Financial structure of PPPs deals post-GFC: an international perspective

Martin Haran, Michael McCord, Norman Hutchison, Stanley McGreal, Alastair Adair, Jim Berry, Anil Kashyap

    Research output: Contribution to journalArticlepeer-review

    5 Citations (Scopus)


    Purpose – The purpose of this paper is to explore the implications of the Global Financial Crisis (GFC) on Public Private Partnership (PPP) markets around the world. Specifically, it aims to highlight the extent of over reliance on debt finance, as well as the conditions needed to attract enhanced levels of institutional investment into key infrastructural provision.

    Design/methodology/approach – Quantitative insight for the paper is derived from the Infrastructure Online Database. The Infrastructure Journal (IJ) Online Database profiles PFI/PPP deals around the world depicting the key actors involved, as well as the capital value of deals and the financial structures applied in terms of debt, equity and Multilateral and Government Finance. The quantitative insight derived from the IJ database is complemented by interview evidence and forum-based discussion. In total, 38 interviews were conducted with a diverse range of key stakeholder groupings from across the public and private sectors, including government advisers, client side representatives (Health and Education sectors), contractors, financiers and FM providers. Interviewees were drawn from five key PPP markets at different stages in the maturity cycle, namely, Australia, Canada, India, the UK and the USA. In addition to the interviews, three forum-based discussions were undertaken as part of the investigation exploring the key themes to emerge from the interviews from multi-stakeholder perspectives.

    Findings – The findings from the study highlight a number of inherent deficiencies in the PPP model, including the over reliance on private sector debt. Additionally, the research profiles the extent and form of national government interventions in PPP markets around the world, highlighting the need for a more innovative, sustainable and balanced funding frameworks for essential infrastructure conducive to the next economic/financial cycle.

    Originality/value – This study is distinct in that it examines the cross-jurisdictional implications of the global financial crisis on PPP markets.
    Original languageEnglish
    Pages (from-to)184-203
    Number of pages20
    JournalJournal of Financial Management of Property and Construction
    Issue number2
    Publication statusPublished - 2013


    • project finance
    • public private partnerships


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