Social infrastructure partnerships: a firm rock in a storm?
Journal of Financial Management of Property and Construction
ISSN: 1366-4387
Article publication date: 9 November 2010
Abstract
Purpose
The purpose of this paper is to use the example of public housing renewal public‐private partnerships (PPPs) to build knowledge on whether social infrastructure PPPs may appeal to the private sector as a less risky investment in a time of global financial uncertainty.
Design/methodology/approach
The research is based on an international literature review and a limited number of semi‐structured interviews with social housing PPP participants in England, the USA and Australia. These interviews were conducted by Dr Gilmour as part of his doctoral research in 2008.
Findings
The familiar distinction between social and other forms of infrastructure PPPs has been found to be unhelpful in the case of public housing renewal. This type of PPPs, through their cross‐subsidisation model, face relatively high revenue risk during a recession. However, the commitment of the public sector to the social goals of such projects suggests contract negotiation rather than default is likely if problems occur. PPP risks need to be understood by studying their detailed contract terms, rather than by broad categorisations.
Research limitations/implications
This paper provides a grounded discussion rather than detailed research findings. Only a small number of projects are included and they are not necessarily representative. Cross‐national comparison is challenging because of different housing policies and economic conditions.
Originality/value
This paper fills a gap in the literature by both contrasting approaches to a particular type of social infrastructure PPP in different countries, and by making an early assessment of the likely impact of recent turbulence in financial and property markets.
Keywords
Citation
Gilmour, T., Wiesel, I., Pinnegar, S. and Loosemore, M. (2010), "Social infrastructure partnerships: a firm rock in a storm?", Journal of Financial Management of Property and Construction, Vol. 15 No. 3, pp. 247-259. https://doi.org/10.1108/13664381011087506
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited