Public Private Patnerships in Kenya.Advantages and Disadvantages

Public Private Partnerships in Kenya. Advantages and Disadvantages

A public private partnership is a project carried out by both the government and private investors. This approach of doing development has a lot of critiques ,some seeing it as a great strategy while others oppose the idea of PPPs in development of infrastructure. In this article we shall look at both the advantages and disadvantages of PPPs,in a view to understand if this is the way to go.

Advantages of PPPs

1.       Fast development of projects

The primary goal of an investor is to make profit through his investment. PPP models tend to be done at a shorter period compared to government financed projects. This effective in provision of services to the citizen. The government should always monitor and regulate the standards the investors so they can not develop weak facilities as they quicken their developments

2.       Development can be done if the government lacks enough revenue

The PPP models are effective in infrastructure development when the government lacks enough funds to do the developments.

 

Disadvantages of PPPs

1.       Hidden debt

The PPP investment are meant to be paid over a long period of times that is 10 to15 years. This makes the payment to this infrastructure more expensive. If the government financed the projects it is much more cheaper hence in the long run the PPP project expensive and the citizen are forced to pay more using with their taxes.

2.       They may fail to look the welfare

The private investor’s objective to make profit may make this model to consider the welfare of citizen. An example can be cited in the construction of The Nairobi Expressway Road the investors constructed drainage channels directing flood water to the existing road under it which fails to consider the welfare of the users using it.The toll fees may also be made to be expensive discouraging the use of the road by ordinary citizens.

3.       Quick development may lead to development of poor infrastructure

The investors may be tempted to use obsolete raw materials in construction of the project in aim to make profit. This therefore for coordinated regulation by government agencies to ensure the project are done to the required standards.

4.       Corruption deals

PPPs can be used by political class to swindle away the citizens taxes. This evident due to the secretive nature of coming up with these deals. The deals which are mostly done in locked office background may be used to steal the government resources.

5.       Exaggerated price tags

The price tags of private led investment are always exaggerated since the main goal of the investors is to make maximum profit. Notably the construction of Grand Falls Dam was to cost the Kenyan government 150 billion through a Chinese loan. The same project is costing 500 billion to be done by an UK-based private firm.

The success of PPP depends on coordination of both the private investors and the government. The success of the proposed PPPs project is therefore dependent on many factors and only time will tell us if the partnership will drive development .

Location: Kenya

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