Department of Environmental Affairs investigating the potential use of public private partnerships to fund green building initiatives : the case of the Department Of Environmental Affairs

Date
2021-12
Journal Title
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Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY : This research case study examines the Department of Environmental Affair’s (DEA) Head Office green building project using Public Private Partnership (PPP) as a funding strategy. Semi-structured interviews were undertaken with four respondents, two who were involved in the DEA’s project, one who provided expert knowledge on the relevance of registering PPP projects with the PPP Unit, and one who provided expert knowledge on the green building concept. Findings in this case study pointed out that green buildings are healthy structures that utilise water and electricity in an efficient and effective manner. Elements such as photovoltaic solar panels and a water harvesting system installed at the DEA’s Head Office building are attributed to minimising the use of electricity and water. Pool cars powered by solar panels instead of fuel were also purchased by the DEA, reducing greenhouse gas emissions into the atmosphere. This study also illustrated that green buildings provide a conducive and productive working environment for the DEA’s employees, attributed to the good air quality and natural light features among others. However, green building elements are costly in nature and not affordable for public sector organisations, hence the public sector require funding such as Public Private Partnership strategies (PPPs) to finance these infrastructure projects. Literature indicated that PPPs have been used by other public sector organisations to fund infrastructure projects such as green buildings for many years. The utilisation and management of PPPs for funding green buildings is an integral part of this study as it aimed to investigate the potential benefits of PPPs in implementing green buildings. This study revealed that PPPs are useful funding strategies for green building projects, which also provide the public sector with technical skills, expert knowledge, and management capabilities from the private sector. However, there are a number of impediments in utilising PPPs that negatively impact these projects, for instance, issues relating to delays in decision making stemming from the bureaucratic nature of public institutions, lack of enforceable legislation, policies and regulatory frameworks for green buildings, inflexible PPP contracts, and poor risk management planning and allocation. Value for money in this study offered contradicting opinions in that, from the public sector’s perspective, value for money was realised through the delivery of the healthy green infrastructure whilst for the private partner, value for money will be realised at the end of the 25-year period to determine profitability of the project. This case study indicated that more empirical research is required in order to determine the PPPs value for money proposition. Recommendations offered in this study state that risk management and mitigation plans, good governance structures, balanced PPP contracts, and a reduction in bureaucratic processes are required for a successful green building project through the PPP funding strategy. The transference of knowledge, skills, and expertise from the private sector to the public sector pertaining to green buildings is required as a means of reducing the high cost of these projects. Funding from global sustainable development communities is required to enable the public sector to implement these healthy structures as part of conserving and preserving the environment and minimising climate change, greenhouse gas emissions, and global warming.
AFRIKAANSE OPSOMMING : Hierdie navorsings gevallestudie ondersoek die groen bouprojek van die Departement van Omgewingsake (DEA) se hoofkantoor met behulp van Publiek-Private Vennootskap (PPV) as ’n befondsings strategie. Semi-gestruktureerde onderhoude is gevoer met vier respondente, twee wat betrokke was by die DEA se projek, een wat kundige kennis verskaf het oor die relevansie van die registrasie van PPV-projekte by die PPV-eenheid, en een wat kundige kennis oor die groen bou konsep verskaf het. Die bevindinge in hierdie gevallestudie het getoon dat groen geboue gesonde strukture is wat water en elektrisiteit op ’n doeltreffende en effektiewe manier benut. Elemente soos fotovoltaïese sonpanele en ’n water-oesstelsel wat by die DEA se hoofkantoor geïnstalleer is, word toegeskryf aan die vermindering van die gebruik van elektrisiteit en water. Beskikbare motors wat deur sonpanele in plaas van brandstof aangedryf word, is ook deur die DEA aangekoop, wat kweekhuis gasvrystellings in die atmosfeer verminder. Hierdie studie het ook geïllustreer dat groen geboue ’n bevorderlike en produktiewe werksomgewing bied vir die werknemers van die DEA, onder meer toegeskryf aan die goeie luggehalte en natuurlike lig. Groen bouelemente is egter duur en nie bekostigbaar vir organisasies in die openbare sektor nie, daarom benodig die openbare sektor befondsing, soos Publiek-Private Vennootskap (PPV) strategieë om hierdie infrastruktuurprojekte te finansier. Literatuur het aangedui dat PPVe al jare lank deur ander openbare organisasies gebruik word om infrastruktuurprojekte soos groen geboue te finansier. Die gebruik en bestuur van PPVe vir die finansiering van groengeboue is ‘n integrale deel van hierdie studie, aangesien dit daarop gemik was om die moontlike voordele van PPVe om groen geboue te implementeer, te bevestig. Hierdie studie het aangedui dat PPVe nuttige finansiering strategieë vir groen bouprojekte is, wat ook die openbare sektor met tegniese vaardighede, kundige kennis, en bestuurs vermoëns uit die private sektor bied. Daar is egter ’n aantal belemmerings met die gebruik van PPV wat ’n negatiewe uitwerking op hierdie projekte het, byvoorbeeld kwessies rakende vertragings in besluitneming, wat voortspruit uit die burokratiese aard van openbare instellings, gebrek aan afdwingbare wetgewing, beleid en regulatoriese raamwerke vir groen geboue, onbuigsame PPV kontrakte, en swak beplanning en toewysing van risiko-bestuur. Die waarde vir geld in hierdie studie bied teenstrydige opinies deurdat dit vanuit die oogpunt van die openbare sektor,deur die lewering van gesonde groen infrastruktuur bevestig sal word, terwyl vir die private vernoot die waarde vir geld eers aan die einde van die 25 jaar tydperk bevestig sal word deur die winsgewendheid van die projek. Hierdie gevallestudie het aangedui dat meer empiriese navorsing nodig is om die waarde van geld propositie van PPVe te bepaal. Aanbevelings in hierdie studie dui aan dat risikobestuurs en versagtingsplanne, goeie bestuurstrukture, gebalanseerde PPV kontrakte en ’n vermindering van burokratiese prosesse nodig is vir ’n suksesvolle groen bouprojek deur die PPV befondsingsstrategie. Die oordrag van kennis, vaardighede en kundigheid van die private sektor na die openbare sektor met betrekking tot groen geboue is nodig om die hoë koste van hierdie projekte te verminder. Finansiering uit globale volhoubare ontwikkelingsgemeenskappe is nodig om die openbare sektor in staat te stel om hierdie gesonde strukture te implementeer as deel van die bewaring van die omgewing en die vermindering van klimaatsverandering, kweekhuisgasvrystellings, en aardsverwareming.
Description
Thesis (MPA)--Stellenbosch University, 2021.
Keywords
Public-private sector cooperation -- Economic aspects -- South Africa, Sustainable architecture -- South Africa, South Africa. Department of Environmental Affairs -- Case studies, UCTD
Citation