CHAPTER of PPP projects and this has a

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

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5.1       Introduction 

This
chapter presents a summary of the findings of the study, conclusions drawn and
provides practical recommendations to the identified problems based on the
findings of the research.

5.2       Summary of Findings

The present study examined financing
infrastructure in Ghana through PPP arrangements with the focus on critical
success factors among Three Government Ministries (MoF, MRH, MWRWH) and some
private partners with whom they have undertaken PPP projects in Ghana. Generally,
the top five Critical Success Factors identified are Government involvement by
providing guarantee, Stable macroeconomic conditions, Sound economic policy,
Shared authority between public and private sectors, and project technical
feasibility.

 The results on Impact of CSFs on successful delivery
of PPP projects, generally indicated that all the critical success factors were
rated as either “agree”  or “strongly
agree” and based on the  responses, the
top five most significant of the CSF of “favourable investment
environment” are: Stable political system (1st), the project
should be within a ‘predictable and reasonable legal framework’ (2nd),
the project must be in the public interest (3rd), there should be a supportive
and an  understanding community (4th)
and finally, the project must have good government support (5th).

The top three most significant CSFs of “economic viability” are:  limited competition from other projects (1st),
long-term cash flow that is attractive to the lender (2nd) and Long-term
demand for the services offered (3rd). The top three most significant
of the CSF of “sound financial package”
are, high equity/debt ratio (1st), low financial charges (2nd)
and sound financial analysis (3rd).

From
the analysis carried out, it was found that weak regulatory framework is a
factor militating against the implementation of PPP projects and this has a serious
effect on the execution of such projects and also results in many abandoned
projects. It was further revealed that inadequate allocation of risks and
responsibilities is a factor that hampers the execution of PPP projects. This
is similar to the findings of a study conducted by Hardcastle, et al. (2006) where it was found that
the keys to effective managing of PPP in any society are strong and sound legal
and regulatory framework, stable macroeconomic condition, and appropriate
allocation of risks. Other factors identified as adversely affecting the
effective implementation of PPPs include lack of technical and managerial
expertise, non-enforcement and monitoring of laws to ensure compliance,
difficulties in securing credit from financial institutions, unstable
government, improper utilization of resources and lack of integrity and moral
values.

 This
study is not without limitations. Given the complex nature of individual PPP
projects, using a questionnaire to identify the CSFs for PPP projects, in
general, may not be an exhaustive method for specific PPPs. Hence, future
research may consider investigating the CSFs for a specific PPP project using other
methods such as the case study method. Despite its limitations, this present
study offers some insights and useful information for policy makers and private
sector providers concerning the important factors that need to be emphasized in
ensuring the successful implementation of PPP for infrastructure in Ghana.

5.3       Conclusions

Ghana
faces   huge infrastructural deficit which is
affecting its economic development. The PPP approach can be an effective
development vehicle for resolving the infrastructure challenge in the Country.

The commitment demonstrated by the government through the enactment of policy
guidelines on PPP in 2004 should crystallize into passing PPP legislation which
is currently before Parliament in order to give full meaning to government’s
efforts. Having a PPP law in Ghana is important since it will provide the legal
framework and regulation to guide the process.

The results of this study has brought up some factors deemed critical
for the success of PPP implementation in the Country from stakeholders and
therefore should be given the required attention in order to derive the full
benefits of using PPP to deliver infrastructure. The factors are Government
involvement by providing guarantee, Stable macroeconomic conditions, Sound
economic policy, Shared authority between the public and private sectors and
project technical feasibility.

Various success factors have been identified through literature
review and research. In this study, the success factors were classified
into three main CSF aspects and analysed: (1) Economic viability, (2) Sound
financial package and (3) Favourable investment environment. The relative
significance and ranking of the CSFs were determined based on a questionnaire
survey of expert opinions.

It
is also important to pay attention to inadequate formulation of regulatory
policy; lack of technical capacity; difficulties in securing credit from
financial institutions; integrity issues; improper utilization of project
resources; inadequate risk allocation and ensure continuous political stability
since these factors can hamper the effective implementation of projects as
determined from the study.

It
is anticipated that paying attention to the above should result in a win-win
situation for stakeholders in the PPP process.

5.4       Recommendations

The researcher recommends the following steps aimed at
improving the success of PPPs;

·     
Government should
establish a strong legal and regulatory framework that will facilitate the
success of PPP arrangements. The framework will ensure that PPP projects are
well implemented in accordance with the specified agreement. This must also
seek to address continuity in PPP projects anytime there is change in
government.

·     
There should be
equal allocation of risks and responsibilities between stakeholders in ensuring
total commitment in PPP arrangements. Appropriate allocation of risks and
responsibilities will improve value for money.

·     
There should be
transparency and accountability in the execution of PPP projects to ensure
trust and confidence of both the public and private sectors.

·     
The stakeholders (government and private sector)
should effectively and efficiently implement and keep the terms of PPP
agreements. This will help the PPP model to thrive well in Ghana. Also
succeeding governments should respect previous PPP contracts executed by their
predecessors.

·     
The CSFs identified in this study are not
exhaustive of all the factors that affect   PPPs in Ghana and therefore it is recommended
that further research should be undertaken in future.