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

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 g...

Identification of critical success factors for public–private partnership projects

“…Identifying and estimating the risk involved in the PPP project by an experienced authority is essential for the successful implementation of the project (Chan et al, 2010;Chou et al, 2012;Jefferies et al, 2002). The main purpose is to reduce the total risk involved at every stage (Babatunde et al, 2012;Cheung et al, 2012;Hwang et al, 2013;Jacobson & Choi, 2008;Li et al, 2005;Tiong et al, 1992;Zhang, 2005).…”

“…Critical success factors for PPP as identified from literatureAkintoye, Edwards, and Hardcastle (2005); Zhang and Asce (2005); Chan, Lam,Chan, Cheung, and Ke (2010);Cheung, Chan, and Kajewski (2012);Chou, Tserng, Lin, and Yeh (2012);Babatunde, Opawole, and Akinsiku (2012); Osei-kyei andChan (2015) Li et al (2005)Chan et al (2010); Abdul-Aziz and Kassim (2011);Chou et al (2012); Osei-kyei andChan (2015).…”

Investigating the Sustainability Performance of PPP-Type Infrastructure Projects: A Case of China

“…The increasing number of PPP projects has attracted the attention of scholars in related fields [41]. The infrastructure applications of PPP mode has been investigated in several approaches, including relation governance [25], concessionaire determinants [42], contract governance [43], risk allocation [26,27], critical factors [44,45], and sustainability performance [23,24,46]. In this context, numerous scholars are concerned with the unsustainability of PTI projects, so they explore appropriate research angles and methods to ensure and improve sustainability performances [9].…”

Success Factors for the Implementation of Build Operate Transfer (BOT) Projects in Kuwait

“…Alhumoud et al, 2010Mathew & Ramaswamy, 2010;Kippiliand & Aryasr, 2012;Gupta et al, 2013;Dahir, 2012;Mohammed et al, 2012;Babatunde et al, 2012;Emmanuel, 2014. Santoso et al, 2012.…”

“…Mohammed et al suggested that the risk factors should be minimized to ensure successful implementation of BOT projects. Babatunde et al (2012) argued that a well-organized and committed public agency seem to be the most important factors to the private investors. They also found that factors such as transparency in the procurement process and shared authority between public and private sector are the CSFs that are most consequential to the public clients.…”