Can Blockchain Fix PPP Failures? Exploring Smart Contracts for Sustainable Delivery

The study by Northumbria University researchers highlights how blockchain-enabled smart contracts can significantly improve transparency, efficiency, and trust in infrastructure PPP projects. By automating processes and ensuring secure data management, BSCs address critical issues like payment delays, supply chain gaps, and contract mismanagement.

A groundbreaking study by Emmanuel Chidiebere Eze and Ernest Effah Ameyaw from the Department of Architecture and Built Environment at Northumbria University, Newcastle, sheds new light on the transformative role of blockchain-enabled smart contracts (BSC) in the performance of infrastructure Public-Private Partnership (PPP) projects. Through a global, data-driven investigation and robust modelling techniques, the study explores how BSCs can address deep-rooted inefficiencies in PPPs such as payment delays, lack of transparency, contract mismanagement, and disputes. These chronic failures have led to large-scale project terminations in both developed and developing nations, most notably in the UK, where PPP project failures have reportedly cost over £27 billion, sparking concerns over the viability of the model. As governments and private players continue to seek sustainable infrastructure delivery mechanisms, the researchers argue that blockchain could serve as a technological lifeline that brings unprecedented transparency, automation, and trust to PPPs.

A Global Survey and a Fresh Methodological Lens

To support this assertion, the study undertakes an ambitious quantitative survey of 97 international professionals involved in PPPs and blockchain applications. These include contract managers, engineers, researchers, blockchain architects, and public sector advisors from across Europe, Asia, North America, Africa, and Oceania. Using a snowball sampling technique and an online questionnaire, the research captures expert insights on eight hypothesised application areas of BSC in PPPs. What sets this work apart is its use of Partial Least Square Structural Equation Modelling (PLS-SEM), which allows for a nuanced understanding of the relationships between these domains and their perceived impact on project performance. With a model that boasts an R² value of 0.971 and predictive relevance (Q²) of 0.968, the findings are both statistically rigorous and practically compelling.

Top Benefits: Transparency, Automation, and Data Integrity

The most influential application area identified was data and information management. In the often chaotic and fragmented environment of infrastructure projects, blockchain’s ability to provide tamper-proof, decentralised records proved to be a game changer. These features not only ensure transparency and traceability but also promote seamless communication and governance over the long lifecycle of PPP contracts. Next in impact was payment and financial administration, where smart contracts can automate the release of funds once specific conditions are met. This reduces delays and improves cash flow visibility, addressing one of the most common pain points in PPP financing. Similarly, BSCs were found to significantly improve supply chain management by enabling real-time tracking of materials and stakeholder performance. The automation and immutability of records are key to mitigating fraud, ensuring compliance, and reducing disputes.

Project management and contractual administration also benefit significantly from BSC adoption. With smart contracts autonomously enforcing terms and maintaining a transparent audit trail, the scope for misapplication of clauses or manipulation of documentation is greatly reduced. Quality and safety management stood out as another domain of high impact, where blockchain facilitates secure inspection records, compliance tracking, and proactive safety monitoring. Finally, energy and environmental management emerged as a promising area, particularly for tracking carbon emissions, monitoring energy consumption, and supporting green compliance in large-scale infrastructure builds.

Gaps and Grey Areas: Procurement and Dispute Resolution

Despite these promising findings, two areas, procurement management and dispute resolution, did not yield statistically significant results. The researchers suggest this may be due to the relative infancy of blockchain deployment in these areas. While prior studies have proposed theoretical frameworks for blockchain’s role in reducing bid-rigging and enabling transparent vendor selection, the lack of widespread implementation and real-world validation limits its perceived impact. Similarly, while blockchain can enhance dispute resolution by serving as a single source of truth, its application in legal frameworks remains nascent. This suggests a need for further pilot studies and regulatory alignment before these areas can fully realise the benefits of BSCs.

Towards a Smarter, More Resilient PPP Ecosystem

The study’s broader implications are profound. It not only reaffirms the growing global interest in digitalising PPP project management but also provides a roadmap for leveraging blockchain to overcome some of the most persistent challenges in infrastructure delivery. For public sector agencies, the transparency and auditability offered by BSCs could restore confidence in PPP schemes. For private partners, automation and immutability of contract terms reduce risk and improve operational predictability. For society at large, better governance of public infrastructure means fewer project failures, more responsible use of public funds, and improved service delivery.

As the study concludes, the time is ripe for governments, development finance institutions, and private sector innovators to begin mainstreaming blockchain-smart contract applications in infrastructure PPPs. The researchers call for policy interventions, legal reforms, and targeted pilot projects to further validate and refine the implementation pathways. In doing so, they envision a more resilient, efficient, and equitable model for infrastructure development, one where technology does not just support the system but transforms it at its core.