A Prospect for the Implementation of Public-private Partnership in Housing Provision in Ethiopian

Abstract

Access to housing is a serious problem in Ethiopia, particularly in Addis Ababa, where the demand is high. Exploring public-private partnerships (PPPs) is crucial to address such issues. This study aims to explore the prospect for the implementation of PPPs in Housing Provision in Ethiopia. To achieve this, a fuzzy rating scale questionnaire was used to identify key drivers and enablers of PPP adoption in housing provision. The collected data underwent fuzzy analysis and factor analysis resulting in the identification of critical factors and their categorization into principal groups. Furthermore, through the use of fuzzy synthetic evaluation, driving and enabling indices at the group level was identified, resulting in the development of evaluation models. Interpretive Structural Modeling (ISM) was also used to examine the interrelationships between factors influencing the choice of a suitable PPP model for a housing project. The study’s findings revealed that the driving force behind adopting PPP in the housing provision is very high in Ethiopia, indicating a very high need for PPP-related solutions to the current challenges in housing provision. In this regard, the study identified ten critical factors that drove the adoption of housing PPP, among them, the private sector’s ability to raise funds for public projects, save time in delivering projects, better risk transfer and sharing, facilitate creative and innovative approaches, and acceleration infrastructure provision are the five top-ranked drivers. Furthermore, the study identified twenty-seven critical factors that are highly significant in enabling the successful implementation of PPP in housing provision. The top five factors include establishing well-organized and committed PPP units, political stability, in-time land acquisition, right project identification and project technical feasibility, and appropriate risk identification and risk sharing. Moreover, the study has investigated that the choice of the PPP model for housing projects is influenced by various factors. These factors encompass the preferences of stakeholders, the distinctive characteristics of the project, and the prevailing local conditions. These factors are interconnected and mutually influential, signifying the sensitivity of the model selection process. Using these factors, the study developed a framework for selecting the suitable PPP modality for housing projects. These findings provide practical insights and frameworks for policymakers and practitioners to effectively implement PPPs in the housing sector.