A success index for public private partnership programmes’ success in the electricity generation sector of South Africa

Abstract

This research study explored factors that contribute to the success of formal reverse auction Public Private Partnership (PPP) programmes in the electricity generation sector of South Africa. The approach chosen was qualitative in nature, with semi-structured interviews conducted with a total of twenty-one (21) professionals. The interviews were recorded on Microsoft teams, transcribed and analysed in the MAXQDA software. A five-step inductive-deductive approach was used to analyse the data. A detailed conceptual Success Index framework was developed from the literature and refined empirically from the interview findings. Integrating the enabling Critical Success Factors, measurable Critical Success Criteria and the Critical Risk Factors in driving success outcomes of the programmes and the projects. The key findings showed that the formal reverse auction public private partnership programmes required strong political will and support, co-ordinated grid expansion and modernization as well as a focus on ensuring that local economic development and social impact are core to the programmes design. Furthermore, it was found that for PPP projects both quantitative hard project construction management factors and soft qualitative ESG factors were important in driving their successful outcomes. The findings showed that programme(s) needed to evolve within the context of the rapidly changing electricity supply industry of South Africa to remain relevant. The historical focus of the programmes on low prices was found to be encouraging unsustainable practices amongst Independent Power Producers, leading to an increased occurrence in bid compliant but unbankable projects. The factors within the Success Index framework showed value creation for both the public and private sectors involved a shift in focus to project readiness to reach Financial Close.