Motivations for Public Private Partnership (Ppp) in Ghana and Implications for their Account Giving

Abstract

As part of the neo-liberal agenda, Public-Private Partnerships (PPPs) are generally perceived by countries around the world as major innovative policy tools that will remedy the lack of dynamism in traditional public service delivery by increasing investment in infrastructure as well as improving the delivery of social services. Currently, addressing Ghana`s infrastructural deficit and increase demand for basic social services by Ghanaian citizens, public sector will require sustained spending of at least US$1.5billion per annum over decades which government and philanthropic or donor agencies cannot do it all by themselves. Government of Ghana has embraced PPP as a means of leveraging public resources with private sector resource and expertise in order to bridge the infrastructural gap, by delivering public infrastructure and service for the betterment of it citizens. Notwithstanding the immense perceived benefits of PPP concept, several empirical studies showed mixed results largely depending on countries` unique PPP motivational factor(s). Also PPP account giving is a major area that remains an issue of concern for worldwide PPP adopters. The study draws on resource dependency and neoliberal institutional theories to examine the rationales for PPP adoptions in Ghana and its account giving, focusing on Ghana, a middle income country. To achieve this objective, a qualitative research approach was employed with a case study design. Data were obtained principally through face-to-face interviews with public and private sector actors and beneficiary communities involved in the PPP arrangement. Also policy documents and publicly available information like PPP policy guidelines June (2011), PPP newsletters April (2014; 2015), fact sheets (2011) and selected case conceptual notes as well as PPP affordability analysis were relied upon during the study. The study results reveal some challenges in PPP account giving as well as some benefits for PPP adoption in Ghana. The challenges include: PPP contractual issues, for example unsolicited project with inherent monopoly, under performance of contractual obligations leading to poor quality of services in the water sector, lack of managerial skills by the public contracting authorities and subsequent failure to ensure effective management of the water purchase agreement. Again, challenges in ascertaining value for money for PPP projects, public affordability concerns and high cost of PPP procurement as well as complexity of project financing scheme. Furthermore, PPP account giving challenges include governance and reporting structure which has culminated in to lack of clarifying accountability relations, poor network of water distributions and negative effect of non-revenue water. In reference to the US$64million University of Ghana (UG) and Africa Integras contract for example, PPP account giving challenges involve problems of stakeholder alignment, construction scope, and arithmetical inaccuracy in project analysis. Other emerging themes include the role of SMEs in PPP procurement in Ghana, project financing schemes and over emphasis on symbolism against cost and benefits analysis. However, the major achievement by the PPP policy adoption is the realization of the PPP project and technological innovative contributions by the private sector. Limitation for the study especially during the period of data collection included business confidentiality clause and the data protection law as well as the signing of non-disclosure agreement. The study therefore concluded that Ghana cannot achieve its motivations for PPP by leveraging public assets and other resource with private sector resources and technical know-how from local and international markets to accelerate the needed investments in infrastructure and services without enhancing PPP account giving in Ghana. The study therefore provides an avenue for government to draw on the findings to formulate pragmatic policies regarding PPP account giving in Ghana.