The impact of socio-political and economic environments on private sector participation in energy infrastructure delivery in Ghana
Journal of Engineering, Design and Technology
ISSN: 1726-0531
Article publication date: 3 April 2017
Abstract
Purpose
Investment in power and electricity generation for replacing aging infrastructure with new represents a major challenge for developing countries. This paper therefore aims to examine infrastructure projects’ characteristics and how socio-political and economic investment environments interplay to influence the degree of private sector participation (PPP) in infrastructure delivery in Ghana.
Design/methodology/approach
Using World Bank Public-private infrastructure advisory facility (PPIAF) and private participation in infrastructure (PPI) project database data from 1994 to 2013, binary logistic regression was used to: determine the probability of a higher or lower degree of PPP; and examine the significance of factors that are determinants of private investments.
Findings
The findings reveal that the private sector is more likely to invest in a higher degree of PPP infrastructure projects through greenfield and concession vehicles as opposed to management and leasing contracts. From the extant literature, drivers of PPP included infrastructure project characteristics and the social–economic–political health of the host country. However, the significance, direction and magnitude of these drivers vary.
Originality/value
This paper identifies investment drivers to PPP advisors and project managers and seeks to engender discussion among government policymakers responsible for promoting and managing PPP projects. Direction for future work seeks to explore competitive routes to infrastructure debt and equity finance options that finance energy projects.
Keywords
Acknowledgements
The authors acknowledge World Bank Public-Private Infrastructure Advisory Facility (PPIAF) and Private Participation in Infrastructure (PPI) Project Database; Index of Economic Freedom (IEF); World Bank World Development Indicators (WDI) and Financial Development Database; and the Bank of Ghana Annual Financial Statements for the data used for the analysis.
Citation
Owusu-Manu, D.-G., Edwards, D.J., Kutin-Mensah, E.K., Kilby, A., Parn, E. and Love, P.E. (2017), "The impact of socio-political and economic environments on private sector participation in energy infrastructure delivery in Ghana", Journal of Engineering, Design and Technology, Vol. 15 No. 2, pp. 166-180. https://doi.org/10.1108/JEDT-02-2016-0007
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited