Life Cycle Performance Measurement in Public-Private Partnership Infrastructure Projects

Public-private partnerships (PPPs) have been adopted in many countries around the world due to pressure from reduced budgets and lack of experience in the public sector. However, not all PPP projects have been successful. Ineffective performance evaluation is one of the leading causes of failure for PPP projects. This study aims to consider the importance of performance measurement for the success of PPP infrastructure projects. Five criteria were identified from a literature review, including strategies, processes, capabilities, stakeholder contribution, and stakeholder satisfaction. A fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method was used to consider the importance level in measuring performance at each phase of the PPP project life cycle using expert decisions. The result showed that the partnership phase ranked first in the performance measurement of PPP projects with an index of 0.502. The performance of the procurement phase and the initiation and planning phase were ranked second (0.492) and third (0.483), respectively. Furthermore, to examine the reliability of the result, 10 experiments were analyzed in terms of sensitivity. Most of the experiments showed that the performance measurement in the partnership phase was the most important component in the success of PPP infrastructure projects. Through this analysis, project managers and practitioners can evaluate and control project performance to meet the strategic objectives of PPP projects.