The Practices and Challenges of the Public Private Partnership (PPP) based Project Implementation. The case of “Lehulu” Project
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Date
2018-06-13
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Addis Ababa University
Abstract
This project paper focused on assessing the practices and challenges of the Public Private Partnership (PPP) based project implementation from the private partner’s perspective. To this end it used the case of “Lehulu”. “Lehulu” was a PPP project implemented through a collaboration of the public partner MCIT and the private partner KFT to improve utility bill collection system of the three publicly owned utility companies. The main objective of the paper was to explore the project organization and PM practice employed in the project along with its effects on cost, time and quality. Besides, the major factors attributed for the project success and the major challenges faced in the course of the project implementation were identified. To achieve its objective, the study employed a mixed research approach that used both qualitative and quantitative data and data analysis method. Accordingly, questioners and structured interviews were administered among 34 technical staff and two officials of the KFT, who have been involved in the project implementation, respectively. Then the resulting information was analyzed using descriptive statistics. In addition to the primary data collected in the mentioned manner, secondary data were collected through review of relevant project documents such as project plan, project reports, etc. and presented through describing the facts of the project. Accordingly, the revision of the project documents and interview input revealed that the project was organized and managed through a consortium formed among three partners KFT, Wipro and TATA consultancy groups. The reason for this form of PM organization and practice was the local private partners’ lack of technological ability, PM capacity and the existence of the knowledge gap about the PPP modality among both the public and the private partners. The overall effect of this practice was a moderate delay in project time, favorable cost performance and meeting the quality requirement of the project. The quantitative data analysis substantiated with the interview input attributed the main success factor for the project success was KFT’s capabilities of fulfilling the contract while the major challenge was poor banking policies and unavailability of loans to fund such projects as PPP.
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Public-Private Partnership (PPP), PM organization and Practice, Success Factors and Challenges