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PRIVATE SECTOR INVOLVEMENT IN INFRASTRUCTURE DEVELOPMENT PROJECTS THROUGH PUBLIC-PRIVATE PARTNERSHIPS: A CASE STUDY OF ROAD INFRASTRUCTURE IN GHANA

FEATURED PAPER

Richard Amponsah

Doctor of Project Management, Lecturer, GIMPA

Bernardine Gatete

Grant Manager, International Development Fund Corporation

Project Management Specialist and Consultant

Ghana
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ABSTRACT

Governments in most developing countries face the challenge to meet the growing demand for new and better infrastructure projects and services. As available funding from the traditional sources and capacity in the public sector to implement many of these projects are limited, governments have found that partnership with the private sector is a viable alternative to increase and improve the supply of infrastructure project and services.

Several reasons account for the growing collaboration with the private sector in developing and providing infrastructure services. They include increased efficiency in project delivery, operation, management, availability of additional resources and advanced technology from the private sector to mention a few.  There is increasingly a growing belief that public-private partnerships in infrastructure development such as roads, hospitals, energy, water supply, etc. could lead to technical, economic and managerial efficiencies while at the same time relieving poorly resourced private sector. In Ghana, road infrastructure development is seen as a poverty reduction strategy which has a direct link to all the sectors of Ghana’s economy (James, 2009).  Road transport falls under infrastructure development and has the multiplier effect in creating wealth.  Yet, little attention is given to the involvement of the private sector in the road infrastructure development in Ghana.

The purpose of this study is the assessment of the level of involvement of the private sector in the development of road infrastructure in Ghana.  Evaluate technical and economic efficiencies of applying the PPP approach in road infrastructure projects, identify constraints and formulate recommendations for current and future implementation. To achieve this purpose, data was collected from government agencies and private sectors contractors involved in both PPP and non-PPP road projects.

The analysis of the data reveals that government of Ghana remains the main funding source for the road projects since the application of PPP is relatively a new concept.  The study reaffirms that PPP remains one of the viable solutions for government funding of infrastructure projects such as roads even though there exist no solid legal and regulatory frame work for PPP implementation in Ghana.  The study also found that PPP application in the road sector will lead to higher technical efficiency and to some little extent economic efficiency if the right environment is created with the elimination of the identified constraints. Constraints such as  weak private sector  to support PPP,  high cost of road projects, high risk profile of Ghana, lack of legal and regulatory frame work, high implementation cost due to feasibility studies and difficulty of cost recovery to be among the major constraints hampering the smooth implementation of road PPP projects in Ghana. 

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About the Authors

pmwj21-apr2014-Amponsah-IMAGE1 AMPONSAHpmwj15-oct2013-narh-FLAG OF GHANADr. Richard Amponsah

Ghana

Dr. Richard Amponsah currently lectures at the Ghana Institute of Management and Public Administration (GIMPA), one of the leading Management Universities in Africa. He holds a Doctorate of Project Management degree from the Royal Melbourne Institute of Technology (RMIT), Melbourne, Australia. He is a “Trail Blazer” for Africa by being RMIT University’s first Doctor of Project Management from Africa.  Dr. Richard Amponsah is Project Management Professional (PMP). He holds a Master of Science degree in Water and Environmental Engineering and a Bachelor of Science degree in Mining Engineering from the Kwame Nkrumah University of Science & Technology, Ghana.  He is a member of the Ghana Institute of Engineers. He is an International award winner. He won an International Award in 2007 as a scholar for the Investment Climate and Business Environment-TrustAfrica, Nairobi, Kenya to undertake a Research Project titled “Real failure factors in Projects in developing country”.  Dr. Amponsah can be contacted at [email protected].

pmwj15-oct2013-narh-FLAG OF GHANApmwj21-apr2014-Amponsah-IMAGE2 GATETEBernardine Gatete

Ghana

Mr. Bernardine Gatete has been working for more than ten years in development programs in the area of projects/programs management. He has about 12 years’ experience working in both profit and not-for- profit sectors and possesses a considerable experience in designing, managing, coordinating, monitoring and evaluating donor-funded projects and program as well as experience in negotiating and managing partnerships with other development partners to foster implementation synergies. Mr. Gatete is currently working with International Fertilizer Development Center (IFDC) as a Grants Manager for North and West Africa Division and also provides backstopping to East and Southern Africa Division.  Mr. Gatete holds a Bachelor’s degree in Business Administration (BA Management/Psychology) and an MBA in Project Management.