Challenges of Public Private Partnership (PPP) Healthcare Projects: Case Study in Developing Countries (original) (raw)

Public Private Partnership (PPP) projects have become popular during the last 30 years due to the need of new infrastructure and/or renewal projects to be built with limited public resources. PPP scheme has been implemented for public infrastructure such as in transportation, energy, and healthcare in developing countries, developed countries focused on renewals and improvements. Although developed countries have an extensive knowledge in healthcare PPPs, developing countries have been procuring large-scale hospitals through PPP as a new concept. Hence, the lack of know-how and experience in healthcare PPP implementations in developing countries needs to be fulfilled for a successful implementation. The objective of this research is to identify the key challenges experienced in healthcare PPPs in developing countries. The case study research methodology is used to investigate the experiences of stakeholders in large hospital projects. Structures interviews were conducted to collect both primary and secondary data. The results showed major challenges such as the lack of bankable project agreement, lack of institutional capacity and adequate risk allocation, lack of environmental and social impact assessment, incomplete PPP project medical scope, and the short-term vision in terms of investment. Mitigation strategies were recommended to address those challenges for more successful PPP implementation.

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