Minimal private participation for infrastructure development continues to affect developing economies like South Africa. This study aims to determine the perceived…
Minimal private participation for infrastructure development continues to affect developing economies like South Africa. This study aims to determine the perceived occurrence of challenges delaying the delivery of water infrastructure assets and the role of both public and private financing for infrastructure development.
Quantitative approach was used, and questionnaires were administered to stakeholders that have participated in delivering water infrastructure assets in South Africa. Of the 96 returned questionnaires, 91 were usable, representing 61 per cent response rate. Data from the survey were analysed using descriptive and exploratory factor analyses. The reliability test represented a value of 0.945, indicating internal consistency.
Data analysis revealed that corruption, hostility, weak project structuring, high fiscal deficits by state government, cost recovery constraints, high credit risk for private financing and unreliable planning and procurement processes are major challenges delaying the delivery of water infrastructure assets. More so, municipal government remains the key custodian of water infrastructure delivery with limited support from private capital as a result of political administrative instability, legislation and policy uncertainty and inadequate risk-adjusted returns.
Emphasis should be made on eradicating corruption and non-transparent financial management to improve municipal creditworthiness and amending and implementing much improved legislation and foreign inclusion. Additionally, financial models to complement the existing mechanisms of financing water infrastructure projects should be sought and used. Complete eradication of infrastructure challenges envisages to reduce fiscal deficits, improve service delivery and enhance the competitiveness and productivity of the economy.
The role of public–private partnerships (PPP) as a strategic initiative to improve and accelerate service delivery in the form of newly built and revitalised water…
The role of public–private partnerships (PPP) as a strategic initiative to improve and accelerate service delivery in the form of newly built and revitalised water infrastructure assets in developing countries cannot be over-emphasised. Hence, the purpose of this study is to assess and highlight the importance of critical success factors for water infrastructure projects delivered under public–private partnerships.
A survey design was used and a questionnaire was administered to stakeholders who have participated in delivering water infrastructure assets in South Africa. Out of 150 administered questionnaires, only 91 were returned and usable for analyses, representing a 61 per cent response rate. The data gathered were then analysed using descriptive and factor analysis.
The study revealed that thorough planning for project viability, high levels of transparency and accountability and a legal framework stipulating policy continuity are the CSFs for delivering water infrastructure projects under the PPP initiative. The findings emerging from factor analysis owing to a close variance revealed the importance of the following grouped factors, namely, public cooperation, project viability and policy and legislation enhancement.
From the results, it is clear that the public sector, as the facilitator of infrastructure development, should create an environment that is conducive for private capital through political will and commitment and the enhancement of policy and legislation where there is no or minimal private participation.
Adequate infrastructure investment from private capital promises to flourish economically and improve the living conditions of the public in the cities and the country at large. To further guarantee the reality of PPPs at a local level, the host government must adequately engage and enlighten the public.
Targets set out by state institutions, with respect to supplying water to deprived communities, seem to be idealistic and not realistic. Study envisioned to assess…
Targets set out by state institutions, with respect to supplying water to deprived communities, seem to be idealistic and not realistic. Study envisioned to assess challenges of financing water infrastructure projects, and determines the role of the state towards infrastructure development by holistically planning and engaging with the private sector.
The study adopted a quantitative approach, whereby a questionnaire survey was conducted among different stakeholders involved in water infrastructure projects in South Africa. Data gathered were analysed using percentages, mean item score and standard deviation.
The study revealed that most challenges affecting the success of the financing of water infrastructure projects in South Africa are corruption, hostility towards private participation, cost recovery constraints, high fiscal deficits by state government, unreliable planning and procurement processes, and a rapid increasing number of municipalities that lack technical and administrative capacity to plan implement, operate and maintain water assets.
This research paper investigates projects’ financing challenges with a broad inspection on the role of the public sector. The apparent role of the international structures such as OECD, IMF and World Bank had no influence in the study. From the findings, it is clear that the central government and state institutions lack the necessary resources to accelerate infrastructure development, water infrastructure in particular. The study, thus, recommends a complete expansion and development of state capacity as well as improved collaborations with the private sector to drive the success delivery of services to the public.
Improved and flexible regulations and legislative guidelines are required to ensure that both sectors fulfil their side of the bargain, with an ultimate goal of meeting the predetermined targets of supplying adequate water to the deprived communities.