Home' Future Building Australian Infrastructure Review : Issue 1 Contents 102 futureb
A more recent paper produced at the end of last year by
Committee of the House of Lords paints a similar picture. The
paper draws on the NAO's independent analysis of more than
100 PPP projects over 12 years, including its 72 earlier "value
for money" reports. It concluded that most PPPs are built close to
contractors. In the NAO's sample, 69 per cent of PPP projects
between 2003 and 2008 were delivered on time, and of those
delivered late, 42 per cent were delivered within 6 months of the
agreed time. 65 per cent were delivered at the agreed price. The
majority of price increases were due to changes requested by the
public sector during construction.
Against this background, many governments continue to
wish to employ PPPs as one of a range of procurement methods
which enables them to deliver on time and on budget, in a way
that promotes an output-based service culture (rather than an
undue focus on construction and engineering at the cost of other
aspects) and which provides increased innovation, competition
Commission's recent Communication on PPPs encourages their
use as an economic tool, making it more likely that European
we can expect to see more PPPs in the coming years, with a
over an extended period.
While the opportunities look set to increase, the PPP industry
arisen in recent years. The problems we now face include:
banks and the virtual closure of debt capital markets.
and, in some jurisdictions, for any PPP projects at all.
between private sector borrowing and state borrowing,
adversely impacting the value for money case for PPP.
challenging previously accepted risk allocation models.
continue to wish to
employ PPP as one of
a range of procurement
methods which enables
them to deliver on time
and on budget, in a way
that promotes an output-
based service culture ...and
which provides increased
and whole of life cost
bal PPP market?
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