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An analysis of the effectiveness of the Public Private Partnership (PPP) procurement process for tourism projects.

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However, the study further revealed that there are gaps with the implementation of the process. SUMMARY OF THE THESIS, FINAL CONCLUSIONS AND PROPOSED INSTRUCTIONS FOR THE IMPLEMENTATION OF THE PPP FOR TOURISM.

APPENDICES ITEM

LIST OF APPENDICES

LIST OF TABLES Table

CHAPTER ONE

GENERAL INTRODUCTION, SCIENTIFIC AND METHODOLOGICAL ORIENTATION TO THE RESEARCH

  • Introduction
  • Background to the study
  • Problem statement
  • The aim of the study
  • Five themes with guiding questions
  • Significance of the research
  • Literature review
  • Scientific and methodological approach to the study
  • Notes on Positionality
  • Study Location
  • Summary of the chapters to follow
  • Summary

A systematic study on the effectiveness of public private partnership in public procurement for tourism projects has not yet been carried out. Therefore, the general objective of the study was to contribute to a better implementation of knowledge and guidelines of the public and public procurement process in Tourism.

CHAPTER TWO

KEY PILLARS TO THEORETICAL FRAMEWORK: CONCEPTUAL UNDERPINNINGS

Introduction

Diagrams and a background to theoretical review

Three key Pillars of the Theoretical Framework

Conceptual Underpinning of PPP

Procurement

Enablers for the PPP Process

Current Practice on PPPs

The first chapter of the theory (the second chapter) deals with the conceptual foundations of the PPP public procurement process from the point of view of partnerships and public procurement. The third chapter (chapter four) focuses on current practice in the PPP procurement process.

Conceptual Underpinnings

Contextualizing and Conceptualizing Partnerships

Goldin and Reinert (2006) argue that recent years have seen greater recognition in the political debate of the complementarity between the private sector and the public sector. And thirdly, the private sector designs, builds, finances and runs the project on behalf of the public sector as a model.

Contextualizing and Conceptualizing Procurement

It connects the links of the supply chain and ensures the quality of suppliers within the chain. The fundamental objective of the purchasing function is to contribute to the profitability of the organization of which it is a part. For the public sector, unsuccessful candidates can challenge the results of the procurement process, while in the private sector there is no right to challenge or appeal.

Summary

CHAPTER THREE

ENABLERS TO THE PUBLIC PRIVATE PARTNERSHIP PROCUREMENT PROCESS

Introduction

The discussion will initially look at the strategic drivers that influence the environment preparing for effective implementation of a PPP procurement process. This chapter also examines the enabling influence of expertise and knowledge, lengthy negotiations, privatization, the experience of the public sector, the willingness of the private sector, and the influence of corporate culture on the procurement process of public-private partnerships. The different actors and their influence on the procurement process through public-private partnerships are also considered important enablers of PPP procurement.

Strategic drivers influencing the environment

An organizational strategy that is clear about privatization as a strategic driver is critical to the effective implementation of the PPP procurement process (Mc Aleese, 2004). Based on these experiences, the Treasury had to develop guidelines to protect both the government and the recipient of the service. When this culture matches the core values ​​and strategies of the business or sector, it can be a great source of strength, (Boonstra, 2012).

Project Financing

Project financing therefore reduces the need for state borrowing and transfers part of the risks posed by the project to the private sector, thus aiming to achieve more efficient project management. Capital can be raised from shareholders, through retained earnings, through rights issues, through debt capital, and through divestitures.” The complication with them is that they may be an option for the private sector, but not necessarily for a public or government entity. This challenge was, among others, one of the reasons that prompted consideration of the public procurement process of public-private partnerships.

Role Players

  • Treasury

This section provides an understanding of the concept of SOEs, as they are the ones that usually get the opportunity to involve the private sector. Privatization generally means the transfer of ownership and management of a particular activity from the public to the private sector. For these parties from the public and private sectors to work together, an effective partnership is therefore required. theoretical background from the previous chapter on partnership relations.

The role of the Government on Privatisation and its Regulatory Reforms in enhancing PPPs

Having explained the role of the private sector, it is important to analyze the business environment and principles under which it operates as it affects the relationship between the public and private sectors. In principle, corruption is easier to detect and eradicate in the public sector than in the private sector. One is to break down the service provided by the monopoly into its component parts, in order to isolate the essential element of the natural monopoly in the industry, and perhaps sell them to the private sector.

Organisational leadership

The role of organised labour in South Africa

However, many observers fear that privatization and the associated efficiency gains will require large workforce reductions both before privatization, as the government reduces the workforce, and after the privatized companies continue to restructure. Labor restructuring is usually required before privatization to reflect the change from a government agency to a profit-driven enterprise. Labor legislation should define the right of redundant workers to severance pay or other benefits, while recognizing the employer's right to recognize the workforce to meet changing needs.

The role of communities neighbouring the project

Most public enterprises in South Africa are bound by the central bargaining unit for conditions of service for labour. This is generally the biggest challenge as working in most government organizations takes up to 70% of the operating budget and negotiating from a central point that may not be fully affected is always a challenge. The critical factor in this case is open communication with organized workers as critical parties.

Financial Institution

Summary

This chapter, as captured in the summary diagram, also analyzed the theory behind corporate financing strategies and the theory behind the development of agency theory, which appears to have influenced or provided guidance on how to public-private partnerships are used as a method of public procurement. . We also concluded this chapter with an analysis of the stimulating effect of professional knowledge and experience, the procurement period, the complexity of tenders, transaction costs, lengthy negotiations, privatization, public sector experience, the impact of entrepreneurial culture on the procurement process of a public-private partnership, and also analyzed the various roles and actors and their impact on the public procurement process in a public-private partnership. The following chapter is not part of a literature review, but nevertheless presents questions from practice that have a major impact on the evaluation of the PPP process.

CHAPTER FOUR

CURRENT PRACTICE ON TOURISM PPP PROCUREMENT PROCESS

  • Introduction
  • Legislative framework, policy dimension and strategic framework
  • Tourism mandate and the tourism industry in South Africa
  • Position and elements of the tourism growth strategy
  • PPP practice in South Africa
  • South African policy definitions of private public partnership
  • Dedicated PPP Units, Expertise and Knowledge
  • Project Approval Processes
  • The Nigerian Case Study in Implementing PPPs
  • Summary

According to Waddell (2005), the effectiveness of the policy framework influences the outcome of a policy that guides the development of the procurement process for public-private partnerships. This leads to the creation of a special unit for public-private partnerships, equipped with expertise and knowledge to support the process as one of the enabling elements. The purpose of this chapter was to explain and analyze the current practice of the procurement process through public-private partnerships, as it is mainly applied within government agencies.

CHAPTER FIVE

In analyzing the public private partnership process, the study referred to the Nigerian experience in the implementation of public private partnerships. Moreover, he clarified, albeit briefly, the impact of some terms such as state-owned enterprises, privatization, participation and partnership as related concepts within the PPP procurement process. The above background, practice or policy, and theoretical framework set the stage for the broader discussion of the study's central concerns.

RESEARCH DESIGN AND METHODOLOGY

  • Introduction
  • Research Methodology and Design
  • Qualitative Research Paradigm
  • Data collection methods
  • Linking the research objective to sub problems and questions

Based on the above analysis of the types of research, qualitative research is the most appropriate methodological approach to meet the aims and objectives of this study. In the following section (5.4.1), the researcher treats research interviews as a tool used to collect data. Kvale & Brinkmann further argue that "the structured interview questions are easy to implement and can be easily standardized, as the same questions are asked to all participants."

Sub problem Interview questions related to the sub problem

If not completed, what is the reason and status in terms of the Treasury approval plan. In your opinion, is there any connection between the success and failure of the project and the guidelines for the procurement of public-private partnerships for tourism issued by the Ministry of Finance. The researcher will typically not study the entire population of interest, but will instead select a subset or sample of the population.

PPP Case Organisations Project Preparatory

Phase

Treasury Approval Phases

There are three stages of PPP project development or approval as covered within the Tourism PPP Toolkit and as regulated by the Treasury. The table below (Table 4) indicates the exposure and the level at which the projects supported by these enablers ended, within the stages of PPP approval. The table below indicates the list of projects, lead organizations linked to the projects, and the roles of people in that organization working within the project.

Table 4: Enabling organizations and their level of exposure within the phases
Table 4: Enabling organizations and their level of exposure within the phases

Projects Organisations Individuals’ role within projects

Interview with an

Focus group

  • Data collection: Individual interviews and focus groups
  • Data Analysis
  • Validity, Reliability and Trustworthiness
  • Research Ethics
  • Limitations
  • Summary

The strong involvement of these participants in PPP projects increases the credibility of the information provided. The reliability (the extent to which a data collection method will produce consistent findings if replicated by others) of the data collected is largely dependent on the research instruments. Through the focus group, the researcher verified the validity and reliability of the collected information.

CHAPTER SIX

Introduction

Understanding the PPPs and their procurement practice within the targeted organisations

Three key viewpoints were presented by the participants regarding the understanding of the PPP procurement process. The participants provided a wide range of views on the purpose of the PPP procurement process. The participants' view is that the PPP procurement process is used to ensure transparency in the process.

Expounding the conceptual background of public private partnership procurement process

Based on participants' views on the PPP process, 95% of participants were positive that the PPP process was linked to a conceptual background. Since the majority of participants support the view that the process is linked to a conceptual background, the following question arises. Six of the participants believed that a partnership theory inspired the procurement process in South Africa.

Table 7:   List of theories influencing the PPP procurement process as viewed by the  participants
Table 7: List of theories influencing the PPP procurement process as viewed by the participants

Analyzing the Identified Gaps within the Public Private Partnership Procurement Process

30% of the participants were of the opinion that the elements of the process were sufficiently covered. The participants identified areas within the process guidelines that needed to be addressed for effectiveness. This theme within this section also identified the risks that the participants felt were linked to the process and the risks included in the PPP procurement process.

Table 9:   Risks identified by participants  No
Table 9: Risks identified by participants No

Chapter Summary

There are too many regulations and risks for the private sector, so very few public-private partnerships have been successful so far. This section concludes the topic that analyzes the gaps in the public procurement process within the framework of public-private partnerships. The next topic analyzes the perception of the process by the stakeholders and the impact of the process on the stakeholders.

CHAPTER SEVEN

STAKEHOLDERS PERCEPTIONS OF PPP GUIDELINES’ PERFORMANCE AND PROPOSED CHANGES

  • Introduction
  • An analysis of the Stakeholders’ perception of the PPP process and its influence on the Stakeholders
  • Analyzing the performance of the Public Private Partnership procurement process
    • Completion of the Treasury approval process
  • Recommendations for change

Most of the participants felt that the tourism public private partnership procurement process is not the type of partnership preferred by the private sector. 42% of participants thought that the tourism public private partnership procurement process was the preferred process by private investors. As mentioned above, only 20% of participants thought that the process protects the interests of all stakeholders.

Gambar

Figure 1: Three Key Pillars to the Theoretical Framework  Source: Researcher’s Own Construction
Figure 2: Conceptual Underpinnings (partnerships and procurement) and their subsections  Source: Researcher’s Own Construction
Figure 4: Current Practice on Tourism PPP Procurement Process  Source: Researcher’s Own Construction
Table 1: Sub problems and interview questions
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