Construction risks, Managerial skills and completion of Public private partnership projects in Kenya: a case of Sondu-miriu hydroelectric Power project, Kisumu County

Abstract

Public Private Partnership (PPP) projects occur as arrangements of which private parties participate in the processes of providing public infrastructure services. While PPP is a popular method of providing public projects, the method has several risks. The purpose of this study was to assess the relationship between construction risks, managerial skills and completion of PPP Projects in Kenya using Sondu-Miriu Hydroelectric Power Project, Kisumu County. The objectives were to assess the extent to which construction time overrun related risks influence completion of PPP Projects; determine the extent to which construction cost overrun related risks influence completion of PPP Projects; examine how labour related risks influence the completion of PPP Projects; establish the extent to which combined construction risks influence completion of PPP Projects and to assess the moderating influence of managerial skills on the relationship between construction risks and the completion of PPP Projects. The target population were 85 members of management at Sondu-Miriu hydroelectric power project. A sample size of 71 was obtained using Yamane formula out which a return rate of 54.9% was achieved. The study used proportionate technique to select the 71 sample size out of 85 management staff that formed the population.Questionnaires and interview guides were used for data collection. The process of analyzing data was done quantitatively using descriptive and inferential statistics, and qualitatively using content analysis. SPSS v.20 was used to aid in analysis of quantitative data. Descriptive statistics utilized in the analysis were mean, standard deviation and frequencies and percentages. Inferential statistics used for hypothesis testing through Pearson Correlation and Multiple Regression Analysis. Results showed that cost overrun related risks were highly prevalent (Mean = 3.970, SD = 0.124) and had a strong negative statistically significant relationship with completion of PPP Projects (R = -0.682, p<0.05). It was also found that labour related risks affected the completion of PPP projects (Mean = 3.777, SD = 0.373) and had a strong negative statistically significant relationship with completion of PPP Projects (R = -0.729, p<0.05) while time overrun related risks were generally average (Mean = 3.141, SD = 0.785) and had a strong negative statistically significant relationship with completion of PPP Projects (R = -0.975, p<0.05). Further, combined construction risks statistically significantly predict completion of PPP projects (R2 = 0.952, p <.001). The results established that managerial skills did not have any moderating effect on the relationship between construction time overrun (R2 change = 0.000; p = .936), construction labour related risks (R2 change = 0.016; p = .257) and completion of PPP projects. However, there was a statistically significant moderating influence of managerial skills on the relationship between construction cost overrun related risks and completion of PPP projects (R2 change = 0.007; p = .004).It is concluded that time overrun related risks, cost overrun related risks and labour related risks significantly negatively influence the completion of PPP Projects. Further, managerial skills statistically significantly moderate the relationship between construction cost overrun and completion of PPP projects but do not moderate the relationship between cost overrun, labour related risks and completion of PPP projects. The study recommends the collaboration of stakeholders at initial stages for accurate design.,timely approval eases of execution of the overall project and reduced costs. Similar studies should include different projects, designed and achieved through PPP.