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Local governments opting for PPPs in the schools sector

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  • Carvalho, João
  • Cruz, Nuno
  • Cunha Marques, Rui

Abstract

The Portuguese government recently launched a new program to refurbish the secondary schools all over the country. Along with this process more responsibilities are being transferred to local governments concerning pre and elementary schools. This is seen as the main motivation for the settlement of new local public private partnerships (PPP) within this sector. This paper discusses the public private partnerships (PPP) contracts in the Portuguese schools sector. Four national cases and a foreign experience are analysed. In this study, some of the sound practices presented in the literature are highlighted; we argue that some of these practices are not being applied in this sector in Portugal. A risk analysis for the schools sector was developed, hoping to contribute towards an increasing number of partnerships reaching the best possible value for money (VfM). Furthermore, we suggest several contract management guidelines and draw up some improvement proposals. We conclude that there is a need to enhance the transparency of the procurement phase, to normalise the contractual documents, and to assure a better risk allocation as well as an improved monitoring of the contract.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22558.

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Date of creation: Apr 2010
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Handle: RePEc:pra:mprapa:22558

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Keywords: contract management; public-private partnerships (PPP); public tender; risk allocation; schools;

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  1. Steven Tadelis, 2009. "Auctions Versus Negotiations in Procurement: An Empirical Analysis," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 25(2), pages 372-399, October.
  2. Marques, Rui Cunha & Berg, Sanford V, 2010. "Revisiting the strengths and limitations of regulatory contracts in infrastructure industries," MPRA Paper 32890, University Library of Munich, Germany.
  3. Eoin Reeves & James Ryan, 2007. "Piloting Public-Private Partnerships: Expensive Lessons from Ireland's Schools' Sector," Public Money & Management, Taylor & Francis Journals, Taylor & Francis Journals, vol. 27(5), pages 331-338, November.
  4. Bing Li & A. Akintoye & P. J. Edwards & C. Hardcastle, 2005. "Critical success factors for PPP/PFI projects in the UK construction industry," Construction Management and Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 23(5), pages 459-471.
  5. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications, The World Bank, number 15024, October.
  6. Stern, J., 2000. "Electricity and telecommunications regulatory institutions in small and developing countries," Utilities Policy, Elsevier, Elsevier, vol. 9(3), pages 131-157, September.
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