Abstract:
A full understanding of the implementation of Public Private Partnerships (PPPs)
in Sub-Saharan Africa (SSA) is essential. PPPs should be considered in sectors
where there is need for improvement of infrastructure and service delivery. Every
government should have legislation and a regulatory framework on PPPs to facilitate
local and foreign investors to implement new projects. The absence of a legal and
regulatory framework on PPPs hinders close collaboration between the public and
private sectors.
This article argues that the Build-Operate-Transfer (BOT) project is an excellent
model for governments in SSA where there is lack of infrastructure to provide better
service delivery. Most BOT projects require sizeable financial investment. Many
governments prefer to use BOT for construction of specific infrastructure such as
new electricity power plants, toll roads, prisons, dams and water plants. Experience
shows that BOT agreements tend to reduce market and credit risk for the private
sector because in most cases government is the only customer, thus reducing the
risk associated with insufficient demand and the inability to pay.
