Comparative analysis of outcomes under PPP and traditional modes of delivery: a study of schools in Melbourne

Abstract

Public Private Partnership (PPP) arrangements are perceived as compelling alternatives to traditional infrastructure development to raise finances and improve efficiency. However, with the substantial improvement in the provision of services through traditionally developed infrastructure, the benefits of PPP implementation need to be continually evaluated. This research investigates three categories of outcomes (educational, stakeholder satisfaction, and general outcomes) for schools in Melbourne implemented under PPP arrangement to those implemented under a traditional procurement method. Data Envelopment Analysis is used to assess the efficiency of these outcomes, based on the consumption of teaching, financial and physical resources. The results indicate that there is no substantial difference between the performance of both arrangements. While the schools implemented under the PPP arrangement have provided better education outcomes, the traditional schools perform better in stakeholder satisfaction and general outcomes. The results indicate that the policymakers need to evaluate infrastructure based PPP arrangements more closely and align with the desired outcomes.

Keywords:

• Data envelopment analysis
• DMU
• education
• public private partnership
• schools

Disclosure statement

The authors declare that there are no financial or non-financial competing interests to report.

Data availability statement

All of the data and models that support the findings of this study are available from the corresponding author upon reasonable request.

Additional information

Funding

The funding support of the Faculty of Architecture, Building and Planning at the University of Melbourne for this research is gratefully acknowledged.