The effectiveness of public private partnerships : a project financier’s perspective

Abstract

South Africa like many other countries is faced with the problem of infrastructure backlogs and budget constraints. The South African government through the National Treasury recognized the need to co-operate with the private sector in order to address this problem, by establishing the PPP unit. This research examined the role of financiers in facilitating the implementation of PPPs, as well as the factors that blunt the effectiveness of PPPs as infrastructure delivery mechanism in SA. The research was done through conducting semi-structured in-depth interviews with 18 experienced and knowledgeable stakeholders in the Private and Public sectors, who are and have been exposed to PPPs in South Africa. The findings on the success of PPPs as a medium for infrastructure delivery gave credence to the necessity and timeliness of this research. There was a difference of opinion as to the success or otherwise of PPPs between the Public Sector on the one hand and the Private Sector on the other. The major factors which facilitate the successful implementation of PPPs included financial innovation and discipline, technical competency, and supportive legislative framework. The major findings in respect of the inhibiting factors were skills shortage and political commitment Suggestions were made to stakeholders on minimizing the inhibitors.