Effectiveness of Public Private Partnership (PPP) business model as fast-track growth driver in national development

Abstract

This study investigated the effectiveness of Public-Private Partnership approach in the development itinerary of Bangladesh. Aligning with the purpose the major objective of this dissertation is to assess the effectiveness of PPP business model as a fast-track growth driver in national development and to explore the major issues & challenges associated with it based on the data available in the country context. Determining an appropriate PPP model by analyzing the identified Critical Success Factors (CSFs) is also a minor objective of this study. In this assignment the movement of Public Infrastructure Development has been considered as the fast-track development trend of the current age, besides environment & society are considered as important components to be care for development. The approach of this study includes: Systematic Literature Review (of Case Studies, Project Report, Post-project Evaluation Reports, and other related reports Analysis), In-depth Interview (Key Informant Interview) & observations. The research method here in this study is to check the effectiveness of PPP Business approach for the development Projects already been done & those are currently on going in Bangladesh and contributes as a Fast Track Growth driver for the National development. The contents gathered & observation captured was analyzed based on „Content Analysis‟ approach. „QDA Miner‟ software & associated Text mining tool was used to analyze the qualitative data. Public Private Partnership business model has been gaining popularity recently as a means of supporting the developing nations with their overall economic growth, infrastructure advancements, and Sustainable Development Goals achievements. Since economic growth portrays the performance of an economy, PPP can be viewed as a versatile instrument for development, including accelerated economic growth. It can be supplementary as well as alternative edge for the overall development of the country Bangladesh. Actually there are various factors and Success Indicators plays significant role in the success of the PPP approach in Bangladesh. It is found that effective implementations of PPP projects are bound by some associated issues & challenges - which need proper attention for smooth development management of the country. The findings revealed that PPP is effective for faster growth & development of the country when implemented with a suitable model. Selection of the right Model is just one vital factor for the success of the PPP projects but other factors identified cannot be ignored - which are also substantial for achieving success in the context of Bangladesh, These factors include: Planning, Funding, Technology Management, Team building etc. This study identified a few Success Factors those are usually overlooked in PPPs but crucial for Bangladesh; namely: (i) Effective Team work (ii) Practice of Co-management approach (iii) Mutual trust among parties (iv) Business Motivation of the parties (v) Acceptable vii Technology Readiness Level (vi) Dispute & Conflict resolution Mechanism etc. From the discussion of the respondents this study discovers various points of misconceptions around PPP Projects - which are recommended to be rectified with proper care. Analyzing the findings of this study there is a crisis situation seen in the PPP ecology in Bangladesh - which is actually a low level equilibrium trap that can be explained by the vicious cycle principle. A Virtuous Cycle has been proposed along with some break through interventions to beat the Vicious Cycle of the low level equilibrium trap in PPP sector. Need based Innovation is another important element to be taken into account to figure out an effective PPP model. This study identified sixteen challenges for PPP approach based development projects, and thirteen major issues in PPP model – which can be solved by substantial process improvement. It concluded that PPP is effective for faster development, attracting FDI, improving governance, and solving SDG Challenges. PPP's success must be accepted on a case-by-case basis; it is not really a „magic bullet‟ or „panacea‟ for the questions of development. While considering a PPP engagement, the public authority must evaluate the economic worth of such a partnership with private parties, anticipating the potential benefits, efficiency gains, and also the possible risks - returns and challenges involved. Considering all the existing constrains found in this study a broadly acceptable and sector specific PPP model has been proposed to effectively deal with the upcoming Projects in Bangladesh. The proposed PPP model is built on three main pillars: World's Best Practices, Business Process Improvement, and Harmonization of Factors – which will help to balance the suitability, effectiveness, implementation challenges, and Performance Maturity. Continued revision, frequent adaptation, and fine-tuning are the key function requires identifying the best alternative PPP business models embedded with open and disruptive innovations. To conclude the study a set of recommendations for selecting the appropriate model for PPP approach has been proposed for effective implantation of PPP Projects in Bangladesh and also highlighted its limitations. This is a unique study in respect of its Scopes, Subject matters & Context. The findings of this research will contribute remarkably to the academics who are interested in PPP Project movement to have a well understanding regarding the interaction between PPP and development in the context of Bangladesh. This research work contributes to the knowledge bank of PPP practice and development, which will help the researchers and practitioners including the policy makers, the government officials and the other non-government organizations as well as private sector beneficiaries to have a clear insight about the present-day status along with existing gaps and paths for future endeavors regarding an accelerated development & growth oriented PPP engagements approach in Bangladesh.