{"id":45205,"date":"2025-07-21T15:44:14","date_gmt":"2025-07-21T12:44:14","guid":{"rendered":"https:\/\/sbs.strathmore.edu\/?p=45205"},"modified":"2025-07-21T15:44:14","modified_gmt":"2025-07-21T12:44:14","slug":"reimagining-infrastructure-delivery-through-public-private-partnerships","status":"publish","type":"post","link":"https:\/\/sbs.strathmore.edu\/en_gb\/reimagining-infrastructure-delivery-through-public-private-partnerships\/","title":{"rendered":"Reimagining Infrastructure Delivery Through Public-Private Partnerships"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row 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src=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1.webp\" data-orig-src=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1.webp\" width=\"1200\" height=\"675\" class=\"lazyload wp-image-45206\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271200%27%20height%3D%27675%27%20viewBox%3D%270%200%201200%20675%27%3E%3Crect%20width%3D%271200%27%20height%3D%27675%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1-200x113.webp 200w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1-400x225.webp 400w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1-600x338.webp 600w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1-800x450.webp 800w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web1.webp 1200w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 640px) 100vw, 1200px\" \/><\/span><\/li><li class=\"image\"><span class=\"lazyload fusion-image-hover-element hover-type-none\"><img decoding=\"async\" src=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web2.webp\" data-orig-src=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web2.webp\" width=\"1200\" height=\"675\" class=\"lazyload wp-image-45207\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271200%27%20height%3D%27675%27%20viewBox%3D%270%200%201200%20675%27%3E%3Crect%20width%3D%271200%27%20height%3D%27675%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web2-200x113.webp 200w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web2-400x225.webp 400w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web2-600x338.webp 600w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web2-800x450.webp 800w, 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data-srcset=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web3-200x113.webp 200w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web3-400x225.webp 400w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web3-600x338.webp 600w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web3-800x450.webp 800w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web3.webp 1200w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 640px) 100vw, 1200px\" \/><\/span><\/li><li class=\"image\"><span class=\"lazyload fusion-image-hover-element hover-type-none\"><img decoding=\"async\" src=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5.webp\" data-orig-src=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5.webp\" width=\"1200\" height=\"675\" class=\"lazyload wp-image-45210\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271200%27%20height%3D%27675%27%20viewBox%3D%270%200%201200%20675%27%3E%3Crect%20width%3D%271200%27%20height%3D%27675%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5-200x113.webp 200w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5-400x225.webp 400w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5-600x338.webp 600w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5-800x450.webp 800w, https:\/\/sbs.strathmore.edu\/wp-content\/uploads\/2025\/07\/Reimagining-Infrastructure-Delivery-Through-Public-Private-Partnerships-web5.webp 1200w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 640px) 100vw, 1200px\" \/><\/span><\/li><\/ul><\/div><\/div><div class=\"fusion-text fusion-text-1\"><p>On July 10th, 2025, students undertaking the Master of Science in Development Finance (MDF) Programme were honored to engage with Beatrice Nyabira, a Partner and Head of the Projects, Energy &amp; Restructuring Practice at DLA Piper Africa (Kenya), IKM Advocates. Her session, rich in legal insight and on-the-ground experience, covered the evolving scenario of Public-Private Partnerships (PPPs) and how they need to become a pivotal point to address Africa&#8217;s infrastructure and service delivery requirements.<\/p>\n<p>Beatrice began by demystifying the concept of PPP. A PPP is a long-term contract between a contracting authority, i.e., national or county government, and a private entity. The private entity delivers a public service or function on behalf of the government, typically financing the project in the first instance and recovering through user charges, public subsidy, or both.<\/p>\n<p>Beatrice explained that what distinguishes PPPs from traditional public procurement is not merely the application of private capital but the shift of operational risk and performance responsibility to the private sector. Such a shift, institutionalized in the PPP Act of 2021, guarantees private operators a stake in a project&#8217;s completion and its long-term success, which can unleash efficiency, drive innovation, and de-risk the public purse.<\/p>\n<p>The students went through the characteristics that make a project a PPP. These characteristics include providing a public service by a private party, payment structures linked to the service delivery, assumption of performance risk by the private party, and ultimate transfer of the facility to the government. These structures are usually accomplished through Special Purpose Vehicles (SPVs), independent organizations that maintain project assets, revenues, and liabilities segregated from the sponsor corporate entity.<\/p>\n<p>Beatrice also addressed the various procurement routes for PPPs in Kenya. These include direct procurement, privately initiated proposals (PIPs), competitive bidding, and restricted bidding, each suited to varying project requirements, levels of urgency, and market conditions.<\/p>\n<p>Project documents that glue the relationship together are at the center of all PPPs. From bid documents like Requests for Proposals (RFPs) to complex Engineering, Procurement and Construction (EPC) contracts, Operation &amp; Maintenance (O&amp;M) agreements, Financing Agreements, and the master Project Agreement, all are essential to defining the obligations, risks, and returns to each party.<\/p>\n<p>To further emphasize the relevance of PPPs, Beatrice contrasted PPPs with traditional models of public procurement. While PPPs are financed and operated by private partners over concession periods of 20\u201330 years, conventional models are fully funded by the government and usually short-term. In PPPs, risks involving cost escalation, demand risk, and maintenance liability are transferred to the private sector \u2014 a strong incentive for performance-driven delivery.<\/p>\n<p>But what&#8217;s in it for governments? Beatrice listed several compelling benefits of PPPs:<\/p>\n<ul>\n<li>Budget certainty, as PPPs fix capital and operating costs in the long term<\/li>\n<li>Risk transfer, relieving governments of costly project failures<\/li>\n<li>Innovation, as private entrants bring in technical expertise and fresh thinking<\/li>\n<li>Industry development, by involving local subcontractors and transferring technology<\/li>\n<li>Accountability, through performance-based contracts and independent monitoring<\/li>\n<\/ul>\n<p>Yet she also cautioned that PPPs are not invulnerable to problems. Political sensitivities can delay implementation, especially in establishing tariffs and restructuring the public sector. Transaction costs are also higher due to legal and financial sophistication. And the bankability of projects, the extent to which they can yield predictable returns, is crucial for mobilizing private finance.<\/p>\n<p>Beatrice also concentrated on PPPs&#8217; long-term span, which makes them vulnerable to policy reversals, economic shocks, and breakdowns in governance. To buffer this, solid contracts, nimble dispute-resolution approaches, and robust institutional oversight are required. She gave the Adani Project as a warning, whereby inadequate public involvement and openness attracted public outrage, even though the project had an ambitious goal.<\/p>\n<p>Lastly, Beatrice challenged students to view PPPs as financing tools and strategic development instruments. Well-designed PPPs, she maintained, are a practical way of filling infrastructure gaps, jumpstarting economic activity, and expanding service coverage without overburdening government finances.<\/p>\n<p>Her presentation left students inspired and better informed regarding how legal structuring, financial modeling, and stakeholder alignment merge to create successful PPPs and, ultimately, a stronger public service delivery ecosystem.<\/p>\n<p>You can register for the upcoming Master of Science in Development Finance <a href=\"https:\/\/sbs.strathmore.edu\/en_gb\/master-of-science-in-development-finance\/\">here<\/a>.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong><em>Article by Miriam Wafula<\/em><\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":7,"featured_media":45209,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[39],"tags":[],"class_list":["post-45205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.2.1 (Yoast SEO v27.8) - 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