Skip to main content

Research Repository

See what's under the surface

Advanced Search

Public private partnerships (PPP) in the developing world: Mitigating financiers’ risks

Owolabi, Hakeem Adedayo; Oyedele, Lukumon; Alaka, Hafiz; Ebohon, Obas John; Ajayi, Saheed; Akinade, Olugbenga; Bilal, Muhammad; Olawale, Oladimeji

Authors

Hakeem Owolabi Hakeem.Owolabi@uwe.ac.uk
Associate Professor - Project Analytics and Digital Enterprise

Hafiz Alaka

Obas John Ebohon

Saheed Ajayi

Olugbenga Akinade Olugbenga.Akinade@uwe.ac.uk
Associate Professor - AR/VR Development with Artificial Intelligence

Muhammad Bilal Muhammad.Bilal@uwe.ac.uk
Associate Professor - Big Data Application

Mr Oladimeji Olawale Oladimeji.Olawale@uwe.ac.uk
Research Associate - Project Reputation using Digital Technologies



Abstract

A major challenge for foreign lenders in financing PPP infrastructure projects in an emerging market is the bankability of country-related risks. Despite existing studies on country risks in international project financing, perspectives of foreign financiers on bankability of country-specific risks in an emerging market is yet to be explored. Hence, using a mixed methodology approach to research, three PFI/PPP projects in Sub Saharan Africa (Nigeria) were used to investigate the bankability requirements for political risk, sponsor, concession and legal risks in PPP loan applications. Focus group discussions and loan documentations obtained from foreign project financiers with experience in PPP financing in Nigeria were used as sources of evidence. Results identified 22 bankability criteria for evaluating country-related risks (political risk, sponsor, concession and legal risks). These criteria were later put in a questionnaire survey to local and international project financiers with experiences in PPPs within Nigerian. Reliability analysis and significance index ranking were carried out. The significance index ranking helped ascertain the top 7 criteria influencing bankability of country-specific risks in emerging market PPPs. A conceptual “Risk and Bankability Framework” was then constructed from the findings and validated with new data from other PPP financiers in emerging markets. The proposed conceptual framework represents critical parameters for winning foreign financiers’ approval for PPP loan applications from emerging market.

Journal Article Type Article
Publication Date 2019
Journal World Journal of Science, Technology and Sustainable Development
Publisher Emerald
Peer Reviewed Peer Reviewed
Volume 16
Issue 3
Pages 121-141
APA6 Citation Owolabi, H. A., Oyedele, L., Alaka, H., Ebohon, O. J., Ajayi, S., Akinade, O., …Olawale, O. (2019). Public private partnerships (PPP) in the developing world: Mitigating financiers’ risks. World Journal of Science, Technology and Sustainable Development, 16(3), 121-141. https://doi.org/10.1108/WJSTSD-05-2018-0043
DOI https://doi.org/10.1108/WJSTSD-05-2018-0043
Keywords Public Private Partnerships (PPP), emerging markets, risks, bankability, foreign financiers
Publisher URL http://dx.doi.org/10.1108/WJSTSD-05-2018-0043
Additional Information Additional Information : This is the author's accepted manuscript. The final published version is available here: http://dx.doi.org/10.1108/WJSTSD-05-2018-0043.

Files






You might also like



Downloadable Citations

;