Hazard Analysis on Public–Private Partnership Projects in Developing Asia

Minsoo Lee, Xuehui Han, Pilipinas Quising () and Mai Lin Villaruel ()
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Pilipinas Quising: Asian Development Bank
Mai Lin Villaruel: Asian Development Bank

No 548, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Developing Asia’s infrastructure gap results from both inadequate public resources and a lack of effective channel to mobilize private resources toward desired outcomes. The public–private partnership (PPP) mechanism has evolved to fill the infrastructure gap. However, PPP projects are often at risk of becoming distressed or worst being terminated because of the long-term nature of contracts and the many different stakeholders involved. This paper applies survival time hazard analysis to estimate how project-related, macroeconomic, and institutional factors affect the hazard rate of the projects. Empirical results show that government’s provision of guarantees, involvement of multilateral development banks, and existence of a dedicated PPP unit are important for a project’s success. Privately initiated proposals should be regulated and undergo a competitive bidding to reduce the hazard rate of the project and the corresponding burden to government. Economic growth leads to successful project outcomes. Improved legal and institutional environment can ensure PPP success.

Keywords: infrastructures; investment policy; public–private partnership; survival analysis (search for similar items in EconPapers)
JEL-codes: F21 H54 H81 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2018-07-23
New Economics Papers: this item is included in nep-ppm, nep-sea, nep-tre and nep-war
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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