Assessment of the performance of a PPP arrangement in financing municipal infrastructure and services : a case of a solid waste management project in Windhoek municipality

Amaambo, Ruben (2013-03)

Theses (MDF)--Stellenbosch University, 2013.


ENGLISH ABSTRACT: Public Private Partnerships (PPPs) capitalise on the distinctive advantage of the private sector’s capacity and experience in providing public infrastructure and services. This collaborative arrangement pools the resources and strengths of each partner in order to attain the anticipated project objectives. Municipalities are faced with a number of challenges; among them the consistent increase in urban population growth and resource constraints. This then inhibits infrastructure provision and puts pressure on the public institution to deliver basic services such as water and sanitation, and solid waste disposal. In light of this, private sector participation can enhance urban development through capacity building and delivery of the necessary infrastructure and services. This study examined the performance of an operation and maintenance PPP project in the area of solid waste management in the Municipality of Windhoek. More specifically, it assessed the extent to which this particular project has contributed to infrastructure development and service delivery at the municipal level, the factors that contributed to the success of the PPP arrangement, the lessons that can be learnt from, and the challenges associated with such an undertaking. By applying a case study methodology and utilising typical performance indicators of a PPP, the author attempted to determine the effectiveness of this PPP project. The study revealed that engaging a competent private sector partner can be an effective way of delivering critical services needed for attaining the desired goal. On the other hand, the study found that a lack of explicit quantitative targets and/or deliverables incorporated in the contract agreement makes it difficult to assess and measure the performance of the project. Furthermore, the study discovered the importance of clearly identifying, prioritising and apportioning all risks associated with the project at the time of contract formulation to avoid any undesirable consequences such as non-compliance, which can lead to penalties for the contracted partner. The study observed that the factors contributing to the success of the project were the keen interest of both partners in the long-term sustainability of the project, the presence of an experienced contractor, and having clear monitoring mechanisms in place.

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