Abstract:
Large infrastructure public–private partnerships (PPPs) in Australia have revealed
significant governance problems. The aim of this research is to examine the
technical-rational and social contractual issues of PPPs within the broad context of
risk, and accordingly propose a governance framework. The research builds on
international PPP literature to develop an analytical conceptualization. It uses document
review and interviews to construct a case study of a Cross City Tunnel (CCT)
toll-way in Sydney, which became operational in August 2005 and failed in
December 2006. The research indicates that failure within this so-called PPP
largely occurred within the technical-rational governance system due to unforeseen
risks. This led to a breakdown in the social contract, through political risk. A
governance system that enhances risk assessment and diminishes the likelihood
of negative political behaviours is required.
