However, a lack of modern infrastructure is a major challenge to Africa’s economic development and constitutes a significant impediment to the achievement of sustainable development goals.

The PPP Model: A Challenging Step.

Facing the dearth of infrastructure funding, an increasing number of countries, notably emerging markets and developing economies a need arises to make an impactful attempt to Public-Private Partnerships (PPPs) in order to tap private capital.

PPPs in Africa remain a very small market, with projects concentrated in only a few countries, namely, South Africa, Nigeria, Kenya, and Uganda. We recognize that some African countries are hesitant to embark on PPPs as a result of prior bad experiences with ill-prepared PPPs or even with less-than competent PPP project sponsors.

It is broadly understood that public-private partnerships (PPP) are a procurement tool that encompass design, financing, construction and long-term operation of a public infrastructure by the private sector. They can be cost-effective thanks to adequate risk transfer and performance criteria, and help bridge Africa’s large infrastructure gap in many sectors.

The only question that strikes the mind is “What can African Government do have an effective PPP”?

Classifying potential PPP projects from the outset using the three criteria outlined above could help not only focus on the specific legal and institutional issues that are most relevant to the projects, but also on the viability issues that are critical to attracting private investors—which could include required government funding, the creditworthiness of national utilities or the financial capacity of users.

Many African countries could create precedent and bring in private capital to address their infrastructure needs. A PPP proverb by world bank strikes the issue “ Little drops of water via small projects makes an ocean of PPP projects in due course”

In order to have a successful PPP Model what is actually needed to be implemented is as follows:

Political Commitment: The Government should be effective enough to have a strong hold and control over implementation of the model.

Stakeholder Engagement: Steps shall be taken to increase stakeholder engagement by involving them with seminars, discussions etc. There shall be a proper one to one coordination between the government and the stakeholders to stay on one uniform road.

Strong involvement of development institutions (Both Public & Private): A strike of balance has to be maintained between both the institutions to let the model flourish in exact terms. Uniformity in decision making is the ultimate step that is needed.

Clear and Visible Benefits: the achievement through the initiative must be lucid enough to set a goal to achieve and the implications must be beneficial in order to support the infrastructural goals.

http://www.africagateway.info/sector/Tenders-Infrastructure-and-construction

Large investments are made to boost the grwoth in the energy sector. The ministry of Energy in Kenya has implemented Kenya Elelctricity Modernization Project to increase access to electricity and improve reliability of electricity services.

Project Details: 

Project Location: Kenya

Project Value: US$ 200.00 million

Project status: Active

Project End: 31 Dec 2016

Project Description:

Kenya aims to increase generation capacity by 5,000Mw in 2016 to 2300Mw in 2030. The Government of Kenya is focused on sustaining a stable investment climate for private-sector participation in energy, developing expanded transmission and distribution networks to deliver power to customers, maintaining a creditworthy off-taker, maintaining cost-reflective tariffs, and reducing inefficiency in the sector to support more affordable end-user tariffs.

The important objective of the Kenya Electricity Modernization Project is to:

a) Increase access to electricity

B) Improve reliability of the electricity services

c) To strengthen KPLCs (Kenya Power and lighting Company) financial situation.

The country currently has just under 2200 megawatts of installed electricity generating capacity according to the most recent draft of Kenya’s national energy and petroleum policy, published by its energy ministry.

The country’s electricity demand is set to rise as economic growth ticks up. The demand is being driven by development of industrial parks, growing industries, railway developments etc.

To meet this demands kenya government has embarked on Electricity Modernization Project to increase the transmission distribution and reliability of the energy sources.

For more details follow the below link:

http://www.africagateway.info/sector/Tenders-Energy-Power-and-Electrical