Impact Of Public Private Partnership To Economic Development Of Kaduna State

Project and Seminar material for Public Administration

Impact Of Public Private Partnership To Economic Development Of Kaduna State

Abstract

The transformation process of infrastructure development in most countries is often characterized by full government ownership of entities engaged in the provision of services such as water, telecommunications, power, and transportation. Most of these services have cost structures which inherently make them naturally monopolies, the provision of these services has usually been subjected to inefficiencies. These services are usually viewed as entitlements necessary for survival, governments have intervened in their markets from time to time, subjecting these services to moderate, to severe price distortions, with such conditions persisting for long periods of time. Unfortunately, postponing compensating adjustments in the pricing or rationing of these services to avoid political and popular upheaval has usually come at the expense of state-run utilities and firms. Eventually, the financial strains these conditions create in public utilities turn into full-blown and growing fiscal time bombs. When uncompetitive conditions are allowed to persist for long periods of time, the cost to the present and future generations of potentially bailing out the ailing firms constitutes a significant overhang on the national government, which may eventually have to be passed onto taxpayers anyway, and may even undermine efforts at genuine sectorial reforms.

There is a widespread move towards a shift to Public Private Partnership, this is driven by successful private participations in housing, telecommunications, agriculture, transportation and waste management services where Private provisions have increased access and led to quality services. Beginning with the privatization program me in Nigeria in the 1980s and momentum gained since 1999 when the present democratic phase commenced, the trend is to allow Private sector to provide infrastructure. This move is not peculiar to the Federal Government alone but other tiers of Government as well. Most State and Local Government have established Public Private Partnership units in their area of jurisdiction. One of the most recent Public Private Partnership in Nigeria is in the power sector that was recently partially privatized by the federal government in which the Transmission arm is still under the government control while the Generation and Distribution arms have been privatized by the Goodluck Ebele Jonathan administration.

Table of Content

  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One

Introduction

1.1 Background to the Study

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 partner’s efforts are complementary. The private sector partner usually makes a substantial cash or equity investment in the project and the public sector gains access to new revenue or service delivery capacity, and this arrangement between the public and private sector differ from service contracting.

Public Private Partnerships relate to perceptions and practices affecting public private sector relationships in ensuring national/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.

The evolutionary process of infrastructure development in most developing countries is often characterized by full Government ownership of entities engaged in the provision of services such as water, electricity, telecommunications, power, and transport. Most of these services have cost structures which inherently make them naturally monopolies, the provision of these services has usually been subjected to inefficiencies. These services are usually viewed as entitlements necessary for survival, governments have intervened in their markets from time to time, subjecting these services to moderate, to severe price distortions, with such conditions persisting for long periods of time. Unfortunately, postponing compensating adjustments in the pricing or rationing of these services to avoid political and popular upheaval has usually come at the expense of state-run utilities and firms. Eventually, the financial strains these conditions create in public utilities turn into full-blown and growing fiscal time bombs. When uncompetitive conditions are allowed to persist for long periods of time, the cost to the present and future generations of potentially bailing out the ailing firms constitutes a significant overhang on the national government, which may eventually have to be passed onto taxpayers anyway, and may even undermine efforts at genuine sectorial reforms.

Countries wishing to avoid the increasing fiscal strain of continued Public sector provision of infrastructure services are increasingly turning to several modes of privatization, in order to pass on the challenges of infrastructure services provision to parties in better positions to assume the risks involved. Aside, from the desire to cut actual and potential fiscal costs encouraging private sector participation in infrastructure development has been driven in other countries by rapid economic growth, sometimes outpacing the Government’s capability to provide services exclusively and efficiently. Bureaucratic system and inefficient structures are increasingly being phased out in favor of private operation, ownership or which is perceived to be more efficient. There is a widespread move towards a shift to Public Private Partnership this is driven by successful private participations in Telecommunications, Banking and Waste Management Services where private provisions have increased access and led to quality services. Beginning with the privatization program me in Nigeria in the 1980s and momentum gained since 1999 when the present democratic phase commenced, the trend is to allow private sector to provide infrastructure. This move is not peculiar to the federal government alone but other tiers of government as well. Most state and local government have established Public Private Partnership units in their area of jurisdiction.

Nigeria’s policy on Public Private Partnership is to the effect that it will develop regulatory and monitoring institutions so that the private sector can play a greater role in the provision of infrastructure, whilst ministries and other public authorities will focus on planning and structuring projects. The private sector will be contracted to manage some public services, and to design, build, finance and operate some infrastructure. It is the government’s expectation that private participation in infrastructure development through Public Private Partnership will enhance efficiency, broaden access, and improve the quality of public services. This policy statement sets out the steps that the government will take to ensure that private investment is used, where appropriate to address the infrastructure deficit and improve public services in a sustainable way; and it will ensure that the transfer of responsibility to the private sector follows best international practice and is achieved through open competition [Foundation for Public Private Partnership Nigeria March 2013].

1.2 Statement of the Problem

The constant increase in the need for public services and infrastructural facilities in Nigeria and several other countries has given rise to more collaboration between the public and private sector, this has led to a substantial increase in Public Private Relationship.

In Nigeria, we have witness a lot of projects and infrastructural facilities that has been initiated and paused or abandoned by the public sector. In recent times, the delay in the construction of the Lagos-Ibadan Expressway, Kuto-Bagana Bridge, Lekki-Epe, Kuto- Bagana in Nasarawa and Kogi States, Maevis concession projects in all International Airports in Nigeria, the railway system project across the country that was awarded and abandoned by the Obasanjo administration, the second Niger Bridge between Onitsha and Asaba and River Niger Bridge in Nupeko, Niger State has been some of the projects that the public sector has been facing problems in completing, this is primarily due to the reason being that the public sector does not having sufficient or absolute financial and other necessary resources and technical know-how to complete the projects and to conveniently provide and cater for the total needs (public goods and services) of the citizens of their country alone.

1.3 Objectives of the Study

The main objective of this study is to examine the Impact Of Public Private Partnership To Economic Development of Kaduna State. Specifically, the study aims;

  1. To examine the prospect of Public Private Partnership in Nigeria
  2. To investigate the challenges being faced in Public Private Partnership in Nigeria
  3. To determine the existing development projects procured through Public Private Partnership
  4. To establish if the Public Private Partnership will solve infrastructural challenges in Nigeria

1.4 Research Questions

The study will provide answers to the following research questions;

  1. What is the prospect of Public Private Partnership in Nigeria?
  2. What is the challenges being faced in Public Private Partnership in Nigeria?
  3. What is the existing development projects procured through Public Private Partnership?
  4. Will Public Private Partnership solve infrastructural challenges in Nigeria?

1.5 Hypothesis of the Study

The following hypothesis was formulated and tested by the study

  • Ho: Public Private Partnership has no significant impact on the Economic Development Of Kaduna State.
  • Hi: Public Private Partnership have a significant impact on the Economic Development Of Kaduna State.

1.6 Significance of the Study

The importance of any research is tied to proffer solutions to the various problems that face mankind in the environment or society. This study helps to enlighten the citizens and economic planners on implication of Public Private Partnership towards the development of the country as a whole.

The research is also useful for Government officials and Private Organizations to determine their performance in accordance with the contractual arrangement between the two parties.

It will also help the researchers and the upcoming researchers to gain knowledge of the activities of Public Private Partnership and the Nigerian Experience.

1.7 Scope of the Study

Public private partnership can be said to be a recent development which must be tread on so softly. Public Private Partnership being a recent development is thus a delicate area of study, so this research will carefully examine widely the gains and benefits of Public Private Partnership.

The center of concentration being the effects Public Private Partnership will have in a particular locality i.e. its advantages and disadvantages where it is being practiced and also how it helps in the provision of needed and necessary infrastructure.

1.8 Limitation of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

1.9 Definition of Terms

i. Public Private Partnership:

This has been defined as arrangements between governments and private sector entities for the purpose of providing public infrastructure, community facilities and related services. Such partnerships are characterized by the sharing of investment, risk, responsibility and reward between the partners.

ii. Build, Own, Operate [BOO]:

The developer is responsible for design, funding, construction, operation, and maintenance of the facility during the concession period, with no provision for transfer of ownership to the Government [Darrin Grimsey and Mervvn K. Lewis2004a].

iii. Build, Own, Operate, Transfer [BOOT]:

An arrangement whereby a facility is designed, financed, operated, and maintained by a concession company. Ownership rest with point ownership and operating rights are transferred to the Government [normally without charge][Darrin Grimsey and Mervvn K. Lewis2004a].

iv. Build, Operate, Transfer [BOT]:

An agreement where a facility is designed, financed, operated, and maintained by the concessionaries for the period of concession. Legal ownership of the facility may or may not rest with the concession [Darrin Grimsey and Mervvn K. Lewis2004a].

v. Infrastructure / Utilities:

This is defined as the large-scale public systems, services, and facilities of a country or region that are necessary for economic activity including power and water supplies, public transportation, telecommunications, roads, and schools.

vi. Development:

A process of improving by expanding, enlarging or refining. A process in which something passes by degrees to a different advance stage.

1.10 Organization of the Study

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

  • Chapter one is concern 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 Recommendations

5.1 Summary of the Study

Generally, this research work was designed to analyse Public Private Partnership and Economic development: The Nigerian experience with special reference to three Local Governments in Kaduna State. In most developing countries a purposeful Government realizes its essence by providing basic amenities such as water, telecommunications, power, and transport, education, housing, health facilities etc. for the survival of the people.

The provision of these services has usually been subjected to inefficiencies. However, various modes of Privatization has been adopted by countries who which to avoid the challenges of facilities service.

Public Private Partnership can help create a more competitive and diverse supplier market, can help to improve the efficiency of public services, and can thereby reduce costs in public service delivery. It will harness the resources of both public and private sectors to secure the best outcomes and better value for money for the Nigerian citizen.

Government will focus on its core public service role and give the private sector a greater operational role who may work together with other participants. It was obvious, in the research work that inefficiencies of Public Private Partnership were due to participatory work and commissioning process that are time consuming and also problem of finance and political interference which may occur from commercial or legal environment.

Finally, various types of Public Private Partnerships were identified and discussed. The two major types of Public Private Partnership in the three Local Governments were the work was carried out was Build Operate Transfer and Joint Ventures. Public Private Partnership is seen in these Local Governments area as a means to enhance the provision of social services or facilities.

The result of the data collected and the analysis shows that, the Private Sector Participation in the three sectors [Housing, Transportation and Agriculture] at the Local Government Areas, depict that the level of awareness of Public Private Partnership is still negligible despite Government effort to get the Private Sector involved in the provision of infrastructure.

5.2 Conclusion

Public Private Partnership (PPP) cannot be viewed as the absolute solution to our long quest for infrastructure provision in Local Government areas in Nigeria. Thus, it can only remain an alternative means of developing the required infrastructural facilities as housing, transport, health. Having opened the market to private developers to fill the gap that cannot be met by the public sector through the establishment of the Infrastructure Concession Regulatory Commission (ICRC), the coast can be said to clear for the private sector to cash in on these developments. However, much still needs to be done as the experience on Public Private Partnership in development of projects has not been all that encouraging. This is not to say that the adoption of Public Private Partnership arrangements is a negative development, but the poor performance of these projects has been as a result of short experience in Public Private Partnership arrangements and the lack of a risk management culture and delay in implementation of project as the stake Involved for the public authority may be high. More so, the populace are ill-informed about Public Private Partnership expect for those in academic field, Public Private Partnership can be taught in some discipline such as Local Government studies.

5.3 Recommendations

Based on the conclusion drawn above, the following recommendations are hereby proposed: This work has analysed the activities of Public Private Partnership in Local Government areas. The researcher suggested the following;
Political will is fundamental to a successful partnership. Public Private Partnership represents a significant change as opposed to traditional public procurement; government should build political support before introducing a Public Private Partnership programme.

A Government looking to implement Public Private Partnership programme must not only invest political capital, create the right investment environment, develop appropriate policies and focus on value. It must also ensure that the programme is a success measured in terms of the number of projects delivered and the outcomes that result. For example housing is economic goods that must be paid for but government can make it more affordable by arranging subsidy on the building materials and basic infrastructural services, but this can only come as fiscal policy. It takes a government with sense of purpose and vision to be for its citizenry in this regard.

The Government should also create Public awareness about Public Private Partnership.

The populace must be well informed about their programme and activities with the private sector. Public opinion should be properly managed.

How To Get The Complete Material For “Impact Of Public Private Partnership To Economic Development Of Kaduna State“

Project Material Download

5,000 - 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…

Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to Any of the Account Below

Access Bank Plc Acc No: 0811003731
Samphina Academy
Current Account
Zenith Bank Acc No: 1225513212
Samphina Academy
Current Account
PalmPay Main Logo Acc No: 8143831497
Samphina Academy
Digital Account

Or CLICK HERE To Pay With Debit Card

FOR STUDENTS OUTSIDE NIGERIA
CLICK HERE To Purchase Material ($20)
FOR GHANIAN STUDENTS
Make Payment of 100 GHS to 0553978005 | Douglas Osabutey | MTN MoMo

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details
  2. TOPIC: Impact Of Public Private Partnership To Economic Development Of Kaduna State

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply

  Contact Our Help Desk

Need a Different Topic? Perform a Quick Search

List of Related Works

Click on Any Topic to Preview the Content
samphina.academy

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.