The Influence of Critical Success Factors on Value for Money Viability Analysis in Public–Private Partnership Projects

Abstract

Governments are increasingly entering partnerships with the private sector through the public–private partnership (PPP) model for the development of public projects. Value for money analysis is used to assess the viability of these ventures. This research aims to investigate the contribution of the PPP critical success factors to value for money viability analysis. Relevant data were collected through a questionnaire to establish the PPP critical success factors and value for money success criteria. Data were collected from 92 participants. The data obtained were analyzed using mean score, t-test, and regression analysis. The research found that government guarantees, macroeconomic conditions, shared authority between the public and private sectors, social support, and transparent procurement process contributed positively to value for money viability analysis. The results imply that practitioners should consider these key indicators for improving the value for money viability of PPP projects.

Achieving value for money in waste management projects: determining the effectiveness of public–private partnership in Ghana

“…Theoretically, this study contributes to the following ways: first, our study enriches the literature studies of CSFs and VFM by examining governmental attitude as a mediating variable that needs to be highly considered in ensuring VFM in PPP-based WMPs. It provides the support that government's attitude is essential for the legalization and financial guarantees of PPP-based WMPs (Almarri and Boussabaine, 2017;Bing et al, 2005). Second, our study revealed that using PPP for waste management is not positively related, but it is highly significant for the achievement of VFM in Ghana.…”

“…This explains why the government has to change its attitude toward the private sector to ensure the active participation and successful delivery of PPP projects because the stronger the private sector consortium, the more experience it brings to design and develops the most efficient and effective project. This factor was ranked first in previous studies (Almarri and Boussabaine, 2017;Li, 2003;Cheung et al, 2009). IJMPB 13,6 Fourth, our study points out that PPP-based waste management positively influences the CSF (governmental attitude) in Ghana.…”

“…There are other methods of assessing VFM. These can be done through a qualitative and quantitative assessment which is undertaken by checking fiscal cost, riskadjusted costs or economic cost-benefit to the conventional procurement options (Cruz and Sarmento, 2010;Sarmento and Renneboog, 2014;EIB, 2011;Almarri and Boussabaine, 2017;Martins et al, 2014). The most frequently used VFM factors as cited by authors include optimized risk allocation, competitive bid process, improved services to the community, clear output specifications, improved facilities to users, optimization of assets efficiency, technical innovation, the private sector's project management skills, incentives for private parties, appropriate capital structure, long-term engagement, efficient dispute resolutions, low project life cycle cost, early service delivery, reduced negative environmental impact and low tariffs (Cheung et al, 2009;Chou and Pramudawardhani, 2015;Burger and Hawkesworth, 2011;Ismail, 2013;Osei-Kyei and Chan, 2015).…”

“…The classifications of Rockart on CSFs were based on temporal (internal forces and barriers), industrial (industry characteristics), environmental (economy, competition, political and infrastructure) and strategic characteristics (strategic objectives) (Jefferies et al, 2002). CSFs can also be grouped into discrete groups, which can be studied collectively or individually to determine the causal, contextual and intervening effects and how they contribute to the success of PPP projects (Almarri and Boussabaine, 2017). In this study, the CSFs proposed by Cheung et al (2009); Bing et al (2005) and Hu et al (2014) were adapted with additional factors from the study area.…”

A Survey Analysis on Institutional Challenges in implementing Public Private Partnership (PPP) Projects: A perspective from a developing economy of Ghana

“…Governments in response have sought to seek alternative means of financing the much needed infrastructure while ensuring that it fulfills its other numerous responsibilities to its citizens, hence the move towards PPPs. Therefore, it could be said that the most important reason till date for the adoption of the PPP strategy in both developed and developing countries was solely constraints on government revenue (Almarri, 2017).…”