Achieving Value for Money: An Analytic Review of Studies on Public-Private Partnerships

Over the past two decades, governments around the world have been embracing public-private partnerships (PPPs) as an alternative approach in the provision of infrastructure. PPPs have their merits in remedying financial shortages in public sectors and improving infrastructure performance, but they must be selected carefully on the basis of value for money when compared to conventional procurement. Value for money analysis as an evaluation method has been widely used to ensure feasibility, accountability, and transparency in PPPs, although little is known with respect to its effectiveness and appropriate theoretical foundations. By mapping theoretical foundations and practical analysis methods, this paper reports the weakness and inadequacy of current value for money analysis. The study especially explores existing theoretical foundations and empirical evidence for PPP value for money and highlights paths for future research.