A suitable public private partnership framework for continuous replacement of ageing water pipelines within eThekwini Municipality.

Abstract

The Public-Private Partnership (PPP) agreement is in effect different from the conventional procurement process at national and local government. It requires a shift in the mind-set of project managers mandated to install new infrastructure, maintain existing infrastructure and replace infrastructure which has passed its design life. Currently the municipalities are facing more constrained budgets due to frequent annual budget cuts, and there is little tolerance by the ward councillors, not to mention the voting public, towards inefficient service delivery. Due to the current climate it is imperative to consider Public-Private Partnerships which can achieve superior value for money. They have a reputable track record, which is supported by bodies like National Treasury and are more accessible for use by most local municipalities. This is a qualitative study, in which the data was collected was from structured interviews undertaken as a result of purposive sampling. This research illustrates the most suitable PPP framework for linear projects which take cognisance of the independent variables identified in this study. The study also divulges the most beneficial tariff structure and payment mechanism for a PPP as a result of the literature reviewed and the data collected. This study is recommended for project managers who are tasked with service delivery mandates and who wish to gain a better understanding of the complexities associated with PPP frameworks. The benefits, characteristic and proper application of each PPP framework has been explained.