Public-Private Partnership Financing Framework for Housing Development in Addis Ababa: Evidence from Planning and Implementation Phase

Abstract

Housing development financing faces significant challenges in Addis Ababa City Administration. Among others, inadequate planning, insufficient risk management, and lack of transparency in procurement constituted the gaps. These challenges undermine the effective implementation of Public-Private Partnership as a viable financing approach. This study employed a mixed methods design to investigate the planning phases of Public Private Partnership housing development of the city. Results indicated that planning dimensions such as integration of various components, defining the scope, and resource allocation demonstrated remarkable successes so far. However, inadequacy of institutional capacity, limited stakeholder engagement, and imbalanced risk identification and allocation comprise dimensions that seek further attention. The values for the path coefficients of procurement and resource allocation were found to be 0.99 and 0.66, respectively, highlighting the presence of correlation with institutional capacity. The findings further suggest the need to balance private sector incentives with deliverables, affordability, and transparency.