An Analytical Framework to Evaluate Public Private Partnerships
Public Private Partnerships have become a popular public procurement policy in a number of countries including Australia, the UK, and New Zealand since the early 1990s. This paper reveals the experience of the Port Macquarie Base Hospital (PMBH), the first public hospital delivered under the Public Private Partnerships (PPPs) model in the State of New South Wales, Australia. This study extends the framework developed by Macário (2001) to analyse the political climate under which the first PPP experiment was conducted. The analysis covers the entire life cycle of the PPP hospital, from the initial contracting process to its eventual sale. The experiment conducted under the political climate that was driven by the political desire to reduce public debt, failed. The evidence was consistent with the proposed analytical framework. As expected, the success of PPPs depends strongly on the integrity of the three-level political system. The extent to which the integrity of this political system can be ensured is dependent on the alignment of goals amongst the three different levels. This leaves scope for the State Auditor to play an instrumental role in monitoring goal alignment during the implementation process.
Keywords: Public Private Partnerships, Macário Framework, Hospitals, Public Policy
Associate Lecturer, Discipline of Accounting
PhD candidate, University of Sydney
Research focus - quantitative modelling in Public Private Partnerships