Evaluating the implementation of energy and transportation projects using Public Private Partnership (PPP) model in Kenya : a multiple case study

Abstract

Development of its Infrastructure is critical for Kenya to achieve its socio-economic development and poverty reduction goal. However, for Kenya to develop its infrastructure to achieve national development targets it needs to fill a funding gap of USD 40 Billion over the next eight years. The gap in the funding can be filled by using alternative ways to implement the projects. PPP model can be used to implement the projects. However, for the PPP projects to be successfully implemented, certain frameworks need to be in place as well as certain key areas of activity be identified in which favourable results are desired. These key area of activities are defined as Critical Success Factors (CSFs). The study analyses two case studies namely; Kenya and Uganda Railways Concession and Kipevu II Power Project to assess the impact of the CSFs on the successful implementation of the project. The frameworks present at the time of implementation are also taken into account. The study revealed that the CSFs influenced the successful implementation of the project. The study also established that the impact of the CSFs is dependent on the framework in place at the time of implementation and the risks associated with the Project. The study recommends staffing of the relevant bodies with trained and experienced staff and training the incumbent staff on implementation of PPP projects, improve the regulatory environment and develop financial capacity locally. In addition it also recommends that the private parties form appropriate consortiums to successfully undertake the projects. The study further recommends that projects in other sectors are studies as well as projects that shall be implemented wholly under the ambit of the PPP Act.