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Gov’t strengthens Public Private Partnerships

Comment: Public Private Partnership

Felix H. Mensah
2015-10-22 16:50:24
Comment to:
Gov’t strengthens Public Private Partnerships

Very good idea. However, certain fundamental issues have to be addressed. Major factor is cost of borrowing for long term development projects. In some of the countries where PPP is one of the preferred procurement routes in the public sector, interest on borrowing for such projects is mostly lower than 5%per annum. In Ghana however, minimum interest on loan for the same purpose is over 20%! This alone makes most projects, quite unaffordable right at the feasibility stage and hence discarded.

One other constrain is lack of accurate data on Government development projects, This data is quite valuable in the development of Public Sector Comparator (PSC),which serves as a benchmark for evaluation of new projects.

These and few other issues relating to the PPP procurement process, in general, need to be critically looked at for appropriate solutions in order to arouse the necessary public interest.

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