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Factors affecting the performance of private party in concession-based PPP projects in Nigeria

Akintayo Opawole (Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria)
Godwin Onajite Jagboro (Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria)

Journal of Engineering, Design and Technology

ISSN: 1726-0531

Article publication date: 6 February 2017

646

Abstract

Purpose

Notwithstanding the remarkable market potential of the Nigerian economy for private investment, the current sociopolitical characteristics had necessitated a careful assessment to inform decisions in long-term investments. The purpose of this paper is therefore to evaluate the success factors that have a specific influence on private party’s performance in concession contracts in Nigeria.

Design/methodology/approach

Respondents involved in the study were participants in concession-based contracts in Southwestern Nigeria that included architects, estate surveyors, quantity surveyors, engineers and builders, accountants/bankers/economists and lawyers. These were selected using random and respondent-driven sampling (RDS) approaches. The research instrument adopted was a questionnaire that enlisted questions which were structured to ensure that the respondents have appropriate experience in concession-based projects and hold appropriate positions as decision-makers so as to give credence to collected data. The highest significant factors were identified through the relative significance index (RSI). By exploring factor analysis, the factors were condensed for discussion under appropriate component headings. The value of Kaiser–Meyer–Olkin (KMO, 0.755) measure of sampling adequacy tests carried out showed that the data collected were adequate for the factor analysis, and the Bartlett’s test of sphericity (χ2 = 1,799.339; df = 630; p < 0.001) was highly significant.

Findings

Factors influencing private party performance clustered under eight components, namely, technical, market maturity, political, legal, finance, procurement, incentive and regulation. However, component items including level of understanding of public–private alliance transactions, stability of exchange rate and provisions for reversion of policies were found to be highly significant. On the other hand, status of domestication and implementation of international laws/codes, predictability in legal regime and enforcement and extent of jurisdictional definition of land usage were least significant.

Originality/value

Findings would guide private investors in the preparation of robust investment packages that reduce risks and seemingly unavoidable opportunistic tendencies associated with public–private partnership projects in developing economies.

Keywords

Citation

Opawole, A. and Jagboro, G.O. (2017), "Factors affecting the performance of private party in concession-based PPP projects in Nigeria", Journal of Engineering, Design and Technology, Vol. 15 No. 1, pp. 44-57. https://doi.org/10.1108/JEDT-09-2015-0058

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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