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| Format: Ms Word | 1-5 Chapters | Table of Content|


Study Level: BTech, BSc, BEng, BA, HND, ND or NCE

Amount: ₦3,000.00

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Public-Private Partnership (PPP) | B&B Associates LLP



1.1 Background of the Study

Solid waste disposal is a challenge that most countries in the globe face (Majani, 2000). Chandrappa (2012) asserts that solid waste contamination predateds the public’s growing concern over air and water pollution. Solid waste management is a major issue for the ecology and economy everywhere in the world. Estimates indicate that 2.02 billion metric tons of Municipal Solid Waste (MSW) were produced globally in 2006, an increase of % yearly from 2003. Global averages are simply approximations, though, since rates differ significantly by nation, city, region, and even within cities (Schubeler, Wehrle & Christen, 2006). The majority of developing country municipalities still face significant obstacles in effectively managing the rising volumes of waste produced by citizens, despite significant efforts made by some nations in recent decades to improve solid waste management practices (Kaseva & Mbuligwe, 2003; Kitbuah, Asase, Yusif, Mensah & Fischer, 2009). Cities in underdeveloped nations dedicate 20–50% of their available money to solid waste management, according to Zerbock (2003). According to Zerbock (2003), emerging nations do allocate between 20 and 50 percent of their metropolitan income to solid waste management, but their efforts cannot keep up with the problem’s growing scale. Less than half of the population is served, and between 40 and 70 percent of all urban solid trash goes uncollected (UNEP, 2014).

The lack of dumping sites has been a major issue in the management of solid waste, even beyond urbanization and population growth (Kaosol, 2009). It is quite difficult for most local authorities to identify permanent trash disposal sites. Having enough dumping sites to dispose of solid waste has become a frequent challenge for all emerging nations. According to Abul (2010), there are numerous consequences associated with inadequate waste management and inefficient trash collection. According to Boadi and Markku (2005), food contamination by flies that have fed on trash is the cause of the high frequency of diarrhea in children under the age of six. Inadequate treatment of solid waste can also lead to respiratory issues, allergies, gastrointestinal issues, skin, nose, and eye irritation, and psychiatric difficulties. Ineffective solid waste management has also resulted in cholera outbreaks and malaria epidemics (Cointreau-Levine, 1994). According to Buse and Walt (2002, cited in Mutandwa, 2015), the public choice theory anticipates that the government will enact laws that support the provision of public services that maximize citizens’ well-being. The government’s failure in this regard will result in a number of unfavorable effects, such as inadequate waste management (Anazodo, Okoye & Ezenwile, 2012). The market concepts of competition and trade are linked to public choice theory. In order to manage waste in the state or local community, the organizations in charge of providing public services are essential. The agencies are in charge of setting priorities, functions, and jurisdiction as well as the legislative and regulatory framework (Schubeler et al., 1996). Solid waste management programs and policies in Ghanaian cities were developed and carried out by government organizations up until the late 1980s, with little to no private sector involvement (Dinye, 2006). The overall solid waste policy management schemes have numerous issues. The most common issue is a lack of distributed responsibility for various aspects of solid waste management in municipalities. When agencies’ tasks are unclear, efficient service delivery suffers because individuals, agencies, and citizens all need clear roles in solid waste management. This has not been the case, particularly in most poor countries, including Ghana (UNEP, 2000). For example, in the past, many towns and local governments in Ghana used a management system in which waste collection was handled by the department of health. Technical and financial shortcomings have been a major source of concern when it comes to the issues of solid waste management. Managing solid waste has been shown to be extremely expensive, which most developing countries with tight resources cannot afford. According to UNEP (2000), the presence of a large informal sector that remains unintegrated into the formal waste management system, combined with insufficient mechanization due to local bodies’ poor financial health, has made managing and delivering a well-structured Municipal Solid Waste (MSW) system difficult.

The traditional method of acquiring public infrastructure and services through fiscal budgets is becoming increasingly unsustainable, particularly in developing nations, due to chronic budget deficits. Macroeconomic volatility and rising investment requirements have demonstrated that public financing is limited, fickle, and frequently inefficient (Chege, 2001). This has forced the study of public-private partnerships (PPP), which studies indicate are a feasible alternative and may even dominate infrastructure and service delivery in developing nations in the next years (Rwelamila, 2004). However, the success of PPP in developing nations, particularly Sub-Saharan Africa, does not appear to reflect this optimism, especially in the setting of local governments. Public-private partnerships (PPPs) are arrangements for the procurement of goods and services that use franchising or similar arrangements with the private sector; the private sector is contracted to provide public goods and services on behalf of the government (Regan, 2005). In essence, the private organization becomes the long-term provider of services, while the government purchases them (Grout, 2003; Ahadzi, 2004). PPP plans rely on each partner’s expertise to best address clearly defined public needs through the right allocation of resources, risks, and rewards (CCPPP 2004). PPPs encompass a variety of paradigms that gradually engage the private sector’s skills and resources. On one extreme, there is direct contracting out as an alternative to traditionally supplied public services. On the other hand, there exist systems that are publicly controlled but operate within a framework that allows for private financing, design, construction, operation, and possibly temporary ownership of assets. As a result, an effort is underway to expand the options for delivering public services, ranging from direct provision by a public sector entity to outright privatization, in which the government transfers all responsibilities, risks, and rewards for service delivery to the private sector and the government’s role shifts from provider to enabler and regulator. Due to the difficulties that developing countries experience in managing their solid waste in cities, numerous governments have decided to manage the waste through collaboration with the private sector. PPP assists them in managing trash in a variety of ways, but without a good environment, such as cooperation from public sectors and homes, private sectors struggle to manage garbage successfully. The private sector provides investment, technology, transportation, and other equipment for waste collection in cities.

Nigeria formulated a National Policy on Public-Private Partnerships in 2011 due to the significance of PPP (MOFEP, 2011). Nigeria keeps using public-private partnerships (PPPs) to deliver services because funders and foreign organizations continue to tout PPPs as the most efficient means of delivering services. Onyanta (2012), however, notes that many African countries are becoming increasingly concerned about the involvement of private enterprises. Hodge and Grave (2011) state that judgments of PPP’s performance in service delivery to date are in direct opposition to one another. According to Onyanta (2012), since private sector involvement in service delivery has not produced the anticipated positive outcomes, it is still simply a concept. Although enlisting the help of private companies to provide solid waste management services has frequently produced highly noticeable benefits in numerous circumstances, it is suggested that this approach should not be viewed as a magic bullet or a solution to every issue (Coad, 2005). According to Coad (2005), in the event that a local government body is unable to provide a solid waste management service that meets its needs with its current resources, it will not be able to enlist the help of a private company to do so. According to him (Coad, 2005), integrating the private sector in service delivery leads to greater corruption and misuse of public monies in areas with poor waste management institutions. Awortwi (2004) highlighted that earlier PPPs’ failure to address Nigeria’s sanitation problem was due to a lack of strategic communication (participation). Due to the top-down approach, neither the local people nor their representatives, i.e. assembly members, were involved in the waste management contractual arrangements and implementation. For example, in the Accra Metropolis, a garbage collection contract was awarded to City and Country garbage Limited (CCWL) without consulting the Accra Metropolitan Assembly’s Waste Management Department (WMD). However, Coad (2005) argued that the majority of arguments in favor of private sector participation stem from positive experience, some from a political position, and some from desperation caused by the public sector’s failure to provide public services. Institutional setting, monitoring, governance and regulatory structures, and market connections are critical for the successful implementation of public-private partnerships. Da Zhu et al. (2008) suggest that the institutional framework is critical for Solid Waste Management (SWM) due to the complexity of the partnership and the engagement of numerous parties. Successful PPPs consequently rely on solid institutional arrangements in which the roles of various participants are clearly defined (Hartman 1995). According to the discussions above, even if the public sector failed to provide solid waste services, municipalities continue to face waste management challenges despite private sector involvement. The complexity of providing the appropriate level of service in response to rising demand for sanitation services is typically linked to institutional arrangements at various levels of governance: national, local, and private sectors (Amoah & Kosoe, 2014). Private sector involvement does not ensure effectiveness or low costs, particularly when servicing the urban poor (Schubeler et al., 1996). Monitoring, reporting, and sanctioning in service delivery, whether by the bureau, the market, or collaborative action, must be maintained for efficiency to occur (Awortwi, 2004). This is emphasized in the Principal Agent Theory. The challenges involved with service delivery by both the public and private sectors highlight the institutional frameworks required for efficient PPP in solid waste management.

According to institutional theory, norms and regulations govern relationships inside a human service sector rather than market exchanges (Hasenfeld & Garrow, 2009). Da Zhu et al. (2008) contend that the institutional framework is critical for solid waste management due to the complexity of the waste management (WM) system and the involvement of numerous actors. That is, if institutional structures are not thoroughly examined, effective solid waste management will continue to be a challenge. The institutional framework, governance and regulatory mechanisms, and performance monitoring are critical to the effectiveness of solid waste management. However, in most cities and villages, waste management efforts have been hampered by inadequate institutional and legal frameworks (Da Zhu et al. 2008). Despite state and local governments’ increased emphasis on Municipal Solid Waste Management (MSWM), delivering cheap and sustainable waste management services remains one of Ghana’s most significant municipal concerns. In Ghana, the Metropolitan/Municipal/District Assemblies (MMDAs) are in charge of various practical aspects of waste management, overseen by the Ministry of Local Government and Rural Development. The Local Government Act of 1993 (Act 462) requires the collection, transportation, treatment, and final disposal of trash. According to the Act, assemblies should initiate programmes for the development of basic infrastructure and provide municipal works and services in the district, as well as be in charge of the development, improvement, and management of human settlements and environments in the districts. As a result, assembly must develop, install, build, maintain, and control public latrines, lavatories, urinals, and washrooms, as well as effectively handle community trash. The final collection and disposal of solid waste is handled by the various Waste Management and Environmental Health and Sanitation Departments of the Metropolitan, Municipal, and District Assemblies (MMDAs). However, regulatory authority rests with the Environmental Protection Agency (EPA), which is in charge of defining and enforcing environmental quality standards (MLGRD, 2004).

Statement of the Problem

Today, developing countries’ governments (both central and local) have issues in maintaining and building a wide spectrum of public infrastructure. Municipal service delivery failures by national and local governments in many developing countries have frequently been attributed to inequitable resource allocation, low revenue collection, low service coverage, institutional capacities, corruption, mismanagement, and a lack of transparency and accountability. The aforementioned issues, combined with increasing urban growth and waste generation in most developing-world cities, have overwhelmed municipalities’ capacity to provide efficient waste management services, resulting in gross urban environmental decay and increased involvement by the informal sector, which is often not recognized by authorities or other actors other than municipalities in solid waste management. Tanzania, particularly the city of Dar es Salaam, presents a bigger issue in solid waste management; the Dar es Salaam Local Authorities estimate that roughly 4,200 tons per day of solid trash were created in DSM in 2018. This corresponds to a creation rate of 0.93 kg/cap/day for a population of 4.5 million. Using a population growth rate of 4.3% and a generation rate of 0.815 kg/cap/day, Environmental Resources Consultancy (ERC) predicts that DSM would generate more than 12,000 tons per day by 2025. The DLAs believe that less than 40% of the city’s solid trash gets collected for recovery or disposal. The remainder is illegally thrown in drains, rivers, or along the roadside. This causes more floods during the rainy season, increases the risk of malaria-carrying mosquitoes, and increases greenhouse gas emissions.  Illegal dumping is most common in the city’s unplanned and less affluent planned districts, where collection services are inadequate or non-existent (Dar es Salaam Metropolitan Development Projects 2018). Despite the various measures taken by Kinondoni Municipal Council to manage solid waste, such as keeping waste collection fees at the community level and conducting training in various areas, the problem of solid waste remains a challenge and is growing in various areas of the municipality. The challenge now is: How can these waste management issues be resolved in a way that is sustainable?