Doctoral Degrees (School of Public Leadership)
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Browsing Doctoral Degrees (School of Public Leadership) by Author "Bagenda, Bonny"
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- ItemDevelopment of a risk management model for public-private partnerships in Uganda(Stellenbosch : Stellenbosch University, 2023-03) Bagenda, Bonny; Zwelinzima, Ndevu; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.ENGLISH SUMMARY: Governments are collaborating with the private sector through public-private partnerships (PPPs) to address the public infrastructure funding gaps and inefficiencies associated with conventional public procurement. This is amidst the increasing demand for public infrastructure and services. However, PPP projects are prone to several risks, which have accounted for their failure in many cases. This study focused on Uganda where existing PPP projects have not performed as expected mainly because of poor risk management practices. Additionally, risk management in PPP projects in the context of Uganda has hitherto not been well-studied despite the rising interest in the use of the PPP model to achieve Uganda’s Vision 2040. The study, therefore, sought to develop a risk management model for PPP projects in Uganda based on the supposition that when risks are adequately managed, PPP projects will achieve their objectives, and Uganda will be able to realise its public infrastructure aspirations. A pragmatic philosophical paradigm underpinned a convergent mixed-methods research design using four data collection methods. A systematic literature review was conducted to identify the risks associated with PPP projects, and a questionnaire survey was used to collect data from 83 PPP experts purposively sampled from the public and private sectors and academia. Additionally, four PPP projects were reviewed through interviews and documentary analysis. Furthermore, the study reviewed the literature on existing PPP risk management models and international risk management best practices. Data were then analysed through mean score ranking; Kendall’s coefficient of concordance; and qualitative content and thematic analysis. The study was guided by New Public Management and Post-Management theories which were used to justify the use of PPPs. Furthermore, transaction cost, stakeholder and complexity theories were used to understand risks in PPPs. Through a systematic literature review, 76 risks associated with PPP projects were identified of which 34 emerged as the principal risks specific to Uganda. The top principal risks included construction completion risks; corruption and bribery; land acquisition risks; construction cost overrun; and high financing costs. Concerning risk allocation, the respondents preferred most of the risks to be shared between PPP partners, which contradicted the findings of previous studies. Inadequate PPP experience was cited as the key challenge associated with risk allocation in PPP projects. Through a literature review and an analysis of documents on successful PPP projects globally, lessons were learnt from international best practices for risk management. These included the need for a sound regulatory framework; political support and commitment; stakeholder sensitisation and engagement; clear contract terms; relationship management; development of the local financial market; contingency plans and funds; and a transparent procurement process. Through interviews and documentary analysis, mechanisms used to manage risks in selected PPP projects in Uganda were analysed and gaps were identified. Drawing on these results, a PPP risk management model comprising four components including risk identification, risk allocation, risk mitigation and risk monitoring was developed. The model proposes a combination of risk checklists, brainstorming and the Delphi technique as effective tools for identifying risks. It also highlights the principal risks associated with PPP projects in Uganda, which are classified into nine risk groups. Furthermore, the model includes seven risk allocation criteria to be used to comprehensively assess the abilities of each party and to achieve optimal risk allocation. Risk management strategies for each principal risk are also highlighted in the model. In addition, the model emphasises the importance of risk monitoring whereby risk management strategies are assessed and risk reidentification and reassessment is carried out. The proposed model will guide PPP stakeholders in the identification, allocation, management, and monitoring of risks associated with PPP projects to ensure the successful implementation of PPP projects. This will enable the government to execute its planned infrastructure projects, thereby supporting Uganda’s efforts toward the realisation of Vision 2040 and the Sustainable Development Goals (SDGs). Although the proposed risk management model was developed with Uganda in mind, it could be adapted for use by other countries.