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Critical success factors in public‐private partnership (PPP) on infrastructure delivery in Nigeria

Critical success factors in public‐private partnership (PPP) on infrastructure delivery in Nigeria Purpose – Federal and State Governments began to explore more subtle alternatives for accessing private sector resources in the delivery and operation of public facilities. The purpose of this paper is to examine the types of infrastructural projects most suitable using public‐private partnership (PPP) for executions and identify the critical success factors in PPP on infrastructural projects with a view to strengthening the partnership between the public (government) and private sector. The overall goal is to enhance infrastructural projects delivery in Nigeria. Design/methodology/approach – The primary data consists of survey questionnaires, drawn based on the identified factors on existing literature on critical success factors (CSFs). The structured questionnaires were administered on participants that were involved in the execution of PPP projects, either during the initial stage, construction stage or maintenance and operating stages in Lagos State. Findings – The results of the mean score ranking indicate that transportation, which include roads, rails and airports construction ranked highest followed by provision of electricity and water. Real estate and educational construction projects ranked lowest in terms of suitability of execution using PPPs. However, the result of the one‐way analysis of variance (ANOVA) indicates that, there was no significant difference in the suitability of PPP for execution of the types of infrastructural projects delivery. The paper further identified nine CSFs in public‐private partnerships as follows: competitive procurement process, thorough and realistic assessment of the cost and benefits, favorable framework, appropriate risk allocation and risk sharing, government involvement by providing a guarantee, political support, stable macroeconomic condition, sound economic policy and availability of suitable financial market. The study, however, showed that well organized and committed public agency; social support; project technical feasibility and multi‐benefits objectives are the CFSs that are most important to the private investors. On the other hand, factors such as transparency in the procurement process; shared authority between public and private sector; thorough and realistic assessment of the cost and benefits; commitment and responsibility of public and private sector and strong and good private consortium are the CSFs that are most important to the public clients. Originality/value – The results indicated that there was no significant difference in the suitability of PPP for execution of infrastructural projects delivery. This shows that PPP is suitable for all types of infrastructural projects. What needs to be done is to ensure that all the success factors responsible for successful implementations of PPPs are well structured in a way that its optimum performance can be guaranteed. Also, in identification of the critical factors in PPP it would help to develop a body of PPP knowledge. This knowledge would help in the establishment of relevant laws, regulations and guidelines and in the development of efficient frameworks for best PPP practices. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Facilities Management Emerald Publishing

Critical success factors in public‐private partnership (PPP) on infrastructure delivery in Nigeria

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Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
1472-5967
DOI
10.1108/14725961211246018
Publisher site
See Article on Publisher Site

Abstract

Purpose – Federal and State Governments began to explore more subtle alternatives for accessing private sector resources in the delivery and operation of public facilities. The purpose of this paper is to examine the types of infrastructural projects most suitable using public‐private partnership (PPP) for executions and identify the critical success factors in PPP on infrastructural projects with a view to strengthening the partnership between the public (government) and private sector. The overall goal is to enhance infrastructural projects delivery in Nigeria. Design/methodology/approach – The primary data consists of survey questionnaires, drawn based on the identified factors on existing literature on critical success factors (CSFs). The structured questionnaires were administered on participants that were involved in the execution of PPP projects, either during the initial stage, construction stage or maintenance and operating stages in Lagos State. Findings – The results of the mean score ranking indicate that transportation, which include roads, rails and airports construction ranked highest followed by provision of electricity and water. Real estate and educational construction projects ranked lowest in terms of suitability of execution using PPPs. However, the result of the one‐way analysis of variance (ANOVA) indicates that, there was no significant difference in the suitability of PPP for execution of the types of infrastructural projects delivery. The paper further identified nine CSFs in public‐private partnerships as follows: competitive procurement process, thorough and realistic assessment of the cost and benefits, favorable framework, appropriate risk allocation and risk sharing, government involvement by providing a guarantee, political support, stable macroeconomic condition, sound economic policy and availability of suitable financial market. The study, however, showed that well organized and committed public agency; social support; project technical feasibility and multi‐benefits objectives are the CFSs that are most important to the private investors. On the other hand, factors such as transparency in the procurement process; shared authority between public and private sector; thorough and realistic assessment of the cost and benefits; commitment and responsibility of public and private sector and strong and good private consortium are the CSFs that are most important to the public clients. Originality/value – The results indicated that there was no significant difference in the suitability of PPP for execution of infrastructural projects delivery. This shows that PPP is suitable for all types of infrastructural projects. What needs to be done is to ensure that all the success factors responsible for successful implementations of PPPs are well structured in a way that its optimum performance can be guaranteed. Also, in identification of the critical factors in PPP it would help to develop a body of PPP knowledge. This knowledge would help in the establishment of relevant laws, regulations and guidelines and in the development of efficient frameworks for best PPP practices.

Journal

Journal of Facilities ManagementEmerald Publishing

Published: Jul 6, 2012

Keywords: Infrastructure; Public facilities; Projects; Public‐private partnership; Nigeria; Facilities; Public services; Private sector organizations

References