When the institutional context thwarts public-private partnerships: The role of political factors in the failure of PPPs

Abstract

The PPP scholarly work has effectively explored the material values attached to PPPs such as efficiency of services, value for money and productivity, but little attention has been paid to procedural public values. This paper aims to address this gap by exploring how Enfidha Airport in Tunisia failed to achieve both financial and procedural values that were expected from delivering the airport via the PPP route, and what coping strategies the public and private sectors deployed to ameliorate any resultant value conflicts. Based on the analysis of Enfidha Airport, it is argued that PPP projects are likely to fail to deliver financial and procedural values when the broader institutional context is not supportive of PPP arrangements, and when political and security risks are not adequately counted for during the bidding process.