The Formation of Public‐Private Partnerships: Lessons from Nine Transport Infrastructure Projects in The Netherlands
| Published date | 01 March 2005 |
| DOI | http://doi.org/10.1111/j.0033-3298.2005.00441.x |
| Date | 01 March 2005 |
| Author | J. (Joop) F.M. Koppenjan |
Public Administration Vol. 83 No. 1, 2005 (135–157)
© Blackwell Publishing Ltd. 2005, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street,
Malden, MA 02148, USA.
EUROPEAN
FORUM
THE FORMATION OF PUBLIC-PRIVATE
PARTNERSHIPS: LESSONS FROM NINE
TRANSPORT INFRASTRUCTURE PROJECTS
IN THE NETHERLANDS
J. (JOOP) F.M. KOPPENJAN
Despite high expectations, in The Netherlands the formation of public-private partner-
ships (PPPs) in the field of transport infrastructure is stagnating. This article
addresses the question of why this is the case. On the basis of a comparative analysis
of 9 case studies concerning the building of partnerships, 3 patterns are identified.
The first is the successful formation of partnerships resulting in enriched projects.
The second pattern is that of early interaction resulting in ambitious proposals for
which there is no support. The third pattern shows ineffective market consultations
followed by unilateral public planning, leading to stagnating contract negotiations.
These patterns are coherent and are caused by a number of generic factors. An
important explanation for stagnation is the lack of interaction. As a result, public and
private parties will fail to reach a common understanding, will be unable to contri-
bute to the enrichment of the project content and will fail to develop mutual trust. If
parties engage in early interaction, the lack of embeddedness of their efforts may res-
ult in an uncritical piling up of ambitions and an absence of the capability to realize
trade-offs and generate support. These explanations are related to the absence of
conscious and systematic attempts to manage and arrange interaction processes
aimed at the formation of PPPs. On the basis of these findings the author formulates
a number of suggestions to improve the quality and effectiveness of these processes.
In The Netherlands, despite high expectations, the formation of Public-
Private Partnerships (PPPs), aimed at the development of transport infra-
structure projects, has become stagnant. This article addresses the question
J.F.M. Koppenjan is Associate Professor of Public Management in the Faculty of Technology, Policy
and Management, Delft University of Technology.
136 J. (JOOP) F.M. KOPPENJAN
© Blackwell Publishing Ltd. 2005
of why this is the case. It presents the findings from a comparative analysis
of 9 cases concerning the building of PPPs in this field.
Although each case has evolved in its own specific way as a result of a
unique configuration of actors and factors, on the basis of the comparison,
3 patterns can be identified. The first is the successful formation of PPP
resulting in an enriched project. The second pattern is that of early inter-
action leading to (over-)ambitious proposals for which it is difficult to find
support by the relevant parties. The third pattern is characterized by hesitance
on the part of those engaged in public-private interactions leading to unilateral
public planning, followed by difficult contract negotiations.
In this article, a number of the generic factors, which underlie these
patterns, are identified and discussed. An important factor has proved to be
the presence or lack of interaction which might have facilitated or prohibited
joint image building, the enrichment of project content and the creation of
mutual trust. The second pattern – derailing early interaction – resulted
from a lack of commitment and inadequate embedding in the broader
decision-making context. This prevented trade-offs, support-building and
appropriate selection to occur. Furthermore, the occurrence of these patterns
was related to the extent to which the formation processes were consciously
and systematically managed and arranged. On the basis of these findings, a
number of suggestions are made to improve the quality and effectiveness of
the processes by which PPPs are built.
INTRODUCTION: WAITING FOR PPP
At the time it was formed in 1998, the second liberal-social democratic
administration of Prime Minister Wim Kok faced an enormous challenge
with regard to the realization of transport infrastructure. It was clear at the
time that there were insufficient public funds available to meet the various
desires, so private contributions to public projects were considered as a pos-
sible solution. Thus, public-private partnership (PPP) in the transport sector
was put onto the political agenda. Central government identified a variety of
projects in which private parties could be involved. These included various
motorways (such as the A4 Delft-Schiedam, the A59 Geffen-Oss, the N31
Leeuwarden-Drachten and the N301 Hilversum-Haarlem), the second Maas-
vlakte (expansion of the Rotterdam dockland area through land reclama-
tion), the Betuwe Line (a new railway for the transport of goods between the
Port of Rotterdam and Germany), and high-speed railways between Amster-
dam and the Belgian and German borders including the development of
various high-speed railway stations and the areas surrounding them (Minis-
try of Finance 1998; Hörchner 1999).
A number of years on, the results of initiatives to realize public-private
partnerships in transportation infrastructures are disappointing. In most
projects, successful partnerships have been elusive (Expertise Centre PPP
2002; Dutch National Audit Office 2002). Some initiatives have been aban-
doned altogether. So far, the only projects which have proved successful in
To continue reading
Request your trial