Concessional factors influencing the financing of build-operate-transfer projects in developing countries: the case of a railway project in Kenya
Date
2016Author
Lucas, Stephen O.
Rambo, Charles M.
Type
ArticleLanguage
enMetadata
Show full item recordAbstract
The Government of Kenya initiated a concessional agreement with Rift Valley Railways
(RVR) in 2006, under the build-operate-transfer financing framework, to improve delivery of
railway transport services and spur economic growth. However, a decade later, RVR’s
performance failed to meet performance targets due to financing constraints, among other
factors. This study examined selected concessional factors also perceived to be important
predictors of the project’s financing and performance. We sourced primary data from 348
staff of RVR and government authorities. We applied Relative Importance Index to
determine relative importance of each factor; while Kendall’s Coefficient of Concordance
(W) determined the concordance of participants’ perceptions regarding the influence of
concessional factors on the project’s financing. The study found that lack of stakeholder
review forums was the most important predictor of the project’s financing (0.7). Also
important were concessionaire’s technical capacity (0.6), concession fees (0.6),
concessionaire’s revenue (0.5), tariff adjustment (0.5) and concession period (0.3). The study
obtained an average level of concordance in participant’s perceptions, which however, was
statistically significant (W = 0.618, χ2 = 17.248, df = 5 & ρ-value = 0.015). Periodical review
and improvement of concessional factors is likely to facilitate implementation, financing and
performance of concessional projects.
Citation
Rambo, Charles M., and Stephen O. Lucas. "CONCESSIONAL FACTORS INFLUENCING THE FINANCING OF BUILD-OPERATE-TRANSFER PROJECTS IN DEVELOPING COUNTRIES: THE CASE OF A RAILWAY PROJECT IN KENYA." Global Conference on Business & Finance Proceedings. Vol. 11. No. 1. Institute for Business & Finance Research, 2016.Publisher
University of Nairobi
Subject
Concession, Financing, Build-Operate-Transfer, Railway Project, Relative Importance, Concordance.Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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