PPP of basic infrastructure (Asamoah, 2012). To restore this


PPP and
Infrastructural Developments in Ghana

A major
development problem hindering Ghana’s economic growth is the shortage of basic
infrastructure (Asamoah, 2012). To restore this deficit, the government adopted
the PPP system to heighten private sector participation.

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work of Asamoah (2012) on PPP and infrastructural development argued that PPP
is the vehicle towards economic and social development.


Theoretical Framework  

The theories that
underpin this research are Stakeholder Theory and Governance Theory. Willing
(2001) and Babatunde (2015) argue that a theory is crucial for research.

Stakeholder and Governance theories are relevant to the PPP concept (Babatunde,

Stakeholder Theory

The origin of the word “stakeholder”
can be traced to Stanford Research Institute in the 1960s (Freeman,1984;
Babatunde, 2015). Scholars have defined stakeholders as “those individuals or
groups that depend on an organisation to fulfil their own goals and on whom, in
turn, the organisation depends.” (Johnson et al., 2017, p.134). Li, Ng & Skitmore (2013)
have defined stakeholders by looking at their influence on the project
process and/or final results, whose living environment can be affected
positively or negatively by the project and who also receive its associated
benefits and/or losses. Stakeholders of a large organisation include
government, political groups, owners/shareholders, financial community,
activist groups, customers, managers, unions, employees, trade associations, competitors
and suppliers (Johnson et al, 2017). Stakeholders in PPP projects include
political leaders, public authorities, financiers, private investors,
transaction adviser, media, suppliers, contractors, subcontractors, lenders,
special interest groups, community/users (Babatunde, 2015). According to a study,
stakeholders’ involvement is required for the sustainability of PPP projects
(Babatunde, 2015). Shan et al., (2011) have underscored the importance of
stakeholder theory in analysing demands of different stakeholders.




Governance Theory

Researchers have argued
that governance is the capacity of government to formulate and implement
policies with the view to steering the affairs of society (Pierre & Peters,
2000). Managers and stakeholders are linked together via the governance chain.

The governance chain “shows the roles and relationships of different groups
involved in the governance of an organisation” (Johnson et al., 2017, p.143).

Good governance has been identified as a requirement to promote and sustain
PPPs. (Bult-Spiering & Dewulf, 2006; UNECE, 2008; Babatunde, 2015). Hughes
(2003) has identified good governance as a reform strategy in strengthening the
capacity of civil society organisations and promote transparency,
responsiveness, accountability and democratic tenets. Governance theory is a
necessary ingredient in ensuring the success of PPPs. (Babatunde, 2015).


The PPP approach
involves various stakeholders and therefore applying the principles of the
stakeholder theory is crucial to understanding the successful implementation of
PPP projects. The governance theory will help in appreciating the roles and
responsibilities of the various actors within the concept of PPP.