Factors affecting the performance of private party in concession-based PPP projects in Nigeria

Abstract

Purpose Notwithstanding the remarkable market potential of the Nigerian economy for private investment, the current sociopolitical characteristics had necessitated a careful assessment to inform decisions in long-term investments. The purpose of this paper is therefore to evaluate the success factors that have a specific influence on private party’s performance in concession contracts in Nigeria. Design/methodology/approach Respondents involved in the study were participants in concession-based contracts in Southwestern Nigeria that included architects, estate surveyors, quantity surveyors, engineers and builders, accountants/bankers/economists and lawyers. These were selected using random and respondent-driven sampling (RDS) approaches. The research instrument adopted was a questionnaire that enlisted questions which were structured to ensure that the respondents have appropriate experience in concession-based projects and hold appropriate positions as decision-makers so as to give credence to collected data. The highest significant factors were identified through the relative significance index (RSI). By exploring factor analysis, the factors were condensed for discussion under appropriate component headings. The value of Kaiser–Meyer–Olkin (KMO, 0.755) measure of sampling adequacy tests carried out showed that the data collected were adequate for the factor analysis, and the Bartlett’s test of sphericity (χ2 = 1,799.339; df = 630; p < 0.001) was highly significant. Findings Factors influencing private party performance clustered under eight components, namely, technical, market maturity, political, legal, finance, procurement, incentive and regulation. However, component items including level of understanding of public–private alliance transactions, stability of exchange rate and provisions for reversion of policies were found to be highly significant. On the other hand, status of domestication and implementation of international laws/codes, predictability in legal regime and enforcement and extent of jurisdictional definition of land usage were least significant. Originality/value Findings would guide private investors in the preparation of robust investment packages that reduce risks and seemingly unavoidable opportunistic tendencies associated with public–private partnership projects in developing economies.

Critical performance factors of public sector organizations in concession-based public-private partnership projects

“…In Nigeria, the adoption of PPP model for infrastructure delivery has increased substantially over the past decade (Adegoke et al, 2010;Babatunde et al, 2012;Akinsiku et al, 2014;Jagboro et al, 2014;Babatunde and Perera, 2017). However, the delivery of many concession-based projects was reported by Opawole and Jagboro (2017) to have been trailed by under-performance as most of the projects had become subject of protracted litigation (e.g. Murtala Mohammed Airport terminal, MMA2, airport concession, Lagos); termination (e.g.…”

“…The work of Babatunde et al (2012) was extended by Babatunde et al (2016) on PPP CSFs in the light of difference in the perceptions of the stakeholders on CSFs for PPP projects in Nigeria. Opawole and Jagboro (2017) were significant to stakeholder's performance factors; however, the study was biased for factors limited to private party performance in concession contracts. While there is obviously paucity of information for policy reform and transformation in infrastructure delivery in Nigeria , the objective of this study is to evaluate the critical variables that impact public party performance in concession contract as a basis for performance improvement, legislation and policy toward enhancing success of projects delivery through PPP model.…”

“…However, existing studies on PPP performance (Zhang, 2005;Raisbeck et al, 2010;Robinson and Scott, 2009;Yuan et al, 2009;Pangeran et al, 2012;Babatunde et al, 2012Babatunde et al, , 2016Liu et al, 2013, among others) had focused on projects rather than the stakeholders involved. Besides, limited studies in the Nigerian context that had evaluated stakeholders' performance factors in PPP contracts had either generalized the assessment to both parties-public sector organizations (PSOs) and the private investors (Famakin et al, 2012), or biased toward the factors specific to the private investors (Opawole and Jagboro, 2017). The objective of this study is, therefore, to evaluate the critical factors that impact PSOs' performance in concession contracts with a view to improving their capabilities toward efficient project delivery and attracting more private sector investments.…”

An investigation into the sustainability practices in PPP infrastructure projects: a case of Nigeria

“…It is obvious that efforts at examining sustainability practices in PPP infrastructure projects have received limited attention. In Nigeria important earlier studies on PPP projects (see Ibrahim et al, 2006;Babatunde et al, 2012;Babatunde et al, 2015;Babatunde et al, 2016a;Babatunde et al, 2016b;Babatunde and Perera, 2017a;Babatunde and Perera, 2017b;Babatunde et al, 2019;Opawole and Jagboro, 2017) have paid attention to PPP's risk factors, critical success factors, barriers to implementation, and performance indicators S m a r t a…”

Social Construction of Institutional Complementation in Cross Sector Collaborations: An Empirical Exploration of a Public Private Partnership Case

“…Relative to other modes of collaborations, PPP's operations are highly predicated on peculiarly predefined set of assumptions, standards and rules predefined at the contracting phase (Cohen and Boast, 2016;De Schepper et al, 2014). At the implementation phase, however, these sets of institutions are inevitably confronted by realities that challenge their efficacy (Flyvbjerg, 2010;Newberry and Pallot, 2003;Opawole and Jagboro, 2017). In particular, three important realities present during the implementation of public private partnerships programmes and projects.…”