Nilesh Agarchand Patil, Nicola Thounaojam and Boeing Laishram
Increasingly adopted by various governments for infrastructure development, public-private partnerships (PPPs) have become a popular procurement delivery system, outperforming…
Abstract
Purpose
Increasingly adopted by various governments for infrastructure development, public-private partnerships (PPPs) have become a popular procurement delivery system, outperforming other systems. However, PPPs have been especially criticised due to the lack of sustainability aspect during the development and implementation of the projects. In India, similar critiques have been raised, as these qualities have inhibited the development of society and increased the time and cost overrun in the development of PPP projects. This paper, therefore, aims to address the sustainability issues in PPPs and systematically analyses from the perspective of the principles of sustainable development.
Design/methodology/approach
Based on literature review and focussed interviews with stakeholders in India, a qualitative system dynamics (SD) model using causal loop diagramming is developed to propose the inclusion of various strategies in the PPP procurement process, which can enhance the sustainability of the PPP process. Finally, the integration of these strategies in the current PPP procurement process has been highlighted in the form of the introduction of new mechanisms and policies and modification of the existing mechanism and procurement policies.
Findings
The paper first highlights key sustainability issues in the PPP procurement process and suggests 34 strategies to address the issues. The modelling approaches and the proposed strategies, along with their interrelationships, could help the PPP decision makers in implementing responsive policies in bringing sustainable development in the PPP procurement process.
Research limitations/implications
The SD model developed is based on limited data, primarily focussed on PPP procurement practices in the context of infrastructure development in India. Developing the model with the analysis of a wider range of data and constructing a customised model can take broader perspectives into account.
Social implications
Adoption of the identified strategies can facilitate the inclusion of sustainability practices in the development of infrastructure projects, which are even procured using private finance.
Originality/value
Studies on how to promote sustainable infrastructure development when procured through the PPP route are in the nascent stage. This study, therefore, extends the current body of knowledge on infrastructure projects implementation through PPPs from financial engineering and risk management to a sustainability perspective.
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Nilesh Agarchand Patil and Boeing Singh Laishram
Though public-private partnership (PPP) programme in India has stabilized significantly with implementation of successful infrastructure projects, still it suffers from shortfalls…
Abstract
Purpose
Though public-private partnership (PPP) programme in India has stabilized significantly with implementation of successful infrastructure projects, still it suffers from shortfalls related to some aspects of sustainable development. One of the ways to overcome these shortfalls is to modify the existing PPP procurement process in order to attain the sustainable development goals. The purpose of this paper is to develop a conceptual framework highlighting the strategies for integrating sustainable development principles in PPP procurement process.
Design/methodology/approach
Content analysis through literature review has been adopted to identify the shortfalls in PPP process and examine the possible strategies to overcome the shortfalls from best practices in implementation of PPP projects. The preliminary framework of strategies has been conceptualized to integrate sustainable development principles in PPP procurement process. Finally, the feasibility of preliminary framework has been undertaken through focussed interviews with local stakeholders of PPPs.
Findings
The study indicates opportunities to promote sustainable development in the current PPP procurement process exists through enhancement in critical aspects like stakeholder’s participation, environment impact assessment, value for money analysis, user’s charges, risk allocation policies, transaction and bidding cost, and bid evaluation criteria.
Originality/value
The paper presents a critical insight on integrating sustainable development principles in PPP procurement process which has not been the focus in the majority of previous research studies.