THE APPLICATION OF SUSTAINABLE APPROACHES TO REVENUE GENERATION FOR PROCUREMENT OF PUBLIC WORKS IN DISTRICT ASSEMBLIES BY PETER ANSU-MENSAH (PG 9155313) A dissertation submitted to the School of Graduate Studies, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the award of degree of Master of Science in Procurement Management SEPTEMBER, 2014 i CERTIFICATION I hereby declare that this thesis is my own handwork in partial fulfillment of the requirements for the award of degree of Master of Science in Procurement Management and that to the best of my knowledge, all materials and information taken from works of other authors whether published or unpublished have been duly acknowledged. PETER ANSU-MENSAH (PG 9155313) .…………………... .…………………... (Student) Signature Date Certified By: REV. PROF. F.D.K. FUGAR ...…………………. .…………………... (Supervisor) Signature Date PROF. JOSHUA AYARKWA ………….………….. ….……….……… (Head of Department) Signature Date ii DEDICATION This work is dedicated to my dear wife Mrs Monica Ansu-Mensah and my sweet daughter Vanessa Ansu Boamaa iii ACKNOWLEDGEMENTS I owe a debt of gratitude to the Almighty God and to all those who have helped me with this postgraduate study and research work. I give thanks to the Almighty God for giving me the strength and grace for the successful completion of this thesis. I would like to thank my supervisor, Rev. Professor. F.D.K. Fugar, who gave me assistance, support and encouragement throughout this research. I am also indebted to all the lecturers at the Department of Building Technology, especially, Professor Joshua Ayarkwa (HOD), Dr. Emmanuel Adinyira, Dr. Theophilus Adjei-Kumi, Dr. Gabriel Nani, Mr. Peter Amoah, Mr. H. R. Wilson and Mr. Alexander Yaw Kush. To Mrs. Juliana Appiah-Badu, a Secretary at the Department, I say God bless you for your motherly advice and assistance. I would like to also thank Mr. Augustine Peprah, Principal Planning Officer of Pru District Assembly, Yeji, who has been a good brother and a course mate. Honestly, without his encouragement, support and advice this thesis would not have seen the light of the day. Mr. Peprah, May God richly bless you. I am immensely thankful to the Management team and the Revenue Department of Sunyani Municipal Assembly and Sunyani West District Assembly for responding to this study’s questionnaires promptly. Again, my sincere gratitude goes out to Mr. and Mrs. Dubgartey of Volta River Authority (VRA), Hwidiem for your prayers and assistance for me when I lost my mum. To the Dubgarteys, May the Good Lord strengthen you and help you to overcome the unexpected and sudden demise of your eldest daughter. Finally, my profound and heartfelt gratitude goes to my beloved wife Mrs. Monica Ansu- Mensah for her moral support, unfailing love, patience and encouragement. For painstakingly typing this thesis, I say a big thank you Monique. To my lovely daughter Vanessa Ansu Boamaa, God bless you. iv TABLE OF CONTENTS CERTIFICATION ..........................................................................................................................ii DEDICATION ............................................................................................................................... iii ACKNOWLEDGEMENTS .......................................................................................................... iv TABLE OF CONTENTS................................................................................................................ v LIST OF TABLES ....................................................................................................................... viii LIST OF FIGURES........................................................................................................................ ix LIST OF ACRONYMS AND ABBREVIATIONS .................................................................... x ABSTRACT ..................................................................................................................................... xi CHAPTER ONE .............................................................................................................................. 1 INTRODUCTION ........................................................................................................................... 1 1.1 Background to the Study ............................................................................................................. 1 1.2 Statement of the Problem ............................................................................................................ 2 1.3 Aim and Objectives of the Study ............................................................................................... 3 1.4 Research Questions ..................................................................................................................... 4 1.5 Significance of the Study ............................................................................................................ 4 1.6 Scope of the Study....................................................................................................................... 5 1.7 Limitations of the Study.............................................................................................................. 5 1.8 Organisation of the Study ........................................................................................................... 6 CHAPTER TWO ............................................................................................................................. 7 LITERATURE REVIEW .............................................................................................................. 7 2.0 Introduction.................................................................................................................................. 7 2.1 Public Procurement Defined ....................................................................................................... 7 2.2 Importance of Public Procurement ............................................................................................. 8 2.3 Procurement of Public Infrastructural Works ............................................................................ 9 2.3.1Methods for Procurement of Public Infrastructural Works ........................................... 10 2.4 The Definition of Revenue and Revenue Generation ............................................................. 10 2.4.1 Revenue ........................................................................................................................... 10 2.4.2 Revenue Generation ........................................................................................................ 11 v 2.5 Revenue Generation in Developing Countries ........................................................................ 13 2.5.1Internally Generated Revenue Defined .......................................................................... 13 2.6 Sources of Revenue to District Assemblies ............................................................................. 14 2.7 Internally Generated Revenues (IGR) in District Assemblies................................................ 18 2.8 Sustainable Revenue Generation Strategies or Approaches in the MDAs ............................ 19 2.9 The Impact of Revenue Generation for Procurement of Public Works in MDAs ................ 19 2.10 Challenges to Revenue Generation in District Assemblies .................................................. 20 2.10.1 Challenges Defined Conceptually ............................................................................... 20 2.10.2 Challenges to Revenue Generation in District Assemblies ........................................ 20 2.11 Conclusion of the Literature Review ..................................................................................... 21 CHAPTER THREE ...................................................................................................................... 22 METHODOLOGY ........................................................................................................................ 22 3.0 Introduction................................................................................................................................ 22 3.1 Research Design ........................................................................................................................ 22 3.1.1 Research Style .................................................................................................................. 23 3.2 Research Methodology ............................................................................................................. 24 3.2.1 Study Population .............................................................................................................. 24 3.2.2 Sampling Technique and Sample Size ........................................................................... 25 3.2.3 Sources of Data ................................................................................................................ 26 3.2.4 Data Collection Methods ................................................................................................. 26 3.2.4.1 Desk Study ................................................................................................................. 27 3.2.4.2Key Informant Interview ........................................................................................... 27 3.3 Data Analysis Method