PUBLIC PRIVATE PARTNERSHIPS AND PROCUREMENT PERFORMANCE OF MEGA PROJECTS IN THE ENERGY SECTOR IN KENYA

Abstract

Governments around the world face a rising demand for infrastructure. Most governments, including Kenya, are attempting mega projects to bridge the infrastructural gap. Kenya has prioritized, under the Kenya Vision 2030, a number of Mega projects. However most mega projects have, (or are), experienced procurement related challenges, which threaten their efficient implementation thereby threatening achievement the Vision 2030 aimed at transforming Kenya into a middle income Nation. The energy sector, a critical support sector of the Vision 2030 pillars, plans to increase power production by 10,000Mw by the year 2030, from the current estimated production of slightly above 2000MW, through an array of mega projects. This study set out to examine the influence of Public Private Partnership on the procurement performance of Mega projects in the energy sector in Kenya. The study entailed a census of all the 47 mega projects under the various public procuring entities in the energy sector. The unit of observation was the procurement managers in the procuring entities dealing with mega projects. Objectively developed questionnaires were used to collect primary data. The data collected was sorted, coded and entered into the computer statistical package (SPSS), for production of descriptive and inferential statistics. The study established a significant influence of PPP on procurement performance of mega projects in the energy sector. The study also established a moderate adoption of PPP in the acquisition of mega projects in the energy sector in Kenya. Therefore this study recommends to the energy sector management, to adopt enhance adoption of PPP practice in the acquisition of mega projects in the energy sector. This would be a faster and less costly means of achieving of the energy plan aimed at increasing energy production to 10,000MW in line with the Kenya vision 2030. Whilst adoption of PPPs portends benefits of reduced cycle time, cost and improved quality of mega projects; it would be insightful to establish the models of PPP that would be most suitable for different aspects of power development: exploration (drilling), plant development, and power evacuation in the energy sector.