Exploring value for money (VfM) assessment methods of public-private partnership projects in Ghana: A theoretical framework

Abstract

Purpose

The purpose of this paper is to explore the various approaches prescribed in literature in the assessment of value for money (VfM) of public–private partnership (PPP) projects with the aim to develop a theoretical framework for measuring VfM in Ghana.Public–private partnership (PPP) has long been recognized as an effective way of procuring public infrastructure to deliver value for money, but the subject has received little research attention in Ghana.

Design/methodology/approach

The methodology comprises a multi-stage critical review of relevant literature; review of Ghana’s National Policy on PPP and review of the Public Procurement Act, 2003 (Act 663). This paper was underpinned by an interpretivist philosophy and is inductive in nature.

Findings

The approach for VfM assessment largely depends on the jurisdiction of the project. Multiple methods (qualitative and quantitative) are used along the project cycle in the bid to achieve VfM. The most common assessment approaches include public sector comparator shadow bid, lease-purchase analysis, cost benefits analysis, public interest test central guidelines and competitive bidding. The study developed a theoretical framework for assessing VfM in Ghana.

Research limitations/implications

The research was purely exploratory and non-empirical; and hence cannot be generalized in a broader context.

Practical implications

Implementation of the National PPP policy and for PPP to thrive in Ghana, a framework to guide the assessment and achievement of VfM is crucial. The steps outlined if followed would help ensure the public receives the best of all PPP deals in Ghana.

Originality/value

This paper is unique providing insights into a conceptual basis for assessing VfM and provides a basis for future empirical study.

Citation

Ameyaw, C., Adjei-Kumi, T. and Owusu-Manu, D.-G. (2015), "Exploring value for money (VfM) assessment methods of public-private partnership projects in Ghana: A theoretical framework", Journal of Financial Management of Property and Construction, Vol. 20 No. 3, pp. 268-285. https://doi.org/10.1108/JFMPC-01-2015-0003