An investigation of the causes of failure in PPP infrastructure projects in Zimbabwe

Abstract

Most Public Private Partnerships (PPPs) that have been implemented have been stalled or aborted. The purpose of this study was to investigate and identify the main causes of failure in PPP infrastructure projects. The research also sought to assess the relationship between the provision of infrastructure and economic growth and the impact of the indigenisation policy on PPPs. Existing literature states that there are a number of CSFs for PPP projects. The factors are effective procurement, project implementability, government guarantee, favourable economic conditions and the available financial market. There is limited literature on PPPs in Zimbabwe. The research sought to close this research gap. The research proposition was that the failure is caused by the absence of critical success factors (CSFs) that have been identified in literature. The population of the study comprised all stakeholders in PPP projects. Critical sampling was used. The data was collected through semi-structured personal interviews and analysed through content analytical tables. The findings of the research were that the top five hindrances to the implementation of PPPs was the absence of the following CSFs: 1) commitment of both the public and private sectors; 2) well-organized public agency; 3) available financial market; 4) favourable legal framework and 5) stable macro-economic conditions. The indigenisation policy is not clear to most of the stakeholders and therefore carries a high risk premium. Accordingly, the researcher recommends that a central PPP Unit be set up with a regulatory framework to regulate all PPPs done in Zimbabwe. PPP stakeholders need to undergo training to broaden and deepen their skills base. Further research is needed to compare the views of the public and private sectors on what they consider to be CSFs.