A Qualitative Analysis of Public Private Partnership (PPP) Project Contracts in the Roads Sector. A Contextual Elucidation of Uganda National Roads Authority (UNRA)

Abstract

Public Private Partnership Projects continue to gain momentum across the world. Governments in developing countries now find PPP projects as an alternative to conventional financing and providing public infrastructure. Guided by the principal agency theory, this study examines different types of PPP Project contracts in the roads sector with specific focus on the Uganda National Roads Authority (UNRA). Contracting out of projects in the roads sector has led to increased costs of road construction in Uganda. The main objectives of this study are to examine the relevance of the principal-agency theory to the adoption of PPP project contracts by UNRA and establish the types of PPP Project contracts suitable for adoption by UNRA. Data was collected through literature survey and interviews. Study findings revealed that Principal-Agency theory is relevant to adoption of PPP project contracts and that UNRA intends to use mainly management PPP contract. It is concluded that principal-agent relationship is very crucial if the execution of PPP Project contracts is to be a success and that there is a very high chance that UNRA is planning to also adopt the use of Build, Own and Transfer (BOT) PPP Project contract in the roads sector. The study recommends that UNRA should ensure a cordial relationship with private parties and not rely solely on management PPP contracts. The organisation should explore other PPP project contracts such as Private Finance Initiative, Leasing, Design Build, Build Operate and Transfer, and then Design Build and Finance. The choice of contracts should always be based on affordability and value for money.

Principal Risks Associated with Public-Private Partnership Projects in Uganda

“…Similarly, Stutely (2014) recommend a minimum sample of 30 for statistical analyses (Saunders et al, 2019). Therefore, a sample of 130 respondents was above the recommended minimum sample size and because the PPP model is relatively new in Uganda and only a few experts could be considered for this study (Kisitu, 2018;Mugarura, 2019;Nduhura, 2019;Nuwagaba, 2019;Twinomuhwezi, 2018). Additionally, these respondents were involved or had experience in PPPs which meant that the validity of the data can be reasonably inferred which is in line with Patton's (2015) argument that the purposive samples should be judged based on the rationale of the study.…”

Project Management Strategies and Performance of Public Private Partnership Road Infrastructure Projects in Nairobi City-County, Kenya

“…Despite the enactment of the PPP Act in 2015, Uganda's road sector has not experienced significant growth in PPP adoption, as observed by Ndandiko (2018). While progress has been made, projects like the Kampala-Jinja highway have experienced short comings, including institutional capacity issues within the PPP framework (Nuwagaba, 2020).…”

Trust and management control archetypes in public-private partnerships

“…Previous studies have highlighted how MCSs vary according to the structure of organizations (Vosselman and van der Meer‐Kooistra, 2006a, 2006b), other contextual and institutional variables (Damayanthi and Gooneratne, 2017; Speklé, 2001), as well as the PPP phases (Appuhami and Perera, 2016). MCS are influenced by the programmability of the task and activities, by the measurability of the output (Nuwagaba and Molokwane, 2020), and by the ability to program activities and define optimal contractual obligations (Speklé, 2001). This means that the specificities of PPPs can influence the type of MCS implemented.…”