Private and public partnership (PPP) infrastructure delivery models: do they require revisiting?

Since 1980, Private Public Partnership (PPP) infrastructure delivery models have been often used for the delivery of both economic and social infrastructure. Among the pioneering applications have been some very large transport projects. However, with the Global Financial Crisis (GFC) and the recent failure of some of the major tollway PPP projects in Australia, the private sector's appetite for such projects, and hence private investment in infrastructure generally, has fallen. Some of the issues that have led to the loss of interest in these projects are not unique to transport and has affected other portfolio areas. Therefore, it is imperative, that an appropriate assessment of the underlying reasons for the failure is undertaken (including any lessons learnt) and of the potential to beneficially vary PPP structures for transport, and other sectors. This paper explores some of the potential opportunities to improve the performance of PPP projects that may assist in removing some of the constraints and in jointly encouraging justifiable government support and private investment. Finally, the paper proposes variations to the current predominant financial structures based on our own direct, necessarily limited experience, that should be further investigated and which may assist in the achievement of the desired objectives of both the government and the private sector in the future.