Modern mega projects are huge and intricate undertakings which represent the application of our best engineering and technology on the largest of scales. However, with these great endeavours come equally great risks and frustrations and despite decades of projects being delivered late and over- budget (Van Marrewijk et al. 2008), we seem incapable of improving their delivery.
In the early 1990s, several governments thought that the private sector offered a solution to these problems, as well as a new source of capital for major infrastructure works. The Public Private Partnership (PPP) model became the international methodology of choice for funding, risk transfer, building and operating large scale infrastructure.
Our research, however, indicates that during 20 years’ experience, PPPs did not deliver the solution they promised. PPP mega projects globally continue to complete late and over-budget because the causes of these problems have not been addressed and, in a more complex world, the inflexibility of the PPP structure creates additional challenges.
…more to come soon