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7 - Delivering Healthcare Infrastructure and Services through Public–Private Partnerships: The Lesotho Case

from Part I - Mitigating Institutional Voids by Design

Published online by Cambridge University Press:  14 November 2019

By
Mark Hellowell
Edited by
Nuno Gil ,
Anne Stafford  and
Innocent Musonda
Nuno Gil
Affiliation:
University of Manchester
Anne Stafford
Affiliation:
University of Manchester
Innocent Musonda
Affiliation:
University of Johannesburg
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Summary

Many governments in Africa are establishing public–private partnerships (PPPs) to provide healthcare infrastructure and services. We know very little about how healthcare PPPs are planned and implemented in Africa, and even less about the associated outcomes. This paper begins to address this gap through a detailed case study of an innovative, ambitious and complex partnership contract in Maseru, Lesotho. The scheme has been labelled ‘the future of healthcare delivery on the African continent’ and encompasses the design, build, partial financing and full operation of a new hospital facility alongside a wide range of core clinical services. This chapter draws on documentary data to evaluate the main features of the contract, the procurement process and monitoring arrangements and the outcomes in terms of benefits and costs. A key finding is that payments to the private operator are far higher than was expected pre-contractually, and have become a major source of budgetary uncertainty, as well as a demanding call on government’s healthcare resources. We conclude that successful social infrastructure PPPs in Africa will require considerable investments in contract management skills, strong budgeting institutions and mechanisms, and enhanced (and more independent) scrutiny of plans and forecasts of financial impacts.

Type
Chapter
Information
Duality by Design
The Global Race to Build Africa's Infrastructure
 , pp. 203 - 226
Publisher: Cambridge University Press
Print publication year: 2019

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