Development of a model for implementation of PFI/PPP in Cyprus

The pressure for provision of new facilities and services coupled with the fiscal discipline required by the EU, have encouraged the Cypriot Government to search for alternative ways of funding major infrastructure schemes such as airports, highways, waste management facilities, and rural sanitation projects. This research indicates that the Private Finance Initiative (PFI)/ Private Public Partnership (PPP) and other concession-type contracts and partnership agreements are becoming attractive forms of delivering public facilities and services in Cyprus. However, there is no objective method or format for implementing these systems that effectively guide the Cypriot government and local companies. The aim of this paper therefore is to develop a model for successful implementation of PFI/PPP procurement system in Cyprus. Structured interviews and questionnaires have identified the constraints that currently influence the implementation of such procurement systems in Cyprus. The paper uses the findings to propose a process protocol model that can be used in practice. Although detailed testing of the model is ongoing, initial responses on the application of the model from the government and practitioners' perspectives is positive.