Reasons for adopting Public-Private Partnership (PPP) for construction projects in Ghana

• Published in: International journal of construction management Vol. 14; no. 4; pp. 227 - 238
• Main Authors: Robert, Osei - Kyei, Dansoh, Ayirebi, Ofori - Kuragu, J. K
• Format: Journal Article
• Language: English
• Published: Taylor & Francis 02-10-2014
• Subjects: construction projects; Ghana; Public Private Partnership; reasons
• ISSN: 1562-3599; 2331-2327
• DOI: 10.1080/15623599.2014.967925

Over the past decade, Public-Private Partnership Policy has increasingly been adopted by governments over the world and the Ghanaian Government is no exception. This paper explores the key reasons for adopting PPP for construction projects in Ghana. In an empirical questionnaire survey respondents were invited to rate their perception on 17 reasons identified from literature. The results show that five most important reasons for adopting PPP are: 'reduces public sector administrative cost', 'allows for shared risk', 'reduces the problem of public sector budget constraint', 'private sector possess better mobility' and 'private sector has ability to raise funds for project'. A significance test using one - way ANOVA indicates that 'offers benefit to local economic development', 'increase access to the public sector market', 'provides tax exemption and reduction' and 'provides incentives to new market penetration' receive different views from the public and private organizations as reasons for adopting PPP policy. Factor analysis also shows that the factor groupings for the 17 reasons are: innovation enhancement and economic benefits, private sector efficiency, opportunities for market penetration and innovation, effective project risk management and business growth incentives for the private sector.