Implementation of public private partnerships in the Management of trading places in Zambia : the case of the build operate and transfer contract between city council and China Hainan

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Simasiku, Arthur M.
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The University of Zambia
In 2001, Lusaka City Council (LCC) signed a memorandum of understanding with China Hainan to redevelopment the then deplored Luburma market characterized by poorly designed structures made of concrete, plastic papers and tents into a modern market. The redevelopment was also meant to address problems of management and general service provision such as management of garbage, drainage systems, supply of water and provision of toilet facilities. However, one wonders how the implementation of the PPP has affected management and service provision at the market. What is not known is whether the problems faced prior to the implementation of the PPP have been resolved. Therefore, this study sought to investigate the implementation of PPPs in the management of trading places using the Build Operate and Transfer agreement between LCC and China Hainan. The specific objectives were: To evaluate the legal and institutional framework of the Luburma market PPP; To assess the extent to which the implementation of the Luburma market PPP was adhering to the agreed terms; To investigate the levels of marketeers’ satisfaction with the services provided under the Luburma market PPP; To investigate the challenges faced by Lusaka City Council (LCC) in the management of Luburma market and To make policy recommendations on how PPPs in the management of markets can be made more effective. The total sample size for the study was 116, 16 key informants were purposively selected. Systematic sampling was used to select 50 marketeers from the part of the market being managed by China Hainan. While simple random sampling was used to select the other 50 marketeers with shops under the management of LCC. Both primary and secondary data were used for this research. Qualitative and quantitative data was also used in this study. Qualitative data was analyzed by transcribing it into the major themes which emerged. Quantitative data was analyzed using Statistical Packages for Social Sciences (SPSS). Generally, the study showed that management of Luburma market was divided and shared between LCC and China Hainan. Some terms of reference were adhered to while others were not. Service delivery on the other hand was solely the responsibility of LCC. The study also showed that there was lack of substantial effort on the part of LCC and China Hainan to engage marketeers (major stakeholders) in the market’s management and operations. The study reviews v that service delivery at the market was becoming problematic despite the market being under a PPP. The study also reviewed that, the high quality infrastructure at Luburma market was subsequently deteriorating as the market was not being renovated despite the developers having pledged the responsibility to do so. The study, therefore, recommends the following; Procurement of garbage collection tools such as wheelie bins, skip bins, as well as tipper trucks in order to improve garbage management; sensitization of market users on the importance of maintaining high levels of hygiene in markets; construction of more toilet; construction of boreholes to act as reservoirs in the event that Lusaka Water and Sewerage Company ration the commodity. The study further recommends; constant review of the PPP agreement; the need to renegotiate PPP; Concessional Period Of 20-30 years should be considered for future PPPs and; the need to develop a communication strategy that will be used to simultaneously communicate the benefits, expectations and challenges facing Luburma market PPP.
Public-private sector cooperation--Law and legislation--Zambia. , Public contracts--Zambia. , Public works--Law and legislation--Zambia. , Zambia. Public-Private Partnership Act, 2009.