Show Less
You do not have access to this content

Global Developments in Public Infrastructure Procurement

Evaluating Public–Private Partnerships and Other Procurement Options

Darrin Grimsey and Mervyn K. Lewis

There is widespread acceptance of the importance of infrastructure, but less agreement about how it should be funded and procured. While most public infrastructure is still provided in-house or by traditional procurement methods – with well-researched strengths and weaknesses – the development of service concession arrangements has seen a greater emphasis on lifecycle costing, risk assessment and asset design as featured in a variety of public private partnership (PPP) delivery models. This book examines the various procurement approaches, and provides a framework for comparing their advantages and disadvantages. Drawing on international experience, it considers some of the best and worst examples of PPPs, and infrastructure projects generally, along with the lessons for improving infrastructure procurement processes.
Show Summary Details
You do not have access to this content

Chapter 5: Implementing a partnership agenda

Evaluating Public–Private Partnerships and Other Procurement Options

Darrin Grimsey and Mervyn K. Lewis

Extract

The public sector traditionally has obtained new assets (roads, bridges, schools, hospitals, buildings, and so on) separately from the associated services. A partnership agenda offers a different approach because the acquisition of infrastructure assets and associated services is accomplished with one long-term contract. Due to this bundling, before the contract can be put out to tender, decisions need to be made up front about who is responsible for what, and what to include or leave out: Services. What are the ‘core’ services that must be delivered by the facility? What are the non-core services? Finance. Who is best positioned to provide the finance? How quickly and at what cost could private finance be raised? Would it be quicker and less costly for the government itself to undertake the financing? Risks. What are the project risks? Which ones should be transferred contractually to the private party, or retained by the public sector or shared? How is uncertainty to be handled? Public interest. Are the public likely to get good value for money from the PPP? Do the outcomes satisfy the public interest test? These questions frame the content of the chapter along with some issues that have surfaced recently, namely commissioning and contestability, evidence on value for money, the relative cost of government and private finance, prompted by the argument that suppliers of private finance have greater, not less, ability to diversify risks than taxpayers.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.