Public – Private Partnership in road infrastructure development in Ghana: factors affecting project delivery and associated risks

Road sector development requires huge capital investment. The government of Ghana however, is with limited financial, technological, and other requisite resources. These have over the years impeded its effort in sufficiently providing infrastructure to ensure comfort and economic growth. The traditional procurement method of road infrastructure project provision relies solely on the public sector (government) for funding. However the government is always faced with limited financial resource and is therefore unable to meet its investment demands. Road infrastructure delivery is however influence by a lot of factors and therefore this the need of knowledge about those factors in the in the government`s attempt at providing road infrastructure. Although Public – Private Partnership (PPP) is a means through which the private sector comes in to augment the government effort with road infrastructure project provision, it is faced with a lot of risks and therefore there is the need for knowledge of those risks and how they could be managed so as to motivate the private partner as well as all stakeholders in road sector. The purpose of the research was to create awareness of the significant factors affecting road project delivery, the risks associated with PPP in road infrastructural development and how those risks could be managed in order help stakeholders make a well informed decision. Questionnaire was used in gathering data from respondents. The data was subsequently analyzed using descriptive statistics generated in IBM SPSS Version 21.0. The study indicated that respondents were relatively aware of the factors that affect road project delivery, risks associated with the use of PPP in road infrastructure delivery and they (respondents) agreed to the strategies proposed for managing or sharing those risks identified. The study recommended the significant factors affecting road infrastructure project delivery and the need for awareness creation on those factors among those in the road sector. The critical and less critical risks associated with PPP were underscored. It was further recommended that there should be an effective training on risk management among parties involved in road infrastructural delivery using the PPP approach beginning with the identification of the risks with the project, assessment of the risks and prescribing the most appropriate risk management strategies to transfer, share, minimize, absorb or prevent the Identified risks from happening. Besides, it was recommended that government should adopt PPP procurement strategy to increase its road infrastructure base for its citizens Moreover, the Ministry of Roads and Transports of the Republic of Ghana should ensure that road contractor who is registered only when they have knowledge in procurement management. It was also recommended that tertiary institutions including should include as part of the curriculum procurement studies in their construction related programs so as to equip graduates from such institution with adequate knowledge in procurement management.

Source: KNUST