Challenges in implementing public private partnership strategy for infrastructure delivery in Nigeria (original) (raw)
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Challenges in implementing PPP strategy for infrastructure delivery in Nigeria
2013
The Nigerian government's efforts at engaging the private sector in the massive infrastructure development necessary to meet its goal of being one of the best 20 economies in the world by 2020. However, using PPP for infrastructure delivery in Nigeria is becoming a problem. The purpose of this research is to identify key challenges in implementing PPP in Nigeria with a view to suggesting strategies to address the challenges confronting PPP infrastructural projects in Nigeria. The research adopted case studies on two PPP infrastructural projects viz; the concession of Murtala Mohammed Airport Terminal 2, Lagos and the concession of 105 KM Lagos-Ibadan expressway. The research reviews documentary reports, project documents, among others to identify the sequence of events as to the project unfold and to describe the process of project conception and delivery. The research identified eight main challenges confronting PPP infrastructural deliveries in Nigeria, this includes, inadequate knowledge, skills and capacity by participants both in public and the private sectors; poor evaluation, monitoring and due diligence by government; non-competitive bidding; signing of contract with no design and evidence of financing; difficulty in accessing credit facility from banks both locally and internationally; land acquisition problem; failure of risk allocations between the government and the concessionaire; and politicization of the concessions. The research study suggested strategies such as, development of an innovate financing model for PPP projects, organize continuous trainings, workshops and conferences for public sector employees, and public enlightenment by stakeholders at very early stage of PPP cycle. These strategies are highly imperative to address the key identified challenges facing the PPP implementation in Nigeria with a view to enhancing PPP infrastructural projects.
In developed and developing countries, government has significant constraints in their ability to make investment in the provision of public infrastructure. This has brought about the involvement of private sector participants in the provision of such services. Nigeria as a developing country, since the embracement of democracy in 1999 the civilian democratic government took up the application of PPP framework as a medium to providing important infrastructure through the involvement of the organized private sector. In other to make PPP attractive to the private sector in Nigeria, the government set up attractive investment opportunities for PPP investors and also provide fair legal framework where the private sector investor will be allowed to come up with concession companies, have guarantee that compensation will be paid by the government if she defaults. In the development of PPP infrastructure projects, the private sector participants are exposed to risks associated with assets investment in public projects. As a result, the private sectors generally are inspired to ask for soaring investment guarantees, special considerations and other investment enticements so as to guard their investments. This paper is aimed at looking at the recent PPP infrastructural developments in Nigeria where the government has clinched the PPP framework policy since the passing of the PPP act 20. And secondly, to look at the benefits associated with the investment of the private sectors in the development of infrastructure.
2012
The aim of this paper is to investigate the factors constraining the implementation of Public Private Partnerships (PPPs) Projects in the Nigerian construction industry. The study is motivated by the Nation's inability to adopt and utilize the PPPs approach in its project delivery in the country which has created obvious problems of economic waste and end user unsatisfaction given the obvious advantages of the PPP. The study sampled the opinion of fifty-five selected project professionals who had worked on PPPs related construction outfits in the Federal Capital Territory, Abuja, Nigeria. An objective realization instrument developed using twelve (45) factors identified in the literature as possible constraints to the implementation of PPPs projects were ranked based on the Likert five-point scale. The score of respondents to the factors were analyzed using descriptive and inferential statistics and factor analysis as the major tool. Results of the analysis among others show that the Dearth of transparency in partnership arrangements is the most critical and impeding factor constraining the implementation of PPPs projects in the Nigerian construction industry. This is followed by in that order, lengthy bidding processes associated with PPPs, cost overruns, differences in interests and expectations of the stakeholders, inappropriate feasibility studies by contractor/consultants, excessive risks associated with PPPs, forecasting errors, lack of support and political will, inability of the public sector to appreciate partnerships in a PPP environment, not enough due diligence, poorly defined sector policies and public oppositions.
Over the years, finance has posed great challenge to government at all levels in Nigeria and this has translated into truncated efforts in infrastructure delivery. Today however, there is a paradigm shift from the conventional ways of delivering infrastructure to PPP. This study highlights the infrastructural facilities brought forth by the Lagos State government via PPP. Using qualitative method, information needed for the study was sourced from the Lagos State Public-Private Partnership Office, validated with personal observation. The study revealed that the Lagos State Government has been thriving in the embrace of PPP having procured infrastructure like Lekki-Ikoyi Link Bridge, Island Power, Alausa Power, Mainland Power, CG-EKO Ventures LLP, Akute Power Project, Lagos State Bus Rapid Transit scheme (BRT), Gbagada Renal & Cardiac Centre, amongst others. Abstract-Over the years, finance has posed great challenge
Public-Private Partnership (PPP) and Infrastructure Provision in Nigeriaby
Public Private Partnership (PPP) is a collaboration of the public and private sectors in the financing and development of public goods and services (agriculture, communication, infrastructure etc). This phenomenon has been globally seen by many as the new economic paradigm. India has benefitted a lot in infrastructure provision by the private sector through PPP. Public Finance Initiative/Public Private Partnership (PFI/PPP) is a key policy instrument that is being used to transform public services. The key element of PFI/PPP is risk management. This assertion involved the creation of more public-private partnerships (PPPs). Criticisms of PFI especially by the UK Labour Party in 1997 before the election led to the introduction of PPP. The collaboration of government and the private sectors in the production of public goods and services is based on the notion that government has no business in production of some goods and services in order to ensure value for money (vfm). The experien...
THE ROLE OF PUBLIC-PRIVATE PARTNERSHIP (PPP) ON INFRASTRUCTURAL DEVELOPMENT IN NIGERIA
2021
This paper examines the role of public-private partnership in infrastructural development in Nigeria. The high level of infrastructural deficit with its concomitant effect on socioeconomic development in Nigeria has made the government search for an alternative means of providing infrastructure for the teeming population, and not only that, but there is also the problem of inadequate resources on the part of the government as well as the penchant of some public officials to divert public fund to private pockets. All these factors made the federal government of Nigeria to adopt the public-private partnership model to provide infrastructure development for the use of the people. It is expected that when there is a high level of infrastructural development in the country, there would be an increase in economic activities amongst the populace, which would invariably contribute positively to their well being. This paper is qualitative in nature, and data for the study were sourced through secondary means. The paper adopts the analytic/descriptive method of data analysis. The Stakeholder Theory was used as the theoretical framework. The paper recommends that an adequate legal framework be put in place in the implementation of public-private partnership projects to guide against abandonment when there is a leadership change in the country.
Public Private Partnership Policy (PPP) In Nigeria; An Overview
International Journal ofSocial Sciences and Humanities Reviews Vol..5 No.2, 2015
Since the attainment of the country’s independence in 1960, infrastructure development have been the major preoccupation of successive government, yet the evidence on ground shows that the country is far behind in terms of infrastructural development. It is because of this ugly trend that the federal government of Nigeria through the infrastructure Concession Regulatory Act 2005 introduced Public-Private Partnership (PPP) as a way of enhancing infrastructural development. This paper, therefore, carries out a careful analysis of the Public-Private Partnership in Nigeria. To achieve this, the paper made use of secondary sources of information by relying on the works of scholars using textbook materials, journals and other publications. The study adopts the New Public Management (NPM) theory as the framework of analysis. The study establishes among others that corruption may be the major hindrance to effective actualization of the ideals of Public-Private Partnership. The paper therefore, recommends that government should intensity its fight against corruption.
International Journal of Architecture, Engineering and Construction, 2014
Nigeria's infrastructure deficit, especially in transport sector is appalling. This triggered the Lagos state government to start addressing its infrastructure deficit through PPPs. The purpose of this paper is to identify the challenges at both development phase and implementation (construction) phase of PPP road infrastructure megaproject, and identify the critical success factors that actually made the project successful. The paper adopted case study approach within a mixed method paradigm employed to collect data. Semi structured interviews were used to collect data from the participants involved in the case study with a view to identifying the challenges and success factors. The identified challenges and success factors were incorporated into the questionnaire survey administered to the participants involved in the development and implementation stages of the case study. Data collected were analysed using descriptive and inferential statistics. The results of the Relative Significant Index ranking indicate that perceptions of Nigeria as a high risk economy by foreign investors, bureaucratic nature of the state government, schedule delay by administrative procedures, threat of expropriation and reluctance to tender/bid, and public/political opposition are the most highly ranked challenges experienced at development phase. The paper further identified unexpected increased quantity, bottleneck in securing execution of the federal government support agreement, resistance by residents, and problem of access to the right-of-way as the most ranked challenges witnessed at implementation (construction) phase. The results of factor analysis grouped the identified twenty two challenges into seven major factors at development phase, and grouped twelve identified challenges into four principal factors at implementation phase. The paper further identified four critical success factors using factor analysis that made the PPP project successful. These include enabling legislation with due diligence, strong commitment of both public and private sectors, strong financial package, and enabling environment and allocation of risk.