Reimaging Public-Private Partnership Model as Hybrid: South Africa Viewpoint

Abstract

As significant increases in the financing of infrastructure and other resources will still be required to bridge the current infrastructure gap experienced globally, alternatives to the standard PPP infrastructure project delivery models are constantly appraised in several nations. This research examined the viability of reframing Public Private Partnership (PPP) frameworks as hybrid PPP alliances (HPPPA), which would enhance current PPP practices and enable practitioners in South Africa to deliver PPP infrastructure projects more efficiently. The research adopted a two-pronged qualitative data collection approach, utilizing semi-structured interviews as well as case studies to obtain empirical evidence that was compared to secondary data on how PPP practices in South Africa can be enhanced. The research established that while the South African PPP legislations was adjudged as being suitable, the delivery framework was found to be highly costly and comprised of long approval processes.

Keywords

public-private partnership South Africa hybrid public-private partnership alliance project management infrastructure

Get full access to this article

View all access options for this article.

References

AECOM. (2007). Case studies of transportation public-private partnerships around the world (Final Report No. 05-002). Federal Highway Administration, US Department of Transportation. Retrieved May 30, 2019, from https://www.fhwa.dot.gov/ipd/pdfs/p3/int_ppp_case_studies_final_report_7-7-07.pdf

Ahmadabadi

A. A.

Heravi

(2019a). The effect of critical success factors on project success in public-private partnership projects: A case study of highway projects in Iran. Transport Policy, 73, 152–161. https://doi.org/10.1016/j.tranpol.2018.07.004

Ahmadabadi

A. A.

Heravi

(2019b). Risk assessment framework of PPP-megaprojects focusing on risk interaction and project success. Transportation Research Part A Policy and Practice, 124, 169–188.

Aladag

Isik

(2020). The effect of stakeholder-associated risks in mega-engineering projects: A case study of a PPP airport project. IEEE Transactions on Engineering Management, 67, 174–186. https://ieeexplore.ieee.org/document/8457281

Anney

V. N.

(2014). Ensuring the quality of the findings of qualitative research: Looking at trustworthiness criteria. Journal of Emerging Trends in Educational Research and Policy Studies, 5(2), 272–281.

Arimoro

(2018). An appraisal of the framework for public private partnership in South Africa. European Procurement & Public Private Partnership Law Review, 13(3), 214–228.

Badi

S. M.

Pryke

S. D.

(2015). Assessing the quality of collaboration towards the achievement of sustainable energy innovation in PFI school projects. International Journal of Managing Projects in Business, 8(3), 408–440.

Bob

(2009). Australia; risk management; contractor strategic alliances (business); infrastructure (economics); public-private sector cooperation. Keeping good companies. Business Management and Public Relations Journal, 61(8), 471–474.

Brinkerhoff

D. W.

Brinkerhoff

J. M.

(2011). Public-private partnerships: Perspectives on purposes, publicness and good governance. Public Administration and Development, 31(1), 2–14.

10.

Carbonara

Costantino

Pellegrino

(2014). Concession period for PPPs: A win–win model for a fair risk sharing. International Journal of Project Management, 32(7), 1223–1232.

11.

Clifton

Duffield

C. F.

(2006). Improved PFI/PPP service outcomes through the integration of alliance principles. International Journal of Project Management, 24(7), 573–586.

12.

Danish Institute for International Studies. (2015). Establishing public private partnerships. Lessons learned from the global south. Danish Institute for International Studies. Retrieved June 17, 2018, from https://www.gtac.gov.za/

13.

Deloitte. (2006). Closing the infrastructure gap: The role of public-private partnerships. A Deloitte research study. Retrieved March 5, 2018, from https://www2.deloitte.com/

14.

De Schepper

Haezendonck

Dooms

(2015). Understanding pre-contractual transaction costs for public-private partnership infrastructure projects. International Journal of Project Management, 33(4), 932–946.

15.

Development Bank of Southern Africa. (2012). The state of South Africa’s economic infrastructure: Opportunities and challenges. Development planning division, Development Bank of Southern Africa. DBSA. Retrieved August 24, 2021, from https://www.dbsa.org/.

16.

Díaz

G. R.

(2020). What drives the failure of private participation in infrastructure projects? International Journal of Managing Projects in Business, 13(6), 1167–1185. https://doi.org/10.1108/ijmpb-12-2019-0298

17.

European PPP Expertise Centre. (2011). The guide to guidance: How to prepare, procure and deliver PPP projects. European PPP Expertise Centre. Retrieved May 14, 2019, from www.eib.org/epec/g2g/index.htm

18.

Fombad

M. C.

(2014). Accountability challenges in publicâ private partnerships from a South African perspective. Retrieved June 10, 2021, from https://ajobe.journals.ac.za/pub/article/view/33

19.

Gerring

(2009). The case study: What it is and what it does. In Goodin

(Ed.), The Oxford handbook of political science, pp. 1–38. Oxford University Press.

20.

Government Technical Advisory Centre. (2017). Government technical advisory centre and national Treasury programme 8: Technical support and development finance. Strategic plan 2017/18-2019/20. Retrieved March 7, 2019, from https://www.gtac.gov.za/

21.

Grimsey

Lewis

M. K.

(2005). Are public private partnerships value for money? Evaluating alternative approaches and comparing academic and practitioner views. Accounting Forum, 29(4), 345–378.

22.

Haarhoof

K. C.

(2008). Public private partnerships as an alternative service delivery option: A multiple case study of the healthcare sector in South Africa [Master thesis]. University of Stellenbosch.

23.

Jaafar

M. N.

Ismail

Abdullah

M. N.

Asmoni

Abdullah

(2020). Critical success factor of privatization project. Journal of Sustainable Technology and Applied Science, 1(1), 13–21. https://ejournal.itn.ac.id/index.php/JSTAS/article/download/2612/2114

24.

Wang

Chan

A. P.

Cheung

(2009). Research trend on public-private partnership in construction journals. Journal of Construction Engineering and Management, 135(10), 1076–1086.

25.

Koolwijk

J. S. J.

(2010). Risk shared and allocated by construction clients and contractors in Dutch (hybrid) project alliances. Retrieved March 15, 2018, from https://www.irbnet.de/

26.

KPMG. (2010). PPP procurement: Review of barriers to competition and efficiency in the procurement of PPP projects. Retrieved April 15, 2019, from https://www.procurementinet.org/wp-content/uploads/2017/02/Barriers_to_Competition_and_Efficiency_in_the_Procurement_of_PPPs_KPMG_May_2010-2.pdf

27.

Lapan

S. D.

Quartaroli

M. T.

Riemer

F. J.

(2012). Qualitative research: An introduction to methods and designs. Willey.

28.

Larson

(2020). The Sullivan principles: South Africa, apartheid, and globalization. Diplomatic History, 44(3), 479–503. https://doi.org/10.1093/dh/dhaa002

29.

Liang

(2018). Study on identification of spurious public-private partnerships projects in China. IEEE Transactions on Engineering Management, 67(2), 376–384. https://ieeexplore.ieee.org/document/8525268

30.

Liu

Wang

Wilkinson

(2016). Identifying critical factors affecting the effectiveness and efficiency of tendering processes in public–private partnerships (PPPs): A comparative analysis of Australia and China. International Journal of Project Management, 34(4), 701–716.

31.

Loxley

(2013). Are public–private partnerships (PPPs) the answer to Africa's infrastructure needs? Review of African Political Economy, 40(137), 485–495.

32.

Macário

Ribeiro

Costa

J. D.

(2015). Understanding pitfalls in the application of PPPs in transport infrastructure in Portugal. Transport Policy, 41, 90–99.

33.

Maseko

(2014). Analysis of critical success factors for public-private partnerships in infrastructure development in South Africa [Conference session]. The 6th International Platinum Conference, ‘Platinum–Metal for the Future, Sun City, North Province. Retrieved February 20, 2018, from http://www.platinum.org.za/

34.

Mokanse

R. L.

(2017). Do public-private partnership projects creates value-for money in the public sector? The south African experience in the office accommodation projects. Stellenbosch University.

35.

Nathaneal

(2014). Public private partnerships (PPPs) in South Africa: To what extent are PPPs suitable for the long-term development of infrastructure in South Africa? [Master thesis]. University of Bern.

36.

National Planning Commission. (n.d.). Economic infrastructure. Retrieved June 7, 2021, from https://nationalplanningcommission.wordpress.com/economic-infrastructure/

37.

National Planning Commission (2012). South Africa-National Plan-2012. Available from: https://www.cabri-sbo.org/en/documents/national-development-plan-2030. [cited 10^th April 2020].

38.

National Treasury. (2007). Introducing public private partnerships in South Africa. Retrieved June 7, 2021, from https://www.gtac.gov.za/Publications/200-Final%20Intro%20to%20PPP%20in%20SA%2021%2009%2007%20(1).pdf

39.

National Treasury. (2016). Public-private partnerships. Available from: http://www.treasury.gov.za/documents/national%20budget/2018/review/Annexure%20E.pdf. [cited 5^th April 2020].

40.

National Treasury. (2018). Public-private partnerships. 2018 Budget Review Annexure E. National Treasury. Retrieved July 3, 2018, from https://www.treasury.gov.za

41.

NDP. (2012). National Development Plan 2030 (NDP): Our future-make it work. National Planning Commission, Dept. The Presidency, Republic of South Africa.

42.

S. T.

Wong

Y. M. W.

Wong

J. M. W.

(2010). A structural equation model of feasibility evaluation and project success for public-private partnerships in Hong Kong. IEEE Transactions on Engineering Management, 57(2), 310–322.

43.

Ochieng

E. G.

Price

A. D. F.

Moore

(2017). Major infrastructure projects: Planning for delivery. Palgrave Macmillan’s Global Academic. https://he.palgrave.com/page/detail/major-infrastructure-projects-edward-ochieng/?sf1=barcode&st1=9781137515858

44.

Ochieng

E. G.

Zoufa

Badi

(2020). Routledge handbook of planning and management of global strategic infrastructure projects. Routledge Taylor and Francis Group. https://www.routledge.com/Routledge-Handbook-of-Planning-and-Management-of-Global-Strategic-Infrastructure/Ochieng-Zuofa-Badi/p/book/9780367477486

45.

OECD. (2016). Global development alliances (GDAs) United States agency for international development. Private sector peer earning: Mechanism profiles. Retrieved February 20, 2018, from https://www.usaid.gov/

46.

Orzes

Sartor

Nassimbeni

Fratocchi

(2017). Build-operate-transfer (BOT): An emerging entry mode for service offshoring. Production Planning and Control, 28(4), 295–309.

47.

Osei-Kyei

Chan

A. P. C.

(2015). Review of studies on the critical success factors for public-private partnership (PPP) projects from 1990 to 2013. International Journal of Project Management, 33(6), 1335–1346. https://doi.org/10.1016/j.ijproman.2015.02.008

48.

Osei-Kyei

Chan

A. P. C.

Javed

A. A.

Ameyaw

E. E.

(2017). Critical success criteria for public-private partnership projects: International experts’ opinion. International Journal of Strategic Property Management, 21(1), 87–100.

49.

Petersen

O. H.

(2010). Emerging meta-governance as a regulation framework for public-private partnerships: An examination of the European Union’s approach. International Public Management Review, 11(3), 1–21.

50.

Public-Private Partnership Unit. (2007). Introducing public private partnerships in South Africa. National Treasury. Retrieved February 17, 2018, from https://www.nbi.org.za/wp-content/uploads/2019/05/NBI_KYM-Report-3_Introduction-to-PPPs.pdf

51.

Reynaers

Parrado

(2017). Responsive regulation in public-private partnerships: Between deterrence and persuasion. Regulation & Governance, 11(3), 269–281.

52.

Roehrich

J. K.

Lewis

M. A.

George

(2014). Are public-private partnerships a healthy option? A systematic literature review. Social Science & Medicine, 113, 110–119.

53.

Roumboutsos

Chiara

(2010). A strategic partnering framework analysis methodology for public-private partnerships. Journal of Financial Management of Property and Construction, 15(3), 235–246.

54.

Salamah

(2017). Alliance contracting models in construction projects: Leadership and management [Master thesis]. Joint Study Programme of Metropolia UAS and HTW Berlin.

55.

Saunders

M. N. K.

Lewis

Thornhill

(2015). Research methods for business students (7th ed.). Pearson Education Limited.

56.

Seelestse

S. M.

(2016). Prominent challenges of fixed-term contracts for administrative and professional employers in higher learning institutions of Gauteng Province, South Africa. Problems and Perspectives in Management. 14(3–3), pp. 650–656.

57.

Snopko

(2014). Public-private partnership and hybrid projects as an effective method for financing local government. Zarządzanie Publiczne, 3(27), 263–271.

58.

South African Budget Review (2018). Budget review: National treasury republic of South Africa. Avaiablable from: http://www.treasury.gov.za/documents/national%20budget/2018/review/FullBR.pdf [cited 2^nd May 2020].

59.

South Africa Public-Private Partnership Manual. (2004). The public private partnership manual. Standardised PPP provisions. National treasury PPP practice notes issued in terms of Public Finance Management Act. Note Number 1. Pretoria.

60.

Tang

Shen

Cheng

E. W. L.

(2010). A review of studies on public-private partnership projects in the construction industry. International Journal of Project Management, 28(7), 683–694.

61.

The Australian Government. (2015). National alliance contracting guidelines guide to alliance contracting. Department of infrastructure and regional development. Commonwealth of Australia.

62.

The South African National Treasury. (2012). Budget review. Retrieved April 3, 2019, from http://www.treasury.gov.za/documents/national%20budget/2012/review/FullReview.pdf

63.

van Marrewijk

Clegg

S. R.

Pitsis

T. S.

Veenswijk

(2008). Managing public-private megaprojects: Paradoxes, complexity, and project design. International Journal of Project Management, 26(6), 591–600.

64.

Vining

A. R.

Weimer

D. L.

(2016). The challenges of fractionalized property rights in public-private hybrid organizations: The good, the bad, and the ugly. Regulation & Governance, 10(2), 161–178.

65.

Walker

Jacobsson

(2014). A rationale for alliancing within a public-private partnership. Engineering Construction & Architectural Management, 21(6), 648–673.

66.

WEF. (2014). Creating new models innovative public-private partnerships for inclusive development in Latin America. Retrieved March 14, 2018, from http://www3.weforum.org/docs/

67.

Shi

Chong

H. Y.

Liu

(2018). Empirical analysis of firms willingness to participate in infrastructure PPP projects. Journal of Construction Engineering and Management, 144(1), 1–11.

68.

Yun

Jung

Heon Han

Park

(2015). Critical organizational success factors for public private partnership projects – A comparison of solicited and unsolicited proposals. Journal of Civil Engineering and Management, 21(2), 131–143. https://doi.org/10.3846/13923730.2013.802715

69.

Zhang

Chan

A. P. C.

Feng

Duan

(2016). Critical review on PPP research – A search from the Chinese and international journals. International Journal of Project Management, 34(4), 597–612.

70.

Zhang

Gao

Feng

Sun

(2015). PPP application in infrastructure development in China: Institutional analysis and implications. International Journal of Project Management, 33(3), 497–509.

71.

Zhang

(2005). Criteria for selecting the private-sector partner in public-private partnerships. Journal of Construction Engineering and Management, 131(6), 631–644.

72.

Zou

Kumaraswamy

Chung

Wong

(2014). Identifying the critical success factors for relationship management in PPP projects. International Journal of Project Management, 32(2), 265–274.