Evaluation of the promotion of through-life management in public private partnerships for infrastructure

Lauri Koskela, John Rooke, Mohan Siriwardena

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

One justification of public private partnerships (PPP) is the alleged benefit they offer in terms of through-life management (TLM). Aiming at an evaluation of this claim, the dominant reasoning connecting PPPs and TLM is first defined: In creating a single point of responsibility and a long temporal involvement, the PPP model provides an effective incentive to implement TLM. This reasoning is first evaluated through prior large scale studies and through two case studies undertaken by the authors. No substantial evidence of TLM benefits is found. To identify the causes for this gap between intention and achievement, a critical review of the PPP literature supported by insights from management and organization theory is undertaken. Four problems in the reasoning are found to explain the gap: fragmentation is factually prevailing; not all parties in PPPs intend to have a long term commitment to the project; there may be competing incentives for some parties; and the effort to achieve the change and learning necessary for TLM may be missing. It is concluded that for the TLM benefits to be achieved, the PPP model has to be redesigned to secure incentivisation towards TLM and to incorporate TLM mechanisms at the level of the production system.

Original languageEnglish
Article number552
JournalSustainability
Volume8
Issue number6
DOIs
Publication statusPublished - 16 Jun 2016

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public-private partnership
public private partnership
promotion
infrastructure
evaluation
management
incentive
organization theory
production system
fragmentation
learning
commitment
responsibility
cause

Cite this

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abstract = "One justification of public private partnerships (PPP) is the alleged benefit they offer in terms of through-life management (TLM). Aiming at an evaluation of this claim, the dominant reasoning connecting PPPs and TLM is first defined: In creating a single point of responsibility and a long temporal involvement, the PPP model provides an effective incentive to implement TLM. This reasoning is first evaluated through prior large scale studies and through two case studies undertaken by the authors. No substantial evidence of TLM benefits is found. To identify the causes for this gap between intention and achievement, a critical review of the PPP literature supported by insights from management and organization theory is undertaken. Four problems in the reasoning are found to explain the gap: fragmentation is factually prevailing; not all parties in PPPs intend to have a long term commitment to the project; there may be competing incentives for some parties; and the effort to achieve the change and learning necessary for TLM may be missing. It is concluded that for the TLM benefits to be achieved, the PPP model has to be redesigned to secure incentivisation towards TLM and to incorporate TLM mechanisms at the level of the production system.",
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Evaluation of the promotion of through-life management in public private partnerships for infrastructure. / Koskela, Lauri; Rooke, John; Siriwardena, Mohan.

In: Sustainability, Vol. 8, No. 6, 552, 16.06.2016.

Research output: Contribution to journalArticle

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AU - Rooke, John

AU - Siriwardena, Mohan

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