| dc.description.abstract | Build-operate-transfer (BOT) is one type of Public Private Partnership (PPP)
model among others, which is an innovative method of financing public sector
infrastructure development and service delivery. Development of physical
infrastructure is prerequisite for rapid economic growth and poverty reduction, as it
influences production costs, employment creation, access to markets and investment.
BOT model of financing projects needs to be emphasized in the rail transport sector.
It is in use but not to the extent as engaged in other transport sectors. If the model is
applied well in the rail transport sector, it may have quite a number of advantages like
cost effective means of transport, reduction of number of long distance vehicles that
depletes our roads and covers the budget deficit. Its dominance in the infrastructure
financing could be used to improve Railway service and increase cargo transportation.
This study investigated the factors perceived to influence financing of Build Operate
Transfer projects with the aim of determining how macro-economic factors influence
financing of BOT projects, another aim was to establish the extent to which
investment policy influences financing of Build-operate-transfer projects, to
determine how financial and commercial factors influence financing of Build Operate
Transfer projects, to assess how environmental factors influence financing of Build
Operate Transfer projects, finally to establish how political and legal factors moderate
the joint influence in financing of Build Operate Transfer projects. Five hypotheses
have also been tested in this study; that there is no significant relationship between
Macroeconomic, investment policy, financial, environmental and political factors
with financing of BOT projects. The study used a mixed method research design; with
a target population of 720 employees of rift valley rail consortium and government of
Kenya representatives of which a sample of 338 was drawn using Yamane formula.
The study used questionnaires and interview guide to collect data. Data was collected
by administering questionnaire to the respondents while senior managers and
government officials were interviewed. Data collected was coded and entered into
SPSS version 16.0. Qualitative data was analyzed using themes and sub themes, while
quantitative data was analyzed by the use of inferential statistics and descriptive
statistics, of which the frequency percentages were calculated, data were cross-
tabulated to establish the relationship within the variables and finally a Wald test
statistic was conducted to measure the strength and direction of relationship within the
variables. To test the hypothesis a Pearson chi was calculated. The findings of this
study confirmed that macroeconomic factors which included variations in interest
rates influence is (65%), inflation rates (63%) and debts equity ratio (65%) have a
great influence to financing of BOT projects; Investment policy sub-variables such as
construction period, concessional period and contract period also have a significant
influence on financing of BOT projects with majority of the respondents rating each
at 67%, 67% and 68% respectively. Construction costs (72%), operations cost (74%)
and maintenance costs (72%). With environmental (76%) and political factors
moderates at (75%). From the findings of this study, Based on the opinions of the
respondents there is need for policies to be articulated on tackling the rise of interest
rates in relation to BOT investments in Kenya. The study concluded that the
macroeconomic factors, investment policy, financial and environmental factors had a
perceived influence on financing BOT projects. Future research should further
evaluate each techniques for monitoring each of these factors and potential new
techniques | en_US |
