STAKEHOLDER MANAGEMENT IN PUBLIC PRIVATE PARTNERSHIP (PPP) PROJECTS IN ETHIOPIA: THE CASE OF DICHETO SOLAR PROJECT.

Abstract

Ethiopia has resorted to the use of PPPs as a strategy to deal with its deeply rooted infrastructure problems. PPP projects create a grid of multiple stakeholders with varying interests and expectations from projects. These stakeholders play a pivotal role in PPP projects as far as in determining their outcomes. Therefore, managing these multiple stakeholders and their interests is vital in ensuring the success of the PPP projects. In this study an attempt is made, to assess how stakeholders are managed in one of PPP pipeline projects namely the Dicheto Solar project by analyzing the policy, the legal and institutional frameworks adopted and investigating the practice thereof. In conducting the research, a mixed approach with a Descriptive research design was employed. Accordingly, the study has revealed that stakeholder management has received little attention during the adoption of PPP policy and the legal instruments. The policy document is not supported by a strategy document setting PPP implementing frameworks across different sectors of the economy and government contracting authorities. Moreover, the PPP proclamation is not reinforced by other subsidiary directives and/or guidelines related to public interest, stakeholder consultation, and public disclosure requirements which brought failure in its full implementation. Furthermore, with weak institutional framework that lacks transparency, institutional framework and capacity, inadequate skills and knowledge regarding PPP schemes, strict foreign currency regulations and rigid financial policies and delay in decision making brought the termination of the Dicheto solar PPP Project even before it reach a contract signing stage, hence become unsuccessful PPP Pipe line project. Based on the finding the research recommends that stakeholder management and engagement should be included in PPP policy as well as legal frameworks and issuance of subsequent regulations and guidelines is vital. There is also need to apportion a separate stakeholder management structural unit; to place from the earliest possible stages a well-designed and appropriate communication plan; and build and strengthen the institutional as well as personnel capacity of the contracting authorities.