Infrastructure Development: A Public-Private Partnership Option in the Attainment of Value for Money

Abstract

Public-Private Partnerships (PPPs) are strategies employed in the provision and development of both social and economic infrastructure facilities in many countries of the word. It is a contractual arrangement between the public and private sector through which the expertise, skills, assets and financial resources of both the public and private sectors are allocated in such a manner that provides optimal service delivery and good value to the public. The major feature in the implementation and operation of PPPs in the development and provision of infrastructure facilities is the systematic evaluation and selection of development proposals that delivers value from the money invested in the transaction. Unlike the conventional procurement system, which is predominantly based on lowest cost to the public sector, hence value for money (VfM) is a measure that takes into account both the quantitative and qualitative outcomes in the project development life-cycle and operational life under PPPs.  This paper is based on the concept of road infrastructure development and provision through PPPs in Nigeria which involved a critical study carried out by the researcher in the course of assessing the effectiveness and efficiency of the conceptual PPP framework in Nigeria. The study reviewed literature on the global classification of PPP infrastructure facilities, PPP models for infrastructure development, and value for money evaluations in PPP implementation for infrastructure development. The study reveals that PPP has been widely implemented in many countries for development and provision of infrastructure because PPP seeks better solution for problems like risk allocation; financial crunch; need for timely delivery of infrastructure project; lack of expertise; and quality requirements. Hence the value for money invested in the infrastructure development and provision.  

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Article Review Status: Published

Pages: 30-40 (Download PDF)

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