Governance and effectiveness of public–private partnership in Ghana's rural-water sector

• DOI: https://doi.org/10.1108/IJPSM-05-2021-0129
• Published date: 23 August 2022
• Date: 23 August 2022
• Pages: 709-732
• Subject Matter: Public policy & environmental management,Politics,Public adminstration & management
• Author: Joseph Gerald Tetteh Nyanyofio,Kwame Ameyaw Domfeh,Thomas Buabeng,Theophilus Maloreh-Nyamekye,Nana Nimo Appiah-Agyekum

Governance and effectiveness of

public–private partnership in

Ghana’s rural-water sector

Joseph Gerald Tetteh Nyanyofio

Department of Business Administration, University of Professional Studies,

Accra, Ghana, and

Kwame Ameyaw Domfeh, Thomas Buabeng,

Theophilus Maloreh-Nyamekye and Nana Nimo Appiah-Agyekum

Department of Public Administration and Health Services Management,

University of Ghana, Legon, Ghana

Abstract

Purpose –This study examined the governance and implementation of public–private partnership (PPP)

based on the management contract model in the water sector in rural Ghana.

Design/methodology/approach –It employed in-depth interviews with key management officials and

focus-group discussions among residents in selected water-stressed communities in the beneficiary District

Assemblies. Thematic analysis was employed for the analyses.

Findings –The governance of the PPP project was characterized by a well-structured institutional

arrangement and effective governance mechanisms. The PPP project has increased residents’access to potable

and affordable water and facilitated local economic and social development in its catchment areas. However,

insufficient funding, political interference, limited infrastructural capacity and pollution are threatening its

success.

Originality/value –The study contributes to theliterature on effective governance and performance of rural-

basedPPP watersupply projectsfor the achievement of the sustainable development goals goal six on access to

affordable and quality water.

Keywords Public–private partnership, Ghana, Water resources, Governance

Paper type Research paper

Introduction

Water is an important necessity of life. It is unsurprising therefore that the sixth goal of the

Sustainable Development Goals (SDGs) has targeted clean water and sanitation for all by

2030. Despite the progress being made toward the provision of safe, clean and reliable water

supply for the populace by the Government of Ghana, provision of potable water remains a

challenge in some communities in Ghana. According to WaterAid (2021), over 4.4 million

persons still cannot access clean water in Ghana. Similarly, one in every five children faces

extremely high-water vulnerability [United Nations International Children’s Emergency

Fund (UNICEF), 2020], and one out of every 10 persons spends more than 30 min per day in

search of an improved source of drinking water in Ghana (UNICEF, 2020). The issue is more

prevalent in rural Ghana as rural dwellers have significantly less access to potable water than

their urban counterparts (Sasu, 2020).

Consequently, the government, through the Community Water and Sanitation Agency

(CWSA), has, among other efforts, implemented a public–private partnership (PPP) model

christened the “Three–District Water Supply Scheme PPP Project”(initially starting with

three districts and later expanded to cover six districts) to help address the issues in water-

depressed rural communities and districts in Ghana. The project was a management contract

between the CWSA and District Assemblies (both representing the government as owners)

Governance

and

effectiveness of

PPP

709

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Received 27 May 2021

Revised 16 November 2021

5 May 2022

12 July 2022

Accepted 1 August 2022

International Journal of Public

Sector Management

Vol. 35 No. 7, 2022

pp. 709-732

© Emerald Publishing Limited

0951-3558

DOI 10.1108/IJPSM-05-2021-0129

and VICCO Ventures, a private operator. Under the project 6,000 cubic meters of water was to

be provided daily to residents in 162 communities in some six districts; four in the Great

Accra Region (Ada East, Ada West, Ningo-Prampram and Shai-Osudoku); and two from the

Volta Region of Ghana (North Tongu and Central Tongu). The total cost of the scheme was

approximately USD 11 million (including consultancy services and the construction)

(CWSA, n.d).

PPP refers to an arrangement between a public and private party for the effective and

efficient delivery of public goods and services (Casady et al., 2019;Klijn, 2010). Such

arrangements are characterized by cooperation between the public and private sector

partners mainly through contracts for the provision of public infrastructural goods and

services while collectively sharing resources, responsibility and risk (Casady et al., 2019). For

any PPP arrangement to be successful, it needs to be supported by proper governance

architecture (Akenkan, 2019;Sabry, 2015;Warsen et al., 2020). Governance in the context of

PPP refers to a set of arrangements that prescribe who should make, execute and be

accountable for the conduct of a PPP, and how such conduct should be executed in line with

the interests of other stakeholders (Wang et al., 2020).

While some studies have examined PPP and governance issues (Sabry, 2015;Warsen

et al., 2020), few have focused on the water sector (Silvestre et al., 2018), thereby necessitating

further exploration as governance issues differ from one specific PPP to the other (Yun et al.,

2015). Moreover, governance in PPPs is under-researched generally in the context of

developing countries (Bruton et al., 2015;Silvestre et al., 2018). Given that governance factors

driving PPP adoption and success are distinct across countries (Brinkerhoff and Brinkerhoff,

2011;Hassen and Abdulwahed, 2014), empirical examination of PPP governance in the

Ghanaian context is recommended (Ahenkan, 2019). Thus, this study aims to deepen

the understanding of PPP governance by assessing: (1) the governance architecture, (2) the

outcomes and (3) the challenges of PPP in Ghana’s rural-water sector.

This study contributes to the literature on governance and performance of PPP in three

ways. First, it shows that community-driven governance architecture can increase the

success of rural-based PPP water supply projects to facilitate SDG goal six achievements on

access to affordable and quality water. Second, there is a dominance of economics in PPP

research based on transaction cost theory, neoliberal and new public management theory at

the expense of organizational management theories like neo-institutional theory and

stakeholder theory (Chetty and Luiz, 2014;Wang et al., 2018). For instance, in Ghana, it has

been observed that PPP has not realized the economic and social expectations as it is saddled

with governance deficits due to the over-emphasis on public finance rationalization (Asare

and Frimpong, 2013). Consequently, this study makes a theoretical contribution by applying

the institutional theory and stakeholder theory. This helps in framing PPP beyond its

obsession with economic efficiency to encompass critical social considerations and outcomes.

Third, its findings can motivate similar future studies in different rural-based PPP models.

The next sections present the literature review, method, findings and discussions,

implications and conclusion.

Literature review

Governance and water resources

Governance involves a set of relationships between management of a company, its board, its

shareholders and other stakeholders (Puni and Anlesinya, 2020;OECD, 2004). It embraces a

complexity of new actors, relationships and tools in the delivery of public service (Wang et al.,

2020). The United Nations Economic Commission for Europe (UNECE, 2008) reference guide

identifies six core good governance principles: efficiency, accountability, fairness, decency,

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