Faculty of Commerce, Law and Management

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    Challenges and Trade Offs in Private Investment in the South African Water Sector
    (2014-01-09) Chetty, Sugen
    SA is a water-stressed country that suffers from poor water service delivery. Half of the country’s 48 million people do not have piped water access. The major problems are inefficient operations, lack of capacity in spending allocated budgets in rural municipalities particularly, unclear management structure, and a decline in capital expenditure. Private investment, driven by profit-seeking behaviour, would bring good fiscal control and efficient structure and, hence, would assist the water sector with the poor service delivery. However since water is essential for humans it can be seen as a social good. Government has instituted social goals for the equitable distribution of water using legislation. The purpose of this work was to explore the potential trade-off between economic and social goals in private sector investment in the South African water sector. A qualitative method was used for analysis. Qualitative data was collected through interviews with personnel from the Sembcorp Silulumanzi concession in Mbombela and the municipality. The study concludes that private investment has enhanced service delivery by improving efficiency, technical skills and the capacity to spend allocated budgets. Private investment in the water sector has no negative impact on equitable water distribution, to the rural poor particularly. Rural areas with low population density and low cost recovery present a challenge. Private investment is recommended for the water sector, however an owners’ engineer is recommended to support the CMU in managing the concessionaire
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    Public-private partnerships in ICT infrastructure development in South Africa
    (2013-10-14) Fourie, Johannes Jacobus
    ICT infrastructure is seen as one of the key drivers for economic growth. Unfortunately in South Africa many ICT infrastructure development projects fail for different reasons. Public-private partnerships (PPPs) are considered to hold much promise in theory to overcome some of the challenges ascribed to these project failures, but have proven very difficult to implement in practice. This study investigated whether the challenges of implementing ICT infrastructure development projects in South Africa can effectively be addressed by means of PPPs. In-depth, semi-structured interviews were used to obtain the views of ICT industry experts, representatives from regulatory bodies and ICT organisations, and government officials. The main findings were that PPPs could be a viable solution to overcome some of the challenges to successful implementation of ICT infrastructure projects in South Africa on condition that certain success factors that would facilitate ICT infrastructure development PPPs are present. Unfortunately some of these success factors are not currently present, therefore limiting the prospects for successful implementation of the PPP model for these projects
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    Enhancing the Implementation of the National Waste Management Strategy in Greater Sekhukhune
    (2011-11-22) Masemola, Seporo Sam Addison
    This research was conducted with the aim of finding out why medical waste that is often found illegally disposed of and who is responsible for it. Such waste poses a danger to people, animals and the environment. The researcher has visited health care waste generators (and the landfill site) in the area under review and conducted a number of interviews with different stakeholders. The findings indicated that hospitals in the area were found to be the main sources of illegal dumping. The research recommends a continuous intensive health education process for all personnel working with medical waste management. Private commercial providers should also be organised into jointly contracting a service provider who will collect their medical waste and dispose of it appropriately. The researcher highly recommends that all medical waste generators in the area be registered and a collection method be jointly found to rid the area of the dangers of incorrectly handling and disposing of medical waste. Public-Private Partnerships can also be explored to help sustain the medical waste management strategy.
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    Community Participation in the Heritage,Greening Mpumalanga and Tourism Programme
    (2011-11-22) Simelane, Immigardht Brunnhilldah Hlengiwe
    Community participation in development projects is always advocated for but rarely practiced meaningfully. Narrow interpretations of participation that amount merely to job creation and skills transfer are prevalent and persist in spite of the changes in the policy context and in institutional arrangements meant to afford communities a platform to influence decisions and the direction of development in their locality. Historically, communities living adjacent to nature reserves have been dispossessed of their land, marginalized and alienated in the activities of the reserves. This qualitative case study sought to investigate challenges relating to community participation in Songimvelo Nature Reserve, a tourism development project which is part of the Heritage, Greening Mpumalanga, and Tourism Flagship Programme of the Mpumalanga Provincial Government. The objectives of this development project are to integrate nature conservation with socio-economic development through sustainable tourism ventures, in a Community Public and Private Partnership (CPPP) context. Data was collected through semi- structured interviews. The techniques used to ensure validity were member-checking, researcher reflexivity and triangulation. Interpretive data analysis was done. The findings of this study indicate that major challenges relating to community participation emanated after the validation of the land claim for a community of claimants. Prior to the land claim, government‘s approach to the management of the reserve was unilateral and paternalistic. The imminent change of land ownership has implications for the role, the rationale the intensity, the levels of participation and the patterns of participation for all the stakeholders. The challenges vary from conflicting values and ideals on land use, uncertainty, mistrust, and the need for new institutional and structural arrangements for the management of the reserve. The Songimvelo development project is evidence of how meaningful community participation is contingent to what rural communities can contribute in the development project. It requires more than indigenous knowledge or change in policy for communities to be acknowledged as key stakeholders and for them to influence decision making. ii Future research on the reserve could be conducted on the benefits, the effectiveness and new challenges of the new partnership in the Community Public Private Partnership (CPPP) context, post the signing of the settlement and co- management agreements.
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    Negotiating the Debt Portion of the Port of Maputo Privatisation
    (2011-10-07) Johnstone, Gordon
    Public Private Partnerships are becoming a key trend with regard to the provision of infrastructure in the Southern African region, as evidenced by the increasing number of Public Private Partnership transactions taking place. These transactions depend on financing and, for them to be a success, a thorough understanding of the factors affecting the debt and equity sides of the transaction is necessary. This study, through the use of the Port of Maputo as a case study and in depth interviews with selected respondents, sought to determine these factors and to gain a better understanding of them. The financing process, mitigating factors in relation to success factors, risk and conflict have all been explored. The initial model therefore explores the conflict in the financing side of PPP transactions and then posits various reasons for the possible failure of PPP transactions and how these reasons can be mitigated, as well as possible success factors in the financing side of these transactions
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    Public Private Partnership Agreement Management:
    (2011-05-06) Khanyile, Patricia Nonhlanhla
    Public Private Partnerships (PPPs) are seen as a way of enabling the government to gain access to private expertise and funding in order to improve service delivery without the necessity of borrowing. The Folateng (the private arm of the Johannesburg Provincial Hospital – the Charlotte Maxeke Hospital) PPP initiative was established with the goal of delivering quality medical services to the public at a profit while retaining essential skills. The purpose of this research was to establish the best practices for effective contract and relationship management within the PPP, to maximise benefits to all stakeholders with particular reference to the healthcare sector in South Africa. The data were collected during in-depth interviews with specially selected respondents involved in the healthcare sector, the PPP unit in the Department of Treasury and the Folateng PPP initiative at the Charlotte Maxeke Hospital. A research interview guide was used for the interviews, which were recorded by audiotape and accompanied by extensive handwritten notes. The data were subsequently content analysed. The findings of this research were that setting of goals and objectives was seen as the top priority in ensuring effective contract management, followed by appointing a project officer with the best fit for the specific undertaking, along with selecting a project team of the most appropriate profile. Project monitoring and administration were regarded as the next most important issues for effective contract management. With regard to effective PPP relationship management, communication was found to be a top priority in this research, followed by corporate governance and dispute resolution. The mutual benefits of an effectively managed agreement were found to be firstly keeping to the budget and generating a profit. The iii second benefit was providing or obtaining quality services. The final mutual benefit was delivering the project on time to assure service delivery. There are imperatives that must be in place from the conception to the termination of a PPP agreement to ensure effective management and ultimate success
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    KEY SUCCESS FACTORS
    (2011-04-01) Diliza, Nandi
    Context This research is a study of a Public Private Partnership (PPP) in a South African public hospital using the Inkosi Albert Luthuli Central Hospital in Durban as a case study. An investigation of the challenges facing the PPP as well as the key success factors for this PPP, as expressed by interview respondents, will be determined. Based on findings made in these investigations, a proposal for key success factors for PPPs in South African public hospitals will be made. A brief statement of the problem The researcher has investigated what the challenges are for PPPs in South African public hospitals. Thereafter key success factors for PPPs are determined. The method of data collection In-depth interviews were conducted to elicit responses to the research problems. A set of interview questions were prepared prior to the interviews and were posed to the respondents. This ensured that the interviewer got responses to similar questions so as to be able to get information on the research problems. The key findings Several challenges are facing the PPP being studied. These are a perceived high cost of the PPP as well as doubts about value for money in the partnership. The other challenges are dissatisfaction by some of the managers, on the client’s side, about the functioning of the help desk, response to logged calls and application of the penalty clause. ii Failure by the state to appoint a dedicated, full time, appropriately qualified and skilled contract manager was cited as the main weakness in the management of the PPP. Key success factors of the PPP were that the service provider was in a position to provide the state with a high quality package in all the areas under the PPP; these are Facilities Management, Information Technology and Medical equipment. There had been adequate stakeholder participation during the planning phase of the partnership and even now there are various forums at which the service provider meets with the client at various areas of management and at operational level. The key message PPPs in the South African public sector are a fairly new concept that is providing some lessons to be learnt. Although PPPs provide required capital to enable the state to venture into high value massive public health sector projects, there are challenges facing PPPs and every effort needs to be made to ensure that the challenges and risks are avoided or, at least, mitigated against. Key success factors have been identified in this case study and, ensuring that these are factored into future PPPs in the health sector will definitely assist government in planning and implementing successful partnerships.