Evaluating the Performance of Public-Private Partnerships Based on A Goal-centered Framework: Cases from Virginia Highway Development

As public-private partnerships (PPP) are increasingly used for public infrastructure development worldwide, a critical question is whether PPP lives up to its promises. In this study, we develop a goal-centered framework to... [ view full abstract ]

As public-private partnerships (PPP) are increasingly used for public infrastructure development worldwide, a critical question is whether PPP lives up to its promises. In this study, we develop a goal-centered framework to assess PPP project outcomes against the goals of government in initiating the partnerships, paying particular attention to partnership contract agreements as the mediator between PPP goals and project outcomes. The conceptual framework is empirically explored with a multiple-case analysis of highway PPP experience in the Commonwealth of Virginia (US) since the 1990s. The results show that Virginia has used PPP for innovative finance, efficiency gains and risk reduction. Its PPP projects have performed well in accessing innovative finance and reducing risks associated with cost overrun and construction delay, but their performance in efficiency gains and shifting revenue risk was less than satisfactory. We have also learned key lessons about enhancing PPP performance through improving contract agreements.