Public-Private Partnerships in Low-Cost Housing

This research gives insight in the key actors and factors in choosing the type of public-private partnership and selecting a partner within the chosen type. Three types of public-private partnerships were identified: bi-sector, trisector and cross-sector. These were combined with the three types of low-cost housing: public housing, tenant-purchase and self-help. Through literature research and an explorative questionnaire under 10 actors from the three different sectors (public, private and civil society.

For the realization of sufficient housing for the urban poor, Otiso (2003) also indicates that partnerships can help. Using a case study of an ongoing slum upgrading project in Nairobi, Kenya, he argues that new approaches are required to meet the needs of housing and service of settlements in Third World countries. He considers tri-sector partnerships (involving the state, voluntary and private sectors) as a solution to these problems. The selection of proper partners is crucial in such partnerships (Kumaraswamy and Anvuur (2008), Zhang (2005c)) and the success of these projects are highly depending on it. To be able to deliver successful low-cost housing projects, knowledge is needed about how to select the right type of partnership and how to select suitable partners. To fill this gap in literature, a research is carried out on the key actors and factors in choosing the type of public-private partnership in low-cost housing and selecting a suitable partner within the chosen type. In theory the potential of public-private partnerships is high, practice proves however that value adding PPPs are rare and actors with opposite interests and characteristics make urban renewal and low-cost housing hard to realize. Marrewijk, Clegg et al. (2008) point out that project cultures play a central role in influencing successful cooperation between partners, therefore project culture is also measured in this study.