Factors impeding the implementation of public private partnership (PPP) road project in Ghana
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Date
2021-06-30
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Abstract
Ghana’s ability to finance its infrastructural projects has been a major impediment to development
since independence. As a result, the country resorted to the donor agencies like the International
Monetary Fund (IMF) and the World Bank for support. The onus lies on government now to fall
on the private sector to assist in the provision of infrastructure such as roads, water, housing and
others. Public private partner presents a more viable options to government in provision of public
infrastructure. The aim of the study was to investigate factors impeding the implementation of
public private partnership (PPP) road project in Ghana. A purposive sampling method was used in
the selection of respondents, questionnaires were distributed to some public-sector workers
involved in the provision of road infrastructure and some selected road contractors. Responses
received from the respondents were analyzed in accordance with the objective of the research. The
study measured the respondents’ views on how the following factors impede the PPP
implementation: toll adjustment mechanism, current economic challenges, inflation rates, high
cost of doing business and interest rates. It also measured the influence of factors like political will
of government in procuring of PPP projects, high financial cost in procuring of PPP projects and
high cost of relocating services along the corridor. A relative significance index was used to rank
the factors. The study discovered that the toll adjustment mechanism was the most significant
factor impeding PPP implementation whilst the procurement models used and project viability
were the least impactful. The research also suggested strategies that will help in the smooth
implementation of PPP road project in Ghana. These strategies include low cost of doing business,
good political will of government in procuring models, realistic toll charges, stable political
environment, easy access to credit facility. The respondents also believed that a lowered cost of
doing business in the country would significantly ease PPP implementation. Other suggested
strategies include realistic toll charges, a stable political environment, easy access to credit among
others. It’s therefore recommended that the government should focus on improving the macroeconomic fundamentals so that private investors can build the financial muscle to invest in capital
intensive projects like the PPP road projects. The government also needs to demonstrate a
commitment in terms of policy direction to maximizing PPP opportunities. Education and publicity
are also needed to increase public awareness of PPP models of procurement for road infrastructure.
Description
A thesis submitted to the Department of Construction Technology and Management, College of Art and Built Environment, in partial fulfillment of the requirement for the Degree of Master of Science.
Keywords
Implementation, Private partnership, Road project