The private sector involvement in public service is intended to
achieve efficiency gain and better service quality through
increasing private sector finance and expertise. However, these
benefits are most often not achieved in developing countries due to
investment risk of private finance, and problems of capacity and
regulation of the private sector. This book examines private sector
involvement (PSI) in solid waste collection by exploring the
influence of private sector capacity and Local Governments
regulations on private sector performance in terms of productivity
and service quality. PSI in public service provision evolved to
deal with market and government failures, so this study uses market
and regulatory theories to explore the gaps in policy and practice
of PSI and the factor explaining private sector performance in five
cities in Ghana.
The study shows there were weak regulatory practices and
non-adherence to contractual obligations (unsigned contracts and
delayed payment of subsidy), and consequently led to disincentives
for full cost recovery and better service quality. However, there
is now a gradual well functioning system being put in place with
the recent competitive bidding in two cities with signing of
contracts and city-wide user charging. This study concludes that
the solutions to the problem of solid waste collection and
management in developing countries hinge on adherence to formal
rules of regulation, use of appropriate cost recovery mechanism for
low income group, and restructuring of institutional arrangement to
enforce legislation.
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