Public-Private-Partnership in Ethiopia: The BOT Modality in Utility Billing

Daniel Mesfin


This paper focuses on the use of Public Private Partnerships (PPPs) as a strategy to address inefficiencies in utility billing services. This article aimed at assessing factors contributing for successful implementation of PPP in utility billing and the restraints faced in implementation of the PPP in utility billing. Four public utility institutions and one private concessionaire with its five branches and 52 respondents were selected purposively. It employed a mixed research approach (quantitative and qualitative). Similarly, quantitative and qualitative research data types were used. Questionnaires and semi-structured interviews were also administered to collect research data. All available government documents and relevant empirical studies on PPP were also used as secondary sources. The method of data analysis used in this study was mixed triangulation method. Descriptive and inferential statistics such as frequency, percentage, cross tabulation, tests of proportionality, mean ranking, Kendall’s coefficient of concordance and Mann U Whitney test were used in the analysis process for quantitative data. In addition textual analysis was used for qualitative data. As a result, the findings of the study capture that there is high level customer satisfaction and remarkable cost reductions. At the same time, political support, the existence of strong private concessionaire i.e. Kifya Financial Technology PLC and the responsibility and commitment of both partners are ranked 1 to 3 as factors contributing for the success of the PPP. Unlikely, lack of awareness on the issues of PPP and absence of relevant experienced and skilled man power in PPP were found as potential challenges in the implementation of the PPP in utility billing. From this, the study recommends that there is a need of clearly stated national PPP policy that enable establish a PPP Unit with its PPP focused Agency, facilitate policy dialogue and awareness creation programs on the existing legal formworks, increase the number of billing payment centers and scale up the services to all corners of the country.

Keywords: public-private partnership, Lehulu, Success Factors and Restraining Factors

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