Characteristics of Public-Private Partnerships in Norway

Espen Solheim-Kile1, Ola Lædre2, Jardar Lohne3 & Øystein Husefest Meland4

1PhD Candidate, Kruse Smith Eiendom AS, Norway, espen.solheim-kile@kruse-smith.no
2Associate professor, dr.ing., Department of Civil and Transport Engineering, Norwegian University of Science and Technology (NTNU)
3Researcher, dr. art., Department of Civil and Transport Engineering, Norwegian University of Science and Technology (NTNU)
4Associate Professor. dr.ing., School of Business and Law, University of Agder, Norway

Abstract

New ways of working impose new contract models. To prepare for these new ways, there is a need for a precise understanding of the contractual elements. In this paper, we examine and describe Norwegian Public-Private Partnership (PPP) projects. Their characteristics are then compared to the characteristics outlined in literature. The findings are based on a literature study followed by a case study approach combining analysis of documents gathered from public sector authorities and relevant private sector participants along with a questionnaire. We find that a narrow view of PPP is used with an overemphasis on the financing aspects which is close to the Private Finance Initiative (PFI) model. The public sector insists on detailed specifications limiting the possibilities of innovation in areas such as Lean Construction. Combined, this could potentially constitute a roadblock for harvesting the real benefits of the PPP approach. The sheer size, contract period and total costs of the PPP projects are characteristics that justify an own study. The main contribution of this paper is the overview of Norwegian PPP projects and their characteristics.

Keywords

Public-Private Partnership, Private Finance Initiative, PPP, PFI, Contract models

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Reference

Solheim-Kile, E. , Lædre, O. , Lohne, J. & Meland, Ø.H. 2014, 'Characteristics of Public-Private Partnerships in Norway ' In:, Kalsaas, B.T., Koskela, L. & Saurin, T.A., 22nd Annual Conference of the International Group for Lean Construction. Oslo, Norway, 25-27 Jun 2014. pp 233-244

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