PROJECT PLANNING PRACTICES AND PERFORMANCE OF PUBLIC-PRIVATE-PARTNERSHIP PROJECTS IN KENYA ENERGY SECTOR

Abstract

According to a report from the World Bank Group, PPP usage has surged across the globe and is currently implemented in over 134 developing nations, accounting for approximately 15-20% of overall infrastructure investment. Kenya is also facing subdued economic growth due to infrastructural constraints, with an overall infrastructure need estimated at approximately USD 59.176 billion. Energy and transport are the two infrastructure constraints that weigh most heavily on Kenyan firms. The Kenya Vision 2030 recognizes energy, among other sectors, as a key enabler for sustained economic growth, development, and poverty reduction. To fully finance the total infrastructure needs for the energy sector, which stands at 19.8 billion or 34% of the infrastructure budget, the government of Kenya has initiated and developed several power projects in Kenya through PPP under Build-Operate-Transfer (BOT) with the aim of achieving the ambitious target of universal access to electricity by 2030. Since there is limited research work carried out in Kenya on BOT projects, this research study aimed to fill this gap by assessing the impact of Project Planning practices on the performance of Public-Private Partnership (PPP) projects in the Kenyan energy sector. By addressing this objective, the research provided insights into the effectiveness of Project Planning practices in enhancing the performance and success of PPP projects in the energy sector of Kenya. The study employed a descriptive research methodology to elucidate the influence of Project Planning practices on the performance of PPP in the Kenya energy sector. The study targeted 7 major energy projects in Kenya, and 120 respondents were administered with questionnaires through census. A pilot study was conducted where 10% of the sample was used to check for validity and reliability. The study analysed descriptive and inferential statistics. Quantitative data was analysed using measure of central tendency while thematic analysis was used to analyse the qualitative data. The inferential analysis used regression analysis to establish the relationship between the independent variables and the dependent variable. The study established that the joint variables explained 54.2% of variation of project performance in the energy sector. The joint variables also had strong correlation with project performance (r =.749). Project Risk planning, and Project Cost planning had positive significant influence on performance of PPP projects in the Kenya Energy Sector. The study recommended for implementation of project plans in projects to ensure there is improved project performance. The study also recommended a similar study to ascertain the variation of project performance and also the insignificance of Regulatory framework on project performance. The findings were presented in table and figures and later discussed. The study is useful to project practitioners, policy makers, and scholars.

Key words:  Project Cost Planning, Project Risk Planning, performance