Effects Of Public Private Partnership On Service Delivery

Project and Seminar material for Public Administration

Abstract

Public private partnership in Nigeria and other developing nations in Africa were adopted for the purposes of delivering services and infrastructural development. The study was carried out through the administration of questionnaire and reveals that there is a significant relationship between Public Private Partnership and service delivery and there is also a significant relationship between public private initiative and efficiency in public service.
Based on findings of the study, there is no denying the fact that Nigeria’s development is largely on consequence of its underdeveloped infrastructure, poridging the gap should therefore, be a top priority of the Nigerian government achieving the improvement in service delivery rests on certain factors; institutional and other related mechanisms that will drive the initiative will have to be put in place.

Chapter One

Introduction

1.1 Background to the Study

The success of any government lies not just in the volume of its policies but rather the extent to which the policies have been implemented. Nigeria, over the years is characterized by large number of abandoned or uncompleted projects, and where completed they are greatly substandard. Public utilities and industries mostly perform below optimum levels revenues generated and or remitted are grossly inadequate with a substantial portion going into private pockets due to corruption. It is in the light of this dismal performance of the public sector projects and services, the high cost of executing them and the attendant corruption and mismanagement that the Nigeria government ventured into various forms of partnership with the private sector with a view to ameliorating most of the problems associated with public projects and service delivery in Nigeria.

Public Private Partnership (PPP) is a sustained and long-term partnering relationship between the public and private sectors to provide services and goods. Through PPP, the public sector seeks to bring together the resources of the public sector and the technical expertise of the private sectors to provide services and goods to the public at the best value for money (Ministry of Finance, Singapore, 2009). Traditionally, the public sector has tended to engage the private sector merely to construct facilities or supply equipment. The public agencies will then own and operate the facilities or equipment or engage separate maintenance and operations companies to operate the facilities and equipment to deliver the services to the public (Oyedele, 2012). PPP is born based on the fact that government provision of goods and services should not only lay emphasis on finance but on the quality of goods and services. “Managerially, modernization emphasizes a shift from a focus on inputs to a concern with outcomes – providing services is no longer a sufficient justification for state intervention, it must create added public value (Oyedele, 2012). There is a more open-minded approach to service procurement, and no presumption that in-house provision is always the best option (Hood and McGarvey, 2002) Public Private Partnership is a contractual arrangement which is formed between public and private sector partners which involve the private sector in the development, financing, ownership, and or operation of a public facility or service. In such a partnership, public and private resources are pooled and responsibilities divided so that the partners’ efforts are complementary. Public-Private partnerships relate to perceptions and practices affecting public private sector relationships in ensuring global health, development and well-being of the society, and the conceptual aspects of such relationships, including the role of the key players in collaborating to make these partnerships successful or otherwise (Aribigbola, 2008). The acceptance of public private partnerships should be based on mutual benefits and not intended to benefit the investors at the expense of the local citizens. This explains why countries like Hong Kong are very skeptical on PPP. Although most forms of PPP involve a contractual relationship between the public and private parties, the long-term nature of these contracts creates a strong long-term mutuality of interest (Kee and Forrer, 2012). PPPs are not just a step in the procurement process; given their long-term nature, they differ from traditional procurement contracts, which often are associated with a short-term “claims culture.” Early evidence of operational contracts in more mature PPP programs shows that in many cases the parties can recognize this mutuality of interest without adversely affecting the mechanisms in the formal contract that determine performance (Cheung, and Chan, 2011).

The main purpose of PPP in infrastructure provision is that financial, technical and management risks should be allocated to the party that is best placed to manage it at the least cost, acceptable quality and reasonable time. In United Kingdom, Ireland, United States of America and India, PPP has been successfully used in the provision of infrastructures. Nigeria infrastructure gap is very wide because of the irresponsibility of past and present leaders in the provision of infrastructures (Oyeweso, 2011 and Oyedele 2012). Hence this research will investigate the Effects of Public Private Partnership in Service Delivery with a special reference to the Lagos State Waste Management Agency (LAWMA).

1.2 Statement of the Problem

The Infrastructural report of Nigeria just like any third world country is nothing to write home about. The housing situation is in a sorry state both quantitatively and qualitatively (Oyedele, 2012). Most infrastructures are now decayed and need repair, rehabilitation, refurbishment or replacement. Government is the system that plans, organizes, controls and supervises the people who are resident in an area in order for all to have conducive-environment for living and a sense of belonging. Governments is saddled with the mandate to put in place all measures that it deem fit will make an environment beneficial for living for everybody.

The idea behind public private partnership has be one of efficient service delivery to the people in a particular place which of course is needed to provide for the citizens and or for supplementary development which can be through the different modes of ppp but the reverse seem to be the case as the pressing environmental and public health issues in Nigeria rural areas today is the problem of solid waste generation and disposal (Ndekwu, 2006).

Infrastructure development in democratic governance is more challenging because of the accessibility of people to government and involves identifying the right project, carrying out feasibility and viability studies and embarking on physical development of the project. The challenges are numerous and include finance, technology for development, maintenance and design.

The numerous challenges have not been tackled as they should. Nigeria’s lack of basic infrastructure to facilitate sustainable development and trade – both regionally and globally – and to ensure competitiveness is already known by all. In particular, for the large number of local governments, especially the rural ones, the dwellers produce have no access to markets and are not stored, hampered by weak transport and energy infrastructure.

Based on this assertion, this research is been done to unearth and unveil the state of PPP in Nigeria and also evaluate the Effects of Public Private Partnership(PPP) in Service Delivery with a special reference to the Lagos State Waste Management Agency (LAWMA).

1.3 Objectives of the Study

The major objective of this study will be to assess the Effects of Public Private Partnership in Service Delivery. While other specific objectives of the study are:

To investigate if there is any significant relationship between Public Private Partnership and service delivery.
To determine the effect of government partnership with the Private sector in service delivery.
To find out if public private initiative promote efficiency in public service.

1.4 Research Hypotheses

The researcher intends to test the following hypotheses:

Hypothesis One:

Ho: There is no significant relationship between Public Private Partnership and service delivery.
Hi: There is a significant relationship between Public Private Partnership and service delivery.

Hypothesis Two:

Ho: There is no significant relationship between public private initiative and efficiency in public service.
Hi: There is a significant relationship between public private initiative and efficiency in public service.

1.5 Significance of the Study

This project the effects of public private partnership on service delivery is very important and has drawn a lot of attention to scholars and the general public.

A public-private partnership (PPP) is a contract between government and a private company under which:

A private company finances, builds, and operates some element of a public service; and
The private company gets paid over a number of years, either through charges paid by users, or by payments from the public authority, or a combination of both.

PPPs are now being promoted worldwide by global institutions and consultants. Development banks, national governments, the EU and donor agencies are providing subsidised public finance specifically for PPPs.

1.6 Scope and Limitation of the Study

This work focused on the effects of public private partnership on service delivery in LAWMA.

The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following.

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7 Definition of Terms

Public-Private Partnership (PPP):

The combination of a public need with private capability and resources to create a market opportunity through which the public need is met and a profit is made (Heilman, J. and G. Johnston, 1992)

Efficiency:

The degree to which Inputs have been converted into Outputs.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the study.
Chapter four concentrate on the data collection and analysis and presentation of finding.
Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to reiterate that the objective of this study was the effects of public private partnership on service delivery.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in evaluating examine the the effects of public private partnership on efficient service delivery in Nigeria.

5.2 Summary

This study was undertaken to examine the effects of public private partnership on service delivery. The study opened with chapter one where the statement of the problem was clearly defined. The study objectives and research hypotheses were defined and formulated respectively. The study reviewed related and relevant literatures. The chapter two gave the conceptual framework, empirical and theoretical studies. The third chapter described the methodology employed by the researcher in collecting both the primary and the secondary data. The research method employed here is the descriptive survey method. The study analyzed and presented the data collected in tables and the hypotheses were tested using the chi square to test hypothesis. While the fifth chapter gives the study summary and conclusion.

5.3 Conclusion and Recommendations

This study reveals that there is a significant relationship between Public Private Partnership and service delivery and there is also a significant relationship between public private initiative and efficiency in public service.

Based on findings of the study, there is no denying the fact that Nigeria’s development is largely on consequence of its underdeveloped infrastructure, poridging the gap should therefore, be a top priority of the Nigerian government achieving the improvement in service delivery rests on certain factors; institutional and other related mechanisms that will drive the initiative will have to be put in place. Measures such as improved business environment, well-functioning regulatory framework and more efficient public sector will be crucial to the achievement of the gains of PPP

To address the perceived constraints in the implementation and improvement in service delivery in LAWMA and Nigeria at large, we suggest the following.

Fiscal benefit in terms of tax holiday to infrastructure project and tax incentives to investors should be provided by government.
Systematic compilation, analysis and experiences should be made available and the same be provided on the website which has been recently launched by the government to exclusively devoted to PPPs . this will facilitate quicker assimilation and dissemination of best practices to various levels of government.
A well-functioning regulatory framework and more efficient public sector should be put in place.
Institutions should be created solely for the purpose of promoting PPP projects at the federal and state level.
A robust transparent evaluation mechanism should be provided to ensure that PPP programme are delivering services and/or value for money