Critical success factors for pre-financed road upgrading projects: a case of critical oil roads under Uganda National Roads Authority

Abstract

This study investigated critical success factors for pre-financed road upgrading projects while using critical oil roads under Uganda National Roads Authority as a case study. The study was guided by objectives which included the examining the private sector capacity and contract management control for pre-financed Critical Oil Roads UNRA, the challenges encountered using pre-financing arrangements on Critical Oil Roads under UNRA and the recommendations for implementation of pre-financing arrangements for Critical Oil Roads UNRA. The study used a cross-sectional survey research design and considered both quantitative and qualitative approaches. The study targeted a sample size of 55 respondents but 51 managed to respond back and these were 04 for qualitative and 47 for quantitative data. Data were collected using questionnaires and an interview guide. The study revealed that the critical success of the pre-financed road project was due to the fact that the private companies had the capacity to raise adequate funds needed on the projects and also have got enough technical skills to effectively execute the project. Contract management control was largely pretty handled because there was regular reporting on project progress status, provision of sufficient information carrying out performance assessments and making adjustments project objectives. It was also revealed that different challenges such failure to secure required funds, loss of interest in the project and less time to raise the funds needed for the project were encountered when implementing pre-financed road construction projects. Furthermore, challenges like political influence, inadequate laws, inadequate legal experts, high interest rates, high corruption levels, high costs involved in the process and less time given to the government to payback also challenge contract management control during the pre-financing process. To improve the process there is need for thorough evaluation of the organization’s financial capacity, offer tax incentives to contractors and strengthening institutional capacity to negotiate with the private sector. It was also revealed that there is need to clearly share risk obligations between the government and the contractors, forming independent regulatory agency to implement pre-financing arrangements, interest rate swapping to reduce on the pay burden and establishing guarantee funds to complete the project in case the contracted private company fails to secure all the needed funds needed on the project.