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Reasons for entering into Ghanaian public-private partnership (PPP) power projects

Augustine Senanu Komla Kukah (Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
De-Graft Owusu-Manu (Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
Edward Badu (Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
David John Edwards (School of Engineering and the Built Environment, Birmingham City University, Birmingham, UK and Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg, South Africa)

Journal of Engineering, Design and Technology

ISSN: 1726-0531

Article publication date: 8 March 2022

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Abstract

Purpose

In comparison to other countries, power generation in Sub-Saharan Africa is poor. The demand for power has surged in recent times and continues to increase at a fast rate. The public–private partnership (PPP) model has been identified as an option to address the challenges in the power sector. The purpose of this research paper is to critically explore the reasons for entering into PPP power projects in Ghana by the public and private parties.

Design/methodology/approach

Questionnaires were used to elicit responses from respondents using a two-round Delphi survey. From 60 respondents contacted in round one, 48 responses were obtained, and these 48 respondents further took part in round two. Mean score ranking was used to rank the reasons for entering into PPP power projects, while analysis of variance (ANOVA) was run to test significant difference in perceptions among the respondents.

Findings

From round 2 of the Delphi survey, the significant reasons for public sector entering into PPP power projects were as follows: achieving improved value for money, access to additional capital, increased certainty of projects and greater efficiency of project delivery services. For private sector, most significant reasons were as follows: obtaining of investment support, improvement in private sector’s international image and synergy with public sector. From ANOVA analysis, there were significant different perceptions among some of factors on the respondent profile variables and the reasons for entering into PPP power projects, while other factors did not have significant different perception.

Originality/value

Significant reasons for both public and private sectors identified would be incorporated by the government when PPP policy guidelines and laws are reviewed. This will aid in the effective implementation of PPP for power projects.

Keywords

Acknowledgements

This paper reports on partial findings of a larger-scope research on Risk allocation model for PPP power projects in Ghana, from which other papers have been generated with similar or different objectives and share common research background and methodology. The authors acknowledge the experts who partook in the Delphi survey. Authors also thank the editors and anonymous reviewers who gave feedback on improving the paper.

Citation

Kukah, A.S.K., Owusu-Manu, D.-G., Badu, E. and Edwards, D.J. (2022), "Reasons for entering into Ghanaian public-private partnership (PPP) power projects", Journal of Engineering, Design and Technology, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEDT-11-2021-0631

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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