reasons for using Public Private Partnerships (PPPs) for infrastructure and services.
Design/methodology/approach: This paper reviews some selected evidence related to policy arguments in favour of PPPs, and some potential shortcomings of PPPs in practice.
Findings: There are a number of reasons why PPPs can provide improved infrastructure and services, however, in practice these may often not be fully realised due to in-built incentives, biases and implementation shortcomings. A transparent and on-going evaluation for deciding on PPPs needs to be set up, and PPPs need to be used effectively compared to alternative funding sources. If not, there is scope for inefficiencies and misuse of PPPs. Necessary support for PPPs includes strong, robust and transparent regulatory and governance systems and the dissemination of good practice to all partners, as well as good quality advice and training.
Originality/value: The paper sets out a number of reasons for using PPPs, but also assesses potential drawbacks associated with them.
Keywords: Public Private Partnerships; PPP; budget enlargement; motivations