Factors Influencing Implementation of Public-private Partnership Projects: a Case Study of the Nairobi Southern Bypass in Nairobi County, Kenya

Abstract

The study investigated factors influencing implementation of Public Private Partnership (PPP) Projects with focus on the Nairobi Southern Bypass (NSB) PPP Project in Nairobi County, Kenya. As PPPs keep on expanding in the Kenyan road sub-segment, suggestions for successful application will be important for public road authorities, county governments, contractors and managers. The study was guided by the following objectives, namely, to establish the influence of procurement process on implementation of the Nairobi Southern Bypass (NSB) PPP road project in Nairobi County, Kenya; to assess the influence of route corridor availability on implementation of NSB PPP road project in Nairobi County, Kenya; to examine the influence of politics on implementation of NSB PPP road project in Nairobi County, Kenya and to determine the influence of budgeting on implementation of NSB PPP road project in Nairobi County, Kenya. The study was conducted as a qualitative instrumental case study, with qualitative data collected from key informants. Snow ball sampling was used to identify 31 respondents comprising staff members working at PPP unit and Special Projects department within Kenya National Highways Authority (KeNHA) and China Road and Bridge Corporation (CRBC), the implementing Contractor. In order to evaluate and improve the reliability of the research instrument, a pilot test was conducted by interviewing 6 respondents who were part of the supervision consultancy staff. The selected respondents had some information on the intricacies of the NSB project from procurement to construction stage. Thematic and content analysis was used to sort and depict information in detail and to decipher and make determinations. The findings of the study showed that procurement process influenced the commencement time, cost and alternatives in terms of design options for the NSB project. The study also found out that while politics did not influence implementation of the project, budget considerations influenced implementation of the project as delays in disbursing funds either led to slowing down of works or additional costs in terms of accrued interest on delayed payments and contract prolongation costs. A significant impediment to the study was that respondents, particularly from the Contractor partner, were not ready to reveal full information, citing business confidentiality restrictions. In conclusion, the NSB PPP project was procured very fast and had a very fast turnaround time and could have been completed even faster had the route corridor been fully available and payments made promptly. The study recommends that implementing agencies should check thoroughly and consult with stakeholders on the extent/scope of projects to avoid interference by politicians. The study further recommends that prior to commencing construction work, the route corridor should be made fully available to the Contractor, free of encumbrances in order to facilitate completion of the project within time and cost. The study also recommends that for faster turnaround time, implementation of such projects should only be done once all finances are in place.