Browsing by Subject "Public-private partnerships"
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Item An assessment of operations and maintenance costs in public-private partnerships(2014-08) Martinez, Sergio Eduardo; Walton, C. Michael; Murphy, Michael RossPublic-private partnerships (PPPs) for the delivery of transportation infrastructure are said to offer increased efficiency resulting from the private sector’s life-cycle approach to design and construction. While the literature on PPPs endorses such efficiencies, studies don’t provide empirical support for that claim. The goal of this thesis was to assess that notion. Four tasks were carried out to explore that issue. First, a literature review searched for evidence of such efficiencies and methodologies to evaluate them. Second, a simple methodology to evaluate the life-cycle cost-efficiencies of the public and private sectors was proposed. Third, since most PPP projects in the U.S. are recent and currently subject to routine operations and maintenance (O&M), indicators to compare those costs were proposed as well. Fourth, a case study compared the routine O&M costs of a PPP and of those of a system of publicly developed and managed tollroads. The literature review found no empirical evidence of superior O&M cost-efficiency of PPPs, and also, that most studies focused on design and construction cost and schedule overruns. While some studies assessing performance and/or efficiency were at times theoretical and not likely employed in practice, one methodology is proposed to evaluate life-cycle cost-efficiency. The case study results showed that the concessionaire was more cost-efficient in terms of operating expenditures (OPEX) per mile (-60%) and per lane-mile (-53%) than the system. The public system was more cost-efficient in OPEX per vehicle-miles travelled (97%), number of toll transactions (332%), and toll revenue (20%). However, those three indicators depend on traffic volume which during the study period was overwhelmingly greater on the public system. While the case study showed cost-efficiency differences between the public and private sectors, additional research is needed to empirically test the hypothesis of greater efficiency of the private sector. The proposed framework can be used, but adequate data and further assumptions about O&M costs are needed; for that, it is recommended that more comprehensive case studies be performed to obtain detailed empirical data. A better understanding of the differences in cost-efficiency between publicly and privately managed roads will help decision-makers minimize the life-cycle cost of their investments.Item The case for public-private partnerships in infrastructure capital budgeting(2009-12) Kirunda, Emmanuel Sunlight; Ambler, Tony; Duvic, RobertCivil Infrastructure is needed both in the developed world and in developing countries. However, governments alone can no longer deliver the much needed projects mainly because of lack of money, but also due to the lack of technical skills and a changing type of citizenry. In today’s world, governments have to consult the market place to efficiently and optimally deliver the much needed infrastructure. The case for Public-Private Partnerships being better than the options of government run projects or fully privatized projects is that Public-Private Partnerships offer real advantages in three major areas: 1) risk benefits (financial, legal and project related benefits), 2) management and communication benefits (within the partnership but also importantly between both partners and the general public), and 3) the value addition to the public common good.Item A framework to evaluate the financial viability of urban public-private partnership projects(2015-12) Sassine, Christopher; Zhang, Zhanmin, 1962-; Murphy, Michael RAs public governments around the world face limited funding capacity for capital-intensive projects, their attention is turned towards the private sector for financing. Public-private partnerships (PPPs) have emerged as an alternative project delivery method in which the public and private sectors work together for the provision of urban projects. In deciding whether to enter into a PPP agreement, both the public and private will have to conduct the financial viability of the partnership. This thesis aims to provide a framework for estimating a project’s financial viability of large-scale urban projects, by addressing the crucial components associated with large-scale urban projects. These components include the type of PPP arrangement, contract length, financial structure, project cash flows, and capital budgeting. As part of the overall financial viability, the framework will also take into consideration the effects of uncertainties associated with a project or risks on the project’s profitability; then, various risk management strategies that aim to provide better hedging of risks will be discussed.Item Public private partnership in education : a case in Pakistan(2011-05) Khan, Amna; Wong, Patrick, 1956-; Bussell, JenniferPakistan had a literacy rate of 54 percent in 2008. This was considerably lower than all of its neighbors. 43 million people in Pakistan live below the poverty line of a dollar a day, and receiving quality education remains a dream for most of them. The government spends less than 3 percent of its Gross Domestic Product on education, which means that little can be done to provide even basic education to all. While there is no conclusive evidence regarding the effectiveness of public private partnerships, they have been promoted as part of the national agenda on education since 2000. This report explores the effectiveness of such partnerships in the education sector in Pakistan, and analyzes the problems that these partnerships face. The focal point of the assessment is an in-depth analysis of various public private partnership programs in Pakistan, based on primary and secondary data. Primary data includes information gathered by visiting a school that was formed under one such partnership, and by conducting detailed interviews with key stake holders. Secondary data comprises of evaluation reports by donor agencies and the Ministry of Education. The primary aim of this report is to examine the effectiveness of such programs and the reasons for their success or failures. The secondary aim is to determine if active community involvement in education yields better results. Finally, this report offers guidelines to the government for designing successful public private partnerships. Findings reveal that such partnerships have varying results within Pakistan and these results depend greatly on the design of such partnerships. The author recommends that a national policy on public private partnerships be formed, and elements of accountability and performance measure be added to each contract to make the partnership more effective, sustainable and successful.