Thesis (MBA)--Stellenbosch University, 2011. / Public private partnerships (PPP) are a critical driving force in the landscape of infrastructure projects in the world. South Africa’s adaptation of the PPP guidelines is therefore encouraging as it provides a framework for government and business to partner together in the delivery of basic infrastructure services to the public. Many challenges have been experienced in the South African PPP fraternity that have contributed to the stagnation of value-adding projects being implemented. In spite of these challenges, some developed countries have successfully implemented PPP projects which have concomitantly presented opportunities and lessons that South Africa can draw from. This research study investigates the fundamental causes of the challenges present in the South African PPP market and seeks to employ practical solutions in addressing these. The challenges have been widespread and include: the management of risk and how to account for risk; negotiations and the manner in which the procurement phase is operated in PPP projects; drafting of sound policies; the various complexities that exist within concession agreements; internal capacity constraints within the PPP Unit; lack of capacity and skills within government entities and political interference. Several vulnerabilities also exist in the bidding process of many countries and if these are not properly addressed by the advisors and institutions concerned, these could potentially delay the entire procurement phase. PPPs should be seen as a catalyst for providing basic infrastructure services that have the intent of improving the quality of lives for ordinary citizens. This, however, will only be successfully addressed once key success factors and lessons are drawn from other international markets that have demonstrated experience and skill in the implementation of PPPs. Three case studies, namely, the Gautrain Rapid Railway Link; the PPP between the Eastern Cape Department of Health and Life Healthcare Group in the Humansdorp district and the Inkosi Albert Luthuli Hospital, have been investigated to extrapolate key findings and research findings from the procurement aspects of these projects. With the increase of PPP projects in South Africa, more research also needs to be conducted in putting together a standardisation pack for some of the replicated projects. These would include accommodation and road projects, as many of these have been done previously. Lessons from these projects should be drawn to formulate sound guidelines for stakeholders. Government also has an equal responsibility to play in ensuring that it promotes private sector involvement during the procurement phase by creating an enabling environment which is fair to bidders and which allows for prompt decision making. Principle agent problem continues to be a threat to the perception of PPPs as the private sector’s objective is often different from that of government. It is therefore important that a healthy balance between government’s socio-economic objectives and the profit-maximising objective of the private sector is met. For the public sector thiS means not neglecting society’s needs, but at the same time not under-budgeting the unitary payment of the private sector. If South Africa ought to remain globally competitive and ahead of its emerging market counterparts, there needs to be a complete change of priorities regarding the type of PPPs implemented and government also needs to remain committed and co-operative in the decision-making process.

Thesis (MDF)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: Governments have a pivotal role in meeting the ever-increasing demand for socio-economic services in transport, energy, telecommunications, water, education, health and delivery of other social services. However, the major issue in Mauritius is the lapsus in road infrastructure. The road infrastructure agenda in Mauritius needs to be revisited, as such, maintenance has been insufficient to prevent deterioration and there are some other reasons for the damage. Urgent rehabilitation and reconstruction is required to avoid further damage. Factors such as, deficit of funding, absence of coordination between the public and the private sector, changes in political regimes, lack of transparency in the procurement process and lack of adequate legal framework are factors to which the failure of implementing Public Private Partnership (PPP) in Mauritius can be attributed. However, the implementation of PPP might enhance the nature and efficacy of the way in which public money is spent and encourage resilience and competency of the taxation structure. Governments will therefore be apt to consider strategic partnerships in order to promote state-of-the-art technological advancement and enhance managerial skills and capabilities. Reviews discussed by the Government of Mauritius were taken from annual reports and an in-depth study was carried out. Moreover, as secondary analysis differs from systematic reviews and meta-analyses of qualitative studies, which aim instead to compile and assess the evidence relating to a common concern or area of practice, both secondary analysis and meta-analysis have been used. Therefore, this study comprised of a thorough, narrative discussions of research studies which epitomize attempts to make sense of the rapidly expanding research on PPP in Mauritius. From the narrative discussion, it can be highlighted that, controversy arose over the claims for surplus expenses of Rs 709 million on a preliminary agreement of Rs 2.2 billion. Moreover, due to factors such as massive non-alignment between government and private sector, unclear government goals and duties, multifaceted resolution, sectoral policies not well defined, regulatory challenges and limitations, risk management issues, poor reliability of public policies, insufficient local capital markets, poor mechanisms to attract cheaper long term capital, weak lucidity and absence of a competitive landscape, a delay in the implementation of PPP was encountered. However, an emergence in the number of PPPs has been witnessed in developing countries, not only because of their increasingly being viewed as value-for-money but also for the reasons that follow: enhancing the delivery of public sector services at lower costs, integrating protection of the environment by ensuring fulfilment of green requirements and promoting competition. Reviews and extracts show that Mauritius requires financial support to implement PPP projects. However, the availability of international aid has helped the country to gain faith in the implementation of PPP projects thus, helping the Small Island Developing State of Mauritius to look at the future of its development with confidence.

published_or_final_version / abstract / Transport Policy and Planning / Master / Master of Arts in Transport Policy and Planning

published_or_final_version / Politics and Public Administration / Master / Master of Public Administration

This research reviews and evaluates the FedExâ s Premium Service Program currently being used by DLA customers. The research will examine some of the benefits and costs of this co-locating of DOD warehousing and shipping operation managed by a commercial express transportation carrier. The research will view the possible benefits gained through commercial inventory and transportation practices by partnering a third party logistics service with the Defense Transportation System. DLA and FedEx have formed a partnership called DLA Premium Service. Premium Service is the only DoD warehousing operation that is co-located with and managed by a commercial express transportation carrier at FedEx main transportation hub. Premium Service System allows users to position materials in the Memphis facility for expedited delivery to the required destinations worldwide. All items are guaranteed, under contract, to be delivered to their continental U.S. (CONUS) destination within 24 hours and within 48 hours to outside of CONUS (OCONUS) to the major airports serviced by FedEx. Items will be delivered to the OCONUS final destination 24 hours of release from customs holding area at the airport. The service provides advance notification to streamline customs requirements of all OCONUS shipments.

M.Comm. / PPPs have developed out of a realisation by governments that in order to improve health systems efficiency there is a need to involve the private sector. Governments throughout the world have opted for PPPs to deliver public services, share risks and attain common goals. While the idea of PPPs is not new, it nonetheless has grown in application in recent years especially in developing countries such as South Africa. The neo-liberal GEAR macro-economic policy, that seeked to reduce government spending and to accelerate investment, catalysed the formation of PPPs in South Africa after 1996. The South African health system is a two-tier system consisting of the public sector and private sector. The public health sector is under resourced in terms of health personnel, health resources and funding compared to private healthcare. As a consequence, public health outcomes in South Africa are poor relative to its funding and have deteriorated since 1996, reportedly mainly due to the HIV/AIDS epidemic. On the contrary, private healthcare outcomes are amongst the best in the world. As a result, the demand for private healthcare is higher than that of public healthcare, because it is better resourced and offers better quality care. The research investigates the contribution of PPPs to access quality healthcare in South Africa. The study follows the policy, financial and governance approach to review health PPPs. It suggests that the 7 implemented health PPPs contributed directly and indirectly to improved access to quality healthcare. It recommends the implementation of health PPPs particularly at local government level, to improve access to quality healthcare.

Wits Business School University of Witwatersrand Johannesburg, South Africa Master in Finance and Investment (2014) / Following decades of under-investment, gaps in Africa’s healthcare infrastructure are becoming disturbingly obvious. The interplay of governments’ fiscal policies of budget imbalance reduction and other political considerations present a seemingly insurmountable obstacle to overcoming the backlog in Africa’s healthcare infrastructure. The two main objectives of this study were to understand the sources of financing and the best way to structure the financing of healthcare infrastructure in Africa. Looking at financing arrangements in various industries; and how healthcare sectors in developed countries have been financed, the report draws on perspectives from the financiers on how the healthcare infrastructure gap should be filled in Africa. This study, which utilised survey questionnaires and in-depth interviews, identified government revenues, regional development banks, private equity and donor financing numbers as dominant funding sources for the financing of healthcare infrastructure in Africa. Further, the study explored various ways in which finance could be structured and found that within those various models of financing, donor financing and government revenue were statistically significant on structuring the finance, especially within public-private partnership arrangements. These include sale and lease back arrangements (p=0.0022), complete ownership of projects by the private sector (p=0.003), management operation contracts (p=0.00034) and other forms of PPPs. More perspectives were obtained on enablers and barriers to improving investability of the healthcare sector. Africa’s economic growth and the improving ease of doing business were major enablers for healthcare sector’s investability. However, the role played by government as both a financier and a regulator seemed a barrier. Some structural models that would need government back-up include subordinated debt; with pricing at marginal cost and matching risk and return recovered through the taxation system. The latter continues to characterise much of Africa’s publicly provided healthcare infrastructure. In conclusion, investments in healthcare may not be separated from a country’s level of financial deepening. As the sector develops, it then becomes possible to utilise the models aforementioned. It is recommended that any governments’ investments in healthcare be more catalytic, to unlock value that allows the private sector to compete, both as financiers and innovators in healthcare. Furthermore clear strategies on PPPs are urgently needed for healthcare in Africa including policy consistency in financing and regulating healthcare.

Report submitted in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investment Faculty of Commerce, Law and Management Wits Business School University of the Witwatersrand Johannesburg, South Africa / The development of transportation infrastructure, including airports, plays a vital role in economic growth in emerging markets. However, government budget allocations for this purpose are often insufficient to realise the full benefits. Project finance and Public Private Partnerships (PPPs) in particular, have been used to enable private sector participation in the financing of airport development. Airports PPPs have successfully been implemented worldwide, including, to a lesser extent, in emerging markets and Sub-Saharan Africa (SSA). There is a lack of literature on the benefits, risks, challenges and opportunities associated with airport PPPs in SSA, which this research aims to address. Case studies of recent airport PPPs in Brazil and India provide an outline of the emerging market context and insight into factors that affected these airport PPPs. In-depth interviews with two representatives of governments in SSA provide a rich view on the perceived benefits, risks, challenges and opportunities associated with airport PPPs in Africa. This research has found that airport PPPs can contribute to airport developments in SSA by enabling the private funding of airport upgrades and expansions. However, governments have an important role to play in providing an enabling environment for private investors by improving investability and implementing clear and practical PPP legislation, aviation policies and economic regulation of airport services. The limited institutional capacity and domain expertise of SSA governments is perceived as a challenge to the implementation of airport PPPs in the region. The low level of air traffic and small number of airports that handle more than one million passengers per annum further limit the opportunities for airport PPPs in SSA, although strong GDP growth provides an encouraging sign. Successful airport PPPs require the participation of private consortia with expertise in airport operations, construction and infrastructure concessions. Financing of airport PPPs is done preferably from domestic sources and development finance can play an important role. There are risks associated with the foreign ownership of key national infrastructure and a reliance on private sector to provide public infrastructure. Lighter forms of PPPs that limit the private sector risk exposure may be more suitable to the low-traffic and high-risk environment in SSA. / MT2017

This research report investigated public-private partnerships in the development of affordable housing in Johannesburg. The study evaluated the success of affordable housing projects developed through the joint efforts of the public and the private sector. It explored how the private and the public sector help each other in development projects to ensure successful projects which benefit low to middle (gap market) income households. To do this, the study utilised two affordable/integrated housing development projects in the Johannesburg area. These were the Fleurhof project on Main Reef road and the Pennyville development on New Canada road. Interviews were also conducted to get information from the different stakeholders involved in affordable housing project developments with regards to their experiences, lessons learnt and propositions for better and more efficient running of future such projects. Studies and information received from interviews were evaluated using theoretical frameworks around affordable housing and public private partnerships as to determine if these projects and activity happening in the Johannesburg area is in line with theories and policies developed to guide public-private activity and affordable housing development. The findings from the field study analysis (case studies and interviews) were used to provide recommendations as to what can be done for better outcomes in public-private partnership projects in affordable housing delivery. From the field work it was found that contrary to the study claims and propositions, publicprivate partnership housing developments are benefiting the intended income group and that the private sector has gained confidence and is becoming more and more interested and involved in such projects. This is not to say that no issues were discovered or raised during the study. This is why recommendations were brought forward and these are mainly directed to the public sector. Recommendations include that public sector needs to increase its capacity when it comes to the area of developing affordable housing projects as lack of capacity results in unnecessarily lengthy application approval periods which become very costly when it comes to development. Other recommendations are for better planning and review of procedures for the public sector to be more efficient as the private sector works on time and need payments and other procedures to occur on time to avoid setbacks and strains on public private relationships.

Thesis submitted in partial fulfillment of the requirements for the degree of Master of Management in Finance and Investment Wits Business School University of the Witwatersrand, Johannesburg, South Africa October 2016 / This thesis addresses affordability of private financing for infrastructure in the context limited public sources of funding and a low level development of Uganda’s financial sector. The thesis addresses the factors that influence the cost of private financing of public infrastructure; the influence of the level of development of domestic financial markets in the determination of private financing costs of infrastructure projects; the private sector options feasible for financing Uganda’s infrastructure development and the scope for public sector interventions to reduce the cost of private finance in infrastructure. The research project was undertaken between June 2015 and March 2016.The research methodology was mainly library based and qualitative in nature. However, the approach was dual in nature since both existing sources of information and primary data were used. The study has established that in the face of limited public funding and a deficit in infrastructure development expenditure, private financing for public infrastructure is indispensable. However, it is relatively more costly, with good reason. However, there is scope for the public sector to affect favorably the cost of private financing for infrastructure. In particular, steps to address regulatory, political and country risk are critical. Equally important are measures to address macroeconomic instability and strengthen balance of payment positions as well as reforms to widen and deepen the financial sector. In addition, optimizing project selection and preparation as well as a establishing a credible pipeline of infrastructure projects coupled with suitable financing plans can positively impact the cost of private financing for infrastructure. / MT 2018