Public-Private Partnership Financing Framework and Implementation of Energy Infrastructure Projects in Kenya
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Date
2024-11
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Publisher
JAIS
Abstract
The study sought to examine the efficacy of public-private partnership financing framework in the implementation of energy infrastructure projects in Kenya. The study was motivated by the fact that while public-private partnerships have gained popularity in the recent past, there has been limited empirical research on their performance, particularly in terms of their impact on project implementation in terms of time, cost, and project outcomes. The study sought to fill in this gap. To achieve the objective, the study employed a comprehensive research design, combining both descriptive and causal-explanatory approaches. The study’s target population included key entities within the electricity projects implementing sphere under the Ministry of Energy being Energy and Petroleum Regulatory Authority, Ministry of Energy, the National Treasury, 7 tier 1 commercial banks and 6 development partners. Data was primarily collected through structured questionnaires and key informant interviews, preceded by a pilot study of the Ministry of Roads to determine the validity and reliability of the data collection tools. Data was analyzed using SPSS with descriptive statistics and inferential statistical analysis being relied on. Regarding the inferential statistics analysis, parametric and non - parametric analysis was used. For the parametric analysis, a multivariate Ordinary Least Squares regression model was the focus while for non - parametric analysis, Structural Equation Modelling was applied. The findings of this research offer significant insights into the effectiveness of Public-Private Partnership (PPP) financing framework in the implementation of energy infrastructure projects in Kenya. The financing framework was found to accelerate project implementation time, indicating its potential to expedite project execution. However, it had a negative effect on project implementation cost, potentially due to the increased costs associated with private sector participation. Moreover, the financing framework negatively influenced project outcomes, underlining the importance of careful consideration of financial aspects in PPP projects. These findings provide valuable insights for policymakers, practitioners, and stakeholders involved in energy infrastructure projects and PPP initiatives in Kenya. They emphasize the importance of optimizing the financing framework to ensure the efficient and successful implementation of energy infrastructure projects, aligning with broader developmental and economic objectives.
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