Enhancing Efficiency by Reducing Time and Cost Overruns

Infrastructure PPP projects can score on cost and time efficiency over traditionally procured projects. PPP infrastructure projects in some advanced economies have shown they can reduce cost and time overruns compared with government-funded projects. McDonald (2002) found that traditional public procurement projects suffered cost overruns of 24%-66% and time overruns of 4%-39% during construction in the United Kingdom, but PPP projects were more efficient in both. In his sample, 78% of PPP projects were within budget, compared with 27% of government-funded projects.