Public private partnerships (PPPS) for road infrastructure development in Mauritius : the case of small island developing states (SIDS)

Ramlugan, Amaresh Singh (2014-12)

Thesis (MDF)--Stellenbosch University, 2014.

Thesis

ENGLISH ABSTRACT: Governments have a pivotal role in meeting the ever-increasing demand for socio-economic services in transport, energy, telecommunications, water, education, health and delivery of other social services. However, the major issue in Mauritius is the lapsus in road infrastructure. The road infrastructure agenda in Mauritius needs to be revisited, as such, maintenance has been insufficient to prevent deterioration and there are some other reasons for the damage. Urgent rehabilitation and reconstruction is required to avoid further damage. Factors such as, deficit of funding, absence of coordination between the public and the private sector, changes in political regimes, lack of transparency in the procurement process and lack of adequate legal framework are factors to which the failure of implementing Public Private Partnership (PPP) in Mauritius can be attributed. However, the implementation of PPP might enhance the nature and efficacy of the way in which public money is spent and encourage resilience and competency of the taxation structure. Governments will therefore be apt to consider strategic partnerships in order to promote state-of-the-art technological advancement and enhance managerial skills and capabilities. Reviews discussed by the Government of Mauritius were taken from annual reports and an in-depth study was carried out. Moreover, as secondary analysis differs from systematic reviews and meta-analyses of qualitative studies, which aim instead to compile and assess the evidence relating to a common concern or area of practice, both secondary analysis and meta-analysis have been used. Therefore, this study comprised of a thorough, narrative discussions of research studies which epitomize attempts to make sense of the rapidly expanding research on PPP in Mauritius. From the narrative discussion, it can be highlighted that, controversy arose over the claims for surplus expenses of Rs 709 million on a preliminary agreement of Rs 2.2 billion. Moreover, due to factors such as massive non-alignment between government and private sector, unclear government goals and duties, multifaceted resolution, sectoral policies not well defined, regulatory challenges and limitations, risk management issues, poor reliability of public policies, insufficient local capital markets, poor mechanisms to attract cheaper long term capital, weak lucidity and absence of a competitive landscape, a delay in the implementation of PPP was encountered. However, an emergence in the number of PPPs has been witnessed in developing countries, not only because of their increasingly being viewed as value-for-money but also for the reasons that follow: enhancing the delivery of public sector services at lower costs, integrating protection of the environment by ensuring fulfilment of green requirements and promoting competition. Reviews and extracts show that Mauritius requires financial support to implement PPP projects. However, the availability of international aid has helped the country to gain faith in the implementation of PPP projects thus, helping the Small Island Developing State of Mauritius to look at the future of its development with confidence.

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