Inferential Analysis of Road Infrastructure PPP Sponsor Networks

In the road infrastructure sector, public–private partnership (PPP) projects involve implementation of project finance principles through signing a long-term contract between public authority and group sponsors assembled in special purpose vehicle (SPV). However, although PPP play very important role SPV formation, literature does not provide sufficient information to permit detailed understanding such creation processes. Therefore, this study provides insight into mechanisms associated with way establish relationships among themselves order form SPVs. The approach employs social network concepts exponential random graph model (ERGM) techniques. analysis is focused on tie-formation processes sponsor networks across bidding financial close stages Canada, Chile, US 1993 2019. Results show that, despite some differences studied jurisdictions, dyadic (i.e., repeated relationships) structural transitivity) factors are most influential properties driving consortium procedures. Conclusions indicate that sponsors’ behavioral patterns highly influenced by trust-based mechanisms. Further research required continue other players effect external institutional environment networks.