Public Private Partnership And Service Delivery

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Public Private Partnership And Service Delivery


Abstract


This study is an assessment of the viability of Public-Private Partnership (PPP) as an option for infrastructural development in Nigeria with a focus on Enugu State. Following the obvious reality that government alone can no longer finance infrastructural development, a collaborative strategy became imperative and PPP was adopted as the most appropriate. In that regard, the problem became how to identify the particular variant among the various variants of PPP that best mitigate corruption, generate efficiency, accountability and effectiveness in the management of public sector in Nigeria and Enugu State in particular. Therefore, primary and secondary sources were used for data generation. From the data generated, the study discovered that PPP is making progress in Enugu State in terms of reduction of corrupt practices, employment generation, poverty reduction, etc due to enabling environment made possible through relative security experienced in the state. The work concludes that collaborative government has become the order of the day and recommended sustainability as cardinal factor among other factors for the maximization of the benefits of PPP approach in Nigeria and Enugu State in particular.


Chapter One


Introduction

1.1 Background of the Study

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).

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).

In line with the national aspiration regarding PPP, Enugu state government has equally adopted PPP as the appropriate and timely economic strategy to stimulate its economy for growth, employment and development. This is demonstrated by the implementation of PPP scheme in each of the four (4) point agenda of Governor Sullivan’s administration, which includes:

  1. Physical infrastructure (Housing, water and electricity)
  2. Economic Expansion and Employment (industrial development, agricultural development, and tourism
  3. Rural development (Rural access, rural industry)
  4. Service delivery and good government basic social services (Health, Education, Law and order/security) Public Service Empowerment (Training, work environment, pension, Housing, transport) Citizens’ inclusion and participation (Women groups, Youths, traditional rulers and elderly statesmen).

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 infrastructural situation in Enugu State is not different. According to the commissioner for commerce and industry (Dr. Jude Akubuilo),

The current situation in the industrial estates is heart-rending, as most of the manufacturing outfits in the state, especially the sunrise flour mills, Niger Steel and Niger gas, have remained shut for several years, Sobechi (2011: 1).

He maintained that the state had been missing opportunities to position itself as an industrial base in the South-East and Nigeria, arguing that there was no justifiable reason for the companies to have shut down. He lamented that the value addition to the food chain through the sunrise flourmills had been lost, as well as the building and ancillary materials, foundries and engine tooling from the Niger steel or the acetylene and oxygen gas that could have been produced by Niger gas company.

However, the commissioner reiterated that he had discovered that jobs, which would have been generated by the industries were also lost, adding that his ministry had evolved a roadmap to see the firms come on stream using the private-public partnership (PPP) approach.

Given the above account, the posing questions to guide this study is therefore:

  1. How can private sector investors be attracted to invest in Nigeria and Enugu State in particular?
  2. If the private sector mobilizes the needed fund, would that not imply the government relinquishing its position to the private sector?
  3. Can Public-Private Partnership among other elements of New Public Management (NPM) serve as one stroke, solution to the inefficiency of public organization in delivering public services in Nigeria and Enugu State?

In respect to the reality of the above questions and the precarious nature of Nigerian economy, the problem of the study is therefore how to identify the particular variant among the various variants of PPP, that is most applicable and likely to generate efficiency, stability and fund for the effective management of public organizations in Enugu State and Nigeria in general.


1.3 Objectives of the Study

The general objective of this study is to assess Public Private partnership and service delivery in Nigeria.

The specific objectives are to:

  1. To investigate if there is any significant relationship between Public Private Partnership and service delivery.
  2. To determine the effect of government partnership with the Private sector in service delivery.
  3. To find out if public private initiative promote efficiency in public service.
  4. To identify the ways by which private investors can be attracted to Nigeria, and Enugu State in particular.
  5. To make recommendations for better application of PPP in public organizations in Nigeria.

1.4 Research Questions

  1. Is there any significant relationship between Public Private Partnership and service delivery?
  2. What is the impact of government partnership with the Private sector on service delivery?
  3. Is there any significant relationship between public private initiative and efficiency in public service?
  4. What are the ways by which private investors can be attracted to Nigeria, and Enugu State in particular?
  5. What are the recommendations for better application of PPP in public organizations in Nigeria?

1.5 Hypothesis of the Study

Hypothesis 1:
  • 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 2:
  • 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.
Hypothesis 3:
  • Ho: Public-private partnership will not reduce inefficiency and ensure effective service delivery in public organization in Enugu State.
  • HI: Public-private partnership will reduce inefficiency and ensure effective service delivery in public organization in Enugu State.

1.6 Significance of Study

Empirically, this study is to bring to the fore the risks, rewards and benefits inherent in PPP and douse misconceptions regarding the concept and encourage its application or adoption more than any other model of New Public Management (NPM) in public organizations in Enugu State and the entire Nigeria. This will help the policy-makers and executors to avoid the pitfalls or gray areas inherent in PPP during implementation.

Theoretically, the study will serve as a contribution to knowledge regarding PPP as a viable option for infrastructural development in Nigeria and Enugu State in particular. More so, it serves as a reference material for administrators and policy-makers at all levels of government.


1.7 Scope of the Study

In terms of scope of the study focuses on the assessment of public private partnership and service delivery as an option for infrastructural development in Enugu State and Nigeria as a whole. The study will examine in details the dominant issues public-private partnership as an option for infrastructural development in Enugu State. It spans over the period 2007 – 2012.


1.8 Limitation of the Study

The study of this magnitude cannot be completed successfully without the researcher encountering some constraints or limitations. Therefore, this work will not pretend to be containing all holistic information on public private partnership as an option for infrastructural development in Nigeria, rather it will endeavor to highlight the dominant issues on the justifications and challenges of PPP as an option for infrastructural development in Nigeria and Enugu State in particular.

The major limitations includes: paucity of data or near absence of reliable data on the theme of the study, especially in hard copies, being a novel public management strategy in Nigeria. More so, the fact that Enugu State, unlike Lagos State for instance, does not have enough institutions or projects borne out of PPP initiative is also a major limitation. In this regard, the study had to glean and rely extensively on soft copies for data.


1.9 Operationalization of Key Concepts

Public-Private Partnership:

Is the collaboration of government and private sector organizations in the implementation of public services and programmes.

Evaluation:

Is the process of systematically assessing the design, implementation and impact of programmes, policies or projects.

Infrastructure:

Refers to those physical structures that facilitate the production of goods and services, without themselves being part of the production process.

Management:

Involves the activities to control and monitor the people in an organization to achieve the desired goals of the organization.

Strategy:

Is a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.

Public Organization:

Is a state owned, controlled and managed institution.


1.10 Organization of the Study

The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.


Chapter Five


Summary, Recommendations and Conclusion

5.1 Summary

This study is carried out in five chapters. Chapter one dealt with background information on PPP as a New Public Management strategy most viable and timely for Nigeria and Enugu state in particular to bring about infrastructural development. Statement of the problem, which is a pointer to the problem the work intends to address, has a link with the objectives of the study. The significance of the study indicates the relevance of the work to the wide society followed by scope and limitations of study which shows the expanse or time horizon of the research and the challenges encountered in attempt to carryout the research.

Chapter two is focused on detailed review of existing literatures on PPP as a viable option for infrastructural development in Nigeria and the case of Enugu State. This is followed by the hypothetical propositions in line with the objectives of the study and explanation of key concepts or terms prevalent in the research, and ended with the research procedure.

Chapter three provides a detailed account of the implementation of PPP strategy in Enugu State. Chapter four includes data presentation, analysis and interpretation while chapter five ends with summary, conclusions and recommendations on how to sustain and maximize the benefits of PPP
strategy in Enugu State.


5.2 Recommendations

  1. Sustainability:  Government in Nigeria is popular for programme abandonment and discontinuity, especially when there is administration change. As was earlier noted currently there are massive PPP programmes in Enugu State and to a reasonable extent they are all working. Therefore, Enugu State government should endevour to keep these programmes running beyond the administration that initiated them in as much as they remain relevant and meet needs. They should not be scarified on the alter of political gerrymandering which is the trade-mark of Nigerian politics.
  2. Even Spread of Infrastructures: The evidence that the administration of Sullivan Chime has done much in terms of infrastructural development is not lacking but most of them are within the urban confine. Therefore, there is the need to open up the rural areas the more through infrastructural establishments. This will decongest Enugu Metropolis of overcrowd and discourage rural-urban migration in the state.
  3. Improving the already existing relative security to attract more investors. This will bring about more employment generation, economic empowerment, reduction of social vices and political stability in the state.

5.3 Conclusion

The fundamental responsibility of good government is service delivery. When any government becomes incapable of delivering services to its citizenry, that implies its expiration. Therefore, government endlessly seek for the most cost-effective means of delivering services to the people while keeping afloat. As such, successful governance in this 21st century requires every hand on the desk i.e. partnership where possible and at all levels. This was why Mbanasor and Nwachukwu (2011:3), maintained that, ―it has become old fashioned to argue whether public ownership was always the best or whether privatization was the only answer. Government firmly believes it will only deliver the modern, high quality public services that the public want and increasingly expect to draw the best from both public and private sector‖. What matters most to the government is the approach that will most likely deliver the peoples’ needs.

Following the daunting recurring political and economic challenges to the government both at state and federal level, collaborative government has become the order of the day and good enough, Enugu state is updated with the trend.


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