Investigating the potential of Public-Private Partnership (PPP) for infrastructure development at Metropolitan, Municipal and District Assemblies (MMDA)

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Local government procurement systems in Ghana do operate in rather challenging and complex political, economic, cultural, religious and technological context. Roads and housing gaps exist perennially with demand far outstripping its provision. With the continual dwindling of government finances and other demands being made on scarce resources, PPP seems a viable alternative for infrastructure development at the local government level. This Study was therefore conducted to investigate the potential for this approach to infrastructure procurement to succeed given the characteristics of the local government system. Primary data were collected with questionnaires administered to respondents from some MMDAs in the Ashanti region. The key respondents selected from the MMDAs were the following critical stakeholders: Procurement Officer, Finance Officer, Planning Officer and the Chief Executive. The collected data from the key respondents was examined, categorized and tabulated using the Statistical Package for Social Science (SPSS).The findings showed that national development priority was rated as a factor highly related to the implementation of PPPs in MMDAs. Expansion of economic activities, economic feasibility of projects and reforming procurement of public projects were rated as related factors for the PPP success. The very critical need factors for PPP in MMDAs are more infrastructure facility needs the complication of state budget constraint, restricted recourses to public financing. State capital locked up in investment and high public service overheads were also rated as critical imperatives for utilizing PPP in infrastructural development. Limited private sector capacity to execute PPP projects and lack of trust between the public and private sectors were rated very critical barriers to the implementation of PPP projects. To establish private interest and trust in PPP, the study recommends the need to entrench the principles of transparency in PPP projects.
A thesis submitted to the Department of Building Technology, College of Art and Built Environment in partial fulfilment of the requirement for the degree of Master of Science,