Relationships among Value-for-Money Drivers of Public–Private Partnership Infrastructure Projects

Value-for-money (VFM) drivers and their interrelationships have large impacts on increasing the VFM of public-private partnership (PPP) projects. However, very few studies have explored the potential interrelationships among VFM drivers. Using a questionnaire survey and structural equation modeling (SEM), the current study aims (1) to refine a VFM driver framework for PPP projects; and (2) to determine and verify the interrelationships among VFM drivers for PPP project implementation. This research has observed that the determinants of cost and effectiveness are provided for financial or performance sustainability. Moreover the better the overall cooperative environment, the better the participants' capabilities and characteristics and the more effective the cooperation between the public and private sectors. Furthermore, the level of cooperation favorably influences cost and effectiveness directly. Finally, a stable macroeconomic condition has the most significant impact on the cooperative environment. The determined interrelationships among VFM drivers will contribute to the increased sustainability and successful delivery of PPP projects.