How do adoption choices influence public private partnership outcomes? Lessons from Spain and Portugal transport infrastructure
International Journal of Managing Projects in Business
ISSN: 1753-8378
Article publication date: 1 February 2022
Issue publication date: 11 April 2022
Abstract
Purpose
Maximising real efficiency benefit (REB) is currently being replaced with access to private finance as core public–private partnership (PPP) adoption motive. This later choice focusses on short-term performance, compromising REB and the procurement of infrastructure that meets the need of the present and future generations, which the former accomplishes. The paper aims to review these observed changes to understand the rationales and significance behind such switch.
Design/methodology/approach
Secondary data powered exploratory study. Deployed X-inefficiency theory to triangulate and reduce bias and select country cases to provide the proper foundation for the descriptive “what happened?” question, such as “what was the failure concerns with a particular adoption choice?”
Findings
The shift to accessing private finance adoption motive against REB failed to improve PPP project performance or meet efficiency and sustainability. Instead, it allows the private sector to assume financial risk without synergistic monitoring from the government to determine their contractual and commitment trust level, which would help achieve the five-dimensional sustainable performance measurement system for PPP. This led to the struggles of PPP projects in Portugal and Spain, where cost overruns and high demand forecast led to project failures. A recommendation, blended finance with its technical assistance additionality, is considered pivotal to addressing access to private finance motive shortcomings.
Originality/value
This study improves best practices for new and existing adopters by systematically establishing that adoption ideology is a cardinal variable that influences PPP project success. When not correctly adopted, it can make the most successful structured projects face complexities and uncertainty.
Keywords
Citation
Anago, J.C. (2022), "How do adoption choices influence public private partnership outcomes? Lessons from Spain and Portugal transport infrastructure", International Journal of Managing Projects in Business, Vol. 15 No. 3, pp. 469-493. https://doi.org/10.1108/IJMPB-03-2021-0077
Publisher
:Emerald Publishing Limited
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