When considering public-private partnerships (PPPs), the million- (or even billion-) dollar question is: What is the single most relevant factor that drives PPP projects to failure?As a governmental officer, managing PPP transactions for many years, and later as a consultant on the private side of transactions, I have led more than 40 PPP initiatives. Many succeeded and are delivering Value for Money for users and taxpayers. However, several others failed along the way, and contracts never got signed. What surprises me is that failure came even to some technically perfect projects.
Every successful PPP with which I’ve been involved shared one important factor: effective governance in the project level, from the identification of the project, all the way to the tender process.
By governance I mean the set of processes that allows decisions to be made by the right people, with access to the right information, at the right time, so the project can meet the requirements defined by the project’s stakeholders.