Public Private Partnerships Schemes In India Construction Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Public Private Partnership (PPP) project which is based on a concession agreement between a government on one side and private sector company on other side, for delivering an infrastructure facility on payment of user charges. The objective is to combine the best abilities of public and private sectors for reciprocated benefit. PPPs are used to build new and upgrade existing public facilities. Compared with traditional model, in PPP private sector assumes a superior role in planning, financing, design, construction, operation and maintenance of these facilities.

PPP is becoming a progressively more significant vehicle to deliver public infrastructure development and public service facilities. In recent years countries around the world have met the challenge of expanding and maintaining decisive infrastructure by restructuring public utilities and intensifying private sector participation in the infrastructure sectors. Recognizing the significance of adequate infrastructure, and the given constrictions on public budgets to finance these rising infrastructure needs, governments have sought to transfer part of the burden of new infrastructure investment to private sector. The significance of involving public and private stakeholders and creating a juncture for dialogue is undeniably receiving growing identification.

Over the lifetime of these projects the political, social, legislative and fiscal environment could all change extensively. This is especially in the case of developing countries where the political, social and economic circumstances are unbalanced. Consequently a high degree of risk and ambiguity surround PPPs and it is a vital that enough identification, appraisal and assessment of these risks take place. These risks have high level of impact on the viability of the project, which is an essential parameter in the thriving implementation of project.

Concession agreement


In the refereed journal paper the author intends to identify the key critical success factors (CSF) and success sub factors (SSF) in order to determine the success or failure of PPP infrastructure projects. This has been achieved by carrying out literature review, taking experience from successful projects in different countries and conducting interviews with some PPP experts. At last the identified CSFs were classified into five main factors and a questionnaire survey was performed to request for worldwide expert opinions on the relative implication of the CSFs and SSFs. This paper has been selected because to understand the importance of CSFs in PPP projects.

PPP is a proven procurement technique used to identify the alternative approaches for financing and delivering public infrastructure projects. It was argued that CSFs would enhance project value with improved quality of outcome, increase management success, economic feasibility, favourable investment environment and appropriate risk allocation [1]. In order to validate the theme of PPP improvement, CSFs concept is taken for the study through the referred journal (Critical Success Factors for Public-Private Partnerships in Infrastructure Development) stating that CSFs can encounter the competent procurement process through a model development for inclusion by utilizing questionnaire survey [2]. CSFs does not include the word effective procurement in ranking significance of success factors, as this effective procurement process demonstrates transparency and to be competitive throughout the entire procurement process and enhances project value for money. CSFs evaluation can also be done by using factor analysis method which identifies a relatively diminutive number of factor groupings that can be used to signify relationships among sets of several inter-related variables [3]. In addition economic efficiency of PPP for Infrastructure Development can be improved through contractual flexibility analysis which incorporates flexibilities into the contemporary way of contract structuring [4]. Theoretically CSFs are identified based either on expert opinions or on quantitative measures. For example analytical hierarchy process is adopted on CSFs to determine the qualified importance of success related factors for construction projects [5]. The papers also reveals the CSFs for PPPs under Win-Win Principle that creates a favorable environment and provide needed support for private sector participation, and establishes valuable measures to ensure that privatized projects and services are delivered at public acceptable standards and quality. An effective legal and authoritarian framework should be established in favourable investment environment aspect to facilitate the formulation of successful contractual vehicles for PPPs that are attuned with a country's legal system [6].

The questionnaire survey model is well structured by calculating the relative significance indices of five CSFs and SSFs under each CSF separately. However for future development of PPP infrastructure projects factor analysis could be used to determine the main success factor groupings that motivate project procurement. In addition, sensitivity analysis and simulation methods should also be used in the economic appraisal of large infrastructure projects.


In the refereed journal paper the authors aim to develop a framework for building relationally 'sustainable teams in PPP projects'. This has been achieved by incorporating and assessing the past performance of technical, sustainability and relational criteria. Eventually

Ranking type Delphi survey was instigated to review the basic structure and purpose of the proposed framework involving professionals from industry and academia. This paper was selected because to know the reliable factors used for choosing best PPP teams.

Infrastructure privatization involves political, social, legal economic and environmental aspects and consequently is much more convoluted than traditional public procurement. It was squabbled that technical, relational and sustainability aspects will facilitate clarity and reliability in appraisals and permit a holistic overview of overall performance for selecting best PPP teams [7]. In order to authenticate the topic of sustainable development of PPP team, Delphi-type approach(DTA) is used in this study through the referred journal (Selecting sustainable teams for PPP projects) declaring that professional experts can select the best team by providing ratings against each aspect in an appropriate framework[8]. The findings led that the Construction clients were including sustainability prerequisites in the procurement documents. For example on National Museum project in Australia, potential alliance partners were required to demonstrate practical experience and idealistic approach in the areas of developing sustainability and ecological management[9]. Theoretically for measuring the performance of a PPP team, single scoring system can be used which facilitates transparency and consistency in evaluation. The DTA is a systematic method to obtain expert judgment on the possible effectiveness and adaptive nature of the relational framework. The paper also divulges that adaptability of the Delphi method symbolize both its power and the basis for its imperfection. The findings also indicate that to adapt the Delphi method to meet scenario-specific decision-making and anticipating needs. It is vital to first differentiate between rounds and segments in a Delphi process as the number of segments would typically depend on the objectives. The characteristic application of the ranking-type Delphi is for the identifying and prioritising issues [10].The DTA study used only one round in the survey, as the authors took the freedom to not have a second round of this study-to obtain developmental comment and the results specify that there is a consensus among professionals for both the overall and relational frameworks. However for an appropriate selection of superlative PPP team, best-value selection approach, competitive selection process and multicriteria tender evaluation should be used. Successful selection of sustainable team must include enhanced project brief and tender documents, formulation of a best-value selection method, determination of proper criteria and methods for prequalification and tender appraisal, financial models capital structure and potential enhancements in different stages [11].

The integrated approach is well prepared which contributes openly to sustainable infrastructure through relationship building and knowledge-building. The anticipated model can be next incorporated with the overall PPP team selection system that would integrate the evaluation of proposals from prequalified consortia that will include assessments of financial and infrastructure operational plans as well.