Public-Private Partnership and Economic Growth in Ghana; Review of on-going PPP Projects

ABSTRACT

The revitalization of public-private partnerships (PPPs) has been the solution to Ghanas overburden of inefficiencies and bottlenecks in public companies over many years now. In contrast to state organisations, private institutions prioritise offering the public effective and efficient services for profit gains. This studys main objectives are to assess a handful of Ghanas PPP initiatives, analyse their successes and failures, and determine how PPPs affect the countrys economic expansion. For this study, a research methodology that combines case studies and a review of the literature is used. The study used data majorly from annual PPP reports from the Ministry of Finance in Ghana and the PPP Act 1039. The most important insight is that PPPs are mostly funded by foreign government agencies or financial institutions, and because of money repatriation, these foreign corporations and their partners end up with the real gain. Furthermore, the interest paid on loans down the road and loan repayment amounts itself signify a capital flight out of the nation. It was also discovered that political expediency occasionally demands the abandonment of proper diligence. Once more, PPP initiatives gave locals jobs, boosted their purchasing power, and increased the amount of goods and services consumed. Therefore, it is recommended that capacity building be organized to institutions and individuals involved in PPP to enlighten them in more negotiations, risk sharing and proper implementation of PPP projects. This will provide contracting parties with more understanding of mutual expectations from one another. Furthermore, it is imperative to estimate project durations with a degree of realism to furnish practical guidelines for cost estimation and other budgetary tasks. Within the parameters of the PPP law, the Ghanaian government ought to include provisions for incentivizing indigenous business owners to submit bids for PPP projects.

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