Getting Public-Private Partnership ‘Right’ To Attract Private Investments

Abstract

Public-Private Partnership (PPP) is seen as a valuable instrument to speed up development in a country. PPP was introduced in India in 1999. After an initial spurt, India faced spells of drought in interest for PPP projects; hence a need for its revival is decisive.  Though there are numerous studies on critical success factors (CSFs) of PPP there is no one-size-fits-all solution. Moreover, the recent renationalisation of British rail after 25 years of iconic PPP initiative endorses the need for the study. The aim of the paper is to identify & evaluate critical success factors needed to facilitate and guarantee successful implementation of PPP and group the similar ones into clusters.  Twenty-six CSFs identified from literature review and pilot study were evaluated through questionnaire survey by industry professionals with over ten years’ total experience and minimum one full PPP project experience. Factor analysis churned out seven clusters after grouping factors with commonality. They were: ‘Efficient landscape for project implementation’ cluster, ‘Unbiased and real competition’ cluster, ‘Contractual standardisation & Statutory clearances’ cluster, ‘Conducive social and environmental setting’ cluster, ‘Systematic and structured procurement process and supportive society’ cluster, ‘Investment-friendly climate’ cluster, and ‘Project viability’ cluster. Policymakers and the private sector can use the findings to focus and channelize their effort on the clusters and develop sustainable strategies for the development of PPP programs.