Public Private Partnerships (PPPs) and Enhanced Service Delivery in Uganda: Implications from the Energy Sector

Abstract

This paper focuses on the use of Public Private Partnerships (PPPs) as a strategy to address deficiencies in the energy sector of Uganda in order to remedy the power generation shortage in the country. Public Private Partnerships have become popular and gained wide adoption in public sector management though with varying degrees of success especially in Africa. This paper borrows from the transactional theory to help examine the contractual structure, assets specificity, and comparative costs of buying decision making in the Public Private Partnership in the energy sector. The paper also borrows from the stakeholders’ theory as it highlights the need to identify and establish the different stakeholders in the Public Private Partnerships (PPPs) in the energy sector. It highlights the common concepts and forms of Public Private Partnerships in utilities; presents two case experiences of PPP in the energy generation of Uganda and lessons learnt. A review of the two case studies suggests a number of learning points related to involvement of stakeholders, need for government monitoring of the Public Private Partnership contracts and fostering of a win-win outcome. The paper highlights that successful implementation of a PPP depends to a large extent, on the development of capacity, sound legal procedures, agreements, and contracts that clearly define the relationship between government agencies and private firms.