A SYSTEMATIC REVIEW OF RESEARCH ON THE PRIVATE
FINANCE INITIATIVE (PFI) OR PUBLIC PRIVATE
PARTNERSHIP (ppp)
By: Suhaiza Ismail,
Department of Accounting, Kulliyyah of Economics and
Management Sciences, International Islamic University Malaysia
OUTLINES
1.
2.
3.
4.
5.
6.
7.
Introduction & Motivation of Study
Research Objectives
Literature Review
Methodology
Findings and Discussion
Future Direction of PFI/PPP Research
Limitations and Conclusion
INTRODUCTION & MOTIVATION
 The PPP was launched in the UK in 1992 & initially known
as the Private Finance Initiative (PFI)
 PFI: A long-term contract between the private sector & the
government.
•
•
Private sector plays a key role in designing, building, financing,
and operating the facilities for the provision of public services.
Government makes regular payments to the private sector
provider over the contract period for the capital and operating
costs incurred.
 1997, Labour government took power, PFI uses a new label:
Public Private Partnership (ppp).
Two Meanings of PPP
The broad
form of
private sector
participation
in public
services
delivery
A specific
type of PPP
called PFI
INTRODUCTION & MOTIVATION
• The PFI/ppp - a widely used mechanism in delivering
public services.
• A growing amount of published academic research on
various issues and relevant topics regarding PFI/ppp.
• However, there is currently no comprehensive review
of the PFI/ppp research that has been published in the
public-sector or public-administration journals.
Research Objectives
1. To identify the important characteristics of
research on PFI/ppp (i.e. the number of papers
published, the journals that contributed most to PFI
research, and the origins of the papers)
2. To recognise the trend of PFI/ppp research
and to offer suggestions for future direction
of the PFI/ppp research agenda.
Literature Review
Prior studies : Adopted a
qualitative meta-analysis approach
on the topic of PFI/ppp
Studies that have critically
examined the findings of
past studies to clarify a
specific concept or area
of PFI/ppp
Studies that have
comprehensively examined
characteristics and
trend of published
research on PFI/ppp
PRIOR STUDIES
Authors
Al Sharif and
Kaka (2004)
Pantouvakis
and Vandoros
(2007)
Area of
Journals
4 top ten
journals in
construction
Period of
Observation
1998 – 2003
4 construction
journals
1996 – 2006
Ke et al. (2009) Four journals
that are ranked
in the top ten in
the area of
construction
1998 - 2008
Objectives
 Key PFI/PPP topics
 Quantity and the origin of the
research
 Key researchers and research
centres in the area of PFI/PPP
 Number of citations of each paper
in other papers included in the
analysis.
 Key PFI/PPP topics
 Quantity and the origin of the
research
 Key researchers and research
centres in the area of PFI/PPP
METHODOLOGY
META-ANALYSIS
QUANTITATIVE
QUALITATIVE
A statistical
operation
used to
combine
results from
independent
studies
A systematic
review of
literature
without
having any
mathematical
synthesis
SELECTION OF
JOURNALS
The Social Science
Citation Index
The Scopus
English-medium Journals
categorized as public
administration or public
sector
42 public sector
journals
Only 26 journals that had
published on the topic of
PFI/PPP
Search for papers on PFI/ppp in the selected journals
(1992-2010)- using library databases (i.e ABI-Inform,
EbscoHost) or the website of the individual journal
Keywords: private finance initiative, public private
partnerships, PFI or PPP
Identification
of relevant
papers
156 papers matched with the search terms
44 articles which did not refer to the intended
definition of PFI/ppp
4 articles were categorized as ‘forwards’, ‘editorial’,
‘book review’, or ‘articles in press’
108 papers are relevant
FINDINGS AND DISCUSSION
20
20
18
18
16
15
Number of Papers
14
12
10
10
10
9
8
6
5
4
5
3
5
3
2
2
1
1
0
0
0
1
0
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
Number of PFI/ppp Articles Published Each Year from 1992 to 2010
Public Sector Journals with Papers Concerning PFI/ppp
Total number
of papers
published
Number of
PFI/PPP
paper
Percentage of
PFI/PPP
papers to
total papers
(%)
686
25
3.64
678
9
1.33
3
Public Money and Management
International Journal of Public Sector
Management
Public Works Management and Policy
326
8
2.45
4
Financial Accountability and Management
382
8
2.09
5
Public Management Review
214
7
3.27
6
476
7
1.47
664
7
1.05
8
Public Policy & Administration
International Review of Administrative
Sciences
International Journal of Public Policy
155
6
3.87
9
Public Administration
698
6
0.86
No
1
2
7
Journal Title
Research Methods Used
Research Method
Document analysis
Literature review
Interviews
Case study
Questionnaire or survey
Participant observation
Annual report analysis
Website analysis
Total
Number of Papers
52
40
22
19
9
7
3
2
154*
* The total is more than the number of papers analysed because there are papers
that adopted more than one research method
PFI/ppp Sectors Involved
PFI/PPP Sector
Number of Papers
Percentage
Health
19
16.4
Education
13
11.2
Road and Transport
11
9.5
Local/state/federal government projects
5
4.3
Defence
3
2.6
Financial Services
2
1.7
Prison
2
1.7
Telecommunication
2
1.7
Utilities: Water and Electricity
2
1.7
Museum
1
0.9
Retirement Pension
1
0.9
General (paper did not refer to any specific
sector)
55
47.4
Total
116*
100
* The total is more than the number of papers analysed because there are papers that
addressed more than one sector
Review of PFI/ppp Issues Covered
Research
Topics
1
9
9
2
1
9
9
3
1
9
9
4
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
1
1
2
0
0
3
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
T
o
t
a
l
1
7
1
36
2
0
0
4
2
0
0
5
1
1
4
3
4
2
6
7
3
3
1
2
2
7
6
26
1
2
1
1
2
5
12
2
1
3
1
14
Accounting
for PFI/ppp
Concepts
and
application
1
1
1
1
Performanc
e evaluation
Project
managemen
t
Risk
managemen
t
Integration
research
Total
1
2
1
1
2
1
0
0
0
1
1
0
5
3
5
1
4
2
1
2
2
3
15
9
4
4
1
1
10 10 18 20
5
13
2
108
Percentage of Publications Based on
PFI/ppp Issues
12.04%
Accounting for PFI/PPP
6.48%
12.96%
33.33%
Concepts and
application
Performance evaluation
11.11%
Project management
24.07%
Risk management
Integration research
36 Studies on Concept & Application
Area of the study
Author
The true concepts of PFI/ppp
Boyfield (1992), Coulson (2005), Terry (1996), Broadbent
and Laughlin (2005), Reeves (2003), Bode (2003), Connolly
et al. (2008), Lienhard, (2006), Gallay (2006), Kee and
Forrer (2008), Jorna et al. (2010), Pongsiri (2003), Farah
and Rizvi (2007), and Wettenhall (2007), Wettenhall
(2008), and Zarco-Jasso (2005)
The comparison of PFI/ppp
practice between two
countries
The use of PFI/ppp in various
projects
UK and Spain (Norton and Blanco, 2009); the UK and
United States (Demirag et al., 2009) and the USA and the
UK/Europe (Startin et al., 2009)
Local government (Ewoh, 2007), museums (Wilson and
Boyle, 2004), road and transport (Glaister et al., 2000;
Koppenjan, 2005; Battaglio and Khankarli, 2008; Startin et
al., 2009; Visser, 2009), health service (Mayston, 1999;
Broadbent et al., 2003; English, 2005; and McMurray,
2007), education (Reeves and Ryan, 2007; Reeves, 2008)
and other infrastructure development (Boase, 2000;
Bovaird, 2004; Henderson and McGloin, 2004; Jones and
Noble, 2008; and Murphy, 2008)
26 Studies on Performance Evaluation
Area of the study
Authors
The performance
measurement mechanisms
used in assessing PFI/ppp
projects
The performance of PFI/ppp
projects
Colman (2000), Froud and Shaoul (2001), English
(2007), Pollock et al.(2007), Coulson (2008), Garvin
and Bosso (2008), Morallos and Amekudzi (2008),
Marty et al. (2005)
Ball, etal., 2000; Shaoul, 2002; Shaoul, 2003; Ismail
and Pendlebury, 2006; and Demirag and Khadaroo,
2008, McCabe, etal., 2001; Hodges and Grubnic,
2005; Koppenjan, 2005;Teicher, et al., 2006; Hodge
and Greve, 2007; Kakabadse, et al., 2007; and Vining
and Boardman, 2008, Colman, 2000; McCabe, et al.,
2001; Asenova, et al., 2003; Ismail and Pendlebury,
2006; Moralloas and Amekudzi, 2008; and Shaoul, et
al., 2008
14 Studies on Risk Management
Area of the study
Authors
Types of risks involved in
PFI/ppp projects
Ham and Koppenjan (2002), Asenova and
Beck (2003), Hodge (2004a), Hodge
(2004b), Lonsdale (2005)
How to evaluate and manage
risks
Asenova and Beck (2003a), Ball et al.
(2003), Hood (2003), Asenova and Beck
(2003b), Pollock and Price (2008), Nisar
(2007a and 2007b), Asenova et al. (2007)
Key justification for achieving
VFM in PFI/ppp projects
Pollock and Price, 2008
12 Studies on Project Management
Area of the study
Authors
The issue of PFI/ppp project management
Acar et al. (2008), Ball et al. (2003),
Wakeford and Valentine (2001), Noble
and Jones (2006), and Jones and Noble
(2008)
Various governance structures of PFI/ppp
projects
Johnston and Gudergan (2007), Klijn et
al. (2008), Vinning and Boardman
(2008), Ysa (2007)
The role of trust in PFI/ppp projects
Grubnic and Hodges (2003), Brewer
and Hayllar (2005), Barretta et al.
(2008) and Edelenbos and Klijn (2008)
7 Studies on Accounting for PFI/ppp
Area of the study
The key accounting issue
Authors
The impact of the accounting
treatment for PFI/ppp projects based
on the amended standard (i.e. FRS 5)
on the VFM of PFI/ppp projects
Later, Kirk and Wall (2005)
Heald and Geaughan (1997),
Hodges and Mellett (1999
and 2004), Kirk and Wall
(2001)
13 Studies on Integration Research (Others)
Area of the study
Authors
The critical success factors of
PFI/ppp projects
Opportunities and challenges
Jamali (2004a and 2004b), Trafford and
Proctor (2006), Jacobson and Choi (2008)
Impact and implications of PFI/PFI
implementation
Fischbacker and Beaumont (2003),
Broadbent and Laughlin (2004), Asenova
and Hood (2006)
Future prospects of PFI/ppp
Research agenda on PFI/PPP
Glaister (1999)
Asenova et al. (2002), Klijn and Teisman
(2003), Jamali (2004b), Bloomfield (2006)
Broadbent and Laughlin (1999), Wall and
Connolly (2009)
FUTURE DIRECTION OF PFI/PPP RESEARCH
Assess the actual performance and true
success of PFI/ppp project over the whole
contractual period
Compare the performance of PFI/ppp
across countries
Discover the modified PFI/ppp procedures
and assessment mechanisms
LIMITATIONS AND CONCLUSION
It ignores relevant PFI/ppp literature published in
journals of other fields, such as accounting, construction,
and engineering
Journals listed on Social Science Citation Index and Scopus
are still questionable due to the subjective and not
transparent measures used in determining journals to be
listed
• DESPITE THE LIMITATIONS,
- This study offers some insights on the key
characteristics and future direction of PFI/ppp
literature in the top public-sector journals
Wallahua’lam bis shawab