Public private partnership for infrastucture developement: a comparative study of Kenya and India
Kedenda, Ann R A
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The term 'public-private partnerships' has frequently appeared in the media and in the economic development literature in recent years. As an institutional approach, however, public-private partnerships have a long history in local economic development policy. With the structural change of the economy in the developed countries and the development of economic globalization in the last two decades, developing nations have been forced to use a wide variety of incentives to compete for mobile capital and high quality labour. An exploration of a general framework of public-private partnerships helps to improve understanding of public-private partnerships. Certainly, it is important to recognize that publicprivate partnerships are not the same across countries, even within the developed countries, in their formation and operation. It is clear that funding of capital projects from the income or finances available to most governments is limited and thus development of infrastructure takes a back foot. With infrastructure that does not support development, it means that the growth of the nation as a whole also stalls as infrastructure is the backbone for development to ride on. To that end this study looks at Public Private Partnerships (PPPs) for infrastructure development, especially in developing nations. It looks at Kenya in comparison with India as its PPP structure is more advanced than that of Kenya. PPPs are seen as an alternative to the problems faced like lack of funding, skills and man power. The government still retains its role of providing services to the citizens but 'outsources' the provision of the same services to individuals or corporations that are specialized in specific area like roads, railways, ports, airports, sewerage and so on. Chapter one contains the proposal that outlines the statement of the problem, research questions, justification for the study and literature review. It also looks at the theoretical framework which in this case is the market and state failure theory. Chapter two is an overview of PPPS: definitions, types of PPPs; their advantages and disadvantages; the parties involved and the kinds of risks they face in the entire process. It also explores the reasons why governments are opting to go the PPP way. Chapter three is an analysis of what PPPs have done in other developing countries giving examples of projects that have been completed or still undergoing in Brazil, China, South Africa, Mozambique and India. Being a comparative study of Kenya and India this chapter looks a critical look at the PPP projects in the various states in India and concludes that the approach India has taken has managed to propel it towards developed nation status. Chapter four looks at the structures that India has put in place to support PPP in comparison with what we as a country have in place. It lists the policy framework legal or otherwise and other steps that have been taken by each country. The final chapter is a summary of the findings and outlines the conclusions are recommendations the paper has come to regarding the best way forward for Kenya to utilise PPPs for infrastructure to achieve Vision 2030 and Millennium Development Goals as well.
University of Nairobi, Kenya