PUBLIC PRIVATE PARTNERSHIP AND PHYSICAL
INFRASTRUCTURAL DEVELOPMENT IN LOCAL GOVERNMENT IN
UGANDA:
A CASE OF NAKASEKE DISTRICT
BY
AYINE BRIDGET
2017/AUG/MPAM/M221592/WKD
A DISSERTATION SUBMITTED TO THE
SCHOOLOF SOCIAL SCIENCES IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE AWARD OFMASTERS’
OF PUBLIC ADMINISTRATION OF
NKUMBA UNIVERSITY
OCTOBER2019
i Declaration
I Ayine Bridget hereby declare that this work submitted is my original work and has not been presented to any University or Higher Institution of learning, and any reference to the work of others, acknowledgement has been made. Further, any errors or omissions are solely my own.
Signed
AYINE BRIDGET
(CANDIDATE)
i Approval
This dissertation titled PUBLIC PRIVATE PARTNERSHIP AND PHYSICAL INFRASTRUCTURAL DEVELOPMENT IN LOCAL GOVERNMENT IN UGANDA: A CASE OF NAKASEKEDISTRICT,is now ready for submission for approval in partial fulfillment of the requirements for the Award of a Master’s Degree in Public Administration and Management.
MR. SSENDAWULA NOAH
(SUPERVISOR)
ii Dedication
This is dedicated to my beloved parents Mr&MrsRutabajuuka Simon Peter who cherished education and made me able to reach this far.
Not forgetting my beloved family friends and children, thank you all for the love and support you give me.
iii Acknowledgement
I wish to thank the Almighty God who brought me into this life, and has kept me safe to this stage.
My sincere gratitude goes to my supervisor Mr. Sendawula Noah for the consistent academic and professional support.
To my parents who brought me into this life and looked after me relentlessly and with ceaseless efforts, there is no other way I can pay you back other than thanking you through this book.
To my husband Mr. Asiimwe Arnold Godwin I am so grateful to the support that has enabled me reach this far.
iv Table of contents
Declaration...... i
Approval ...... ii
Dedication...... iii
Acknowledgement ...... iv
Table of contents...... v
List of Tables ...... x
List of Figures...... xi
Definition of operational terms used...... xii
CHAPTER ONE: General Introduction ...... 1
1.0 Introduction...... 1
1.1Background to the study ...... 1
1.2 Problem statement...... 6
1.3 General Objective ...... 7
1.4 Specific objectives ...... 7
1.5 Research questions...... 7
1.6 Scope of the study...... 7
1.6.1 Geographical scope...... 8
1.6.2 Content scope...... 8
1.6.3 Time scope...... 8
v 1.7 Justification of the study ...... 9
1.8 Significance of the study...... 9
1.9 Conceptual framework...... 10
1.10 Ethical considerations ...... 11
1.11 Limitations and delimitations ...... 11
1.12 Arrangement of the study...... 12
CHAPTER TWO: Literature review...... 13
2.0 Introduction...... 13
2.1 How pooling human and financial resources influence physical infrastructural development ..13
2.1.1 How pooling human resources influence physical infrastructural development ...... 13
2.2 The ways in which outsourcing private service providers Influence physical infrastructural development...... 18
2.3 The way in which outsourcing private organizations in procurements partnership stimulated physical infrastructural development...... 21
CHAPTER THREE: Methodology ...... 28
3.0 Introduction...... 28
3.1 Research design ...... 28
3.2 The study area...... 28
3.3 The study population...... 28
3.4 Sampling ...... 29
3.4.1 Sampling techniques ...... 29
3.4.2 Simple random sampling ...... 30
vi 3.4.3 Purposive sampling...... 30
3.5 Sample size determination ...... 30
3.6 Data collection methods...... 31
3.6.1 Secondary data sources ...... 31
3.6.2 Interview ...... 31
3.6.3 Questionnaire / Survey method...... 32
3.7 Data collection tools/ instruments...... 32
3.7.1 Self-administered questionnaire...... 32
3.7.2 Interview guide ...... 32
3.8 Data Quality Control...... 33
3.8.1 Reliability...... 33
3.8.2 Validity ...... 33
3.9Data collection and processing ...... 34
3.10Data analysis ...... 35
CHAPTER FOUR: Data Analysis, Presentation, Interpretationand Discussionof Findings..38
4.0 Introduction...... 38
4.1 Respondents personal data...... 38
4.2 How pooling human and financial resources influence physical infrastructural development in Nakaseke District...... 41
4.3 The ways in which outsourcing private service providers influence physical infrastructural development in Nakaseke District ...... 46
4.3.1 The effectiveness of public-private partnership in the enhancement of service delivery...... 51
vii 4.3.2 The ways in which public-private partnership has stimulated physical infrastructural development in Nakaseke District ...... 54
4.4 Outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District ...... 58
4.5 The following data was obtained and expounded through interviews and documentary analysis...... 63
4.5.1 The Constitution of the Republic of Uganda ...... 64
4.5.2 The National Development Plan (2010/11 – 2014/15)...... 65
4.5.3 The Public-Private Partnership Framework Policy for Uganda, (2010)...... 65
4.5.4 The Local Governments Act Cap. 243 ...... 66
4.5.5 The Local Governments Financial and Accounting Regulations, 1998 Amended In 2007 ....67
4.5.6 The Local Government Procurement Regulations...... 67
4.5.7 The Fiscal Decentralization Strategy...... 67
CHAPTER FIVE: Summary, Conclusionand Recommendations ...... 70
5.0 Introduction...... 70
5.1 Summary of the findings...... 70
5.1.1 Pooling human and financial resources influence physical infrastructural development in Nakaseke District...... 70
5.1.2The ways in which outsourcing private service providers Influence physical infrastructural development in Nakaseke District ...... 72
5.1.3 Outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District...... 73
5.2 Conclusion ...... 76
viii 5.3 Recommendations of the study...... 77
5.4 Areas for further study...... 78
REFERENCES ...... 79
APPENDICES ...... 86
APPENDIX 1: QUESTIONNAIRE ...... 86
APPENDIX 2: INTERVIEW GUIDE...... 95
Appendix 3: Work Plan and Budget Line...... 96
ix List of Tables
Table 1: Study population...... 29 Table 4.1: Age bracket...... 38 Table 4.2: Gender/sex ...... 39 Table 4.3: Current marital status...... 39 Table 4.4: Highest education level attained...... 40 Table 4.5: Designation in the local government ...... 40 Table 4.6: The major public-private partnership social services in the area ...... 41 Table 4.7: The ways in which the local people in the area are involved in public-private partnership...... 43 Table 4.8: The various ways of identifying public-private partnership in Nakaseke District ...... 43 Table 4.9: The socio-political factors that influence public-private partnership in physical infrastructural development in Nakaseke District...... 48 Table 4.10: The other ways in which public-private partnership boosted economic development in the area...... 50 Table 4.11: The ways in which public-private partnership has stimulated physical infrastructural development...... 54 Table 4.12: The ways in which public-private partnerships has stimulated infrastructural development...... 56 Table 4.13: How challenging it is to realize physical infrastructural development...... 57 Table 4.14: The political strategies for improving Public-Private Partnerships...... 60 Table 4.15: The economic strategies for improving Public-Private Partnerships ...... 61 Table 4.16: The social strategies for public-private partnerships ...... 63
x List of Figures
Figure 1.1: Conceptual framework diagram ...... 10
xi Definition of operational terms used
Public-Privet Partnership: According to Lewis (2002), public-privet partnershipis a relationship that consists of shared and/or compatible objectives and an acknowledged distribution of specific roles and responsibilities among the participants which can be formal or informal, contractual or voluntary, between two or more parties. The implication is that there is a cooperative investment of resources and therefore joint risk-taking, sharing of authority, and benefits for all partners.
Ethics: Hill (2013) defines ethics as the standards of right or wrong behavior when dealing with the company’s various stakeholders including customers, employees and vendors. A small business owner establishes ethical principles he expects everyone who works for him to follow often called a code of conduct. His own conduct is important in setting a high standard for his employees. After a code of conduct is implemented, the business owner measures how well the company meets these ethical standards.
Health workers: World Health Organization (2011) defines community health worker as members of a community who are chosen by community members or organizations to provide basic health and medical care to their community capable of providing preventive, promotional and rehabilitation care to these communities. Other names for this type of health care provider include village health worker, community health aide, community health promoter, and lay health advisor. Community health workers contribute to community development and can help communities improve access to basic health services. They are most effective when they are properly trained to provide information and services to the community.
Performance: Sonnentag&Frese (2009) state that performance is completion of a task with application of knowledge, skills and abilities. In work place, performance or job performance means good ranking with the hypothesized conception of requirements of a task role, whereas citizenship performance means a set of individual activity/contribution that supports the organizational culture. In the performing arts, a performance generally comprises an event in which a performer or group of performers present one or more works of art to an audience. Usually the performers participate in rehearsals beforehand. An effective performance is determined by achievement skills and competency of the performer level of skill and knowledge.
xii Abstract
The study was about public private partnership and how it affects physical infrastructural development in Nakaseke District. The study was based on the following objectives, that is,to establish how pooling human and financial resources influence physical infrastructural developmentin Nakaseke District, to discover the ways in which outsourcing private service providers Influence physical infrastructural developmentin Nakaseke District and to determine how outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District.
A sample of 69 respondents was contacted although 50 availed data for this study, and through qualitative and quantitative approaches.The questionnaire and interview guide were the main instruments of data collection. Quantitative data was analyzed using frequency counts, means and percentages while qualitative data was analyzed by tallying the numbers of similar responses.
The study revealed that there is pooling technical experts for unified planning and there is pooling technical experts for unified supervision.The study found out that there is procurement planning which involves identifying the procurement needs, requirements, quantity and when. There is centralized procurement planning where by all departments are engaged in planning for the procurements that is when they should be held, all departments are involved in procurement planning. There is better and improved financial planning through better budget allocation to boost health, education and road works, the private sector investment to support Operation Wealth Creation by supporting local farmers in Kawumu, and the promote improved and coordinated infrastructure technical planning and development.
The study recommended that there should be promotion of PPPs for effective delivery of education, health care, agriculture activities in all areas of their jurisdiction, there should be more sophisticated training in the management of PPPs among the local government leaders and staff to run work with private players effectively and extend them to the community which they serve and there should be improvement in the service delivery status so that they can get better knowledge to improve and enhance knowledge on PPPs for extended benefits for the people these leaders serve.
xiii CHAPTER ONE: General Introduction
1.0 Introduction
This chapter contains the background to the study, problem statement, purpose of the study, study objectives, research questions, scope of the study, significance of the study, justification of the study, conceptual framework, research ethical considerations and anticipated limitations.
1.1 Background to the study The current study focused on public private partnership and physical infrastructural development in local government in Uganda particularly Nakaseke District. This chapter presents the background to the study, problems statement, purpose of the study, study objectives, research questions, scope of the study, justification of the study, significance of the study, conceptual framework, ethical considerations, anticipated limitations and delimitations of the study, and arrangement of the study.
Public Private Partnership (PPP) is a sustained and long-term partnering relationship between the public and private sectors to provide services and goods. Through PPP, the public sector seeks to bring together the resources of the public sector and the technical expertise of the private sectors to provide services and goods to the public at the best value for money (VFM) (Ministry of Finance, Singapore, 2009). The trend of liberalization and privatizing infrastructure activities that began in a few countries in the 1970’s and 1980’s turned into a wave that swept the world in 1990’s. Emerging economies have been at the crest of this wave, pioneering better approaches to providing infrastructure services, reaping the benefits of increased competition and customer focus, which have led to higher efficiency and the easing of fiscal constraints. Brazil, Russian Federation, India and China, popularly known as BRICsare among the most important economies in the world which are not members of the OECD. During the past two decades, these countries have rapidly integrated with world economy with opening their economies significantly and reducing trade barriers substantially. Brazil took off with high protectionism in early 1990’s and moved along unilateral liberalization. China entered the 1990’s with relatively high import tariffs which were then more than halved immediately and then reduced further. India, having highest tariffs among the BRIC in the late 1980’s, too implemented ambitious tariff cuts in liberalization period.
1 BRIChave capitalized on opportunities offered by growing importance in world trade. Openness and trade performance made definite impact on the growth spurts.
In South Africa the needs are obviously far too high to be financed by the public sector alone. As such, more creative mechanisms have to be found (Kaberuka, 2011). One of these mechanisms could be public-private partnerships (PPPs). This type of agreement emerged in the 1980’swith the concept of New Public Management, partly as a response to public resource scarcities and globalization. This new approach should lead to a more efficient and more transparent government (Velotti et al., 2012, p.340), implementing incentives and managerial techniques of the private sector, as well as increasing the involvement of this sector in domains that used to be held by public monopoles. Many public services, such as procurement of roads, schools, prisons, among others, could thus be delivered through PPPs(Reynaers& De Graaf, 2014, p.120-121).
Munnell (1990, 1992) examined the relationship between public capital and measures of economic activity using US data at the state level. He found that public capital had a significant, positive impact on output. Garcia-Mila and McGuire (1992) and Holtz-Eakin (1993, 1994) introduced the concept of state-level fixed effects which reduced the returns from infrastructural investment. Similar results were obtained by Kelejian and Robinson (1994) and Pereira and Frutos (1995) after some econometric corrections. Nadiri and Mamuneas (1996) using cost function showed that the returns to public infrastructure were comparable to those of private investments. Balmaseda (1996) found that results of Aschauer could be explained by simultaneity and aggregation biases. According to him, the large positive effects of public investment on growth could be reduced to zero, if causality and aggregation biases were taken into account. More recently, Fernald (1999) examined the relationship between infrastructure and productivity. Hardy (1980) first examined the impact of telecommunications on growth in 1980.
Clarke and Wallsten (2002) highlights inadequacy of public provision of infrastructure services in meeting growing demand thereof mainly due to overstaffing and mismanagement with the exception of Eastern Europe, publicly owned utilities failed to provide service to poor and rural households. More thorough studies of the impacts of privatization have shown that well designed schemes can bring about substantial increases in overall welfare. Private participation in water and sanitation lead to overall domestic welfare benefits of $ 1.4 billion in Buenos Aires and $ 23
2 million in Guinea (Shirley, 2002). Six cases of private participation studied in detail in the telecom, power and port sectors also showed substantial welfare gains to the government, consumers, investors and often, workers (Galal et al 1994; Newbery and Pollitt, 1997). These studies have found that the main sources of benefits were increased investment to bring service to new consumers, lower prices, and improved productivity and efficiency.
Private participation has been able to improve efficiency through the introduction of incentives to reduce wasteful costs and collect revenues. Some of the largest gains have been seen in the telecommunications sector, where the major driver for improved efficiency has been competition (Ros 1999; Bortolotti et al, 2001). Private participation has been catalyst for dramatic improvement in efficiency, often by reducing employment levels, moving to sustainable pricing policies and driving a wedge into political patronage. The most detailed studies of private participation have shown substantial welfare gains (Clive et al., 2003).
One additional yet significant gain to the host government is in terms of fiscal gain. The gain of tax revenue compares with a situation prior to privatization where losses amounted to as much as 5-6 percent of GDP (Kikeri and Nellis, 2002).
Traditionally, the public sector has tended to engage the private sector merely to construct facilities or supply equipment. The public agencies will then own and operate the facilities or equipment or engage separate maintenance and operations companies to operate the facilities and equipment to deliver the services to the public. PPP is born based on the fact that government provision of goods and services should not only lay emphasis on finance but on the quality of goods and services. Managerially, modernization emphasizes a shift from a focus on inputs to a concern with outcomes providing services is no longer a sufficient justification for state intervention, it must create added public value (Stoker, 1999). There is a more open-minded approach to service procurement, and no presumption that in-house provision is always the best option (Hood and McGarvey, 2002). With this, Direct Labour has been viewed to have shortcomings in infrastructure provision. According to Xueqing (2013) public–private partnerships (PPPs) play an important role in bringing private sector competition to public monopolies in infrastructure development and service provision and in merging the resources of both public and private sectors to better serve the public needs. Justified by public procurement principles, aimed at a public–private win–win
3 solution, and based on worldwide best industrial practices and lessons from unsuccessful projects, this framework integrates the four broadly divided stages that repeat over time: design of a workable concession, competitive concessionaire selection, financial regulation, and periodic re-concession and rebidding. The four-stage framework takes into account the requirements of public services, realignment of responsibility and reward among multiple participants in PPPs, the monopolistic rights of the concessionaire, and the wide range of risks and uncertainties in the long concession period. Akintoye et al., (2003), noted that varying competition elements are incorporated in each of the four stages for continuous performance improvement in the delivery of public works and services. The financial regulation allows the government to address changing conditions and to regulate the concession for efficient operation with due discretion, whereas the competitive concessionaire selection and periodic re-concession and rebidding play critical roles in achieving innovation, efficiency and cost effectiveness through direct competition rather than government discretionary intervention. Public–private partnerships possess the potential to help Uganda raise the money it needs to fund investment in its infrastructure. The ninth edition of the Uganda Economic Update, “Infrastructure Finance Deficit: Can public-private-partnerships fill this gap?” (2015) analyses public-private partnerships’ (PPPs) potential to mobilize private capital to bridge the gap in financing, something which would also help tackle poverty and improve the lives of Ugandans.
Uganda currently has a financing gap of about US$1.4 billion a year for infrastructure investment, but the cost of inefficient infrastructure is also high, estimated at US$300 million a year, due mainly to corruption especially underpricing and the sector’s inability to complete projects within budget and on time. The country’s most successful PPP, the Umeme concession has distributed electricity more efficiently. Since March 2005, the company has increased the collection of sales revenue from 65 percent in March 2017 to 98 percent in June 2017, and improved people’s access to power in areas within reach of its services. But, despite its success, it has been tainted by operational and governance problems. A parliamentary assessment found irregularities and manipulation in the procurement of the concession, and the power distribution agreement had to be revised to minimize costs to the government. The success of public-private partnerships depends on the
4 government’s ability to establish a framework with laws, systems, processes, and contracts that promote financially viable PPPs, especially where there are natural monopolies or market failures (Rachel Sebudde, 2015). To maximize the benefits of PPPs, the government must allocate sufficient resources to make sure projects are prepared well. “The selection of PPP projects should involve analysis to verify that a project is feasible, attractive to the private sector, and provides value for money. Uganda has instituted legal and regulatory reforms, including the PPP Policy Framework (2010), and the PPP Act (approved in 2015), but as a country it still lacks the institutions to implement these policies. Based on experience in Uganda and global best practices, the Update recommends areas of improvement to allow PPPs to achieve their intended objectives: i. Establish appropriate institutions to put existing legal and policy frameworks into practice. This can be done by building the capacity of the central PPP unit and other contracting authorities to enable them to prepare, appraise, and provide better oversight. ii. Improve the mobilization of budgetary and non-budgetary resources, including from our own domestic resources and from bilateral and multi-lateral donors. Setting up a Project Development Facilitation Fund would help fund project preparation and a robust PPP pipeline, as well as act as a liquidity reserve to serve as a backstop for liabilities. iii. Key information related to both operational and pipeline projects, including the PPP database, should be publicly disclosed in a timely manner to ensure greater transparency and accountability, enhance competition, stimulate investor interest, and allow better stakeholder and citizen engagement and involvement in decision-making. iv. While the government is expediting the development of the pension sector and implementing the Capital Markets Master Plan, it should also mobilize domestic currency financing by establishing syndicates of commercial banks and large surplus institutions to finance PPPs, such as pension funds, particularly the National Social Security Fund (NSSF). Innovative mechanisms such as infrastructure debt funds can also be formed.
According to Ssebudde (2015), traditionally the government of Uganda has been the main provider of public infrastructure and other public goods. Budgetary constraints, however, have made alternative options for financing necessary to supplement government resources and, in this, experience shows that the private sector can successfully finance and manage investment in public infrastructure efficiently and profitably to supplement government-led public spending.
5 Thus the study, the current study on public private partnership and physical infrastructural development in local government in Uganda focusing on Nakaseke District will be undertaken.
1.2 Problem statement
In Uganda, respective administrative levels at both central and local governments are responsible for providing a wide and diverse range of infrastructure and public services to the community although the situation has steadily changed (Ndandiko, 2006). The move towards allowing private participation started in the 1990s and a number of projects such as the Bujagali Project (a private power generation project targeted to generate 250 MW), the Rift Valley Railway and Speke Resort Hotel partnership are some of the examples. For the case of Nakaseke District , government has established partnerships in Universal Secondary Education, private Industrialists in Kawumu-Kaweweeta who support the development of roads, health facilities, education infrastructures as well as bringing Hydro-electric power within the reach of the community. However, according to the National Local government score card for Nakaseke District (2016), the physical infrastructures remain in a near sorry state such as poor murrum roads; there are no All-weather Loose surface roads which can ease movement during the wet seasons, the health centres are still in dilapidated state and very inadequate to the people, government is withdrawing from the partnership with private secondary schools over the Universal secondary education programme and other services are not yet good because the developments are too slow.
Despite efforts by the central and local government to engage private investors by opening up an industrial park in Kaweweeta, Wakyato carrying out regular maintenance of roads, others such as health centres lack even the basic medicines and drugs, the buildings are dilapidated and in some cases the services are dying out like health Centre 11 as reported in Nakaseke Local Government (2016) district report on services, thus the too slow private-partnership developments have not brought about the required fundamental infrastructural developments, hence the current study shall examine public private partnership and how they influence physical infrastructural development in Nakaseke District.
6 1.3 General Objective
The general objective of the study was;
To examine public private partnership and how it affects physical infrastructural development in
Nakaseke District
1.4 Specific objectives
The current study followed these objectives;
i. To establish how pooling human and financial resources influence physical
infrastructural development inNakaseke District.
ii. To discover the ways in which outsourcing private service providers Influence physical
infrastructural development inNakaseke District. iii. To determine how outsourcing private organizations in procurements partnership
stimulated physical infrastructural development in Nakaseke District.
1.5 Research questions
The current study followed the given research questions stated below;
1) What are the pooling human and financial resources that influence physical infrastructural development inNakaseke District? 2) Whatways is outsourcing private service providers Influence physical infrastructural development inNakaseke District? 3) How outsourcing private organizations in procurements partnership stimulated physical infrastructural development in NakasekeDistrict?
1.6 Scope of the study
The currents cope of the study contains the geographical, content and time scopes;
7 1.6.1 Geographical scope
The study took place in Nakaseke district which is found in Luweero triangle in central Uganda.It is named after Nakaseke, the largest town in the district with the district headquarters are located at Butalangu.Nakaseke District is bordered by Nakasongola District to the north and northeast, Luweero District to the southeast, Wakiso District to the south, Mityana District to the southwest. Kiboga District and Kyankwanzi District lie to the west and Masindi District lies to the northwest. Nakasekedistrict headquarters lies approximately 66 kilometres (41 mi), by road, north of Kampala. The coordinates of the district are:00 44N, 32 25’E.Nakaseke District is divided into the following administrative units that isKapeeka, Ngoma, Kinyogoga, Wakyaato, Nakaseke Town Council, Kaasangombe, Semuto and Kikamulo.Nakaseke District has seven health units including a 100-bed public hospital, Nakaseke Hospital, administered by the Uganda Ministry of Health. Nakaseke Hospital is connected to other health units by a radio. There is also a community hospital at Kiwoko, KiwokoHospital, administrated by the Church of Uganda where there are five doctors, six medical assistants, 23 midwives and 33 nurses, as of 2010.Access to clean water is possible through a network of boreholes and protected springs. One of the major health concerns is the high prevalence of HIV/AIDS and other vulnerabilities in the district.
1.6.2 Content scope
The local government has encouraged private players to participate in physical infrastructure development, thus the study will identify the social services where public-private partnership has been developed to improve physical infrastructural planning, the socio-political and economic factors that influence public-private partnership in physical infrastructural development and the ways in which public-private partnership have stimulated physical infrastructural development in Nakaseke District.
1.6.3 Time scope
The study was carried out for a period of one year that is from July 2018 to June 2019 and the scope of the period studied for verifying Public-Private partnership shall extend for five years from 2012 to 2017.
8 1.7 Justification of the study
Public Private Partnership contracts have been concluded for provision of essential services such as solid waste collection, street parking management, street lighting maintenance, street repairs and their general cleanliness, road maintenance, water service provision and a couple of other social services which the citizens are entitled to receive from the local and central governments. Uganda being a developing country, some shortcomings in PPP are common among which is the difficulty in finding competent private firms is and where the private firms exist, funds to engage them are not readily available, the endless political interference, poor quality services and delays occasioned by corruption as the leaders and bureaucrats in administrative organs individually engage in fierce contests to decide which firm takes the contract to manage and operate a public facility, extorting kickbacks and sidekicks in awarding contracts. The study will examine public private partnership and how it affects physical infrastructural development in Nakaseke District. The areas to be explored include the social services where public-private partnership has been developed especially physical infrastructural planning, the socio-political and economic factors that influence public-private partnership in physical infrastructural development and the ways in which public-private partnership has stimulated physical infrastructural development in Nakaseke District.
1.8 Significance of the study
The current study findings shall be of benefit to a number of stake holders;
The central government: The fact that most PPP involves large sums of money, the central government stands high chances of getting involved in such Projects. The current study findings shall be of benefit to the line ministries for example Works, Energy, KCCA, among others, this will ensure that both public and private players provide services to the people.
The local government: Local governments have a clear mandate within the context of a policy supporting democratic decentralization and receive clear responsibilities, resources and competencies, and are well informed. This study might enable them to know how the various local governments have partnered with private service providers in fostering service delivery in district, sub-counties and cells in Uganda.
9 Researchers: The research will supplement to the existing body of knowledge and provide new information to highlight further on the impact of private public partnership and how it can be enhanced.
1.9 Conceptual framework
This is a diagram showing the relationship between the independent all variables and dependent variables Figure 1.1: Conceptual framework diagram Independent variable Dependent variable
Public private partnership Physical infrastructural development Pooling human and financial resources Regular maintenance of existing Outsourcing private service infrastructures providers Setting up new physical structures Outsourcing private like health centers organizations in procurements Provision of equipment for health, partnership education and other services
Intervening variables
Local investor capacity building Public-Private service agreement The 2010 Policy Framework on PPP The PPP Act as approved in 2015
Source: Developed by the researcher from the literature review, 2019 The conceptual framework shows the relationship between the independent variable which is Public private partnership focusing on pooling human and financial resources from various professions for running projects, outsourcing private service providers in service delivery and goods, and outsourcing private organizations in procurements. Also the dependent variable which is the influence of physical infrastructural development dealing with regular maintenance of existing infrastructures, setting up new physical structures like health centers and provision of
10 equipment for health, education and other services. These factors are influenced by moderating factors such as local investor capacity building, public-Private service agreement, he 2010 Policy Framework on PPP and the 2015 PPP Act When all the variables are to the positive stand, then the public-private partnership would ensure better infrastructural service delivery in Nakaseke Local Government.
1.10 Ethical considerations
The study was subject to certain ethical issues. All participants were contacted by the researcher to explain to them the purpose for the research. i. The researcher tried to obtain acceptance from the respondents through their written acceptance regarding their participation in the research, through a signed Consent and Briefing Letter. a) At the same time, sample members were asked to sign a Debriefing and Withdrawal Letter. The aim of both letters was to reassure participants that their participation in the research is voluntary and that they are free to withdraw from it at any point and for any reason. b) Next to this, participants were fully informed regarding the objectives of the study, while they were be reassured that their answers shall be treated as confidential and used only for academic purposes and only for the purposes of the particular research. c) Except from the above, participants were not harmed or abused, both physically and psychologically, during the conduction of the research. d) In contrast, the researcher attempted to create and maintain a climate of comfort.
1.11 Limitations and delimitations
As it is for every study, this study anticipated the following limitations: i. The size of the sample may be relatively small, yet a bigger sample would probably enhance the reliability of the research. But a large sample would also consume a lot of time. This challenge can be addressed by utilizing the available secondary sources as much as possible to obtain more information.
11 ii. Qualitative research may not allow the measurement of the examined problems. This challenge can be overcome by using quantitative survey methods to collect huge amount of relevant data in short time. iii. The analysis may be influenced by factors which were not mentioned in this project. The researcher tried to be as exhaustive as possible. iv. In some cases participants may refused to speak against their system. The researcher tried to probe as much as they could to obtain in-depth data.
1.12 Arrangement of the study
This research study is arranged in five chapters. Chapter one contains the background to the study that is statement of the problem, purpose of the study, objectives and hypothesis on which evaluations are done and where the study problem is outlined, chapter two contains the study literature arranged in line with the study objectives. Chapter three contains the methodology, chapter four has data presentation, analysis, interpretation and discussion of findings,, while chapter five has the summary, conclusion, recommendations of the study and areas for further study.
12 CHAPTER TWO: Literature review
2.0 Introduction
The literature review focused on the role of PPP in infrastructural development and related attendant literature from authoritative writers. The literature scrutinizes how PPP can stimulate development in local governments. The literature is based on the following subthemes;
2.1 How pooling human and financial resources influence physical infrastructural development
The literature review in this section focuses on how pooling human and financial resources influence physical infrastructural development;
2.1.1 How pooling human resources influence physical infrastructural development
Public-private partnerships are a risk-sharing relationship that is grounded on a shared objective of the public and the private sectors. Typically, such relationship is based on a contract between a private organization and the state for a publicly funded service.
Poolinghuman and financial in PPP refers togrouping together of resources such as assets, equipment, personnel, effort, and human resource among for the purposes of maximizing advantage or minimizing risk to the users. The term is used in finance, computing and equipment management. PPP as such builds partnership for literacy delivery may present certain advantages over outsourcing (in which the government usually subcontracts with a provider to perform a pre-defined service), insomuch as the provider organization has, supposedly, the same objectives as the government, and that it is therefore willing to take risks. These risks can be associated with the providers’ investment in doing background research for the program proposal, without knowing whether their efforts will result in any funding.
Many governments also set up public-private partnerships because they want to concentrate on certain key sectors. They use private providers to deliver auxiliary services such as adult literacy, areas where they believe that the private sector has a comparative advantage and where risk can be shared (Harper, 2000). Also, in many countries, the state institutions are corrupt, and it can be argued that partnerships are more effective in the fight against corruption, insomuch as it is
13 easier to fight corruption in private companies and NGOs than to fight corruption inside state firms and agencies. Once an activity is privatized or outsourced, the government's control over it weakens, and so do the possibilities for corruption (Shleifer, 1998). There is no certainty, however, that outsourcing service implementation to NGOs will reduce corruption: “It is often stated that privatization or NGO origination would reduce corruption but this is seldom rigorously evaluated. Private providers and NGOs can also siphon off or waste funds and perform poorly in terms of service delivery” (Azfar&Zinnes, 2003, p. 16).
One key to success for public-private partnerships, it has been argued by the neoliberal school of thought, is to make providers accountable towards the recipients of services. This is called a “short route of accountability” as opposed to government implemented services in which the local implementing agent is accountable towards the policy-making institution, for example the Ministry of Education (World Bank/WDR, 2003).
In Guinea, The department of literacy and non-formal education in the country wanted to implement different types of projects, which were intended for different population groups (such as out-of-school children and youth, refugees, street children, adolescent and adult women). It was recognized that the cost of implementing each type of project would necessitate different means of financing, and that the contracting of providers could not be based on one, fixed fee. Hence, different unit costs were established, one for each type of program (World Bank, 2002).
The public-private partnership concept has deep roots in urban economic development even in the United States. It has also developed in both other developed and the developing countries becoming a worldwide phenomenon in urban economic development in the last two decades. Internationally, it has been recognized that public-private partnerships are vital for building overall competitiveness of urban regions (World Competitive Cities Congress, 2000) and for solving urban environmental problems (UNDP, 2000). Based on their definition (see above), Walzer and York (1998) find that public private partnerships have expanded in U.S. urban regions since the 1980s.
In Britain, public-private partnerships emerged as a new institutional approach to urban economic development in the late 1980s after the Conservative government’s privatization strategy failed to achieve expected success. A new program called City Challenge was created to
14 invite local authorities to put forward schemes for economic regeneration in partnership with the local business community” (Chandler, 1998, p.158). Later, this program, along with other smaller programs for distributing development funds, was consolidated into a single urban regeneration budget (SRB) to bid for funds. “By the mid-1990s, the government established a clear message to all local authorities that economic development that was to receive significant public funds had to be secured through partnerships with the private sector.” (Chandler, 1998, p.158) Through an analysis of urban revitalization in South Yorkshire, however, Chandler (1998) indicates that, in essence, the so-called public-private partnership was not a partnership, but just a mechanism of distributing public funds to local authorities by showing sufficient support from local business community.
Prescott, 2000 concludes that public private partnerships are largely unsuccessful in Britain in terms of building business-led urban growth partnerships because government schemes like City Challenge “have not so far led to the creation of self-supporting partnerships in which the private sector provides much of the expertise and funding to establish growth. He further argues that “cooperative organizations are generally marriages of convenience in order to leverage central government grants that would not be forthcoming without demonstration of a partnership ethos within the applicants’ declining local economies.” Nevertheless, the UK Deputy Prime Minister John Prescott provides recent evidence of financial involvement by the private sector in partnerships for urban economic development in his speech for a seminar on public private partnerships.
According to Friedrichs (1998), in Germany, efforts to introduce public-private partnerships have been made in recent years. Like most European countries, Germany has a “tradition of state and urban 8 planning to restrict planning authority to government bodies and keep them free from external lobbying. Though they were a new element in German urban governance and planning, public-private partnerships emerged in urban revitalization efforts. According to a survey by Kruzewicz (1993), 103 out of 235 urban regions in North-Rhine-Westphalia reported the presence of public-private partnerships and an additional 58 urban regions intended to develop them.
Friedrichs (1998) addresses the major element of public-private partnerships in urban revitalization in Germany through the analysis of projects in several urban regions. They include:
15 Urban regions have to seek private finance for urban redevelopment because of financial constraints on government, urban regions exert control over important issues such as the planning, land uses, sales price, and rents in a land development project through their majority in the partnerships, urban regions benefit from the skills and expertise of private sector in market competition, Urban regions expect to improve the efficiency and cooperation of the involved government departments with the involvement of private sector. Public-private partnerships have also emerged in the developing countries.
Batley (1996) provides examples of public-private partnerships in urban service provision in six developing countries including India, Malaysia, Brazil, Mexico, Zimbabwe, and Uganda. Urban services with strong private involvement range from primary education to waste collection. He finds that private involvement occurs not only in planned ways, but also as governments pragmatically respond to force of circumstance and also as the private sector and communities incrementally and informally step into the gaps left by failed publicly operated services. However, this comparative analysis shows that at least some public-private partnerships are less efficient than their pure public counterparts. The expansion of public-private partnerships in U.S. urban regions and their spread in other developed and the developing countries indicate the vitality of public-private partnerships as institutional approaches in urban economic development.
2.1.2 How pooling financial resources influence physical infrastructural development According to Prescott (2000), the success of the public private partnership in Docklands Light Railway in London and points out how London Underground and National Air Traffic Services will benefit from public-private partnerships by absorbing private financing. Based on the experiences of successful partnerships, he strongly argues that public-private partnerships are a “credible alternative to privatizations” so that, unlike in the case of privatization, the public sector can “share in the benefits of growing businesses or the massive investment they made in these industries.” His speech shows that British government will continue to promote public private partnerships in which the private sector’s investment and skills can be involved.
Such risks can also be associated with financing, for example performance-based contracts may lead to financial loss if the service delivery for one reason or another fails (IMF, 2004; Edinvest;
16 Nordtveit, 2005). The government also bears some risks so much as it needs to carry the political risk of delivery failure of the providers (this latter can be due to the providers’ embezzlement, or lack of skill).
It should be emphasized that the highest economic risk, however, is ultimately borne by the consumers, since faulty delivery could be expensive in terms of opportunity costs to them (Nordtveit, 2005). Economic and risk evaluation of literacy has a tendency to focus on the public institutions’ and providers’ risks, without taking sufficiently into account the consumers’ opportunity costs. In some cases, the lack of calculating the consumers’ risks results in low- quality literacy classes, since it may be found that it is less costly to invest in inexpensive courses than in high-quality and more costly courses, although the latter would prove less risky for the consumer.
Correspondingly, in line with the global ideological trend of the 1980s and the warnings of international agencies, the government in Turkey at that time first launched a large-scale privatization activity, and then added PPPs to the comprehensive privatization program as a complementary component (Orkunoğlu, 2010). The first law (Law No. 3096), which regulated the PPP like arrangements in the electricity sector, came into force in 1984. These first PPP models were mainly based on concession arrangements. Having its roots in Law No. 576 on Concession of Public Services dated 10.06.1910; concession agreements are the oldest and most AfyonKocatepeUniversities, İİBFDergisi (C. XV, S. II, 2013) 255 common PPP-like agreements in Turkey. From the 19th century onwards, the Ottoman Empire encouraged foreign investors to build and operate railways, ports, electricity and water supplies (Emek, 2002). When the Republic of Turkey was established these concessions were handled with delicacy and greatest effort was spent to maintain them. Hence, for many years PPPs were mainly evaluated as a continuation of a long-lasting concession tradition of the Ottoman Empire. In these PPP-like agreements, the public authorities were in a position of superiority towards the partner, and hence, this model can therefore be attributed as the furthest model to the collaborative PPP description.
In particular, PPP operations in Turkey mainly include investments in the transportation sector (railways, motorways, ports, airports and bridges), energy sector (electrical power generation and transmission), water supply and general administration (border gates). Recently, with the
17 adoption of Law No. 5396 dated 2005 concerning the PPP implementations in health care, Turkey has commenced numerous PPP practices related with social infrastructure. Furthermore in the near future, the government intends to extend its PPP policies and introduce PPPs in the field of education. If we look at the regulations, we can see that it is difficult to make a full classification. Since the 1980s, the rules regulating PPP models have been identified in various separate primary and secondary legislations (Uz, 2007).
Today, PPPs are regulated under the Privatization Law as well as various other laws related with different sectors (e.g. Law No. 3096, Law No. 3465, Law No. 3996 and Law No. 4283). This disorder in regulations stands out in most developing countries and it is evaluated as an important obstacle for the success of a PPP policy. A promising point is that PPPs in Turkey have their baseline in the constitution (Uz, 2007). With the amendment in the constitution in 1999 an article was added implying that the public sector should develop partnerships with the private sector. This emphasis can be evaluated as a positive development for the further evolution of PPPs in Turkey. Furthermore, in the Eighth Five-Year 256 AfyonKocatepeÜniversitesi, İİBFDergisi (C. XV, S. II, 2013) Development Plan (2001-2005) and in the Ninth Five-Year Development Plan (2007-2013) there is an open commitment to enhance PPP implementations.
2.2 The ways in which outsourcing private service providers Influence physical infrastructural development.
According to Royce LaNier, Albert Massoni and Carol Oman, 1986,outsourcing private service providers canincrease competition and efficiency in service provision, expand coverage, and reduce delivery costs. As the British government points out, PPPs allow optimal overall risk allocation between the public and private sectors, facilitating the distribution of risk to the organizations that can most effectively manage it. Involvement of the private sector ensures that projects and programs are subject to commercial discipline and sound financial due diligence. Moreover, the private sector can often manage more efficiently the entire supply chain needed to provide and distribute goods and services more effectively than can government agencies. Public-private partnerships can bring new ideas for designing programs and projects, and greater synergy between design and operation of facilities.
18 Through public-private partnerships, governments can avoid expensive over-specification and designof public assets and focus on the life-of-project costs of initiating new activities or building new infrastructure facilities.
Carol Oman, 1986 points out that by outsourcing or working in partnership with the private sector, governments can benefit from the strong incentives for private firms to keep costs down. Often, private firms can avoid the bureaucratic problems that plague national and municipal governments, and they can experiment with new technology and procedures. PPPs allow government to extend services without increasing the number of public employees and without making large capital investments in facilities and equipment. Private firms can often obtain a higher level of productivity from their work forces than can civil service systems, they can use part-time labor where appropriate, and they can use less labor-intensive methods of service delivery. Partnering with the private sector gives local governmentstheability to take advantage of economies of scale especially in line with infrastructure development.
By contracting with several suppliers, governments can assure continuity of service. By contracting competitively for services, they can determine the true costs of production and thereby eliminate waste.
Cooperating with the private sector also allows governments to adjust the size of programs incrementally as demand or needs change. Partnerships that partially or completely displace inefficient SOEs can help reduce government subsidies or losses and relieve fiscal pressures on the national treasury. PPPs can usually respond more flexibly to "market signals," more easily procure modern technology, and develop stronger capacity to maintain infrastructure than can public agencies. Public-private sector cooperation can also generate jobs and income while meeting demand for public goods and services.
At a time when private transfers far outpace the flow of official development assistance, partnerships are often the most effective way for governments in developing countries to mobilize private and foreign investment capital for infrastructure expansion or improvement. And to the extent that PPPs achieve their objectives they can contribute to increasing national productivity and economic output, assuring a more efficient allocation of scarce capital resources, accelerating the transition to a market economy, and developing the private sector.
19 Jefferies, Gameson and Rowlinson (2002) identified three key factors for Australia; solid consortium with a wealth of expertise, considerable experience, high profile and a good reputation; an efficient approval process that assists the stakeholders in a very tight timeframe; and innovation in the financing methods of the consortium. Tang et al. (2013) identified five key success factors as the identification of client/owner requirements; clear and precise briefing documents; feedback from completed projects; and thorough understanding of client/owner requirements. Thus, the wealth of expertise, experience, and reputation are expected to help in the successful delivery of projects under PPP arrangement. The expertise is expected to be in both public and private sectors of the industry. They both have great roles to play in the system.
Li et al. (2005) also identified five key PPP success factors as strong private consortium, appropriate risk allocation and risk sharing, available financial market, commitment/responsibility of public/private sectors and thorough and realistic cost/benefit assessment. Additionally, the commitment and shared vision, open communication and trust, and collaboration are the three key PPP success factors identified in the United States of America by Jacobson and Choi (2008), whereas, in China, the key success factors for PPP projects are a stable macro-economic condition; favourable legal framework; sound economic policy; available financial market; and multi-benefit objectives.
Cheung et al., (2012) states that a stable macro-economic condition is seen as an important factor in the delivery of PPP project successfully in the country, although, China is still being recognized as a developing country, despite the large size of her economy. If the economic condition is stable, the investors would be willing to invest their money, since they hope to recoup their investment in a favorable economic environment. These factors are those identified in the countries that are regarded as developed nations. These factors are tending towards the private sector’s wealth of experiences and the utilization of such experiences.
Agrawal (2010) identified concession agreement, short construction period, and repayment of the debt as the PPP success factors in India, while Minnie (2011) identified delivering a publicly needed service and achieving the objectives of the partnership for South Africa. Ameyan and Chan (2015) identified government (political) commitment, adequate financing, public
20 acceptance/support, strong and competent private partner, and effective regulatory and legal structures.
In Malaysia, Ismail (2013) identified five key success factors for the delivery of PPP projects, good governance, commitment/responsibility of public/private sectors, favourable legal framework, sound economic policy and available financial market. While in Indonesia, the identified key success factors for PPP projects are sound legal basis, an irrevocable contract, sensible and manageable risk-sharing arrangements, clearly defined coordination mechanisms and strong political support (Wibowo and Alfen, 2014). These identified success factors in Malaysia and Indonesia are similar to those factors identified in other countries mentioned earlier. But in Indonesia, an irrevocable contract as a success factor is distinct from other countries reported. This may be due to the situation of contract administration within the country. These factors are identified in the developing countries and show that the public sector needs to make more contributions to the development of the PPP projects.
2.3 The way in which outsourcing private organizations in procurements partnership stimulated physical infrastructural development
As previously argued, the main valid motivation for PPPs is achieving efficiency gain in the provision of infrastructure assets and services. Efficiency gains are normally measured by the ratio output to inputs and it can be improve by producing the same output at a lower cost (inputs) or producing more and better outputs at the same cost (inputs). There has been a significant number of case studies on PPPs that have documented improvement on efficiency gain in infrastructure assets and services. While these studies only compare the situation before and after a PPP project, they illustrate successful stories on how they have contributed to build efficient infrastructure. Case studies have shown that efficiency gains from PPI are common but vary with the type and size of the projects and with the context in terms of regulatory environment and governance. The effects also depend on the sector with strong efficiency improvements in telecoms, typically positive impact in transport, and mixed results in electric and water and sanitation. For example, in the transport sector, this includes container terminals that have increased significantly the volume of traffic (Suape Container Terminal in Brazil), and reduced the time needed for container handling and dispatching (Port of Toamasina in Madagascar;
21 highways that have managed to have patronage growth (Yitzhak Rabin Trans-Israel Highway 6 in Israel, and SANRAL Concessions in South Africa) and reduce travel time (Hyderabad MirpurKhas Dual Carriage Way Project in Pakistan); and airports with an increase on the number of flights and destinations (Queen Alia Airport in Jordan) and Airlines with more demand and improved services to customers with reduced airfare (Virgin Samoa Airlines in Samoa). In the energy sector, examples include the increase in power generation capacity and connections as well as improved services and reduction in technical losses (Ashta Hydropower Project in 5 Albania; SociétéNationaled’Electricité in Cameroon, Kenya Power and Lighting Company, Liberia Electricity Corporation, HidrodriniRadoniqi water service in Kosovo).
In the water sector, the case studies have shown an increase in the number of people connected to improved water services (Busembatia small scale infrastructure provider water program in Uganda; Lim Town; Bucharest Water and Sanitation project in Romania and Minh Duc Town Water projects in Vietnam); an increase in water supply quality and reliability (King Abdulaziz International Airport Desalination in Saudi Arabia and Bucharest Water and Sanitation in Romania) and better payment collection system (HidrodriniRadoniqi water service In Kosovo), as well as, increased access to improved irrigation systems (Guerdane Irrigation in Morocco). In telecoms sector, these includes increase in penetration rate and international coverage (Cellis and LibancellGSM service in Lebanon).
In terms of prices some projects have presented a reduction in unitary cost (Ashta Hydropower Project in Albania; West African Gas Pipeline Project in Ghana; and King Abdulaziz International Airport Desalination Desalination in South Arabia); an increase in operating profits with no increase in tariff (HidrodriniRadoniqi water service in Kosovo); or lower service fees to consumers (Shanghai wastewater treatment project in China; Clark Water in Philippines; and Cellis and LibancellGSM service in Lebanon). The empirical literature on the impact of PPPs on efficiency gains in service provision is very limited when confining to those papers that provide robust and sound empirical analysis. Estache and Saussier (2014) argue that the available empirical evidence confirms that PPIs can lead to improvements in efficiency, but do not necessarily do so. The econometric evaluation of various types of PPI experiences indeed shows that the careful choice of control variables, the
22 proper framing of the institutional and sectoral context and the careful avoidance of selection biases in sample choices matter to the conclusions reached by empirical tests.
Andres et al. (2013) conclude that there is positive and significant impact of private sector participation in the coverage, quality of service and labor productivity of the analyzed utilities, especially when regulation is strong. The report does not distinguish among management and lease contracts, concessions, Greenfield projects, and divestitures. The terms private participation in infrastructure and privatization are used interchangeably to cover all four types of private sector participation. In this report, the author used information on 181 firms in electricity distribution, telecommunication and water distribution that went through privatization in the 1990s as well as the LAC electricity benchmarking database (World Bank, 2008) which contains annual information of 250 private and state-owned utilities. Gassner et al. (2007, 2009) studies the impact of PSP in electricity distribution, and water and sanitation services. The study compares the firms with PSP to a counterfactual of “sufficiently” similar SOEs.
The private party (from divestures to performance based contracts) has to have the power to make decisions that affect the performance of the firm. These authors find that this type of PSP is associated with output increases in electricity connections (29% increase in residential connections per worker), in water and sanitation connections (12% in water and 19% in sanitation), in bill collection ratios (up to 85% higher than in SOEs in electricity and 50 higher in water) and in the quality of service in both sectors, the latter expressed as a reduction in distributional losses in electricity (25% more efficient in electricity and an increase in hours of daily service in water 6 (41% increase). The authors note that these efficiency gains do not always translate into a decrease in prices, they might also either compensate a previously non- profitable service, or be kept by the private operator. Also, there is a possibility that these improvements might be short-term, as the authors point out a ´worrying lack of investment in utilities by the public or private sector´. The study uses a dataset of more than 1,200 utilities (301 with PSP and 926 SOEs) in 71 developing and transition economies over more than a decade of operation.
Marin et al. (2009) analyze performance data for more than 65 large water PPP projects (concessions, lease-affermage or management contracts) that have been in place for at least five years (three years in the case of management contracts).The authors focus on four dimensions of
23 performance: access (coverage, expansion), quality of service, operational efficiency and tariff levels; they do not use a counterfactual, but use average measures for SOE to illustrate differences when those measures are available. The sample represents a combined population of about 100 million people served (close to half of the urban population that has been served by private water operators between 1990 and 2007). The study concludes that the main effects of PPPs have been significant improvements in operational efficiency.
In terms of access, Marin et al (2009) finds that water PPP projects have provided access to piped water for more than 24 million people in developing countries since 1990. The authors assess the performance of concessions to be mixed as many of those concessions failed to invest the amount of private funding they had originally committed and did not always meet their original contractual target for coverage. The good performers in the pool of 30 concessions studies are the ones where private financing was complemented by public funding (Colombia, Guayaquil in Ecuador and Cordoba in Argentina). On the other hand, the authors mention lease- affermage cases that were successful in expanding access (for instance in Senegal and Cote d’ Ivoire).
In these cases the investment was carried out by a public asset-holding company with very limited or no Government money. In terms of quality of service, the key challenge for most PPPs was to eliminate water rationing, a measure which also enables a higher quality of water by minimizing risks of pipe infiltration. The authors mention several examples (Colombia, and countries in West Africa) where private operators succeeded in improving service continuity, often starting from highly deteriorated systems. In terms of operational efficiency, Marin et al. (2009) measures operational efficiency in three ways: water losses, bill collection and labor productivity. The outcomes concerning water losses are ambiguous: whilst some utilities succeeded in reducing water losses to best-performing utilities level (about 15% of non-revenue water for some operators in Western Africa, Brazil, Colombia, Morocco and Eastern Manila), other projects did not achieve significant reductions1
Marin et al. (2009), on the other hand, private management significantly improved bill collection rates in most cases. In terms of tariffs, the impact depends on the initial tariff level, in most cases below cost recovery. Argues that in most cases tariffs increased, but that in some cases the private operator was able to decrease them due to efficiency gains.
24 It is difficult to assess whether these tariff increases were justified or not (for instance if they were accompanied by increase in access and quality). The authors also use the fact that out of the 65 developing countries that embarked on water PPPs during the past two decades, at least 41 still had private water operators and 84 percent of all awarded contracts were still active by the end of 2007 to suggest that overall 1 In some countries, it is also difficult to track accurately water losses for example, in Argentina, where a large proportion of residential customers are billed on estimates rather than actual consumption. On the other hand 24 countries had reverted to public management and several contracts had been terminated early following conflicts between parties. Under public management, public services such as utilities came at a lower average cost for the customer.
Estache (2006) argues that in particular ´´effective tariff levels´´ were comparatively lower because of the unpaid bills. He also argues that power and water shortages were the norm in many countries such as Chile, Argentina or Senegal. This situation implied that the taxpayers were effectively bridging the gap between the average cost and the effective tariff since a significant amount of subsidies was necessary to keep the system going. According to the author, the subsidies were also relatively regressive “In other words, it was unlikely that the middle class would have been too enthusiastic for reform if quality had been reasonable”.
Estache and Rossi (2004) analyze in more detail the impact of private sector participation on the productivity of electricity distribution firms. Using a stochastic production frontier model3, they estimate the impact of private sector participation. They use a sample of 110 firms from 14 countries in Latin America during 1994-2000. These firms had different levels of private sector participation in the ownership structure as well as different types of regulation applied to them for electricity distribution (price cap or rate of return base). The authors find that private firms perform on average better (approximately 30% better) than public firms for the operation of services. There is no clear pattern of differences in electricity prices according to the regulatory regime.
According to Keene (1998), in Uganda, public–private partnerships have been introduced by the government to acquire and develop nationwide infrastructure as well as offer opportunities to improve service delivery. In 2002 the Ministry of Local Government, with assistance from the
25 United Nations Development Programme, implemented a Public–Private Partnerships for the Urban Environment (PPPUE) project for the period 2002–04. The project was implemented by the ministry in collaboration with the non-governmental organisation Living Earth Uganda across six municipalities of Uganda and served to highlight the benefits of public private partnerships regarding the delivery of poverty assistance services in the country.
In 2010, the government adopted the Public–Private Partnership Framework Policy for Uganda. In line with the new policy, the provision of public services and infrastructure will remain with the relevant government departments and state enterprises, with local government authorities tasked with the responsibility of identifying, developing and managing public–private partnership projects. The government anticipates that the policy will result in more efficient development of public infrastructure and an increase in economic growth and foreign direct investments. Further to this, in 2013 the Ministry of Local Government and the United Nations Development Project developed Public–Private Partnerships Guidelines for Local(Keene F., 1998).
The country has received assistance from the Public–Private Infrastructure Advisory Facility (PPIAF) in developing the country’s infrastructure on multiple occasions since the turn of the century. The PPIAF operates through the transport, energy and water sectors in Uganda, and carries out prefeasibility studies for infrastructure development and privatisation implementation strategies, amongst other tasks (Keene F., 1998). The African Development Bank Group (AfDB). 2011, gave some of the current examples of the PPP in Uganda these include financing the construction of Kampala Entebbe Expressway project is a 4 Lane Road of 51.4 kilometers comprising of an expressway between Kampala and Entebbe International Airport, a spur to the Munyonyo Resort.
Vegetable Oil Development Project (VODP) was implemented under a Public Private Partnership (PPP) where government would support the small holder and out grower schemes (for oil palm development) and the private investor establish a nucleus estate and palm oil mill.The 750 megawatts Karuma power project expected to become the single highest power generation capacity in Uganda upon completion.Through a Public Private Partnership, the Uganda Police Force is planning to elevate the living, administration and training
26 accommodation to suitable and acceptable standards.Oil refinery with a 120000 barrel per to develop the refinery as a public-private partnership.
In Uganda, following the enactment of the Public Procurement and Disposal of Public Assets Authority Act, 2003 (PPDA Act) the Local Governments Act was amended in 2006 to give effect to the replacement of the Tender Boards of Local Governments with Contracts Committees; regulation of procurement procedures of Local Governments; to ensure accountability in local government procurement system and to provide for other related matters.
The amended LGA also provided for establishment of Procurement and Disposal Units in every district whose functions are clearly spelt out in the PPDA Act, 2003; at the same time Municipal Contracts Committees were provided for with extended functions to serve Municipal Divisions. However, these regulations do not contain any specific provision for public-private partnerships.
27 CHAPTER THREE: Methodology
3.0 Introduction
This section covers the research design, the study population, the sample size and selection, sampling techniques, methods of data collection, procedure of data collection, data management and analysis, reliability and validity of the research instruments as well as data processing, analysis and interpretation.
3.1 Research design
According to Kombo and Tromp (2006), a research design was the glue that holds all the elements in a research project together. The survey research design was chosen because it puts into consideration constraints of cost, created quickly, administered easily and it could be used to collect information on wide range of issues that include personal facts, attitudes, past behaviours and opinions. In this research, the population is large and cannot be managed easily, but with the use of samples taken the researcher was able to obtain accurate and ample information.
The research was carried out through a quantitative and survey research designs. According to Oso and Onen (2009), a quantitative and survey are used where populations are investigated by selecting a sample to analyze and discover occurrences at certain point in time. A survey provides numeric description of events of some part of the population and explains the events as they were and how they will be, whereas the cross-sectional design helps to obtain data from a given section of the respondents at certain time in the research process.
3.2 The study area
Pelham and Blanton (2006) defines a study area as geography area for which data is analyzed either as site based study area or geographical unit based study area. The study shall take place in the selected areas in NakasekeDistrict where large-scale projects like factories have developed, and the population varies between 97,000 to 100,900.
3.3 The study population
McMillan & Schumacher (2001) state that the population refers to the group of individuals that have one or more characteristics in common that are of interest to the researcher, therefore the
28 population of study comprised the Political leaders at District, and Sub-County/ Town Council, Health CentresAdministrators, and local government staff. During the 2002 national census, Nakaseke’spopulation was estimated at about 191,100 people. In 2012, the Uganda Bureau of Statistics (UBOS) estimated the population of the town at 76,500. In 2011, UBOS estimated the population of Nakaseke at approximately 79,700. On 27 August 2014, the national population census put Nakaseke District at 69,958. Table 1: Study population
Category Population Sample Percentage Sampling size Techniques Sub-County/ Town 09 5 10.8 Purposive Council leaders Local Council V leaders 09 4 10.8 Purposive Local government staff 65 60 78.4 Simple Random Total 83 69 100.0
3.4 Sampling
3.4.1 Sampling techniques
According to Kothari (2011), there are two sampling methods which were used in this study, namely probability (representative) sampling and non-probability (non-representative) sampling.
With probability sampling, the researcher determined the chance or probability of an element being included in the sample. This method will give each and every member of the population an equal chance of being selected for the sample. Examples of probability sampling include simple random sampling, stratified sampling and cluster sampling from which the researcher will select the suitable sampling techniques for this study.
With non-probability sampling, the researcher determined only those elements he deems important for the study to be included in the sample. This method gave the researcher the mandate to select out only those members that were important for consideration in the sample. Examples of non-probability sampling include; purposive sampling and multi-stage sampling and others from which the researcher selected the suitable sampling techniques for this study.
29 The researcher used the following sampling technique that’s to say simple random and purposive sampling;
3.4.2 Simple random sampling
Simple random sampling was used to select respondents for data collection who are at the same level in the organization/ embassy or association. According to Amin (2005) a simple random sampling is a sample obtained from the population in such a way that samples of the same size have equal chances of being selected. A simple random sampling technique was used to select respondents by choosing at random from among the staff.
3.4.3 Purposive sampling
The researcher applied personal judgment about which respondents to choose, and pick only those who best meet the purpose of the study. In this study, purposive sampling was used because it is judgmental, allowing the researcher to handpick certain groups or individuals according to their relevance to the issue at hand (Aina and Ajifuruke, 2002). The use of purposive sampling aimed at getting as more relevant and valuable information for the research as possible from among the respondents in top management like the local Government leaders.
3.5 Sample size determination
This sample size for this study was selected using a number of sampling methods, namely; probability and non-probability in which then the researcher will use the purposive and random sampling techniques. The sample size for the current study is selected based on the formulae set by Yamane (1973). Yamane sample calculation is a way to determine the sample size for a study. It is the most ideal method to use when the only thing you know about the underlying population you are sampling from is its size.
The Yamane sample size states that: nY=N 1+Ne2
30 WherenYis the Yamane sample size, N is your underlying population size and e is determined from the confidence you are seeking from your study. That is, if you want to be 95% sure about the results of your study then e=0.05. N= the study population which is 83 e= the level of significant co-efficient which is 0.052 n= N 1+ N (0.05)2
n= 83 1+ 83 (0.05)2
n= 83
1+0.2
n=69
3.6 Data collection methods
According to Mugenda and Mugenda (2003) the research study applied the following data collection methods. A number of tools were used for data collection and these include; self- administered questionnaires and interview guides.
3.6.1 Secondary data sources
Mugenda and Mugenda (2003) state that the secondary method of research involved the use of library sources, published and unpublished literature, official reports and other important policy documents and position papers were sought from resource centers.
3.6.2 Interview
Mugenda and Mugenda (2003) state that another method that was be used by the researcher was the interview method involving face-to face interview which has a distinguished advantage of
31 enabling the researcher to establish rapport with potential participants and therefore gain their cooperation.
3.6.3 Questionnaire / Survey method
A survey is a data gathering method that was utilized to collect, analyze and interpret the views of a group of people from a target population. The survey methodology is guided by principles of statistics from the moment of creating a sample, or a group of people to represent a population, up to the time of the survey results' analysis and interpretation. The following steps are included in the process of conducting a survey, as well as several questions to ask one's self during each step, that is clarifying the purpose, formulating survey goals, verifying the resources, choosing a survey method, performing the sampling, writing the questionnaire, pilot testing and revising or changing the questionnaire, administering the questionnaire, processing and storing data, analyzing and interpreting the survey results, making a conclusion and reporting the survey results.
3.7 Data collection tools/ instruments According to Kavulia (2007), this was the first hand information from the people concerned. A number of tools were used for data collection and these include; self-administered questionnaires and interview guides.
3.7.1 Self-administered questionnaire According to Kavulia (2007), the researcher used the questionnaire technique or tool for collecting data that were constructed with open ended and close ended questions. The researcher could opt to use the questionnaires because they could be used to collect large amounts of information from a large number of people in a short period of time, and it was relatively cost effective, quick and easily quantifiable by the researcher to analyze the data and to compare the findings for clarity.
3.7.2 Interview guide According to Connaway&Powell (2010), the researcher set questions to guide the oral/ mouth to mouth interactions between the researcher and the respondents. The data collected by this method was more correct compared to the other methods that were used for data collection. The
32 interview method was good to use since the researcher went to the field himself and asked the respondents were more information necessary for the research thus yielding more information from the field compared to other methods.
3.8 Data Quality Control The following criteria were applied to this qualitative and quantitative study in order to make the research credible that is reliability and validity. Respondents’ checking was undertaken to give credibility to the analysis. It was up to the reader to determine whether the text has sufficient credibility to qualify as quality piece of research.
3.8.1 Reliability Saunders et al. (2007) defines reliability as the characteristics of measurement concerning precision, accuracy and consistency. For the data to be reliable, it should yield the same results if the data is repeated for a number of times. Usually reliability is ensured through minimizing errors in the research tools. The researcher ensured reliability through a test- retest-strategy. This involved piloting about 07 questionnaires to the students of education at post graduate levels outside the population of study. The questionnaires re-piloted and then compared with items in the two pilot studies. Only those items with correlation coefficient of greater or equal to 0.7 were included in the questionnaires because a value of at least 0.7 was acceptable for research. The coefficients were determined through ranking items in the first study and those in the second study to determine the difference between ranks. The data was collected by the researcher thereby avoiding the potential of bias. Transcriptions were checked against verbatim notes. The internal consistency of data coding and analysis was enhanced as the researcher himself did all the coding and analysis.
3.8.2 Validity
According to Babbie, (2010), reliability refers to the extent to which the same answers can be obtained using the same instruments more than one time. In simple terms, if your research is associated with high levels of reliability, then other researchers need to be able to generate the same results, using the same research methods under similar conditions. It is noted that reliability problems crop up in many forms.Reliability is a concern every time a single observer is the
33 source of data, because we have no certain guard against the impact of that observer’s subjectivity. According to Wilson (2010) reliability issues are most of the time closely associated with subjectivity and once a researcher adopts a subjective approach towards the study, then the level of reliability of the work is going to be compromised.
Validity of research can be explained as an extent at which requirements of scientific research method have been followed during the process of generating research findings. Oliver (2010) considers validity to be a compulsory requirement for all types of studies. There are different forms of research validity and main ones are specified by Cohen et al (2007) as content validity, criterion-related validity, construct validity, internal validity, external validity, concurrent validity and face validity. Measures to ensure validity of a research include, but not limited to the following points: a) Appropriate time scale for the study has to be selected; b) Appropriate methodology has to be chosen, taking into account the characteristics of the study; c) The most suitable sample method for the study has to be selected; d) The respondents must not be pressured in any ways to select specific choices among the answer sets. It is important to understand that although threats to research reliability and validity can never be totally eliminated, however researchers need to strive to minimize this threat as much as possible. To enhance confidence in the findings data was collected using self-administered questionnaires, by focus group discussions and key informant interviews that was methodological triangulation.
3.9Data collection and processing According to Connaway&Powell(2010), in order to shift the power of the researcher/participant relationship to the study participants, the research was undertaken in environments that was selected by and comfortable for study respondents. Focus group discussions and Interviews were conducted in comfortable places for respondents. Key informants were interviewed at their convenience. In this way it will be an interviewee-guided interview and the researchers was able to direct, select and structure the story. Data editing coding the data and cleaning was done after
34 data has been collected to ensure that all mistakes made by respondents was cleared then entering the data into the computer for analysis and summarizing the data.
3.10Data analysis According to Kothari (2011), raw data obtained is collected, coded, grouped and presented in tables and graphs. The researcher was prompted to use this method because it analyses data to draw thorough conclusions. This study was based on two research hypothesizes to find out whether they are true or not, thus prompting the researcher to use this data analyzing tool.
Partington (2003)states that there is little standardization with no absolutes where a specific type of qualitative data relates to a specific type of analysis Neuman(2011)further opines that no single qualitative data analysis approach is widely accepted, while Schurink et al., (2011)posit that there are always variations in the number and description of steps for the same process of data analysis by different authors. From the preceding views, it can thus be inferred that each qualitative data analysis to some extentwillbe a uniquely designed event. With the preceding in mind, the qualitative data analysis of this research (responses from the semi-structured interviews) was done according to a qualitative content analysis process that integrated Creswell’s (2013)analytic spiral with the process as described by Marshall and Rossman (1999).
The qualitative content analysis involved the following procedures:
Recording of datawas done by audio recording on a digital voice recorder, while audio recording on another tape recorder served as backup of electronic failure and faults; and to ensure that all voices could be heard. Taking notes served as further backup and provided the context to the interviews.Verbatimtranscription of the responses from the interview commenced as soon as possible; andwas done by an expert to ensure a speedy completion
To ensure that the researcher becomes acquainted with the data for the purpose of analysis and interpretation, the original interview of the completed verbatim transcription was listened to again. Transcription notation symbols, comments and the taking of field notes as suggested by Henninget al., (2004) will be used to capture non-transcribable text to gain as much of the complete picture as possible, in an endeavor to ensure the reliability and validity of the data, the verbatim transcribed interviews werepresented to the respondents to verify and sign off.
35 The entire transcribed text and field notes was thoroughlyreadat first to obtain an overall and comprehensive impression of the content and context before the abstraction process of coding began where units of meaning wasidentified or labeled. Codes are names or labels assigned to specific units or segments of related meaning identified within the field notes and transcripts (Henninget al., 2004). The transcribed text was arranged in meaningful themes and categories.
As progress was made with the analysis, further sub themes and sub categories were included to identify meaning connections, relationships and trends. The coding process for the field notes and transcripts consisted of three steps described by Thiétart (2007)andNeuman (2011), namely: open coding, axial coding and selective coding.
Open coding was involved the identification and naming of segments ofmeaning from the field notes and transcripts in relation to the research topic. The focus of open coding was on wording, phrasing, context, consistency, frequency, extensiveness and specificity of comments. Consequently, the segments of meaning from the field notes and transcripts wasclearly marked (highlighted) and labelled in a descriptive manner.
Axial coding was done by reviewing and examining the initial codes that wasidentified during the previous procedure outlined above. Categories and patterns wereidentified during this step and organized in terms of causality, context and coherence. Selective coding as the third and final coding procedurewasinvolved selective scanning of all codes that were identified for comparison, contrast and linkage to the research topic (question) as well as for a central theme or “key linkage” that might occur.
The codes wereeventuallyevaluated for relevance to the research aims. Related codes werelisted in categories according to the research aims and theoretical framework from the literature study.The analytic process will further be informed by inquisitive questions to identify thematic relationships from the various categories, according to both the inductive and deductive reasoning process. Questions will include amongst others (Henninget al., 2004).
Data was analyzed using some computer program mainly Statistical package for Social sciences (SPSS) which was used so as to give a clear presentation of the various responses and the significance of each response depending on the magnitude of the corresponding number and
36 frequency percentage of total responses and conclusions were drawn on the basis of those frequencies. Analysis was based on both descriptive and inferential statistics techniques.
37 CHAPTER FOUR: Data Analysis, Presentation, InterpretationandDiscussionof Findings
4.0 Introduction
This chapter focuses on the presentation, analysis and interpretation of findings regarding the public-private partnership and how it affects physical infrastructural development in Nakaseke District. The researcher contacted 69 respondents of whom 50 availed data for this study. The researcher obtained data though 14 interviews and 36 questionnaires though which data on respondents personal data is presented, the social services where public-private partnership has been developed especially physical infrastructural planning, the socio-political and economic factors that influence public-private partnership in physical infrastructural development and the ways in which public-private partnership has stimulated physical infrastructural development in Nakaseke District.
4.1 Respondents personal data The respondents’ personal characteristics include age, sex, marital status and other related variables; Table 4.1: Age bracket
Frequency Percent Valid Percent Cumulative Percent Valid 18 – 30 Years 06 12 12 12
31 – 40 Years 12 24 24 36
41 – 50 Years 14 28 28 64
51 – 60 Years 10 20 20 84
Above 61 08 16 16 100.0 Years Total 50 100.0 100.0
Source: Field data, 2019
38 The study findings on the respondents’ personal variables revealed that age bracket of respondents show that there were no those below 20 years, 12% were aged 20 to 30 years, 32% were aged 31 to 40 years and 56% were aged 40 years and above. Most respondents were 31 years and above and thus were all mature enough to avail data for this study. Table 4.2: Gender/sex
Frequency Percent Valid Percent Cumulative Percent Valid Male 43 86 86 86
Female 07 14 14 100.0
Total 50 100.0 100.0 Source: Field data, 2019 The respondents gender/sex statistics show that 86% of the respondents were males and 14% were females thus. Though the majority were males, all the respondents’ availed data which was vital for the study. Table 4.3: Current marital status
Frequency Percent Valid Percent Cumulative Percent Valid Single 04 08 08 08
Married 46 92 92 100
Divorced 00 00 00 00
Widowed 00 00 00 100.0
Total 50 100.0 100.0 Source: Field data, 2019 Regarding the current marital status of respondents, 08% of the respondents were single, 92% were married, and there were no widowed and divorced respondents. Despite all this, all respondents availed data for this study.
39 Table 4.4: Highest education level attained
Frequency Percent Valid Percent Cumulative Percent Valid Certificate 25 50 50 50
Diploma 10 20 20 70
Bachelors 10 20 20 90
Masters 04 08 08 08
Doctorate - - - -
Others 01 02 02 100
Total 50 100.0 100.0
Source: Field data, 2019
The study findings on the highest education level attained, 50% of the respondents had attained certificate education for example some councilors and support staff, 20% had reached or attained diploma education, 20% had attained Bachelors education, 08% had attained Bachelors education and 02% were others for instance the Mayor, Deputy Mayor, Chief Administrative Officer, the Sub-County Chief and others in the technical staff were all well-educated and could avail data for this study. Table 4.5: Designation in the local government
Frequency Percent Valid Percent Cumulative Percent Valid Political 08 16 16 16 leader
Bureaucratic 04 08 08 24
Others 38 76 76 100.0
Total 50 100.0 100.0 Source: Field data, 2019
40 The study findings on the designation of the respondent in the local government revealed that 16% were political leaders, 08% were bureaucrats and 76% were others including the volunteers and others who participate in the local government development activities.
4.2 How pooling human and financial resources influence physical infrastructural development in Nakaseke District
The research study set out to examine how pooling human and financial resources influence physical infrastructural development in NakasekeDistrict and the results obtained are presented, analyzed and interpreted in this section; Table 4.6: How pooling human resources influence physical infrastructural development in Nakaseke District
Cumulative Frequency Percent Valid Percent Percent Valid Bringing together private 20 40 40 40 road construction companies
Employing both public and 12 24 24 64 private supervisors for public works
Pooling technical experts for 09 18 18 82 unified planning
Pooling technical experts for 09 18 18 100 unified supervision
Total 50 100 100 Source: Field data, 2019 The research study on how pooling human resources influence physical infrastructural development in Nakaseke District, 40% of the respondents agreed that there is ringing together private road construction companies, 24% agreed that they are employing both public and private supervisors for public works, 18% agreed that there is pooling technical experts for unified
41 planning and 18% agreed that there is pooling technical experts for unified supervision.Thestudy findings on the social services where public-private partnership has been developed especially physical infrastructural planning, the local government contracting and tender committee usually contracts private road constructors Mukalazi Constructors on the grading and maintenance of roads by paving and grading them for public usage.
Related to this study, the social services where public-private partnership has been developed especially physical infrastructural planning, the local government contracting and tender committee usually contracts private road constructors Mukalazi Constructors on the grading and maintenance of roads by paving and grading them for public usage, they are employing private supervisors for public roads and building works in public schools on consultancy basis, and Nakaseke Local Government is involved in sub-contracting private companies such as RokoConstruction in surveying and development of physical infrastructures for better planning in the area.
One respondent revealed that,
“a number of small scale and large-scale private contractors have been given contracts to construct and maintain roads for example Bamunanika-Semuto, Nakaseke-Kawumu, Kalasa-Mawale, Semuto-Kapeeka roads and others which has made them largely passable throughout the seasons”.
(Resp. 1, 2019)
Public-Private Partnership is used in Nakaseke District by Nakaseke District Administration and Uganda to implement public tasks like road works development. However, in this verbatim, the term is very unspecific and stands for a multitude of complex approaches. This often leads to confusion between the stakeholders making it difficult to jointly develop, evaluate and/or monitor PPP projects. This paper presents a structured instrument for a clear comparison of Public-Private Partnerships. It has been developed based on several years of lasting international research on Public-Private Partnership models.
42 As agreed by one respondent,
“main characteristics of a Public-Private Partnership that are considered to lead to efficiency gains in comparison to so-called conventional procurement are the lifecycle approach, the risk transfer with a balanced risk allocation, the creation of incentive structures and leveraging of innovation potential through results-oriented performance description and remuneration, the use of private expertise and capital, the long-term relationships on a partnership basis and, in particular, governed by contractual provisions. The generation of efficiency gains as the core argument for the application of Public-Private Partnership as a method of procurement of works in Nakaseke District seems to be of much importance in this emerging district”,
(Resp. 2, 2019)
And since water supply projects and disposal projects are some of the infrastructures being privately handled by contractors.
Table 4.7: Local government leaders are involved in making decisions
Valid Cumulative Frequency Percent Percent Percent Valid Lower local government leaders are 23 56 56 56 involved in making decisions on the suitable projects The local people provide labour 12 24 24 80 resources for projects Local people are involved in 09 18 18 82 maintenance People are employed in the service 06 12 12 100 sector People are employed in the service sector Total 50 100 100 Source: Field data, 2019
43 The study findings in table 4.7 on the ways in which the local people in the area are involved in public-private partnership revealed that 56% of the respondents noted that the lower local government leaders are involved in making decisions on the suitable projects, 24% noted that the local people provide labour resources for projects, 18% noted that the local people are involved in maintenance and 12% noted that the people are employed in the service sector People are employed in the service sector. In a verbatim, public-private partnerships as the tool that Nakaseke Local government employ to help deliver needed infrastructure services, public- private partnerships are a way of contracting for services, using private sector innovation and expertise, and they often leverage private finance. Public-private partnerships can, implemented under the right circumstances, improve service provision and facilitate economic growth.
The study findings revealed that there are various ways of identifying public-private partnership in Nakaseke District where public-private partnership has been developed especially physical infrastructural planning. The respondents stated that there is performance-based payments corresponding to the services set out in the specifications or list of services, there is availability- based payments corresponding to the availability of premises, areas and facilities, equipment and others volume-based payments corresponding to the consumption of water, electricity, gas and others, results-based payments corresponding to contractually agreed optimization targets and 08% agreed that there is usage-based payments, which can be further broken down into frequency of use, the shadow toll for roads or fees that reflect the number of users of a swimming pool, a sports hall or another public facility and intensity of use, such as in the case of shadow tolls with diverging rates based on axle loads or emissions. The interview results from one respondent revealed that,
“Public Private Partnerships or its commonly used abbreviation has become an important way of implementing public tasks and providing public services around the district”.
(Resp. 3, 2019)
In many countries it has been established as an alternative to conventional procurement methods. In some countries it has already, or according to political priorities, will have in the near future a
44 portion of all public procurement. In a verbatim, it is still a very heterogeneous and unspecific term in practice, as well as in scientific literature it stands for a multitude of different approaches with mostly very complex and sometimes in transparent structures, which is based on the cooperation between public and private actors/players.
“there is often great confusion in the local discussions between the different stakeholders like politicians, project executing agencies, private investors, auditing authorities, the community and others who may be concerned simply because they all use the term Public Private Partnerships, and they understand it differently but all know that the relationship exists between government as a public player and the private investors on the other hand”
(Resp. 4, 2019)
Public Private Partnerships then become known as a method of procurement for the public sector, for example in the area of social and economic infrastructure management.
According to one respondent,
“ the key characteristic of this kind of Public Private Partnership in Nakaseke District is the transfer to private bidders for a limited period of time of integrated services relating for example to the planning, construction, financing, maintenance and operation in a lifecycle approach of public infrastructure, this was previously performed by the public sector. Public Private Partnerships of this kind also exist in other areas of procurement such as procurement of equipment, service vehicles and other utilities that can fit in this”.
(Resp. 5, 2019)
Initially developed into a standardized form as a result of the Private Finance Initiative in Uganda, and is becoming increasingly popular both as an alternative procurement option for the public sector and a good investment opportunity for private investors.
Wandera(2019) noted that lack of funds is likely to delay the plan which could attract more investment projects at the gazetted industrial park in Nakaseke District. The district has so far
45 received some funds donated by investment friends of Nakaseke District through Gen SalimSaleh, the senior presidential adviser on security and defence, amounting to Shs63.9m, leaving a funding gap of more than Shs1.5 billion, which is yet to be realised.
The district leaders, has largely been a farming area with more than 80 per cent of the land occupied by a largely farming population with a fast growing urban setup at Kapeeka Town as a result of the recently established industrial park just adjacent to the town.The rapidly growing population calls for better planning and as local leaders, they are happy that the district leaders have championed the physical plan project for the area. The industrial park zone, according to Nakaseke District leaders, stretches to four out of the five parishes of Kapeeka Sub-county and covers more than 8 square miles.
The study found out that the main objective of Public-Private Partnerships is in the field of infrastructure management that is the design, construction, finance, maintenance and operation of it. It is usually to generate efficiency gains for the public sector in the provision of related services. These are generally evaluated in, so-called “value for money tests” and checked by the responsible audit authorities. However, another stated aim with varying priority is to bridge liquidity bottlenecks on the part of the public partner when performing urgent construction or modernization tasks involving infrastructure that is needed by members of the public and other users.
4.3 The ways in which outsourcing private service providers influence physical infrastructural development in Nakaseke District
The study findings on the ways in which outsourcing private service providers Influence physical infrastructural development in NakasekeDistrict were obtained through interviews and questionnaires, respondents noted that in the areas development, the number of partnerships between the public and private sector has risen in recent years mostly in the areas of management of markets for instance at Kiwoko, Kiwoko Hospital, construction of Kapeeka-Semuto as one of the main roads.
But discussion around the efficacy of public-private partnerships has become increasingly polarised. According to one interview with a respondent,
46 “public-private partnerships have greater enhancing impact on development outcomes by harnessing the skills, experience and knowledge from both the government and non- state actors like Wamiko Constructions Limited”. (Resp. 6, 2019)
They also provide developing districts like Nakaseke as a means of accessing additional financial resources to deliver on projects and programmes like school and education development. It has been suggested that the projects pursued are ones that are perceived to be financially viable from the private sector perspective, and the ethical motivation is profitability over poverty reduction, the privatization of some services like education, and governments’ control over public services is greatly reduced with public-private partnerships. Table 4.8: The ways in which outsourcing private service providers Influence physical infrastructural development in Nakaseke District Valid Cumulative Frequency Percent Percent Percent Valid There is public-private partnership 22 44 44 44 planning at local level
The leaders have a good will for 11 22 22 66 public-private partnership
There is development of roads through 07 14 14 80 public-private partnership
There has been upgrading of local 07 14 14 94 government spatial structures through public-private partnership
The private partnership stimulates 03 06 06 100 environmental management through solid waste management improvement
Total 50 100 100 Source: Field data, 2019
47 The study findings on the ways in which outsourcing private service providers Influence physical infrastructural development in Nakaseke District as revealed in table 4.8 above, 44% of the respondents agreed that there is public-private partnership planning at local level for development of roads, health facilities, markets and others. In addition to that, 22% of the respondents agreed that the leaders have a good will for public-private partnership because they contract and plan with them on several infrastructural developments, and in addition to that 14% agreed that there is development of roads through public-private partnership for example Kawumu-Semuto-Bukalasa, 14% agreed that there has been upgrading of local government spatial structures through public-private partnership like the buildings at Nakaseke hospital, the local government headquarters where Spencon was once contracted to give them a new facelift and 06% agreed that the private partnership stimulates environmental management through solid waste management improvement like collection of solid waste and the money that is generated through that.
Outsourcing private service providers Influence physical infrastructural development in Nakaseke District is influenced by socio-political factors in a number of ways as shown here;
Table 4.9: The socio-political factors that influence public-private partnership in physical infrastructural development in Nakaseke District
Valid Cumulative Frequency Percent Percent Percent Valid Thereis public-private partnership 15 30 30 30 planning at local level for public/private gains
The Local leaders have a good will for 05 10 10 40 public-private partnership
Thereismarked political influence 07 14 14 54 regarding public-private partnership
48 Thelocal people do not have sufficient 06 12 12 66 knowledge about public-private partnership
The public-private partnership is seen 10 20 20 86 as a stimulant for local economic activities
The local people do not have enough 07 14 14 100 capital to enter into public-private partnership
Total 50 100 100
Source: Field data, 2019 The research study on the socio-political factors that influence public-private partnership in physical infrastructural development revealed that 30% of the respondents agreed that there is public-private partnership planning at local level for public/private gains where they are considered creative alliances formed between a government entity and private developers to achieve a common purpose. In addition, 10% agreed that the local leaders have a good will for public-private partnership, 14% agreed that there is too much political influence regarding public-private partnership, 12% noted that the local people do not have sufficient knowledge about public-private partnership, 20% noted that public-private partnership stimulates economic activities and 14% of the respondents agreed that local people do not have enough capital to enter into public-private partnership. Many other actors have joined such partnerships including nongovernmental institutions, such as health care providers and educational institutions; nonprofit associations, such as community-based organizations; and intermediary groups, such as business improvement districts. Partnerships around the district have successfully implemented a range of pursuits from single projects to long-term plans for land use and economic growth.
49 Table 4.10: The ways in which public-private partnership have boosted economic development in the area
Valid Cumulative Frequency Percent Percent Percent Valid The support and willingness of the 25 50 50 50 district administration to support private developers/ partners
The willingness of the local leaders to 05 10 10 60 support the private investors
The local government has decided to 14 28 28 88 increase healthcare expenditure
There is modernization of agriculture 06 12 12 100 inputs
Total 50 100 100
Source: Field data, 2019 The study findings on the socio-political factors that influence public-private partnership in physical infrastructural development revealed that 50% of the respondents agreed that support and willingness of the district administration to support private developers/ partners, 10% of the respondents agreed that there is willingness of the local leaders to support the private investors, 28% agreed that the local government has decided to increase healthcare expenditure and 12% agreed that there is modernization of agriculture inputs. One respondent revealed that, “the concession agreement is specifically targeted towards financing, designing, implementing and operating infrastructure facilities and the collaborative ventures are built around mutually agreed allocation of resources, risks and returns, and these are collaborative efforts, between private and public sectors, with clearly identified partnership structures, shared objectives, and specified performance indicators for delivery of services has seen real progress over the last years in attracting private investment into the infrastructure sectors”.
50 (Resp. 7, 2019)
All levels of government are aiming to use public private partnerships, more intensively to help meet gaps in the provision of basic services. It involves the private enterprise in the involvement of management expertise and or monetary contributions in the government projects aimed at public benefit and the government remains actively involved throughout the projects life cycle and the private sector is responsible for the more commercial functions such as project design, construction, finance and operations and these schemes are sometimes referred to as public- private partnership.
One education officer states that, “health education builds students' knowledge, skills, and positive attitudes about health. Health education teaches about physical, mental, emotional and social health. It motivates students to improve and maintain their health, prevent disease, and reduce risky behaviors. Health education curricula and instruction help students learn skills they will use to make healthy choices throughout their lifetime. Effective curricula result in positive changes in behavior that lower student risks around: alcohol, tobacco, and other drugs, injury prevention, mental and emotional health, nutrition, physical activity, prevention of diseases and sexuality and family life”. (Resp. 8, 2019)
“reading and math scores of third and fourth grade students who received comprehensive health education were significantly higher than those who did not. In general, healthy students learn better”. (Resp. 9, 2019)
Numerous studies have shown that healthier students tend to do better in school. They have higher attendance, have better grades, and perform better in tests.
4.3.1 The effectiveness of public-private partnership in the enhancement of service delivery
Best practices in health education provide skills-focused instruction that follows a comprehensive, sequential, culturally appropriate health education curriculum that addresses all of the health education minimum standards. Address the following in health education
51 instruction that is assessing personal vulnerability to health risk-taking, accurately assessing health risk-taking of peers, analyzing the influence of family, peers, culture, and the media on health behaviors and connecting with others who affirm and reinforce health-promoting norms, beliefs, and behaviors.
Though there are many ways to raise funds for rural infrastructure like central government grants, micro finance institutions and Non-Governmental Organizations, multilateral bank loans, public borrowing, community pooling of resources, commercial bank loans and external assistance, permission of 100 percent Foreign Domestic Investments in the infrastructure sector, special provision of VGF but public-private partnership is one of the important ways to increasing investments in Nakaseke’s infrastructure. One respondent revealed that,
“public-Private Partnership projects in addition to provide finance also lead to efficient use of resources, availability of modern technology, better project design and implementation, faster implementation, reduced lifecycle costs and optimal risk allocation which are not readily produced by other agencies”. (Resp. 10, 2019)
The key to global competitiveness of the Ugandan economy lies in building a high class infrastructure. To accelerate the pace of infrastructure development and reduce the infrastructure deficit, the government has initiated a host of projects and schemes to upgrade physical infrastructure in all crucial sectors on public-private partnership mode, because infrastructure projects are expensive, Nakaseke Local Government often seek co-financing through public- private partnerships and multilateral institutions. These partners can also supply valuable oversight and technical expertise-an important ingredient in avoiding corruption, cost overruns and failed projects.
Public-Private Partnership is an approach that Nakaseke District government has adopted to foster infrastructure development and meet the rapid urbanization growth in the country. There are many obstacles to the successful delivery of public-private partnership projects. These actually stem from different sources. Notwithstanding, public-private partnership is indeed feasible within the Ugandan context despite the prevailing challenges, however, the concept need proper restructuring before it can be successfully implemented. The key issues that practitioners
52 need to look at carefully in order to succeed include transparency and competition, favourable legal framework, right project identification, capacity building, extensive stakeholder engagement and appropriate risk allocation.
One respondent noted that,
“the central point as well as local governments have made public-private partnership policy guidelines in the areas where private partners can take infrastructure projects. Among them include agri-infrastructure, education, energy, healthcare, industrial infrastructure, irrigation, public markets, tourism, transportation and logistics, urban and municipal infrastructure are the main sectors to be taken through public-private partnership disturbance”. (Resp. 11, 2019)
The use of public-private partnership in third world countries is characterized by the improvement in the quantity and quality of services and infrastructure. These governments are making conscious efforts to advance the telecommunication, transportation, electricity, waste management and water projects via public-private partnership arrangements (Mehta, 2011;Osei- Kyei, Chan, &Dansoh, 2017;Sharma, 2012). Their participation has generally focused on the management of public services in the sanitation, telecommunication, and energy sectors. An important sector like transportation seems to have been ignored (Osei-Kyei& Chan, 2017b;Osei- Kyei et al., 2017;Osei-Kyei & Chan, 2016).
In verbatim, but efficient transport and effective trade facilitation require highly specialized managerial and operational skills as well as high-end technologies. Most government agencies would need to allocate extra resources and time to develop such capacities. Therefore partnering with the experienced relevant business sectors is critical in enhancing the efficiency and sustainability of transport and trade infrastructures and services. Thus governments have increasingly sought private partners for financing, building, operating and maintaining such infrastructure and services. Further in a verbatim, increasing private sector involvement in areas belonging historically to the domain of public authorities is confirmed by the fact that between 1990 and 2007, investment commitments to transport projects with private participation in developing countries increased in real terms from $14 billion to $30 billion.
One administrator noted that,
53 “public–private partnerships in which there is a contractual relationship and risk sharing between public and private partners have proven to be successful cooperative means for the provision of public infrastructure and services. A public–private partnership can be described as a venture between a government agency and one or more private companies in which the private party provides a public service or project and assumes financial, technical and operational risk in the project”. (Resp. 12, 2019)
Different models for public–private partnerships reflect the multitude of possible contractual relationships. These may include the short-term service contracts, longer-term delegated management contracts, leases, concessions or so-called build-operate-transfer models.
In a verbatim, partnerships have completed real estate projects such as mixed-use developments, urban renewal through land and property assembly, public facilities such as convention centers and airports, and public services such as affordable and military housing.
4.3.2 The ways in which public-private partnership has stimulated physical infrastructural development in Nakaseke District
The study findings on the ways in which public-private partnership has stimulated physical infrastructural development in Nakaseke District. The research study obtained data through interviews, and the findings are presented, analyzed and interpreted in this section; Table 4.11: The ways in which public-private partnership has stimulated physical infrastructural development
Valid Cumulative Frequency Percent Percent Percent Valid There is wide spread physical 09 18 18 18 infrastructural development
Physical infrastructural is developed 05 10 10 28 majorly because public-private partnership
54 There is increased road network in the 14 28 28 56 area
The local schools have a strong 16 32 32 88 connection with public-private partnership
The revenue collected from public- 06 12 12 100 private partnership is reinvested in physical infrastructure
Total 50 100 100
Source: Field data, 2019 The study findings on the ways in which public-private partnership has stimulated physical infrastructural development revealed that 18% of the respondents agreed that there is wide spread physical infrastructural development, 10% agreed that there is physical infrastructural is developed majorly because public-private partnership, 28% agreed that there is increased road network in the area, 32% agreed that the local schools have a strong connection with public- private partnership and 12% agreed that the revenue collected from public-private partnership is reinvested in physical infrastructure. Regarding the existence of contracts and legal agreements are at the heart of public-private partnership transactions with sound, win-win agreements grounded in the rule of law to achieve the objectives set forth by the Government public-private partnership Policy Framework. In the broadest sense, public-private partnerships cover all types of collaborative arrangements that involve an interface between the public and private sectors to deliver Government (public) policies, services and infrastructure.
55 Table 4.12: The ways in which public-private partnerships has stimulated infrastructural development Valid Cumulative Frequency Percent Percent Percent Valid Co-working in construction of roads 09 18 18 18
Co-working in administration of 21 42 42 60 public health system
Co-working in management of market 20 40 40 100 infrastructures
Total 50 100 100
Source: Field data, 2019 From table 4.12, regarding the ways in which public-private partnerships has stimulated infrastructural development, 18% of the respondents agreed that there is co-working in construction of roads, 42% agreed that there is co-working in administration of public health system and 40% agreed that there is co-working in management of market infrastructures. In this vein, one respondent noted that, “Public-Private Partnerships are now one of the innovative options introduced by Nakaseke Local Government of Uganda to enable public sector procure infrastructure and offer opportunities to improve service delivery and assure better value for money. This is to be achieved through appropriate risk transfers, encouraging innovation, greater asset utilization and integrated whole-of-life management”. (Resp. 13, 2019)
It is envisaged that the Public-Private Partnership Programme will be the vehicle for effective private sector participation in the provision of infrastructure and services at national and local government levels.
56 Table 4.13: How challenging it is to realize physical infrastructural development Valid Cumulative Frequency Percent Percent Percent Valid There is constant occurrence of 29 58 58 58 corruption
There is occurrence of low financial 13 26 26 84 allocation
Occurrence of low technical 08 16 16 100 proficiency
Total 50 100 100
Source: Field data, 2019 The research study on how challenging it is to realize physical infrastructural development and coupled with the administrative mishaps in the management of Public-Private Partnership Programme revealed that 58% of the respondents agreed that there is constant occurrence of corruption, 26% agreed that there is occurrence of low financial allocation and 16% agreed that there is occurrence of low technical proficiency. Local governments have been the main provider of public infrastructure and other public goods. Budgetary constraints, however, have made alternative options for financing necessary to supplement government resources. And, in this, experience shows that the private sector can successfully finance and manage investment in public infrastructure efficiently and profitably to supplement government-led public spending.
Public–private partnerships possess the potential to help Nakaseke Local Government raise the money it needs to fund investment in its infrastructure, analyses public-private partnerships’ (PPPs) potential to mobilize private capital to bridge the gap in financing, something which would also help tackle poverty and improve the lives of the people in the area.
The study focuses on how improvements in the management of public-private partnerships could help raise money to finance infrastructure. Global experience shows the private sector to be more efficient at mobilizing resources for investment in infrastructure and at managing investment in infrastructure. Uganda has introduced the legal and regulatory frameworks for public-private partnerships but still lacks the institutions to execute these policies. In a verbatim,
57 Sebudde(2017), Uganda currently has a financing gap of about US$1.4 billion a year for infrastructure investment, but the cost of inefficient infrastructure is also high, estimated at US$300 million a year, due mainly to corruption especially underpricing and the sector’s inability to complete projects within budget and on time.
The country’s most successful public-private partnerships, the Umeme concession has distributed electricity more efficiently. Since March 2005, the company has increased the collection of sales revenue from 65 percent in March 2017 to 98 percent in June 2017, and improved people’s access to power in areas within reach of its services. But, despite its success, it has been tainted by operational and governance problems. A parliamentary assessment found irregularities and manipulation in the procurement of the concession, and the power distribution agreement had to be revised to minimize costs to the government.
The success of public-private partnerships depends on the government’s ability to establish a framework with laws, systems, processes, and contracts that promote financially viable Public– private partnerships, especially where there are natural monopolies or market failures (Rachel Sebudde, 2017). To maximize the benefits of Public–private partnerships, the government must allocate sufficient resources to make sure projects are prepared well. The selection of PPP projects should involve analysis to verify that a project is feasible, attractive to the private sector, and provides value for money.
4.4 Outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District
The research study on how outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District are presented, analysed, interpreted in this section;
58 Table 4.15: How outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District
Valid Cumulative Frequency Percent Percent Percent Valid There is procurement planning 13 26 26 26
There is centralized procurement 07 14 14 40 planning
All departments are involved in 07 14 14 54 procurement planning
There is acquisition of the required 06 12 12 66 construction items
Lobbying and advocacy for increased 05 10 10 76 central government support with funds
There is timely provision of supplies 05 10 10 86
The constructions are met on schedule 05 10 10 96
The projects are done with expertise 02 04 04 100
Total 50 100 100
Source: Field data, 2019 The research study on how outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District revealed that 26% of the respondents noted that there is procurement planning which involves identifying the procurement needs, requirements, quantity and when. In addition to that, 14% of the respondents noted that there is centralized procurement planning where by all departments are engaged in planning for the procurements that is when they should be held, 14% agreed that all departments are involved in procurement planning by presenting their requirements and debating them for approval, whereas 12% agreed that there is acquisition of the required construction items such as culverts,
59 pipes, stones and others in roads construction for example at Mawale, Lumansi bridge and so on. Furthermore, 10% of the respondents noted that there is lobbying and advocacy for increased central government support with funds to finance the development projects including road construction, maintenance of the infrastructures in usable state. The research study found out that 10% of the respondents agreed that there is timely provision of supplies for use in the various departments although usually there is bureaucratic red tape which is , however, not a big case, 10% agreed that the constructions are met on schedule and 04% agreed that the projects are done with expertise. Table 4.15: The political strategies for improving Public-Private Partnerships Valid Cumulative Frequency Percent Percent Percent Valid Pursuit of the government 27 54 54 54 developmental Manifesto
Lobbying and advocacy for increased 07 14 14 68 central government support
Ensuring targeted allocation of 10 20 20 88 projects
Identifying fitting private partners for 06 12 12 100 projects
Total 50 100 100
Source: Field data, 2019 The research study set out to establish the political strategies for improving Public-Private Partnerships, and the results obtained revealed that 54% of the respondents agreed that the local leaders being mainly government cadres work and build their public-private partnerships based on the government developmental Manifesto of 2016 about social transformation, wealth creation and job creation which empowers the local government to partner with private service providers such as Wamiko Constructions in road development. And in addition to that 14% noted that there is constant lobbying and advocacy for increased central government support in allowing and identifying viable private partners for example in fostering Operation Wealth
60 Creation, for example Uganda Coffee Development Authority working in partnership with Kyagalannyi Coffee Factory, and furthermore, 20% agreed that they are ensuring targeted allocation of projects for example, and 12% noted that they are identifying fitting private partners for projects.
For Nakaseke Local Government seeking to expand infrastructure, the public-private partnership offers an option that lies somewhere between public procurement and privatization. Ideally, it brings private sector competencies, efficiencies, and capital to improving public assets or services when governments lack the upfront cash. Companies involved in roads development and other services agree to take on risk and management responsibility in exchange for profits linked to performance. In light with this, the World Bank (ISABEL MARQUES DE SÁ, 2017), public- private partnerships help; they can provide more efficient procurement, focus on consumer satisfaction and life cycle maintenance, and provide new sources of investment in physical infrastructure development for example the private health centres which have sprung up to support Nakaseke District Hospital services. And one respondent agreed that, ”at the same time, public-private partnerships typically cost more that straightforward public procurement: they only attract investors if the public pays both for the project and a profit for the private partners”. (Resp. 13 RPT, 2019)
Table 4.16: The economic strategies for improving Public-Private Partnerships
Valid Cumulative Frequency Percent Percent Percent Valid Better and improved financial 22 44 44 44 planning through better budget allocation
Private sector investment to support 17 34 34 78 Operation Wealth Creation
61 Promote improved and coordinated 11 22 22 100 infrastructure technical planning and development
Total 50 100 100
Source: Field data, 2019 The research study on the economic strategies for improving Public-Private Partnerships found out that 44% of the respondents agreed that there is better and improved financial planning through better budget allocation to boost health, education and road works, 34% noted that the private sector investment to support Operation Wealth Creation by supporting local farmers in Kawumu, and 22% noted that the promote improved and coordinated infrastructure technical planning and development. In the verbatim, measures and actions to optimize the contribution of investment, in particular private sector investment to trade facilitation, with a particular focus on its impacts on international transport networks and on the efficiency of transport services and their contribution to trade facilitation.
Inadequate and poorly maintained infrastructure represents one of the largest barriers to efficient transport and connectivity. By working with private stakeholders, governments of developing countries can leverage capital for investments in infrastructure and promote improved and coordinated infrastructure planning, support to the implementation process of the Almaty Programme of Action (1978), including the analysis of bottlenecks between landlocked and transit developing counties, and possible appropriate solutions to address them, such as best practices in the development and use of transport infrastructure, as well as the adoption of common standards.
62 Table 4.17: The social strategies for public-private partnerships Valid Cumulative Frequency Percent Percent Percent Valid Establishing support for education 18 36 36 36 services
Establishing support for health 25 50 50 86 services
Establishing support for community 07 14 14 100 services
Total 50 100 100
Source: Field data, 2019 The research study set out to examine the social strategies for Public-Private Partnerships and the findings showed that 36% of the respondents noted that there is establishment of support for education services through supporting Universal Secondary education in private schools which have agreed to partner with the government, 50% noted that there is support for health services more so departments such as those in charge of fostering immunization and 14% noted that they are establishing support for community services like mobilization for local development projects such as mobilization for security and self-help projects.
4.5 The following data was obtained and expounded through interviews and documentary analysis.
Prior to the formulation of the PPP Framework Policy by the Ministry of Finance Planning and Economic Development, the Ministry of Local Government was supported by the United Nations Development Programme to implement a Public-Private Partnerships for the Urban Environment (PPPUE) project (July 2002-April 2004). The project, implemented in 6 municipalities of Uganda, was a collaborative undertaking between the Ministry and an NGO, Living Earth Uganda. It provided invaluable insights and lessons in the application of PPPs towards delivery of pro-poor services in the country. The project demonstrated that offer an alternative to full privatization by combining the advantages of both sectors, namely the social
63 responsibility, environmental awareness and public accountability of the public sector, with the finance, technology, managerial efficiency and entrepreneurial spirit of the private sector.
The study obtained data in line with the Public Procurement and Disposal of Public Assets Act, 2003 guidelines which are designed for use by Nakaseke Local Governments, desiring to partner with the private sector in the delivery of infrastructure and public services in their areas of jurisdiction. These guidelines apply to a wide range of projects, and are in line with the Public- Private Partnerships Policy Framework of 2010 and the related Guidelines as well as the Public Procurement and Disposal of Public Assets Act, 2003. They are intended to promote efficient and value for money procurement including keeping transaction costs as low as possible. The guidelines will be reviewed and revised as frequently as may be deemed appropriate, to accommodate any emerging concerns and developments.
4.5.1 The Constitution of the Republic of Uganda
The PPP Policy Framework (2010) derives its legal force from the Constitution of Uganda (1995) which provides the overall legal policy framework for the Central Government to plan and implement development program to benefit all the people in the country. It is in this light that the Ministry of Finance Planning and Economic Development developed the Public Private Partnerships Policy. One local leader noted that, “the Constitution also mandates Local Governments like Nakaseke district to prepare comprehensive and integrated plans within an agreed upon development planning cycle, to generate and apply locally generated revenues in accordance with established laws”. (Resp. 11, RPT, 2019)
It is in this connection that the Ministry of Local Government has undertaken to develop the Public-Private Partnership Guidelines to support implementation of the National PPP Policy Framework at the Local Government level.
64 4.5.2 The National Development Plan (2010/11 – 2014/15)
The vision of Uganda‘s overarching planning framework is to: transform the Ugandan society from a peasant to a modern and prosperous country within 30 years. To realize this vision, the Plan sets out a number of development objectives under the overall theme of Growth, Employment and Socio-economic transformation for prosperity.
Therefore,
‘In order to realize the development objectives the NDP positions the private sector as the engine of growth, employment and prosperity with Government actively promoting and encouraging public private partnerships in a rational manner. The NDP recognizes that for Uganda as whole and local governments in particular, to finance the proposed interventions there is need for financial resources mobilization’.
(Resp. 9 RPT, 2019)
For this reason a financing strategy through public-private partnerships (PPPs) was identified as one of the various viable options. PPP is defined by the Plan as the cooperation between the public and private sectors with the aim to improve the quantity, quality and efficiency of public services. Accordingly, PPPs will be encouraged and promoted in the provision of infrastructure and energy services as well as huge undertakings which require substantial financial resource outlay.
4.5.3 The Public-Private Partnership Framework Policy for Uganda, (2010)
In keeping with the above development strategy, the Government of Uganda adopted a policy of Public-Private Partnerships (PPP) as a tool for the provision of improved public services and public infrastructure based on the principle of better value for money, appropriate risk transfer and management and taking advantage of private sector innovations. It is also a tool for improved fiscal moderation and control of public debt. Better utilization and allocation of public funds that is more efficient development and delivery of public infrastructure, good quality public services that is increased economic growth and foreign direct investments. According to the policy, implementation will remain with the relevant Government departments and state
65 enterprises in charge of the provision of the public service or infrastructure in question and local government authorities shall be responsible for identifying, developing and managing PPP projects; nevertheless, they will have to consult with the Ministry of Finance Planning and Economic Development on the policy issues and the PPP Unit for appropriate project support.
4.5.4 The Local Governments Act Cap. 243
The Constitution of the Republic of Uganda ratified decentralization as a system focused on bringing services nearer to the people. Specifically, Chapter Eleven, Article 176 provides for local government system and decentralization is a principle, applying to all levels of local government and in particular from higher to lower local government units to ensure people‘s participation and democratic control in decision-making.
To operationalize the above constitutional mandate, the Government enacted the Local Governments Act in 1997, as Act 1 of 1997, now Cap. 243 as at 31st December 20101 to, among other things, give effect to decentralization and devolution of political, administrative, and financial decision-making powers to local governments and administrative units. In addition, the Local Government Association enhances good governance and democratic participation in and control of decision making by the people within their communities; provides for revenue and the political and administrative set up of local governments and others. According to the Local Government Association, the powers assigned to Local Governments include, but not limited to making local policies and regulating the delivery of services and formulating development plans based on locally determined priorities. With this understanding, and as sated under the PPP Policy Framework, Local Governments have direct responsibility in implementing the policy since they are mandated to deliver services and, to some degree, provide infrastructure to their residents.
The Local Government Finance Commission notes that enhancement of local revenue mobilization is a critical intervention provided for under the Decentralization Policy and Strategy Framework‘. It further notes that performances of the local revenue sources remain extremely poor, making it difficult for Local Governments to finance decentralized services‘. The Commission further notes that there are innovative ways of enhancing revenue that had been recommended to Local Governments, including procedures for Public Private Partnerships for
66 more effective revenue mobilization; and the development of a guide for prioritization and selection of revenue enhancement best practices based on Cost Benefit Analysis.
4.5.5 The Local Governments Financial and Accounting Regulations, 1998 Amended In 2007
The regulations were formulated to support the implementation of the Local Governments Act, Cap 243as at 31st December 2010. These regulations provide the necessary guidance on budgeting, revenue collection, expenditure management, and financial management, accounting and audit issues. The Act and regulations provide the legal and operational foundation for the implementation of the Public Private Partnerships within Local Governments. They define the roles and responsibilities of the local governments, the private sector and beneficiary communities.
4.5.6 The Local Government Procurement Regulations
Following the enactment of the Public Procurement and Disposal of Public Assets Authority Act, 2003 (PPDA Act) the Local Governments Act was amended in 2006 to give effect to the replacement of the Tender Boards of Local Governments with Contracts Committees; regulation of procurement procedures of Local Governments to ensure accountability in local government procurement system and to provide for other related matters. The amended Local Government Association also provided for establishment of Procurement and Disposal Units in every district whose functions are clearly spelt out in the PPDA Act, 2003 and at the same time Municipal Contracts Committees were provided for with extended functions to serve Municipal Divisions. However, these regulations do not contain any specific provision for public-private partnerships.
4.5.7 The Fiscal Decentralization Strategy
The Fiscal Decentralization Strategy was formulated and is being implemented to allow regional and local governments to develop, approve and execute their own budgets; raise and utilize resources according to their own priorities in line with legal provisions contained in the Local Governments Act and the Regulations; and utilize conditional, unconditional and equalization or any other grant from the centre in line with central government guidelines and local priorities
67 In a verbatim linking PPP in Nakaseke and Uganda at the local and national levels, it is acknowledged that Uganda has instituted legal and regulatory reforms, including the Public– private partnership Policy Framework (in 2010), and the Public–private partnerships Act (approved in 2015), but as a country it still lacks the institutions to implement these policies. Based on experience in Uganda and global best practices, the Update recommends areas of improvement to allow Public–private partnerships to achieve their intended objectives:
i. Establish appropriate institutions to put existing legal and policy frameworks into practice. This can be done by building the capacity of the central PPP unit and other contracting authorities to enable them to prepare, appraise, and provide better oversight. ii. Improve the mobilization of budgetary and non-budgetary resources, including from our own domestic resources and from bilateral and multi-lateral donors. Setting up a Project Development Facilitation Fund would help fund project preparation and a robust Public– private partnerships pipeline, as well as act as a liquidity reserve to serve as a backstop for liabilities. iii. Key information related to both operational and pipeline projects, including the iv. Public–private partnership database should be publicly disclosed in a timely manner to ensure greater transparency and accountability, enhance competition, stimulate investor interest, and allow better stakeholder and citizen engagement and involvement in decision-making. v. While the government is expediting the development of the pension sector and implementing the Capital Markets Master Plan, it should also mobilize domestic currency financing by establishing syndicates of commercial banks and large surplus institutions to finance Public–private partnerships, such as pension funds, particularly the National Social Security Fund (NSSF). Innovative mechanisms such as infrastructure debt funds can also be formed.
Local Economic Development is a Sixth Pillar of decentralization. Like PPP, local economic development approach is pegged on a tripartite partnership arrangement between Local Government, the private sector and the community with the primary objective to establish a framework for local governments to promote private business investments, increased household
68 incomes and revenue generation. The basic difference between LED and PPP is that the former is focusing on building private sector capacity through local economy enhancement; the latter is focusing on infrastructure and public service delivery through leveraging private sector resources and skills. The two initiatives are, however, mutually re-enforcing.
The Uganda National Industrial Policy prioritizes the strengthening of PPP in order to ensure a leading role for the private sector in the country‘s industrial transformation and economic development. The key consideration is to achieve government commitment of creating a vibrant and competitive industrial sector with an enabling environment in which the private sector can lead the country‘s economic growth objectives.
69 CHAPTER FIVE: Summary, Conclusionand Recommendations
5.0 Introduction
This chapter provides the summary, conclusion and recommendations on public private partnership and how it affects physical infrastructural development in Nakaseke District. The study was based on the following objective, that is to establish how pooling human and financial resources influence physical infrastructural development inNakaseke District, to discover the ways in which outsourcing private service providers Influence physical infrastructural development inNakaseke District and to determine how outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District.
5.1 Summary of the findings
5.1.1 Pooling human and financial resources influence physical infrastructural development in Nakaseke District
The study on how pooling human resources influence physical infrastructural development in Nakaseke District revealed that there is bringing together private road construction companies for example Spencon, Roko constructions and others for betterment of public works. According to the study, they are employing both public and private supervisors for public works, there is pooling technical experts for unified planning and there is pooling technical experts for unified supervision.The study findings on the social services where public-private partnership has been developed especially physical infrastructural planning, the local government contracting and tender committee usually contracts private road constructors like Mukalazi Constructors on the grading and maintenance of roads by paving and grading them for public usage.
A number of small scale and large-scale private contractors have been given contracts to construct and maintain roads for example Bamunanika-Semuto, Nakaseke-Kawumu, Kalasa- Mawale, Semuto-Kapeeka roads and others which has made them largely passable throughout the seasons. The main characteristics of a Public-Private Partnership that are considered to lead to efficiency gains in comparison to so-called conventional procurement are the lifecycle approach, the risk transfer with a balanced risk allocation, the creation of incentive structures and leveraging of innovation potential through results-oriented performance description and
70 remuneration, the use of private expertise and capital, the long-term relationships on a partnership basis and, in particular, governed by contractual provisions. The generation of efficiency gains as the core argument for the application of Public-Private Partnership as a method of procurement of works in Nakaseke District seems to be of much importance in this emerging district.
The study findings revealed that there are various ways of identifying public-private partnership in Nakaseke District where public-private partnership has been developed especially physical infrastructural planning. The respondents stated that there is performance-based payments corresponding to the services set out in the specifications or list of services, there is availability- based payments corresponding to the availability of premises, areas and facilities, equipment and others volume-based payments corresponding to the consumption of water, electricity, gas and others, results-based payments corresponding to contractually agreed optimization targets and there is usage-based payments, which can be further broken down into frequency of use.
The key characteristic of this kind of Public Private Partnership in Nakaseke District is the transfer to private bidders for a limited period of time of integrated services relating for example to the planning, construction, financing, maintenance and operation in a lifecycle approach of public infrastructure, this was previously performed by the public sector. Public Private Partnerships of this kind also exist in other areas of procurement such as procurement of equipment, service vehicles and other utilities that can fit in this. According to Wandera (2019), the lack of funds is likely to delay the plan which could attract more investment projects at the gazetted industrial park in Nakaseke District. The rapidly growing population calls for better planning and as local leaders, they are happy that the district leaders have championed the physical plan project for the area. The industrial park zone, according to Nakaseke District leaders, stretches to four out of the five parishes of Kapeeka Sub-county and covers more than 8 square miles.The study found out that the main objective of Public-Private Partnerships is in the field of infrastructure management that is the design, construction, finance, maintenance and operation of it. It is usually to generate efficiency gains for the public sector in the provision of related services. These are generally evaluated in, so-called “value for money tests” and checked by the responsible audit authorities.
71 5.1.2The ways in which outsourcing private service providers Influence physical infrastructural development in Nakaseke District
According to the study, the main characteristics of a Public-Private Partnership that are considered to lead to efficiency gains in comparison to so-called conventional procurement are the lifecycle approach, the risk transfer with a balanced risk allocation, the creation of incentive structures and leveraging of innovation potential through results-oriented performance description and remuneration, the use of private expertise and capital, the long-term relationships on a partnership basis and, in particular, governed by contractual provisions.
From the study, public-private partnership has been developed especially physical infrastructural planning, the local government contracting and tender committee usually contracts private road constructors Mukalazi Constructors on the grading and maintenance of roads by paving and grading them for public usage, employing private supervisors for public roads and building works in public schools on consultancy basis and Nakaseke Local Government is involved in sub-contracting private companies such as Roko Construction in surveying and development of physical infrastructures for better planning in the area. Public-Private Partnership is used in Nakaseke District by Nakaseke District Administration and Uganda to implement public tasks like road works development. However, in this verbatim, the term is very unspecific and stands for a multitude of complex approaches. This often leads to confusion between the stakeholders making it difficult to jointly develop, evaluate and/or monitor PPP projects.
The study found out that the main objective of Public-Private Partnerships is in the field of infrastructure management that is the design, construction, finance, maintenance and operation of it. It is usually to generate efficiency gains for the public sector in the provision of related services. These are generally evaluated in, so-called “value for money tests” and checked by the responsible audit authorities. There is performance-based payments corresponding to the services set out in the specifications or list of services, there is availability-based payments corresponding to the availability of premises, areas and facilities, equipment and others volume-based payments corresponding to the consumption of water, electricity, gas and others, results-based payments corresponding to contractually agreed optimization targets and there is usage-based payments, which can be further broken down into frequency of use, the shadow toll for roads or fees that
72 reflect the number of users of a swimming pool, a sports hall or another public facility and intensity of use, such as in the case of shadow tolls with diverging rates based on axle loads or emissions.Public Private Partnerships or its commonly used abbreviation has become an important way of implementing public tasks and providing public services around the district.
There is often great confusion in the local discussions between the different stakeholders like politicians, project executing agencies, private investors, auditing authorities, the community and others who may be concerned simply because they all use the term Public Private Partnerships, and they understand it differently but all know that the relationship exists between government as a public player and the private investors on the other hand. The key characteristic of this kind of Public Private Partnership in Nakaseke District is the transfer to private bidders for a limited period of time of integrated services relating for example to the planning, construction, financing, maintenance and operation in a lifecycle approach of public infrastructure, this was previously performed by the public sector. Public Private Partnerships of this kind also exist in other areas of procurement such as procurement of equipment, service vehicles and other utilities that can fit in this.
5.1.3 Outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District
The study found out that there is procurement planning which involves identifying the procurement needs, requirements, quantity and when. In addition to that, there is centralized procurement planning where by all departments are engaged in planning for the procurements that is when they should be held, all departments are involved in procurement planning by presenting their requirements and debating them for approval, there is acquisition of the required construction items such as culverts, pipes, stones and others in roads construction for example at Mawale, Lumansi bridge and so on. There is lobbying and advocacy for increased central government support with funds to finance the development projects including road construction, maintenance of the infrastructures in usable state, there is timely provision of supplies for use in the various departments although usually there is bureaucratic red tape, the constructions are met on schedule and the projects are done with expertise.
73 The study found out that the political strategies for improving Public-Private Partnerships, the local leaders being mainly government cadres work and build their public-private partnerships based on the government developmental Manifesto of 2016 about social transformation, wealth creation and job creation which empowers the local government to partner with private service providers such as Wamiko Constructions in road development. There is constant lobbying and advocacy for increased central government support in allowing and identifying viable private partners for example in fostering Operation Wealth Creation, for example Uganda Coffee Development Authority working in partnership with Kyagalannyi Coffee Factory, ensuring targeted allocation of projects for example, and identifying fitting private partners for projects.
According to the study, there is better and improved financial planning through better budget allocation to boost health, education and road works, the private sector investment to support Operation Wealth Creation by supporting local farmers in Kawumu, and the promote improved and coordinated infrastructure technical planning and development. In the verbatim, measures and actions to optimize the contribution of investment, in particular private sector investment to trade facilitation, with a particular focus on its impacts on international transport networks and on the efficiency of transport services and their contribution to trade facilitation. Regarding the social strategies for Public-Private Partnerships, there is establishment of support for education services through supporting Universal Secondary education in private schools which have agreed to partner with the government, there is support for health services more so departments such as those in charge of fostering immunization and they are establishing support for community services like mobilization for local development projects such as mobilization for security and self-help projects.
The study found out that the Public Procurement and Disposal of Public Assets Act, 2003 guidelines which are designed for use by Nakaseke Local Governments, desiring to partner with the private sector in the delivery of infrastructure and public services in their areas of jurisdiction. These guidelines apply to a wide range of projects, and are in line with the Public- Private Partnerships Policy Framework of 2010 and the related Guidelines as well as the Public Procurement and Disposal of Public Assets Act, 2003.
The PPP Policy Framework (2010) derives its legal force from the Constitution of Uganda (1995) which provides the overall legal policy framework for the Central Government to plan
74 and implement development program to benefit all the people in the country. It is in this light that the Ministry of Finance Planning and Economic Development developed the Public Private Partnerships Policy. The Constitution also mandates Local Governments like Nakaseke district to prepare comprehensive and integrated plans within an agreed upon development planning cycle, to generate and apply locally generated revenues in accordance with established laws. In order to realize the development objectives the NDP positions the private sector as the engine of growth, employment and prosperity with Government actively promoting and encouraging public private partnerships in a rational manner. The NDP recognizes that for Uganda as whole and local governments in particular, to finance the proposed interventions there is need for financial resources mobilization.
For this reason a financing strategy through public-private partnerships (PPPs) was identified as one of the various viable options. PPP is defined by the Plan as the cooperation between the public and private sectors with the aim to improve the quantity, quality and efficiency of public services. The Government of Uganda adopted a policy of Public-Private Partnerships (PPP) as a tool for the provision of improved public services and public infrastructure based on the principle of better value for money, appropriate risk transfer and management and taking advantage of private sector innovations. It is also a tool for improved fiscal moderation and control of public debt. Better utilization and allocation of public funds that is more efficient development and delivery of public infrastructure, good quality public services that is increased economic growth and foreign direct investments. The Constitution of the Republic of Uganda ratified decentralization as a system focused on bringing services nearer to the people. Specifically, Chapter Eleven, Article 176 provides for local government system and decentralization is a principle, applying to all levels of local government and in particular from higher to lower local government units to ensure people‘s participation and democratic control in decision-making.
According to the study, the Government enacted the Local Governments Act in 1997, as Act 1 of 1997, now Cap. 243 as at 31st December 20101 to, among other things, give effect to decentralization and devolution of political, administrative, and financial decision-making powers to local governments and administrative units. According to the Local Government Association, the powers assigned to Local Governments include, but not limited to making local policies and regulating the delivery of services and formulating development plans based on
75 locally determined priorities. The Uganda National Industrial Policy prioritizes the strengthening of PPP in order to ensure a leading role for the private sector in the country‘s industrial transformation and economic development.
5.2 Conclusion
According to the study,public-private partnership has been developed especially physical infrastructural planning, the local government contracting and tender committee usually contracts private road constructors Mukalazi Constructors on the grading and maintenance of roads by paving and grading them for public usage, employing private supervisors for public roads and building works in public schools on consultancy basis and Nakaseke Local Government is involved in sub-contracting private companies such as Roko Construction in surveying and development of physical infrastructures for better planning in the area. Public- Private Partnership is used in Nakaseke District by Nakaseke District Administration and Uganda to implement public tasks like road works development. Main characteristics of a Public-Private Partnership that are considered to lead to efficiency gains in comparison to so- called conventional procurement are the lifecycle approach, the risk transfer with a balanced risk allocation, the creation of incentive structures and leveraging of innovation potential through results-oriented performance description and remuneration, the use of private expertise and capital, the long-term relationships on a partnership basis and, in particular, governed by contractual provisions. Public Private Partnerships of this kind also exist in other areas of procurement such as procurement of equipment, service vehicles and other utilities that can fit in this.
The study revealed that concession agreement is specifically targeted towards financing, designing, implementing and operating infrastructure facilities and the collaborative ventures are built around mutually agreed allocation of resources, risks and returns, and these are collaborative efforts, between private and public sectors, with clearly identified partnership structures, shared objectives, and specified performance indicators for delivery of services has seen real progress over the last years in attracting private investment into the infrastructure sectors. Public-Private Partnership projects in addition to provide finance also lead to efficient use of resources, availability of modern technology, better project design and implementation, faster implementation, reduced lifecycle costs and optimal risk allocation which are not readily
76 produced by other agencies. Nakaseke Local Government often seek co-financing through public-private partnerships and multilateral institutions. Public-Private Partnership is an approach that Nakaseke District government has adopted to foster infrastructure development and meet the rapid urbanization growth in the country. Public–private partnerships in which there is a contractual relationship and risk sharing between public and private partners have proven to be successful cooperative means for the provision of public infrastructure and services.
Public-Private Partnerships are now one of the innovative options introduced by Nakaseke Local Government of Uganda to enable public sector procure infrastructure and offer opportunities to improve service delivery and assure better value for money. It is envisaged that the Public- Private Partnership Programme will be the vehicle for effective private sector participation in the provision of infrastructure and services at national and local government levels. There are several legal systems in place which favour PPPs in places like Nakaseke Local Government including; the Public Procurement and Disposal of Public Assets Act, 2003, the Public-Private Partnerships Policy Framework of 2010, The PPP Policy Framework (2010) which derives its legal force from the Constitution of Uganda (1995) which provides the overall legal policy framework for the Central Government to plan and implement development program to benefit all the people in the country, and Article 176 of the 1995 Constitution of Uganda provides for local government system and decentralization is a principle, applying to all levels of local government and in particular from higher to lower local government units to ensure people‘s participation and democratic control in decision-making. The Local Governments Act in 1997, as Act 1 of 1997, now Cap. 243 as at 31st December 2010, gives effect to decentralization and devolution of political, administrative, and financial decision-making powers to local governments and administrative units. Therefore PPPs are and should be an integral part of the functioning of Nakaseke Local government if they are to achieve their goal of infrastructural effective service delivery.
5.3 Recommendations of the study
The study regarding the effectiveness of the public-private partnership and how it affects physical infrastructural development in Nakaseke District has been well exhausted, and thus the following recommendations are given;
77 i. The Government and private sector should promote PPPs for effective delivery of education, health care, agriculture activities in all areas of their jurisdiction to ensure that an effective health services is promoted for better ambience in learning. ii. Both public and private sector should conduct sophisticated training in the management of PPPs among the local government leaders and staff to run work with private players effectively and extend them to the community which they serve. . iii. There should be improvement in the service delivery status so that they can get better knowledge to improve and enhance knowledge on PPPs for extended benefits for the people these leaders serve.
5.4 Areas for further study
The following areas can be further explored; a) PPPs and health promotion in Local Government in Uganda b) Assessing the importance of PPPs in promoting education for rural areas in Uganda c) Review of PPPs for better health support in the community
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85 APPENDICES
APPENDIX 1: QUESTIONNAIRE
I am Ayine Bridget, a student of Nkumba University undertaking research titled,
“PUBLIC PRIVATE PARTNERSHIP AND PHYSICAL INFRASTRUCTURAL DEVELOPMENT IN LOCAL GOVERNMENT IN UGANDA:A CASE OF NAKASEKE DISTRICT)”. I request you to support my study by availing appropriate responses to this questionnaire. The
information you avail shall be used exceptionally and exclusively for academic purposes only.
Looking forward to your support in this endeavor.
Yours,
……………………………….
Ayine Bridget
Student
Section A: Respondents’ personal variables Tick/ fill against the alternative you most agree with
A1. Gender or sex Male Female
18-30 A2 Age bracket 31-40 41-50 51-60 61+
A3. Marital status Married Single Divorced Widowed Certificate A4. Education level Diploma Bachelors Masters
86 Doctorate Others A5. Level of administration in the health centre ……………………………………..
A6. How long have you served in the health 0-5 centre(years) 6-10 11-14 15 +
Section B: How pooling human and financial resources influence physical infrastructural development in Nakaseke District
Sub section B (A) In what ways does the following ways of pooling of human resources influence physical infrastructural development in Nakaseke District?
1. Bringing together private road construction companies ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. Employing both public and private supervisors for public works ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. Pooling technical experts for unified planning ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. Pooling technical experts for unified supervision ……………………………………………………………………………………………… …………………………………………………………………………………………….. 5. Local government leaders are involved in making decisions ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub section B (B) How do the following ways of local government leaders’ involvement in making decisionsinfluence physical infrastructural development in Nakaseke District?
1. Lower local government leaders are involved in making decisions on the suitable projects
87 ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. The local people provide labour resources for projects ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. Local people are involved in maintenance ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. People are employed in the service sector People are employed in the service sector ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Section C: The ways in which outsourcing private service providers influence physical infrastructural development in Nakaseke District
Sub-Section C (A) How do the following ways in which outsourcing private service providers Influence physical infrastructural development in Nakaseke District
1. There is public-private partnership planning at local level ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. The leaders have a good will for public-private partnership ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. There is development of roads through public-private partnership ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. There has been upgrading of local government spatial structures through public-private partnership ……………………………………………………………………………………………… …………………………………………………………………………………………….. 5. The private partnership stimulates environmental management through solid waste management improvement
88 ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-Section C (B) How do the following socio-political factors influence public-private partnership in physical infrastructural development in Nakaseke District
1. There is public-private partnership planning at local level for public/private gains ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. The Local leaders have a good will for public-private partnership ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. There is marked political influence regarding public-private partnership ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. The local people do not have sufficient knowledge about public-private partnership ……………………………………………………………………………………………… …………………………………………………………………………………………….. 5. The public-private partnership is seen as a stimulant for local economic activities ……………………………………………………………………………………………… …………………………………………………………………………………………….. 6. The local people do not have enough capital to enter into public-private partnership ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-Section C (C) How do the following ways in which public-private partnership boost economic development in the area
1. The support and willingness of the district administration to support private developers/ partners ……………………………………………………………………………………………… ……………………………………………………………………………………………..
89 2. The willingness of the local leaders to support the private investors ……………………………………………………………………………………………… ……………………………………………………………………………………………..
3. The local government has decided to increase healthcare expenditure ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. There is modernization of agriculture inputs ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-Section C (D)How effectiveness are the public-private partnership in the enhancement of service delivery
……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-Section C (E) How do the following ways in which public-private partnership stimulate physical infrastructural development
1. There is wide spread physical infrastructural development ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. Physical infrastructural is developed majorly because public-private partnership ……………………………………………………………………………………………… ……………………………………………………………………………………………..
3. There is increased road network in the area ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. The local schools have a strong connection with public-private partnership ……………………………………………………………………………………………… ……………………………………………………………………………………………..
90 5. The revenue collected from public-private partnership is reinvested in physical infrastructure ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-Section C (F) How do the following ways in which public-private partnerships stimulate infrastructural development
1. Co-working in construction of roads ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. Co-working in administration of public health system ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. Co-working in management of market infrastructures ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-Section C (G) How do the following challenges realize physical infrastructural development
1. There is constant occurrence of corruption ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. There is occurrence of low financial allocation ……………………………………………………………………………………………… ……………………………………………………………………………………………..
3. Occurrence of low technical proficiency ……………………………………………………………………………………………… ……………………………………………………………………………………………..
91 Section D: How outsourcing private organizations in procurements partnership stimulated physical infrastructural development in Nakaseke District Sub-section D (A) How do the following outsourcing private organizations in procurements partnership stimulate physical infrastructural development in Nakaseke District
1. There is procurement planning ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. There is centralized procurement planning ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. All departments are involved in procurement planning ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. There is acquisition of the required construction items ……………………………………………………………………………………………… …………………………………………………………………………………………….. 5. Lobbying and advocacy for increased central government support with funds ……………………………………………………………………………………………… …………………………………………………………………………………………….. 6. There is timely provision of supplies ……………………………………………………………………………………………… …………………………………………………………………………………………….. 7. The constructions are met on schedule ……………………………………………………………………………………………… ……………………………………………………………………………………………..
8. The projects are done with expertise ……………………………………………………………………………………………… ……………………………………………………………………………………………..
92 Sub-section D (B) how do the following the political strategies for improving Public-Private Partnerships 1. Pursuit of the government developmental Manifesto ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. Lobbying and advocacy for increased central government support ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. Ensuring targeted allocation of projects ……………………………………………………………………………………………… …………………………………………………………………………………………….. 4. Identifying fitting private partners for projects ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-section D (C) How do the following economic strategies improve Public-Private Partnerships
1. Better and improved financial planning through better budget allocation ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. Private sector investment to support Operation Wealth Creation ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. Promote improved and coordinated infrastructure technical planning and development ……………………………………………………………………………………………… ……………………………………………………………………………………………..
Sub-section D (D) How do the following social strategies work for public-private partnerships
1. Establishing support for education services
93 ……………………………………………………………………………………………… …………………………………………………………………………………………….. 2. Establishing support for health services ……………………………………………………………………………………………… …………………………………………………………………………………………….. 3. Establishing support for community services ……………………………………………………………………………………………… …………………………………………………………………………………………….. Thank you for answering the questionnaire
94 APPENDIX 2: INTERVIEW GUIDE
1. What are the various ways in which public-private partnerships bring about
infrastructural development?
2. What are the various ways does the local government support public-private
partnerships in Nakaseke District?
3. What are the categories of privileges afforded for health workers?
4. In what ways does public-private partnerships stimulate the social, political and
economic aspect of the area?
5. What are some of the public-private partnership projects implemented in Nakaseke
District?
6. How does public-private partnership stimulate economic development in Nakaseke
District?
7. What are the limitations of thepublic-private partnership in bringing about infrastructal development in Nakaseke District? 8. What are ways to improve the community awareness on public-private partnership in
Nakaseke?
9. What can be done to improve attract public-private partnership in Nakaseke District
10. In what ways can the public-private partnership be enhanced for infrastructural
Development in Nakaseke District?
Thank you
95 Appendix 3: Work Plan and Budget Line
a) Research work plan
Period Activities Resources Persons involved February 2019 Submission of the research Scholastic Researcher and supervisor topic materials March-May, Writing of the research Scholastic Researcher and supervisor 2019 proposal materials
June , 2019 Approval of the research Scholastic The supervisor proposal materials June, 2019 Data collection Scholastic Researcher and Respondents materials June, 2019 Submission of the research Scholastic Researcher and supervisor report for corrections materials June, 2019 Submission of the research Scholastic The supervisor report for marking materials
b) Budget Estimates
No Items Quantity Unit cost Amount 1 Transport to and from the field 04 30,000 120,000 2 Typing and printing 08 copies 10,000 80,000 3 Stationery 02 reams 15,000 30,000 4 Binding 04 copies 10,000 40,000 5 Data collection 02 research 50,000 100,000 assistants 6 Up keep 03 50,000 150,000 8 Communication Airtime and - 20,000 internet charges 9 Contingency 50,000 Ground Total 590,000/=
96