Stakeholder-associated transaction costs in privately financed public infrastructure projects

Governments around the world have been gaining finance through private sector capital, and utilizing Public Private Partnerships as a vehicle for public infrastructure delivery. This research aims at improving value-for-money in Australian privately financed public infrastructure projects by systematically identifying stakeholders-associated transaction costs in PPP projects using transaction cost economics and stakeholder management theories. The outcomes will broaden PPP decision-makers' awareness of stakeholders and the associated transaction costs, and enhance their ability to perceive, understand, assess, and reduce transaction costs in an effective and efficient way; thereby value-for-money or economical sustainability, a public sector probity issue, could be better achieved in these important infrastructure projects. This paper reports on the preliminary work of the project, including the literature review, establishment of research questions and objectives, and research design.