There has been private sector involvement in the delivery of public service in the Irish State since its foundation. While this involvement was mostly informal and came about by default and pragmatism in the early years of the State, Public Private Partnership (PPP) was formally introduced as a policy in 1998. Ireland is a latecomer to PPP and, prior to the credit crisis, Ireland was seen as a ‘rapid follower’ relying primarily on the UK PPP model, as well as increasingly becoming a leading practitioner in transport, education, housing/urban regeneration and water and wastewater PPPs (Sheppard and Beck, 2016). PPP activity in Ireland stalled during the credit crisis, and some projects were cancelled, but it has taken off again more recently with the domestic infrastructure stimulus programme, part of which is being delivered through PPP. There is continuing political commitment to PPP, with part of the Infrastructure and Capital Investment Plan 2016 – 2021 to be delivered through PPP.
The literature on PPP has found the more sustainable PPPs are ones where there is transparency surrounding the policy. Matos-Castãno (2011) maintains that for there to be transparency in the PPP decision-making process, there should be predictability in decision-making and information should be readily available for all interested parties. It is necessary to be transparent in the choice of PPP (Matos-Castãno et al., 2012) and the decision-making surrounding this should be transparent (Jooste et al., 2009). In particular, Jooste et al. (2009), Matos-Castãno et al. (2012) and Matos-Castãno et al. (2014) argue that procurement and negotiations should be conducted in a transparent way, as should the awarding of projects. Jooste et al. (2009) contend that it is also essential that the public are well informed regarding project details such as targets and performance indicators. Ensuring transparency will strengthen the legitimacy of PPP procurement which will lead to a more sustainable policy in the long run.
This paper forms part of a larger research project which aims to examine the sustainability of PPP policy in Ireland, and one of the elements which contributes to the legitimacy of PPP is the transparency of the policy. Following on from the analysis of data gathered from key interviewees involved in PPP in Ireland, this paper focuses on the transparency of PPP policy in Ireland. Our analysis has found that there is a lack of transparency surrounding how the decision is made on which projects are put forward for PPP and how the subsequent value for money tests are carried out.
This has results in speculation on how decisions are made, a failure to demonstrate value for money to the taxpayer, and a culture of secrecy in the public sector. This nuanced picture of the transparency of PPP policy contributes useful insights into the future of PPP in Ireland.
References
Jooste, S.F., Levitt, R.E. and Scott, W.R. (2009) ‘Capacity, Legitimacy, and Interest: Toward a framework for PPP Program Success’. Paper for the Lead 2009 Conference, South Lake Tahoe CA.
Matos-Castãno, J. (2011) Impact of the Institutional Environment on the Development of Public Private Partnerships in the Road Sector. Unpublished PhD thesis. University of Twente.
Matos-Castãno, J., Dewulf, G. and Mahalingam, A. (2012) ‘The Complex Interplay between the Institutional Context and PPP Project Outcomes’, Engineering Project Organizations Conference, Rheden, July 10-12. The Netherlands: 1-32.
Matos-Castaño, J., Mahalingam, A. and Dewulf, G. (2014) 'Unpacking the Path‐Dependent process of Institutional Change for PPPs', Australian Journal of Public Administration 73(1): 47-66.
Sheppard, G. and Beck, M. (2016) ‘The Evolution of Public–Private Partnership in Ireland: a Sustainable Pathway?’, International Review of Administrative Sciences. July, 1-17.