Opportunities and Bottlenecks: Public-Private Partnership in the Housing Development in Addis Ababa City Administration

Abstract

Efforts to implement Public-Private Partnership in the housing development are challenged by weak risk sharing, lack of transparent procurement, bureaucratic hurdles and weak institutional capacity. The study investigated the opportunities and constraints associated with Public-Private Partnership in Addis Ababa City Administration. To this effect, the study employed explanatory sequential mixed methods approach. It primarily relies on survey data which was complemented by qualitative insights. The qualitative insights gave an in-depth understanding of the them. The study was framed by institutional theory to assess how the rules and norms of the institutions served in addressing the challenges. Further, Confirmatory Factor Analysis was applied using R-Version 4.4.2, and the findings uncovered key opportunities of the presence an enabling policy and legal frameworks with a factor loading of 0.832 and access to serviced land. Conversely, significant challenges threatening partnership success were identified, such as a lack of funding (factor loading of 0.73), weak institutional capacity (0.63), and inadequate risk management (0.623). The study recommends the revision of the PPP proclamation focusing on targeted incentives, delegating responsibilities to lower-level administrative bodies, and promote transparent procurement, proper risk sharing strategies and institutional capacity building.