Revamping America’s Infrastructure: A Global Study of Private Sector Participation in Transport-Related Public-Private Partnerships

This study analyzed the structure of private sector participation in 696 public–private partnership (PPP) projects in 12 G-20 countries, through a comparison of fully funded (100%) private sector projects with those substantially funded (51%–99%) and partially funded (50% and below) by the private sector. The main goal of this study is to determine whether PPP is a viable option for revamping America’s infrastructure. Multiple linear regression was then applied to these data because of the presence of continuous outcomes and multiple independent variables. This method of analysis allowed for the development of predictive models explaining contract length and project costs based on private-sector funding levels, the transport subsector, and other predictors. This study found that substantially funded cases (at 51–99%), or, at the very minimum, partnerships with a private-sector majority (at least 51%) are associated with shorter contract lengths. Partially funded (50% or less) cases are associated with increases in project costs when compared with fully funded (100%) cases. In the interest of improving the U.S. infrastructure, the results suggest that greater private sector participation should be pursued to the extent possible because this is associated with the shortest contract lengths and lowest project costs. Overall, private sector participation that provides at least 51% of funding was found to be most beneficial, with PPP determined to be a viable option to improve America’s infrastructure. Keywords: Public-Private Partnerships, Private Sector Participation, Transport Infrastructure, InfrastructureChapter I INTRODUCTION 1 -- What Are Public–Private Partnerships? 2 -- Public-Private Partnerships Defined 3 -- Nature of a PPP 4 -- Types of PPPs 5 -- Concessions (Contract Period) 6 -- Equity and Debt in PPP Concessions 7 -- Role of Participants 7 -- Background of the Problem 9 -- Infrastructure Investment and Jobs Act 11 -- Private Sector Participation in Transport Infrastructure 12 -- The Significance of the Study 13 -- Research Goals 15 -- Research Questions 16 -- Methodology 17 -- Clarification for the Study 18 -- Chapter II REVIEW OF LITERATURE 20 -- Public–Private Partnerships around the World 20 -- Public-Private Partnerships in Canada 21 -- Public-Private Partnerships in the United Kingdom 24 -- Public-Private Partnerships in Australia 28 -- Public-Private Partnerships in China 31 -- Public-Private Partnerships in South Korea 31 -- Public-Private Partnerships in Other Asian Countries 32 -- Public-Private Partnerships in Africa 33 -- Public-Private Partnerships in the United States 35 -- U.S. Public-Private Partnerships 36 -- U.S. States With Enabling PPP Legislation 40 -- Public-Private Partnerships and Cost Savings 41 -- Costs and Length of Contract 43 -- Private Sector Participation 44 -- Conclusion 45 -- Chapter III METHODOLOGY 47 -- Research Method 48 -- Research Design 49 -- Target Population 50 -- Data Collection Procedures 53 -- Operationalization of Data 55 -- Independent Variables 55 -- Dependent Variables 56 -- Control Variables 57 -- Economic Factors 57 -- Investment Climate Factors 59 -- Data Measurement Type 62 -- Levels of Measurement and Categories for Each Variable 63 -- Multiple Linear Regression 64 -- Research Hypotheses 65 -- Data Analysis Plan 67 -- Ethical Considerations 68 -- Chapter IV RESULTS 70 -- Descriptive Statistics 70 -- Regression Analyses 78 -- Hypothesis 1: Regression Analysis with Length of the Contract on Level of Funding 80 Hypothesis 2: Regression Analysis With Project Costs on Level of Funding 84 -- Hypothesis 3: Regression Analysis With Length of the Contract on Subsector 87 -- Hypothesis 4: Regression Analysis With Project Costs on Subsector 90 -- Summary 93 -- Chapter V CONCLUSION 94 -- Methods and Procedures 94 -- Discussion and Implications of the Results 95 -- Private-sector Funding Levels 97 -- Subsector Effect 97 -- Effects of Economic Factors 98 -- Effects of Investment Climate Factors 99 -- Effects of Region 99 -- Culmination 100 -- Revamping America’s Infrastructure 102 -- Extent of Private Sector Participation 103 -- Transport Subsector 104 -- Political Stability 105 -- North American Region 106 -- Recommendations for Future Research 106 -- Conclusion 107 -- REFERENCES 108McDonald, J. ScottMerwin, Gerald A.Tamas, BernardKellner, RobertD.P.A.Public Administratio