Forming a driving index for implementing public-private partnership projects in emerging economy: Ethiopian perception

Purpose

The purpose of this study is to identify driving factors and a quantitative model for implementing public-private partnership (PPP) projects in Ethiopia as a case study in emerging economies.

Design/methodology/approach

A review of the literature and semi-structured interviews were carried out to identify driving factors affecting the implementation of PPP projects in the Ethiopian context. Data were collected through a questionnaire survey within three months, with 59 validated responses; mean score technique and factor analysis were conducted. The fuzzy synthetic evaluation (FSE) method was applied to develop a driving index (DI) for implementing infrastructure PPP projects. Finally, a comparative analysis of top-five drivers was conducted between four emerging economies.

Findings

Mean values show that all driving variables are important. Through factor analysis, 22 identified driving variables were grouped into six factors, namely, benefit for public and private sectors, attention of private sector, social development, cost reduction, management ability of public sector and ability of private sector. The FSE method constructs a DI and shows that benefit for public and private sectors is the most crucial factor for PPP implementation in the context of Ethiopia. Apart from this, most driving forces for adopting PPP projects in these countries related to financial problems.

Originality/value

This study is one of the first integrate driving factors for PPP implementation. The index provides the decision-makers with a comprehensive tool to assess the needs of PPP implementation.