AN ASSESSMENT OF PUBLIC PRIVATE PARTNERSHIP IN CAPITAL PROJECT FINANCING IN LAGOS STATE

Abstract

Inadequate infrastructure is a constraint on growth worldwide, and particularly in developing countries. Government usually fund majority of these projects via budgetary allocation but due to dwindling revenue government there has been a paradigm shift to involving the private sector which has led to various forms of Public Private Partnership, (PPP). The main focus of this research was to access the effectiveness of public private partnership in financing capital projects in Lagos State. It placed its search light on the suitability, affordability and sustainability of the projects that are funded via PPP. The objectives of the study are: how suitable is PPP as a financing option for Capital Projects?, how affordable are Capital Projects financed via PPP? and what are the measures put in place to ensure that Capital Projects financed via PPP are sustainable? The research involved a cross–sectional survey of government agencies, private bodies and users. In making the findings of this research possible, 200 copies of questionnaires was administered among the groups of respondents identified using convenience and snowball sampling methods. Data collected through the questionnaires was analyzed using descriptive (Frequency, Percentage, mean and mode) and inferential statistics (t-Test and Pearson Correlation). The study concludes that not all projects can be financed via PPP, also that projects financed via PPP are more costly than those financed via traditional method of government allocation. Finally, the study reveals that there are some measures put in place to ensure that Public-Private Partnerships are sustainable but these measures are inadequate.