Using PPP to procure infrastructure: assessing the practice and performance of PPP contracting in Ireland

Advocates of Public-Private Partnerships (PPPs) contend that they can provide public infrastructure more efficiently than traditional procurement methods (TP). Despite such claims, the comparative performance of both procurement methods has received little attention in the PPP literature to date. The purpose of this thesis is to address this gap by examining the performance of PPP schools projects in Ireland. This thesis draws from various theoretical perspectives on PPP contracting and examines performance at both a narrow project level and a broader policy and practice level. This takes the form of four separate but interrelated research articles evaluating the ex ante, ex post and long-term performance of PPP. These articles employ a range of research methods, including document analysis, semi-structured interviews and questionnaires. Despite claims that PPP will deliver superior performance, this thesis does not find conclusive evidence of superior efficiency under PPP. Furthermore, it makes several novel contributions to the state of knowledge concerning the procurement and operation of PPP projects. First, in examining Ireland’s two decades of experience with PPP, it finds that piloting PPP projects led to improvements in the institutional capacity necessary to deliver PPP. Second, in comparing the ex ante performance of PPP and TP, it does not find evidence of superior time performance or value for money. Third, in comparing the ex post performance of PPP and TP, it finds that PPP schools cost the exchequer more to build and operate compared to TP schools. However, it also finds that PPP schools delivered better service quality during the operational stages. Finally, taking a long-term perspective on PPP performance, it finds that the quality of contractual relations in Ireland’s first PPP schools project has improved, leading to higher levels of cooperation and lower potential transaction costs. These findings provide a number of practical lessons for policymakers and practitioners in both Ireland and further afield.