Failure of PPP mechanism: A cross-country analysis of these unique issues associated with the road sector in Southeast Asian markets

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AbstractTo meet financial requirement for infrastructure development, the Public–Private Partnership (PPP) mechanism has been applied in a range of nations as a promising solution. However, unpredicted collapses that are linked to PPP applications have been experienced worldwide despite scientific protocols and concentrated efforts from engaged sectors. Numerous academic works have attempted to minimize PPP failures by exploring the area of risk management. However, there are limited efforts focusing on Southeast Asia. Previous studies in these markets have mainly identified risks, rather than in-depth analysis of root causes of failure, or proposing practical solution. This paper, by carrying out an evidence-based analysis of the Southeast Asia experience with an intensive focus on emerging markets, analyzes critical reasons and their underlying connections that result in PPP failure. Research outcomes also suggest using constructive strategies promoting a regulatory framework to diminish collapses that affect drivers and so enable the restoration of PPPs.Keywords: Failurepublic private partnership (PPP)risk managementSoutheast Asiatransport Disclosure statementThe authors certify that they have NO affiliations with or involvement in any organization or entity with any financial interest (such as honoraria; educational grants; participation in speakers’ bureaus; membership, employment, consultancies, stock ownership, or other equity interest; and expert testimony or patent-licensing arrangements), or non-financial interest (such as personal or professional relationships, affiliations, knowledge, or beliefs) in the subject matter or materials discussed in this manuscript.Additional informationNotes on contributorsNguyen Minh NhatNguyen Minh Nhat, a scientifically educated lecturer, achieved his professional career and education at high-ranking institutions worldwide. He obtained his bachelor of Civil engineering at the University of Transport and Communication, Vietnam, before studying MSc in Management of International Finance at the University of Glasgow and researching Ph.D., focusing on the area of public–private partnership (PPP) at the University of Liverpool, United Kingdom. He is specialized in areas of construction, economic, and PPP, especially for transport construction, with experience in lecturing, carrying out research, and constructing transportation projects. He is currently teaching at Hanoi Architectural University, which is one of the highest-ranking and most trusted universities in Vietnam.Nguyen Hoang TungNguyen Hoang Tung is an Associate Professor at University of Transport and Communications, Vietnam. He received his Ph.D. in Engineering from Saitama University, Japan. His research interests include travel behavior, green transport modes, traffic safety, public-private partnerships and construction management.