The influence of the institutional environment on public–private partnership transport projects

Abstract

Public-private partnerships (PPP) have become a key tool in the provision and management of transport infrastructure projects providing countries access to the necessary financial resources for infrastructural needs. Despite the increasing number of PPP projects implemented in many countries, there are factors that hinder development of these projects. One of these factors is the weakness of the institutional environment, particularly in developing countries. To date, few empirical studies have analysed the effects of public institutions on PPP projects, despite the relevance of this issue. The objective of this paper is to analyse the influence of institutional environment on the investment carried out through public-private partnerships in middle-and-low income countries for the period 1996-2011. This paper carries out a statistical analysis of the institutional environment indicators, and data of public-private investment, for 80 countries. Our analysis identifies the most relevant institutional factors that affect the implementation of PPP projects.

Mainstreaming public–private partnership in national development: How ready is Ghana?

“…According to Niekerk, Ruiter, Mcwabeni, Kruger, and Grinker (), the successful implementation of PPPs demands a relatively high level of administrative capacity from the structure that assumes overall contractual control of the process. Pérez‐D'Ole, Castro, Herraiz, and Carpintero () indicate that institutions are key to creating an investment climate where competence is feasible and that the implementation of PPP projects in a country depends on the existence of high‐level public sector capacity, corporate governance, transparency and law enforcement and contractual rights, control of corruption, and appropriate regulatory framework.…”

Dynamics of PPP investment in energy and country governance: evidence from Sub-Saharan Africa

“…(2015) asserted that quality of regulation is a determinant of PPP investment in ports that attracts private bidders and the market competitiveness of the ports, while Baker (2016) documented that regulatory quality has a positive impact on PPP private investor markets irrespective of the level of uncertainty in the exchanged environment. Pérez-D'Oleo et al. (2015) found that countries with sound regulatory quality attract a reasonable proportion of investment through PPP projects.…”

“…Osei-Kyei and Chan (2019) insisted that rampant corruption is one of the reasons for transportation projects failure across Nigeria, Mozambique and South Africa. Countries that attract a large proportion of investment in PPP projects may likely have zero tolerance for corruption (Pérez-D'Oleo et al. , 2015).…”

“…Since SSA countries are poorly rated in all these indicators, it has become a phenomenon to envisage the extent to which these indices have influenced PPI in energy in the empirical history. In the nearest past, Pérez-D'Oleo et al. (2015) and Wang et al.…”

Mechanisms of the Public-Private Partnership in Implementation of Logistic Infrastructure Projects

“…Government performance, regulatory quality and corruption control also affect investment, but to a lesser extent. Countries that have improved the quality of regulation and control over corruption over time tend to have higher levels of investment [26]. The transparency of the work of state authorities, the efficiency of administrative and legal mechanisms, the absence of bureaucratic obstacles and the minimization of corruption influences can significantly reduce the individual risks of PPP projects.…”