VfM Assessment of Transport PPPs: Implications for Future Improvement

Jianfeng Zhao, Henry Liu, Michael Sing, Xiaohua Jin, Richard Humphrey

Research output: A Conference proceeding or a Chapter in BookConference contribution

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Abstract

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.
Original languageEnglish
Title of host publicationProceedings of the 43rd AUBEA Conference
Subtitle of host publicationBuilt To Thrive: Creating Buildings and Cities That Support Individual Well-Being and Community Prosperity
EditorsXianbo Zhao, Pushpitha Kalutara, Ronald Webber
Place of PublicationAustralia
PublisherCentral Queensland University
Pages170-180
Number of pages10
ISBN (Print)9781921047510
Publication statusPublished - Nov 2019
Externally publishedYes
EventThe 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 20198 Nov 2019
https://www.cqu.edu.au/about-us/structure/schools/et/conferences/aubea-conference-2019

Publication series

NameAustralasian Universities Building Education Association Conference
PublisherAUBEA

Conference

ConferenceThe Australasian Universities Building Education Association (AUBEA 2019)
Abbreviated titleAUBEA 2019
CountryAustralia
CityNoosa
Period6/11/198/11/19
Internet address

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