Bridging Politics and Projects: How Political Affinity and Government Support Affect Delays in Public-Private Partnership Initiation

Original study by Jorge Fleta-Asína, Alfredo Jiménez and Fernando Muñozc

This paper aims to fill a significant gap in the literature by examining how institutional factors such as political affinity (diplomacy) and government support affect delays in project initiation in developing countries.  It focuses on PPPs that are financed by cross-border investment.

The paper argues that diplomacy plays a vital role in economic relations, especially for international companies.  It promotes dialogue, negotiation, and peaceful dispute resolution, thus facilitating trade and investment opportunities.  Diplomacy is likely to play a fundamental role in promoting cooperation and facilitating the timely initiation of PPP projects by fostering trusting relationships between the countries involved.

Moreover, government support for project performance is equally important because it reflects a greater institutional interest in delivering projects.  In particular, government support in the form of subsidies or financial incentives signals commitment from the public side and reduces uncertainties for private investors.

Given the importance ascribed to these factors, the main research question addressed in this paper is as follows: How do political affinity and government support, as well as their interaction, influence delays in the initiation of PPP projects?