Dynamics in Implementation of Public Private Partnerships

Dynamics in Implementation of Public Private Partnerships

Copyright: © 2020 |Pages: 31
DOI: 10.4018/IJPAE.2020010102
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Governments all over the world play a crucial role in the development of infrastructure and the provision of basic services to the citizens. With increasing population, urbanization, other developmental needs, the governments' ability to address public needs through traditional means is severely constrained. Due to this, new approaches and forms are being sought after and one such is through contractual agreements with the private sector commonly referred to as a public-private partnership (PPP). A PPP is a contractual agreement involving the private sector in the delivery of public services. PPP formations are effected by government support, economic uncertainties, market readiness, and organizational factors. Adopting a mixed methods approach, the primary data was collected through questionnaires, interviews, and secondary data from published reports and documents the objective was to explore the dynamics in the implementation of PPP agreements with focus on Namibia and enhance the knowledge to enable the government and private entities in dealing well with these factors.
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The public services and infrastructure was originally provided by governments to the public through traditional procurement method. According to Osborne (2002), governments over the years acknowledged the fundamental role of infrastructure in promoting economic growth and poverty reduction. According to (Hodge, Greve, & Boardman, 2010; Klijn & Teisman, 2003), throughout the decades, governments worldwide introduced policies and regulations that support the formation of public-private partnerships (PPPs). In order to execute projects effectively and efficiently, governments worldwide enter into contracts with private enterprises to supplement public investments and provide public services. Many countries have shown an extensive development of PPP programmes, whilst others have remained sceptical (McQuaid & Scherrer, 2010). The development of infrastructure and provision of basic civil services is considered to an important public sector activity. Osborne (2005) points out that “partnership approaches received a widespread support from across the political spectrum including policy makers, official and local communities” (p. 10). Further, government debt reduction in many countries was the main motivation for governments to engage private sectors through PPPs in provision and development infrastructure, such as toll roads, schools, hospitals, car parks, and prisons (Liu, Love, Smith, Regan & Sutrisna, 2014). According to Boardman, Siemiatycki and Vinig (2016), PPPs acquire services for the government by means of private sector capital and expertise. Boardman, Siemiatycki and Vinig (2016) further state that on occasion, the private sector also provides the services that use the infrastructure, such as correctional services and clinical services. In Canada, federal, provincial and municipal governments have all employed PPPs. Public–private partnerships (PPP) are expanding fast as a means of acquiring infrastructure assets and public services, indicating a major shift in the association between the state and industry (Hashim & Sanni, 2014). According to Gidado (2010), PPP is unique in the sense that the private sector is engaged in the projects that the government would be interested in. PPPs are now one of the creative alternatives introduced by governments to enable the public sector to acquire infrastructure and offer chances for improvement of service delivery and assurance of better value for money (Ibanda & Ndandiko, 2010). Ferlie, Lynn and Pollitt (2005), describe PPP as the concept of combining government and private firm resources with the purpose of minimising risk and project capital injection. PPPs are attractive to various governments worldwide out of the necessity for new infrastructure (Boardman, Siemiatycki, & Vinig, 2016). Luanda (2013) states that countries have different perceptions towards PPPs, with the result that only developed continents are said to be fully exercising the PPP approach. According to Rosenau (2000), Western European countries were seen shifting the role of social welfare responsibility to the private sector through the PPP approach. In New Zealand, Scandinavia and Australia, the PPP approach is perceived as an approach that has created a disunion of the traditional way of the public social welfare benefit system.

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