Exploring influencing factors for private sector participation in PPP power projects: case of Ghana

Abstract

PurposeDemand for private investment in infrastructure, notably in the power sector remains high, and this is anticipated to expand with the passage of time. Very little research currently exists on the power sector and specifically the private sector influencing factors (PSIFs) for entering into public–private partnerships (PPPs). The purpose of this study is to explore influencing factors for private sector participation in PPP power projects in Ghana.Design/methodology/approachUsing purposive and snowball sampling techniques, questionnaires were used to gather responses from experts in the PPP power sector domain in a two-round Delphi survey. Reliability analysis was conducted using Cronbach’s alpha coefficient and level of agreement tested using Kendall’s concordance. Mean score ranking, analysis of variance (ANOVA) and Chi-square test were the main analysis conducted on the influencing factors.FindingsThe most significant PSIFs were: obtaining of investment support; improvement in private sector’s international image; synergy with public sector; sharing of risks; and gaining of profits. From ANOVA results, all the influencing factors had no significant different perception between the number of years in PPP practice and the motivations for the private sector entering into PPP power projects. Using Chi-square, the association between the variables indicated they were statistically significant.Practical implicationsThe findings in this study are significant for multinational power generation firms that seek to enter the Ghanaian energy sector to help fill the generation gap and deficit.Originality/valueThe output of this research contributes to the checklist of influencing factors for private sector participation in PPP power projects and enhances the development of PPP practice.