Factors that influenced PPP adoption for implementing Geothermal Power Project, Menengai Project

Kenya among developing countries is experiencing unprecedented demand for affordable energy supply in order to spur economic development and improve social economic status of her citizens; geothermal development is one of the flagship projects earmarked in this noble course. This study therefore examined the factors that extensively influenced the adoption of public private partnership as a tool for financing public infrastructure projects with specific focus on Menengai Geothermal power project. The study employed use of descriptive survey research design in acquiring data; the focus was on obtaining quantitative data from a cross-section of experts relevantly involved in PPP projects. The target population comprised of 100 persons drawn from Geothermal Development Company management, Public Private Partnership Unit within the National Treasury, Independent Power Producers, County Government of Nakuru and local community within Menengai project site, the professional domain captured here forms part of inform source for policy making about PPP development. Out of a target of 100, 91 respondents were involved and positively gave their feedback through the questionnaires that were administered, since the research was restrictive, census was adopted for the 91 respondents. Data acquired was coded in SPSS for processing and 65.6% Indicated that BOO was adopted for implementing Menengai Geothermal Power generation scheme which empirically showed an informed population. An array of factors were examined, among others in a consolidated view, 84.6% of respondents indicated that; fiscal deficit on capital expenditure was highly and very highly significant in influencing the adoption of PPP project financing model. The research further showed that in the numeral strength of factors that influenced PPP adoption included; private sector to create jobs (75.9%), risk transfer to private sector (77.5%), private sector expertise needed (74.7%), project delivery efficiency by private sector (49.5%), quality of service (48.9%), and cost control by private sector (41.8%). Through this research work and findings, the successful application of this PPP model will set precedence to be adopted for other numerous projects in the pipeline earmarked under the “Big-four Agenda” planned by Kenya government to actualize the countries Vision 2030 program, while improving PPP framework by addressing emerging challenges.

Keywords: Public Private Partnership, PPP, Menengai Geothermal Project, Build Own Operate