Public-private partnership projects: factors influencing the progress of these initiatives

Abstract

Based on the theoretical framework of governance and economic institutions, this research aims to identify and test critical factors for public-private partnerships (PPPs) to advance in their pre-contractual stages. Using a Poisson regression model over a sample of 177 projects developed at Brazilian state level, empirical results show the relevance for the public sector in nurturing PPP specialized agencies to interact with private companies and define regulatory models that create incentives for the private partner to be involved since the initial phases of the project. Our results also indicate that PPPs more evolve in localities with moderate levels of corruption. From the point of view of the companies, the search for partners that add complementary competencies to the private consortium is an important step for the advance of PPP contracts.