TECHNICAL PAPERS
Jun 1, 2005

Criteria for Selecting the Private-Sector Partner in Public–Private Partnerships

Publication: Journal of Construction Engineering and Management
Volume 131, Issue 6

Abstract

A critical issue in public–private partnerships (PPPs) in international infrastructure development is the selection of the right private-sector partner. This necessitates a best value source selection methodology in which the establishment of a set of appropriate selection criteria is a prerequisite. Various important selection criteria have been identified through a literature review of previous studies on critical success factors; experience drawing and lessons learning from international PPP practices; examination of selection criteria used in worldwide PPP projects; and interviews/correspondence with international PPP experts and practitioners. These identified criteria are classified into four evaluation packages for PPP projects in general: (1) financial, (2) technical, (3) safety, health, and environmental, and (4) managerial. The relative importance of these evaluation packages and the relative significance of the criteria within each package have been statistically analyzed based on a structured questionnaire survey of worldwide PPP expert opinions. These statistical analyses include validity and reliability analysis, Mann Whitney U tests, direct comparisons of mean criterion significance indexes and criterion rankings between respondents across public, private, and academic sectors, and a general rank agreement analysis across sectors for each evaluation package. These research outputs would facilitate the formulation of a multicriteria best value source selection methodology for PPP projects in general and the development of both objective and subjective evaluation criteria to select the right private-sector partner for a particular PPP project.

Get full access to this article

View all available purchase options and get full access to this article.

References

Abdul-Aziz, A. R. (2001). “Unraveling of BOT scheme: Malaysia’s Indah Water Konsortium.” J. Constr. Eng. Manage., 127(6), 457–460.
Akintoye, A., Beck, M., and Hardcastle, C., eds. (2003a). Public-private partnerships: Managing risks and opportunities, Blackwell Science, Oxford, U.K.
Akintoye, A., Hardcastle, C., Beck, M., Chinyio, E., and Asenova, D. (2003b). “Achieving best value in private finance initiative project procurement.” Constr. Manage. Econom., 21(5), 461–470.
Asian Business. (1996). “Special report on Asia’s infrastructure boom.” March, 60–69.
Barnhart, G. (1987). “Common critical success factors for integrating mergers and acquisitions.” J. Manage. Eng., 3(1), 38–46.
Berry, C. (1991). “Criteria for successful project financing.” Project Finance Yearbook 1991/1992, Bedfordshire, U.K., 15–20.
Blackwell, M. (2000). The PFI/PPP and property, Chandos Publishing, Oxford, U.K.
Cheng, E. W. L., Li, H., and Love, P. E. D. (2000). “Establishment of critical success factors for construction partnering.” J. Manage. Eng., 16(2), 84–92.
Chua, D. K. H., Kog, Y. C., and Loh, P. K. (1999). “Critical success factor for different project objectives.” J. Constr. Eng. Manage., 125(3), 142–150.
Davis, H. A. (1996). Project finance: Practical case studies, Euromoney, London, U.K.
Delmon, J. (2000). BOO/BOT projects: A commercial and contractual guide. Sweet & Maxwell Limited, London.
George, D., and Mallery, P. (2000). SPSS for Windows step by step—A simple guide and reference 9.0 update, 2nd Ed., Allyn and Bacon, Boston.
Gransberg, D. D., and Ellicott, M. A. (1997). “Best value contracting criteria.” Cost Eng., 39(6), 31–34.
Gupta, M. C., and Narasimham, S. V. (1998). “Discussion of ‘CSFs in competitive tendering and negotiation model for BOT projects’ by R. L. K. Tiong.” J. Constr. Eng. Manage., 124(5), 430.
International Finance Corporation. (1999). Project finance in developing countries, Washington, D.C.
Levy, S. M. (1996). Build, operate, transfer, Wiley, New York.
Merna T., and Dubey R. (1998). Financial engineering in the procurement of projects, Asia Law and Practice Publishing Limited, Hong Kong.
Mickaliger, M. J. (2001). “Best value contracting: Selection by perception.” Association of Proposal Management Professionals, Spring Ed., 52–56.
Molenaar, K. R., and Johnson, D. E. (2003). “Engineering the procurement phase to achieve best value.” Leadership Manage. Eng., 3(3), 137–141.
Morledge, R., and Owen, K. (1997). “Developing a methodological approach to the identification of factors critical to success in privatized infrastructure projects in the UK.” Proc., CIB W92 and CIB TG 23 Joint Symp.: Profitable Partnering in Construction Procurement, 487–498.
The National Council for Public-Private Partnerships. (2003). Critical choices: The debate over public-private partnerships and what it means for America’s future, Washington, D.C.
The National Council for Public-Private Partnerships. (2002). For the good of the people: Using public-private partnerships to meet America’s essential needs, Washington, D.C.
Ogunlana, S. O. (1997). “Build operate transfer procurement traps: Examples from transportation projects in Thailand.” Proc., CIB W92 Symp. on Procurement, IF Research Corporation, Montréal 585–594.
Okpala, D. C., and Aniekwu, A. N. (1988). “Causes of high construction costs in Nigeria.” J. Constr. Eng. Manage., 114(2), 233–244.
Parfitt, M. K., and Sanvido, V. E. (1993). “Checklist of critical success factors for building projects.” J. Manage. Eng., 9(3), 243–249.
Sanvido, V., Parfitt, K., Guveris, M., and Coyle, M. (1992). “Critical success factors for construction projects.” J. Constr. Eng. Manage., 118(1), 94–111.
Scott, F., and Martens, C. P. (2000). International project finance, Transnational Publishers, New York.
Tiong, R. L. K. (1996). “CSFs in competitive tendering and negotiation model for BOT projects.” J. Constr. Eng. Manage., 122(3), 205–211.
Tiong, R. L. K., and Alum, J. (1997). “Distinctive winning elements in BOT tender.” Eng., Constr., Archit. Manage., 4/2, 83–94.
Tiong, R. L. K., Yeo, K. T., and McCarthy, S. C. (1992). “Critical success factors in winning BOT contracts.” J. Constr. Eng. Manage., 118(2), 217–228.
U.S. Army Material Command (U.S. AMC). (1998). “Contracting for best value: A best practices guide to source selection.” AMC Pamphlet No. 715-3, Dept. of The Army Headquarters, Alexandria, Va., January 1.
The World Bank. (1997). Selecting an option for private sector participation, Washington, D.C.
Zhang, X. Q. (2004). “Improving concessionaire selection protocols in public/private partnered infrastructure projects.” J. Constr. Eng. Manage., 130(5), 670–679.
Zhang, X. Q., and Kumaraswamy, M. M. (2001). “BOT-based infrastructure development in China.” J. Infrastruct. Syst., 7(1), 18–25.
Zhang, X. Q., Kumaraswamy, M. M., Zheng, W., and Palaneeswaran, E. (2002). “Concessionaire selection for build-operate-transfer tunnel projects in Hong Kong.” J. Constr. Eng. Manage., 128(2), 155–163.

Information & Authors

Information

Published In

Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 131Issue 6June 2005
Pages: 631 - 644

History

Received: May 20, 2003
Accepted: Sep 2, 2004
Published online: Jun 1, 2005
Published in print: Jun 2005

Permissions

Request permissions for this article.

Authors

Affiliations

Xueqing Zhang, M.ASCE
Professional Engineer, Yellow River Conservancy Committee, The Ministry of Water Resources of China, 11 Jinshui Road, Zhengzhou 450003, China.

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share