Financial structure of PPPs deals post-GFC

an international perspective

Martin Haran, Michael McCord, Norman Hutchison, Stanley McGreal, Alastair Adair, Jim Berry, Anil Kashyap

    Research output: Contribution to journalArticle

    1 Citation (Scopus)

    Abstract

    Purpose – The purpose of this paper is to explore the implications of the Global Financial Crisis (GFC) on Public Private Partnership (PPP) markets around the world. Specifically, it aims to highlight the extent of over reliance on debt finance, as well as the conditions needed to attract enhanced levels of institutional investment into key infrastructural provision.

    Design/methodology/approach – Quantitative insight for the paper is derived from the Infrastructure Online Database. The Infrastructure Journal (IJ) Online Database profiles PFI/PPP deals around the world depicting the key actors involved, as well as the capital value of deals and the financial structures applied in terms of debt, equity and Multilateral and Government Finance. The quantitative insight derived from the IJ database is complemented by interview evidence and forum-based discussion. In total, 38 interviews were conducted with a diverse range of key stakeholder groupings from across the public and private sectors, including government advisers, client side representatives (Health and Education sectors), contractors, financiers and FM providers. Interviewees were drawn from five key PPP markets at different stages in the maturity cycle, namely, Australia, Canada, India, the UK and the USA. In addition to the interviews, three forum-based discussions were undertaken as part of the investigation exploring the key themes to emerge from the interviews from multi-stakeholder perspectives.

    Findings – The findings from the study highlight a number of inherent deficiencies in the PPP model, including the over reliance on private sector debt. Additionally, the research profiles the extent and form of national government interventions in PPP markets around the world, highlighting the need for a more innovative, sustainable and balanced funding frameworks for essential infrastructure conducive to the next economic/financial cycle.

    Originality/value – This study is distinct in that it examines the cross-jurisdictional implications of the global financial crisis on PPP markets.
    Original languageEnglish
    Pages (from-to)184-203
    Number of pages20
    JournalJournal of Financial Management of Property and Construction
    Volume18
    Issue number2
    DOIs
    Publication statusPublished - 2013

    Fingerprint

    Financial structure
    Public-private partnerships
    Global financial crisis
    Debt
    Stakeholders
    Government
    Online databases
    Education sector
    India
    Institutional investment
    Public and private sector
    Government intervention
    Private sector
    Data base
    Debt finance
    Health sector
    Maturity
    Design methodology
    Contractors
    Grouping

    Keywords

    • project finance
    • public private partnerships

    Cite this

    Financial structure of PPPs deals post-GFC : an international perspective. / Haran, Martin; McCord, Michael; Hutchison, Norman ; McGreal, Stanley; Adair, Alastair; Berry, Jim ; Kashyap, Anil.

    In: Journal of Financial Management of Property and Construction , Vol. 18, No. 2, 2013, p. 184-203.

    Research output: Contribution to journalArticle

    Haran, Martin ; McCord, Michael ; Hutchison, Norman ; McGreal, Stanley ; Adair, Alastair ; Berry, Jim ; Kashyap, Anil. / Financial structure of PPPs deals post-GFC : an international perspective. In: Journal of Financial Management of Property and Construction . 2013 ; Vol. 18, No. 2. pp. 184-203.
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