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1 – 2 of 2Augustine Senanu Komla Kukah, De-Graft Owusu-Manu, Edward Badu, David John Edwards, Eric Asamoah, Andrew Anafo, Dominic Kuutiero and Richmond Makafui Kofi Kukah
In comparison to other countries, power generation in Sub-Sahara Africa is poor. Public–private partnership (PPP) model has become increasingly popular for addressing…
Abstract
Purpose
In comparison to other countries, power generation in Sub-Sahara Africa is poor. Public–private partnership (PPP) model has become increasingly popular for addressing infrastructural challenges, especially in the power sector. The purpose of this study is to evaluate and classify the factors that influence public sector involvement in Ghanaian PPP power projects.
Design/methodology/approach
Using purposive and snowball sampling techniques, questionnaires were used to gather responses from experts in the PPP power sector in a two round Delphi survey. Analytical tools adopted were descriptive statistics, mean score ranking, Cronbach’s alpha and factor analysis.
Findings
The most significant factors that influence public sector involvement in PPP power projects were: achieving improved value for money; access to additional capital; increased certainty of projects; greater efficiency of project delivery services; and improved ability to deliver new infrastructure. From factor analysis, the four components were: value for money and efficiency; capital and skills; innovation and technology; and project delivery.
Originality/value
Government bodies in the power sector will benefit from the findings, as it would aid them develop policies that would strengthen regulatory structures as well as institutions.
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Keywords
Augustine Senanu Kukah, Andrew Anafo, Richmond Makafui Kofi Kukah, Andrew Victor Kabenlah Blay Jnr, Dominic Benson Sinsa, Eric Asamoah and David Nartey Korda
Inefficiencies in the power sector resulting from underinvesting and underselling reduce the ability of governments to adequately finance energy projects. The purpose of this…
Abstract
Purpose
Inefficiencies in the power sector resulting from underinvesting and underselling reduce the ability of governments to adequately finance energy projects. The purpose of this paper is to explore mechanisms of energy financing, benefits and challenges associated with innovative financing of energy infrastructure as well as strategies to improve innovative financing of energy infrastructure.
Design/methodology/approach
Questionnaires were used to elicit responses from respondents. Seventy-eight responses were retrieved. Mean score ranking, Kruskal–Wallis test and discriminant validity were the analysis conducted.
Findings
Partial credit guarantee; partial risk guarantee; credit enhancement; and loan guarantees were the significant mechanisms. Production efficiency; reduce pressure on public budgets; access to management expertise; and self-sustainability of infrastructure facilities were the significant benefits. Lack of transparency and adequate data for risk assessment; high up-front cost; heterogeneity, complexity, and presence of a large number of parties; and lack of a clear benchmark for measuring investment performance were the severest challenges. Complete transparency and accountability; political stability and public view on private provision of energy infrastructure services; and macroeconomic environment were the significant strategies.
Practical implications
This study is beneficial to energy sector as the current government of Ghana hints on willingness to involve private sector in management of the power sector.
Originality/value
The novelty of this study is that it is a pioneering study in Ghana on innovative financing of energy infrastructure.
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