ABSTRACT
Efficiency can be perceived differently depending on the context within which one considers it. Efficiency is related to the concepts of standardisation and contextualisation and how they affect the successful delivery of Public Private Partnerships (PPP) projects. The chapter begins with an overview of standardisation and contextualisation and a discussion on why they are both important to PPP projects. While standardisation is necessary in order to improve market efficiency, reduce transaction costs and increase transparency and accountability, contextualisation is what makes PPP projects relevant to their end users and caters to their inherently individual characteristics. Striking a balance between the two is not easy, as the two exist in natural tension. Efficiency is the underlying thread as project credit assessments serve as a standardised market signal to potential investors with respect to the ability of a project to honour its debt obligations.
