Public private partnerships and their applicability in Malta : an analysis

Abstract

PURPOSE: The purpose of this study is to examine PPPs in Malta by (i) ascertaining the nature and assessing their definability, (ii) identifying and analysing the main alternative ways of formulating PPPs and finding the optimal ways of doing so, as well as (iii) assessing PPP monitoring and analysing any factors which may render such monitoring more effective. DESIGN: The study follows a qualitative mixed-methods design. It draws data from semi-structured interviews conducted with fourteen experts within the Maltese PPP scenario. These consisted of representatives from consultancy firms and from Government entities and private sector firms involved in PPPs. FINDINGS: The findings indicate that in Malta few, if any, controversies arise about the inherent characteristics of PPPs or about the importance of the players involved in them or even about the respective PPP roles of Government and SPs. However, the response indicated that, if a formal statutory PPP definition were to be adopted, this would likely face substantial resistance. Moreover, specific case studies and detailed risk assessments are sine qua nons for optimal PPP formulations. Furthermore, at the PPP contract drafting stage, dilemmas too often arise regarding the inclusion of the appropriate level of detail about the different aspects of such contracts if one is not to render them too complex. Additionally, in the current procurement of SPs for PPPs, different procedures are used as no uniform procedure has as yet been established. It was also noted that respondents preferred the inclusion of a pre-qualification stage in such SPs procurement. Furthermore, while it is generally agreed that further skills and resources are required for effective Government monitoring, differences of opinion emerged as to how and when such monitoring is to be performed. CONCLUSIONS: This study concludes that in Malta PPPs are commonly well formulated and monitored. Yet, there is clearly still room for improvement. In this respect, the insufficient level of expertise of Government personnel in both the formulation and monitoring of PPPs is a main contributor to the existing deficiencies. Other contributing factors include the lack of a specific regulatory framework for PPPs and the related absence of a central procurement authority. IMPLICATIONS: This study is meant to raise public sector awareness on the need to improve Maltese PPP practices with respect to their definability, formulation and monitoring. It is hoped that the forwarded recommendations support the competent authorities in addressing the identified existing deficiencies, thus enabling them to enhance PPPs and render them improved vehicles for public sector development.