Public-Private Partnerships (PPPs) have been adopted to deliver transport infrastructure assets worldwide, attributing to governments’ increasingly limited fiscal budget. However, the key issue about whether PPPs can provide taxpayers with better value for money (VfM) is still under controversy. As an integral component of infrastructure procurement process, VfM assessment acts as an essential stage of governments’ ex-ante evaluation for the use of PPPs. Despite this, relevant empirical research, especially within the context of transport infrastructure, has received limited attention. Against this backdrop, a total of 3 case studies of the Australian transport PPP projects has been undertaken and the SWOT analysis was conducted to examine the current practice in VfM assessment. The empirical evidence indicates that the approach being used by the Australian state governments for assessing VfM fails in addressing a critical perspective in terms of the improved service quality to be generated by privatesector entities. Based on this finding, a novel VfM-oriented decision-making model that is underpinned by the Dynamic Discrete Choice Model (DDCM) has been proposed. This paper contributes to the body of knowledge of PPPs VfM assessment and is significant for improving industry practice in decision making of procurement selection for transport assets.
|Title of host publication||Proceedings of the 43rd AUBEA Conference|
|Subtitle of host publication||Built To Thrive: Creating Buildings and Cities That Support Individual Well-Being and Community Prosperity|
|Editors||Xianbo Zhao, Pushpitha Kalutara, Ronald Webber|
|Place of Publication||Australia|
|Publisher||Central Queensland University|
|Number of pages||10|
|Publication status||Published - Nov 2019|
|Event||The Australasian Universities Building Education Association (AUBEA 2019): Built to thrive: Creating Buildings and Cities that support individual well-being and community prosperity - Central Queensland University, Noosa, Australia|
Duration: 6 Nov 2019 → 8 Nov 2019
|Name||Australasian Universities Building Education Association Conference|
|Conference||The Australasian Universities Building Education Association (AUBEA 2019)|
|Abbreviated title||AUBEA 2019|
|Period||6/11/19 → 8/11/19|
Zhao, J., Liu, H., Sing, M., Jin, X., & Humphrey, R. (2019). VfM Assessment of Transport PPPs: Implications for Future Improvement. In X. Zhao, P. Kalutara, & R. Webber (Eds.), Proceedings of the 43rd AUBEA Conference: Built To Thrive: Creating Buildings and Cities That Support Individual Well-Being and Community Prosperity (pp. 170-180). (Australasian Universities Building Education Association Conference). Australia: Central Queensland University.