Exploring the major causes of PPP project failures - a survey Online publication date: Thu, 01-Jun-2023
by Adnan Saif AlSaaidi; Abdullahi Ahmed Umar; Luisito B. Layon; Atef Badr
International Journal of Procurement Management (IJPM), Vol. 17, No. 3, 2023
Abstract: Over the last decade, there has been a growing incidence of public-private partnerships (PPPs) project failures leading to a wave of 'remunicipalisations' around the globe. Past studies on the subject of PPP failures have been mainly case studies, critical reviews and government reports. The views of PPP practitioners on causes of PPP failures has rarely been sought, a gap which this study seeks to fill. A survey questionnaire was used to collect data from PPP practitioners across public/private sectors. The results of the study found, using exploratory factor analysis and Monte Carlo parallel analysis, that the major causes of PPP failures include poor regulation, macroeconomic crisis, contractor bankruptcy, poor public sector skills and public opposition. The findings will help governments design more sustainable PPP contracts in order to prevent financial losses to stakeholders including governments, private sector, investors and taxpayers, resulting from cancelled PPP projects.
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