Haran, M; McCord, M; Hutchison, N; McGreal, S; Adair, A; Berry, J and Kashyap, A (2013) Financial structure of PPPs deals post-GFC: An international perspective. Journal of Financial Management of Property and Construction, 18(2), pp. 184-203. ISSN 1366-4387
Abstract
The purpose of this paper is to explore the implications of the Global Financial Crisis (GFC) on Public Private Partnership (PPP) markets around the world. Specifically, it aims to highlight the extent of over reliance on debt finance, as well as the conditions needed to attract enhanced levels of institutional investment into key infrastructural provision. Quantitative insight for the paper is derived from the Infrastructure Online Database. The Infrastructure Journal (IJ) Online Database profiles PFI/PPP deals around the world depicting the key actors involved, as well as the capital value of deals and the financial structures applied in terms of debt, equity and Multilateral and Government Finance. The quantitative insight derived from the IJ database is complemented by interview evidence and forum-based discussion. In total, 38 interviews were conducted with a diverse range of key stakeholder groupings from across the public and private sectors, including government advisers, client side representatives (Health and Education sectors), contractors, financiers and FM providers. Interviewees were drawn from five key PPP markets at different stages in the maturity cycle, namely, Australia, Canada, India, the UK and the USA. In addition to the interviews, three forum-based discussions were undertaken as part of the investigation exploring the key themes to emerge from the interviews from multi-stakeholder perspectives. The findings from the study highlight a number of inherent deficiencies in the PPP model, including the over reliance on private sector debt. Additionally, the research profiles the extent and form of national government interventions in PPP markets around the world, highlighting the need for a more innovative, sustainable and balanced funding frameworks for essential infrastructure conducive to the next economic/financial cycle. This study is distinct in that it examines the cross-jurisdictional implications of the global financial crisis on PPP markets.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Australia; Canada; financial models; global financial crisis; India; infrastructure investment; partnership; partnership based procurement; private finance initiative; procurement; project finance; public private partnerships; United Kingdom; United States of America |
| Index terms: | project finance, evidence, private finance initiative, journal, United Kingdom, institutional investment, global financial crisis, interview, debt finance, public private partnership, India, markets, investigation, funding, Australia, database, Canada, infrastructure investment, partnership, private sector, United States of America |
| Subjects: | economic analysis, contractual arrangements, research dissemination and communication, evaluation and assessment methods, data collection methods, partnership management, data management, industry analysis, financial management, financial risk, economic concepts, Geography |
| Topics: | Digital Applications, International Construction, Cost Management, Business Strategy, Geographical Context, Research Practice, Stakeholder Management, Procurement |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here