Wessels, M (2014) Stimulating sustainable infrastructure development through public-private partnerships. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 167(5), pp. 232-241. ISSN 17514304
Abstract
The addition of sustainability objectives to infrastructure projects is still seen by many as an increased risk, rather than a value adding enterprise. This paper considers an alternative idea in which public authorities can, in a controlled fashion, utilise the risk-transferring mechanism characteristic of a public-private partnership (PPP) to increase a project's sustainability development. Although a wide range of variables determines whether a PPP is applicable for an infrastructure project, this research specifically explores the ability of a PPP to stimulate investment in sustainable innovation and thus increase value for money. The paper provides a critical analysis of existing relevant literature of sustainable development, industry-specific obstacles to innovation and the pros and cons of innovating in a PPP. Five prototype 'contract levers' are presented to support a mutually beneficial risk-sharing partnership between the authority and concessionaire. They do so by simultaneously utilising the advantages of a PPP, accounting for the disadvantages and overcoming obstacles to innovation. An examination of two recent PPP projects explains the practical application of the levers.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contracting; public-private partnerships; sustainability |
| Index terms: | partnership, infrastructure project, public authority, concessionaire, sustainable development, prototype, infrastructure development, accounting, value-for-money |
| Subjects: | infrastructure engineering, evaluation, health safety and environment, contract type, economic analysis, administrative law, infrastructure and transport systems, partnership management, modelling and simulation |
| Topics: | Procurement, Engineering Principles, Health and Safety, Value Management, Legal Issues, Stakeholder Management, Business Strategy |
| Descriptive scope: | 2 PC |
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