Assessing PPPs: Transparency and Accountability Implications

This essay critically assesses the implications of public-private partnerships (PPPs) on issues of transparency and accountability. The essay begins by defining PPPs and their increasing popularity as a governance model for delivering public goods and services, highlighting the growing trend as governments face fiscal deficits. The core of the essay examines how PPPs affect transparency and accountability, defining the two dimensions as critical components of good governance. It explores how transparency can facilitate learning, promote democracy, and address challenges associated with information access. Accountability is examined as a multifaceted concern, discussing the roles of various stakeholders and the complexities in evaluating performance. The essay further analyzes the mechanisms used to ensure transparency within PPP projects, including public dissemination of information and hierarchical accountability. The essay concludes by emphasizing the importance of transparency in PPPs and acknowledging that government support is necessary for the successful implementation of PPPs.

Running head: IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
Implications of Public-Private Partnerships (Ppps) For Issues of Transparency and
Accountability
Name of the University:
Name of the Student:
Authors Note:

1IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
Introduction
Public-private partnerships are growing in popularity to serve as a governing model for
the delivery of public services and goods. PPPs have existed for over years but its expansion
within traditional public projects is increasing public transparency and accountability. PPPs are
growing in popularity as a governing model for the public goods and services delivery
(Agyenim-Boateng, Stafford & Stapleton, 2017). This has tried out to be a default solution for
the government issues and requirements for the infrastructure and these are included within a
broad range of constituencies all through political parties all over the world. Such trends might
increase as government deal with fiscal deficits and look for certain alternative manner to finance
and offer government services. The importance for generating such arrangements encompass for
pragmatic and ideological perspectives.
The expanding domain of the services and goods offered by the PPPs encompass private
toll roads, hospitals, schools developed by PPPs for emergency response to development
(Caperchione, Demirag & Grossi, 2017). Transparency and accountability has turned out to be
important in the recent years on the public management and governance. These aspects are also
considered as current public management along with governance reform agenda and
transparency is also highlighted for public policy reasechers those are interested within the
impacts of World Wide Web along with disclosure possibilities along ith information
availability. The objective of this essay is to analyses the implications of public-private
partnerships (PPPs) for issues related with accountability and transparency (Das Aundhe &
Narasimhan, R2016). This will be explained through considering certain evidences of cases
related with implications of public-private partnerships.

2IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
Implications of Public-Private Partnerships for Transparency and Accountability Issues
Public-Private Partnerships
The Public-private partnerships are focused on jointly developing services and products
along ith sharing risks, costs along with resources that are associated with such services and
products. The partnerships between public and private sectors come in several forms. For
instance, an example of infrastructure partnership is a recent OECD report that explained their
PPP to be an agreement among the government along with two or more private partners that
includes financers and operators (Demirag, 2017). In such type of partnerships private partners
offer services in a manner that the service delivery objectives are associated with the profit
objectives of the private partners. In such type of partnerships the alignments relies on the
sufficient risk transfer to the private partner. PPPs are also considered to be voluntary and
collaborate associations between several parties including state and non-state within which every
participant agree to work collaboratively in order to attain a common objective. In order to
maintain transparency and accountability within such PPP projects, such partnerships include
those oriented towards advocacy, mobilization, policy objectives along with the long term
operations (Guo & Ho, 2018).
A Simplified PPP Governance Model
This model considers PPP governance to include two major dimensions such as
accountability and transparency. Such dimensions are operationalized by means of certain
measures along with mechanisms. It is also agreed by Gustafsson-Wright, Smith & Gardiner,
(2016) that transparency and accountability are the keys to maintain good governance and such
major insight is supported by the fact that these two concepts turned out to be common themes in

3IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
most important items found within PPP governance. Organizational governance present
accountability and transparency as important factors in the projects of PPP and transparency are
deemed to be important but not a sufficient accountability condition. These aspects are also
considered to be separate as well as independent dimensions of PPP partnership governance.
Transparency and the accounting aspects are considered to be independent even if they are relied
on certain circumstances (Marques, 2017). For instance, it is not possible for the board of PPP to
hold the executives of organizations accountable in case the board does not attain accurate along
with timely information on major performance indicators. In such scenario, the accountability
and transparency within PPP projects are linked and indicates that accountability is relied on
transparency. In contrast to that, Hodge & Greve, (2018) argued that transparency and
accountability are two major aspects of PPP governance and such dimensions are highly
important considerations in planning, assessing along with enhancing the operations of PPP
partnerships. For instance, civil society engagement participation is also proposed as a separate
PPP partnership aspect. Participation as a mechanism is used in PPP projects for increasing
transparency and ensuring accountability (Liu, Wang & Wilkinson, 2016).
There are several reasons for which transparency is considered important in the public
private partnerships. One among such reasons consider that transparency within PPP projects
results in learning and it also facilitate others the opportunity to avoid making certain mistakes
along with increasing knowledge regarding ways to improve the role of PPPs. Through attaining
these necessary information regarding inputs, outputs, processes and outcomes others can
attaining learning regarding the working aspects, efficiency of different approaches along with
strengths and weak nesses of distinct strategies and structures. Transparency is also observed to
contribute towards democracy (Marques, 2017). For the reason that PPPs are intended to fulfill

4IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
the public interests it can be stated that the public has right to attain understanding on the
conducts of these organizations. Laws regarding taught to know is generally applied to public
records and government agencies. In case PPPs conducts public sector functions, these contracts
can encompass confidentiality clause which decreases information access within the partnership
company. Such restrictions can decrease public information along with deliberation regarding
specific PPP along with its activities (Osei-Kyei, Chan & Ameyaw, 2017).
Accountability in the PPP project serves as complex and multifaceted concern which can
be approached in several manners based on the role, political perspective and institutional
context. Accountability within the PPP projects has been explained as the obligation on the
behalf of the public officials in order to report on the implementation of public resources along
with addressing stated performance objectives (Rashed, Ala & Toriman, 2017). The process of
holding accountable s deemed to be complicated for the PPPs as there are certain challenges
related with trying to hold a partner accountable which is a necessity that might not be
anticipated when the PPP partnership takes place. Moreover, within a PPP project holding a
partner accountable is not just a technical task as it involves questions regarding values and
power (Reich, 2017). In addition, accountability within the PPP projects are conducted by means
of specific sanctions for certain non-performance associate with agreed metric but it might also
take place by means of public criticism or a conflict that impacts a PPPs reputation along with
negatively impacting the ability of the partnership to operate. Along with transparency,
accountability within the PPP project needs to be addressed by means of bilateral relationships.
These projects have several stakeholders those can seek to hold the organization along with its
officers accountable. Hodge, Boulot, Duffield & Greve (2017) explained that the most directly
involved are the core partners those basically offer funding to initiate a PPP project along with

5IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
establishing contractual obligations along with related agreements. Such core partners are
deemed to be represented within the board of directors of the PPP projects along with the
executive committee in which the key strategic directions are supervised and made (Schachter,
Daniel & LIU, 2017).
Ambiguous responsibilities and roles within the PPP projects complicate the process of
holding such projects accountable. For instance, in analyzing the GAVI partnership for the HPV
applications within Uganda recognized lack of clear guidelines reading roles, responsibilities
along with terms of references that gradually decreased its efficiency. From such case of PPP
project it is evident that several capable partners do not make sure of the clear expectations along
with management of processes and activities within the public private partnerships (Stadtler,
2016). In this case it is observed to be unclear who is accountable for whom and such ambiguity
is deemed to develop confusion along with undermined efficiency. In order to ensure
accountability, a PPP project might have specific metrics or procedures specified to be the
performance targets for such four categories. Distinct stakeholders within the PPPs might have
various capabilities and interests for various targets and might consider holding the partnerships
accountable for several types of performance metrics. Hodge, Boulot, Duffield & Greve, (2017)
indicated that holding the public private partnerships accountable for the final outcomes often
includes complex questions of evaluating the causation. The PPP project based actions those
impacts favorable outcomes often entails an increased costs and can have an increased
uncertainty because of the multiple factors. For this reason, it is considered important for the PPP
and the partners accountable to make sure that a partnership is attaining its objectives of public
interest along ith the aspects that can be done in improving performance of such PPP project.

6IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
Analysis of accountability is required to be associated with practical action (Stafford &
Stapleton, 2017).
PPPs shape the transparency that they offer through deciding the ways in which distinct
access-to-information mechanisms in order to channel some kinds and quality of information to
various audiences. Partnerships are likely to have huge latitude in making sure whether the
information that is offered to them is dependent on the nation where the partnership is registered
along with legal requirements for such companies within that nation (Stafford & Stapleton,
(2017). The legal needs will also be distinct, however, depending on whether the PPP is
registered as a formal company, the type of company along with the national laws associated
with that organizational form. It can also be noted that the PPP transparency has expenses and
can also have certain uncetainities. The complexity related with transparency within the PPP
practice also complicates certain challenges of measuring the transparency degree for a specific
company. For this reason, it might therefore be highly appropriate to think regarding
transparency with consideration to particular actor rather than attempting to generate an
aggregate measure all through diverse audiences (Stadtler, 2016). Another issue that has been
identified in maintaining transparency and accountability of the PPP projects is that the
credibility of the cost-benefit analysis in determining the value of PPPs are highly questioned for
the reason that no active steps are taken to make sure that they address the value-for-cost test.
However, government support in maintaining transparency of the PPP projects is evidenced. It is
constantly promoted within annual policy long with within budget long with presidential
speeches. In addition, it is also considered as a vital aspect within the state’s strategy for the
growth provision of services along with infrastructure (Viana, Moreira & Alves, 2017).

7IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
The quality along with scope of information is also decided by the partnership in ensuring
the transparency and accountability of the PPP projects. For example, monitoring the information
on outputs developed by the PPPs is generally published within the annual report and is also
made accessible to the general public. However, such documents rarely encompass negative
information and generally do not compare performance to the targets. The full data set is not
generally available publically or such data might be aggregated in a manner that such results can
be viewed in a negative way like the inequitable distribution cross the income groups or regions.
In certain other cases, raw data are offered but in a manner that is easily understandable y people
those are not technical analysts (Schachter, Daniel & LIU, 2017). Considering such issues the
final consideration is deemed to be the mechanisms those ensure transparency. Four general
mechanism types are observed to promote access to necessary information that includes access
by means of public dissemination in which information is offered by the companies within
publications or on websites or made available within public reading rooms. Hierarchical
accountability acts as the check and motivation for holding the ones within PPPs answerable
(Stafford & Stapleton, 2017). This also encompass formal hierarchical processes like
performance management, monitoring outcomes relied on PPPs along with reporting to
parliament. Considering this, it can be stated that PPPs stretch such traditional accountability
mode through presenting horizontal relationships in which government shares its responsibility
with the involved private entities within the decision making of the government along with
programmer delivery. Conversely, PPPs accountability is also impacted by ethics along with
social values (Wang, Chen, Xiong & Wu, 2018).
Certain other accountability and transparency challenges those are faced within PPP
projects includes certain superficial along with inconsistent PPP disclosure of related information

8IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
online by means of PPP quarterly. Although PPPs act as a vital long term societal investment
projects, people are also alienated from the process of decision making. Negotiations between
the private and public partners are often carried out within private settings with less input from
the behalf of the citizens on the commercial confidentiality grounds those are considered as the
grounds for secretiveness within partnerships (Viana, Moreira & Alves, 2017). Faced with the
skepticism towards the PPPs within countries, the government withdraws as the initial
controversy signs. In most of the PPP projects an issue is also observed that tat is no mention of
public consultation. The non-disclosure of the PPP contracts to the public results in issues related
with accountability and might also compromise perceptions related with government’s integrity.
Another issue that affects the accountability and transparency of the PPP projects is corruption
that affects the public procurement projects (Wang, Xiong & Wu, 2018). This can result in the
resource misallocation, a decrease within investment along with competition, poor
administration, and unresponsive policies along with lack of transparency.
A case of PPP in Denmark
The national archive is one of the first new infrastructures that are built as PPP in
Denmark and the government was searching for a project that might be suitable for
implementing the PPP concept. In implementing the concept of PPP the government of Denmark
wanted to ensure that the government wants to secure value for money along in the national
construction (Yu et al., 2018). With launch of this PPP project it was estimated that the private
partner shall not be accountable for construction but is also accountable for maintainice,
operations and finance. The government of Denmark was keen to promote this PPP project and
the competitive tendering process raised certain vital financial and economic concerns. There
was also a debate whether the government might in fact have developed an archive by itself

9IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
without having a private finance partner within the deal. As the government was saved by any
type of public embarrassment due to no visible scandals, this PPP project was conducted in a
smooth manner and it was finally builder in the year 2009 (Wang, Xiong & Wu, 2018). This also
indicated this partnership had transparency and maintainice of sufficient accountability through
employing external consultants in order to advise on the financial aspect of the partnership
project.
A case of PPP in Australia
The construction of Melbourne’s City Link transport project offers a significant recent
example of PPP. This indicates certain vital policy lessons till date and offers a chance for
reflection. This infrastructure project of Australia is considered as early demonstration of the
PPP project delivery philosophy (Wang, Xiong & Wu, 2018). It also demonstrated riskiness
within the political and technological terms, innovation within project arena and delivery speed.
Substantial risks were transferred to public sector within this PPP project. For instance, the
private contractors accepted almost all the construction risks as well as most of the design,
operating, construction, financing along with market risks based on the PPP contract. In addition,
most of the legal conflicts remained between private parties with few involving the government
directly (Guo & Ho, 2018). Overall, it is also observed that most of such commercial risks were
indeed experienced by the investors of private sector and they have observed to attain a margin.
The transparency and the accountability within this PPP project considers that the commercial as
well as technical aspects of the project were generally regarded positively that cannot be
considered within government matters.

10IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
Lack of transparency within the private contract along with other secret being held within
the government manners were important to several concerns raised on this project (Guo & Ho,
2018). Transparency and accountability of the individuals associate with the PPP project is
observed to be affected for the reason that the forecast of the net project benefits were initially
unacceptable to the public. Along with that no comparisons took place between undertaking such
task within private or public sectors. Based on such issues on transparency and accountability of
the personnel’s involved in this PPP project, the regulatory powers must be established of such
projects by means of state’s independent regulatory authorities like “Essential Services
Commission” (Reich, 2018). For such example of a failed PPP project due to lack of
transparency and accountability maintained it is entertained that the future projects must be
subject to strong parliamentary and public scrutiny prior to its implementation.
Conclusion
The objective of this essay was to analyses the implications of public-private partnerships
(PPPs) for issues related with accountability and transparency. This will be explained through
considering certain evidences of cases related with implications of public-private partnerships. It
is gathered from the essay that PPPs are also considered to be voluntary and collaborate
associations between several parties including state and non-state within which every participant
agree to work collaboratively in order to attain a common objective. In order to maintain
transparency and accountability within such PPP projects, such partnerships include those
oriented towards advocacy, mobilization, policy objectives along with the long term operations.
Moreover, the Public-private partnerships are focused on jointly developing services and
products along ith sharing risks, costs along with resources that are associated with such services
and products.

11IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
Accountability in the PPP project serves as complex and multifaceted concern which can
be approached in several manners based on the role, political perspective and institutional
context. Accountability within the PPP projects has been explained as the obligation on the
behalf of the public officials in order to report on the implementation of public resources along
with addressing stated performance objectives. The quality along with scope of information is
also decided by the partnership in ensuring the transparency and accountability of the PPP
projects. In certain other cases, raw data are offered but in a manner that is easily understandable
by people those are not technical analysts. Considering such issues the final consideration is
deemed to be the mechanisms those ensure transparency.

12IMPLICATIONS OF PUBLIC-PRIVATE PARTNERSHIPS
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