Developing a comprehensive pre-feasibility assessment tool for PPP infrastructure projects: an empirical study in Taiwan

Purpose The public-private partnerships (PPP) approach has significantly expanded public services and infrastructure projects, but not all PPP projects succeed. Existing PPP feasibility evaluation approaches required extensive effort, resulting in untimely or ineffective outcomes. This study proposes a comprehensive pre-feasibility assessment framework, including the necessary evaluation criteria, to identify and mitigate potential risks before the commencement of a PPP project. Design/methodology/approach Based on Taiwan's pre-feasibility assessment mechanism, this study reviewed global pre-feasibility assessment tools (World Bank, EPEC), synthesized 545 critical/key failure factors (CFFs/KFFs) from 30 WOS articles and examined failed PPPs in Taiwan. A two-round focus group discussion with experts validated the framework's necessity and suitability. Findings The developed innovative PESTELCO framework (political, economic, social, technological, environmental, legal, contract, and operation) enhances early-stage PPP assessment, offering systematic and reliable evaluation criteria confirmed by PPP practitioners. Therefore, by restructuring a three-dimensional pre-feasibility assessment into a PESTELCO-based pre-feasibility assessment form with seven new evaluation criteria, this study has contributed a comprehensive pre-feasibility assessment tool for PPP infrastructure projects. Practical implications When a potential PPP project is assessed using the developed pre-feasibility assessment form, the probability of successful implementation is expected to increase. By applying the PESTELCO framework and its corresponding assessment criteria, government agencies can conduct more comprehensive and structured pre-feasibility evaluations. In addition, the authority responsible for PPP affairs can more effectively identify suitable PPP projects, thereby improving the quality of project selection and supporting the successful delivery of PPP initiatives. Originality/value This study addresses a critical research gap by integrating global evidence, lessons from PPP failures, and expert input into a robust pre-feasibility assessment tool. To bridge this gap, this study developed the PESTELCO framework with comprehensive screening criteria, which was validated through a focus group discussion using the Delphi method in Taiwan, and offers a valuable reference for improving PPP evaluation practice in the pre-assessment phase. The findings of this study help government agencies select suitable projects and prioritize those that pass the pre-feasibility assessment. For other nations with their own PPP implementation guides, adopting the approach used in this study can substantially enhance their evaluation mechanisms.