Assessment of Stakeholders Perception on Success Factors of Public Private Partnership (PPP) In Ethiopia
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Date
2020-11
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Addis Ababa University
Abstract
Public Private Partnership (PPP) has become increasingly popular among governments as
alternative procurement method and effective public sector financing. Though this approach is
well known around the world, few studies revealed that its application in Ethiopia is limited.
However, in recent time the Government of Ethiopia is giving due attention to PPP both as a
means of financing and provision of public goods. This research examined the perception of
stakeholders on 19 success factors of PPP which are extracted from internationally accepted
and published literatures. Due to the current COVID-19 pandemic occurred in Ethiopia, an
online questionnaire survey using Google Form was employed to assess the perception of
stakeholders on these factors. The researcher tried to strengthen the quantitative data with
qualitative data just to make use of the benefit of method triangulation. Institutions included in
this study were selected through the list obtained from the Ministry of Finance PPP Directorate
General (PPP DG) and respondents were selected using criteria that they should possess a
hands-on experience in PPP related issues. Each respondents were requested to express their
level of agreement on the success factors using Likert Scale. The data collected from the
respondents were analyzed using IMB SPSS for Windows, Version 23.0. Different analysis
techniques were employed like frequencies, Mean Score Ranking, Relative Agreement Index
(RAI) and t-tests. The findings revealed that 18 success factors were perceived with high RAI and
were statistically significant (t-test values positive; p<0.05). The findings indicated that in
Ethiopia, the success factors that ranked as most important factors for implementing PPP
according to their relative importance are Favorable legal framework (M=4.36, SD=.924 and
RAI=0.87 with High RAI Level), transparent procurement process (M=4.33, SD=.787,
RAI=0.87 with High RAI Level), Commitment and responsibility of public and private sector
(M=4.31; SD=.781 and RAI=0.86 with High RAI Level), Good governance (M=4.31; SD=.882
and RAI=0.86 with High RAI Level), Stable Macroeconomic Condition (M=4.28; SD=.773 and
RAI=0.86 with High RAI Level), Sound Economic Policy (M=4.28; SD=.876 and RAI=0.86 with
High RAI Level) and Project Technical Feasibility (M=4.28; SD=.773 and RAI=0.86 with High
RAI Level) . An independent sample t-test was conducted to compare perception level of Public
and Private Sector respondents on the success factors. The test revealed that public and private
sector stakeholders who participated on this research have the same perception except the
following factors; Favorable legal framework, Strong and Good Private Consortium, Well
organized and committed public agency, Competitive procurement process and Public
Satisfaction met. In conclusion the research findings were harmonized with findings of research
conducted at international and in Ethiopia. The research also recommended for the Government
of Ethiopia to enhance awareness on the concept, practice and model of PPP in Ethiopia,
provide PPP related capacity building training on emerging success factors of PPP and
experience sharing from established PPP at regional and international level.
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Keywords
Public Private Partnership, Perception, Success Factors