Factors That Influenced Public Private Partnership (PPP) Adoption for Implementing Geothermal Power Project, Menengai Project

Abstract

Kenya as a developing country is experiencing unprecedented demand for energy supply in order to spur economic development and improve the 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 a specific focus on Menengai Geothermal power project. The study employed the use of descriptive survey research design in acquiring data; the focus was on obtaining quantitative data from a cross-section of persons relevantly involved in Public Private Partnership (PPP) projects. The target population comprised of 100 persons drawn from GDC management, PPP Unit within the National Treasury, IPPs, County Government of Nakuru and local community within the Menengai project site. 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, a 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 investigated, 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; project delivery efficiency by public sector (49.5%), cost control by private sector (41.8%), quality of service (48.9%), private sector expertise (74.7%), risk transfer to private sector (77.5%), and attraction of private sector to create jobs (75.9%). The research study has room for further BOO success examination in energy projects.