Monitoring & Operational

Procedures for PPP Housing

Project Delivery

Eneka, Akhator W. (Dip, GCT, MSc, MBA, FCA)

PPP Consultant – Infrastructure Finance

April 25, 2019Radisson Blu Hotel, Nairobi

• Let me thank you for this wonderful opportunity to present a paper

at this unique Masterclass, as Kenya prepares for the B4A. My aim

is to share with you the role of IT Applications in the monitoring and

operational procedures for PPP Housing delivery. What experience

has taught me over the years, is that the solutions to most complex

problems are usually simple. It will be my honour to share with you

these simple tested research nuggets which never fail, irrespective

of location, size and complexity of the PPP Housing undertaking.

Good morning ladies and gentlemen

From Slum to

To Decent

Accommodation

Thanks to PPP Housing Project

1) The use of IT Applications to monitor Housing projects

2) The Preparation of PPP project status reports

3) Monitoring technical and operational performance

4) House keeping activities:

a) The drivers and Enablers

b) The use of 4 research tested approaches for delivering

Affordable PPP Housing in Kenya

Areas covered

Please permit me to tell

you a simple story.

There lived two sons –

Lekki and Karshi…

Lekki

Karshi

Agenda

Part 1: The Use of The 4 Quadrant Principles

Use of IT Applications in Monitoring & Operational Procedures for PPP

Housing Project Delivery

1)

Gathering Background Information

4)Maintenance & performance management

2)Conceptualization & planning

3)Execution & delivery of Affordable PPP Housing

a)The Drivers and Enablers of Inadequate Affordable Housing

b)The 4 Approaches for Delivery Affordable PPP Housing Projects

Part 2: The Use of the 4 Quadrant Principles

Part 1The 4 Quadrants of Affordable

PPP Housing - the use of IT

Applications to meet quicker

project success criteria

• Research information is critical to the delivery of affordable

housing to citizens. In a study carried out to determine the use of

PPP to finance real estates in Africa. 98% of the 255 respondents,

opined that the lack of adequate shelter is on the increase. While

94% of respondents agreed that there is a correlation between

PPP arrangement and real estate project successful outcomes.

Overview

Gathering Background Information for Affordable

Housing

• a) Market research using statistical tools e.g.

Annotations, Collaborations, SPSS, Data visualization,

Media Analytics, Comparative Analysis, Q. Content

Analysis

• b) PPP Government laws, regulations and policies

search for specific guidelines

• c) Background information of stakeholders/projects e.g.

Qualitrics, Maritz, Voxco, Remesh, SurveySparrow &

Nextiva

• d) Profile of Project Cost e.g. Hubstaff, Trigger,

Timecamp, Harvest, easyproject, Avaza

Quadrant 1:

Affordable Housing Conceptualisation &

Planning

1) Prequalification of Homeowners - local & foreign

2) Project Vision – best managed in-house

3) Project Forecasting and Sensitivity Analysis

4) Project Plan Management

5) Project Risk Management

6) Project Performance Management

7) Managing Project Schedules

8) Resource Allocation Management

9) Project Targets and Milestones

• Examples include MS Project Management, Agile, Primavera and Spreadsheet

Quadrant 2:

Quadrant 3:

Execution and Delivery of

Affordable PPP Housing Projects

1) Constructing & Building

Affordable Houses

2) Project Change Management

3) Financial Management

4) Contract Management

5) Tracking & Updating Status

Report

6) Stakeholders Management

Maintenance and Project Performance Management

Quadrant 4:

For Affordable PPP Housing Projects

Ladies and gentlemen, the result in the outcomes of the two sons are shown

below. Lekki adopted these principles and Karshi could not follow through,

and the net result reflects the realities in most housing projects in Africa.

• End of Part 1

• We shall now proceed to part 2 – the application of The 4

Quadrants Principles!

The 4 Quadrants Principles

Part 2The 4 Quadrants Principles for

Affordable Housing – Case Study

• Affordable Housing in Africa is characterized by prospects and challenges.

To overcome these challenges involve the process of conceptualization,

planning, development, execution, termination, and management of

services of housing projects. Access to decent, affordable housing is

fundamental to citizens’ health and well-being, as well as the functioning

of smooth economic activities. Sustainable Development Goals (SDGs);

goal 11 deals exclusively with sustainable cities and communities.

Affordable Housing is embedded in the United Nations Universal

Declaration of Human Rights. Yet access is limited.

• Most Africans struggle with the challenges of access to affordable decent

houses. The specific objective of this section is the application of the

principles presented in part 1– a toolkit to guide policymakers and PPP

practitioners on the delivery of affordable PPP housing.

Problem Overview:

• According to (McKinsey report, 2014), over 330 million urban households

around the world live in substandard housing or are financially stretched by

housing costs. While about 200 million households in the developing world

live in slums.

• Globally, based on current trends in urban migration and income growth,

we estimate that by 2025, about 440 million urban households around the

world, at least 1.6 billion people - would occupy crowded, inadequate,

and unsafe housing or will be financially stretched. Affordable Housing gap

market estimate is $650 billion per year. Replacement of substandard

housing by 2025 estimates require the additional investment of $10.5 trillion

according to the research study.

Problem Overview: (contd.)

• According to the B4A, the housing deficit in Kenya is estimated at 2 million

housing units, this present prospects and challenges. To take advantage of

the challenges, requires paradigm shift in our thinking and approach. The

simple technique presented in Part 1 - The 4 Quadrant Principles for

affordable housing toolkit; when adopted will enhance productivity.

• As Albert Einsetin posited, paradigm shift is required to solve new

problems…

Problem Overview: (contd.)

The 4 Quadrants of Affordable Housing The Application

The 4 Quadrants of Affordable Housing The Drivers & Enablers

• The Big Vision: Affordable Housing programs based on broad

vision is likely to close the gap sooner in Africa. In this case, the

house as a ladder with increasing outcomes can meet different

segments of income levels. Using analytics to dimension the data,

it is possible to meet specific needs within a localized land, as

opposed to a one-for-all approach.

Affordable Housing Gap Can Be Narrowed with 4

Approaches

1) Land: Land supply is critical to providing affordable housing. The

economics of land contribute up to 40% in cost of housing. In

some cities like Lagos, up to 80%. Land reforms including land

registration, land use, land assembly, formalisation of informal

lands ownership and building smart cities with IT Applications can

improve access to affordable housing.

2) Value Engineering: Copying value engineering and industrial

approach to construction can deliver more houses at half current

prices. Modelling Software assists at accurate baseline estimates,

foundation, superstructure, landscaping, M/E and improves

capital productivity. Software enhances procurement processes,

the savings resulting from these efforts reduce housing costs.

Affordable Housing Gap Can Be Narrowed with 4

Approaches

3) Operations & Maintenance: improvement enhance asset value,

which make housing more affordable. Efficient energy such as

solar, scalable maintenance and materials aggregation supply,

and overall asset management can reduce cost of housing on

15%-20% annualized costs.

4) Finance Cost: Improved financial mechanisms will assist at

reducing the housing gap. Some of the areas to improve include –

originating cost, mortgage costs, lending costs and brokerage.

Government reforms is essential at improving Housing finance and

funding costs.

• IT Applications ensure these objectives are met timely, and in most efficient

manner.

Affordable Housing Gap Can Be Narrowed with 4

Approaches (contd.)

The 4 Quadrants

PrinciplesLekki/Kenya Case Study

Gathering Background Information for Affordable PPP Housing Projects with IT

Application

1) Market Size - based on the B4A, Kenya’s housing gap is estimated at 2 million

units

2) PPP Government laws, regulations and policies – examine Kenya’s relevant PPP

guidelines

3) Background information of stakeholders & projects – gather relevant data and

analyse them including professionals, consultants, investors, bankers, lawyers,

accountants, land, and others

4) Project Cost Management – gather cost data and analyse them

• With IT Applications, the benefit of this approach - it minimaxes guesswork, it

increases accuracy and improves project delivery mechanism (project success

criteria – time, cost, quality/performance and repeatability)

Quadrant 1:

Affordable Housing Conceptualisation & Planning – The Application

To increase success rate in affordable PPP Housing projects, it is important to

use IT Applications to manage the process of conceptualization and

planning

1) Prequalification of Homeowners - local & foreign

2) Project Forecasting and Sensitivity Analysis

3) Project Plan Management

4) Project Risk Management

5) Project Performance Management

6) Managing Project Schedules

7) Resource Allocation Management

8) Project Targets and Milestones

Quadrant 2:

Execution and Delivery of

Affordable PPP Housing Projects

1) Constructing & Building

Affordable Houses

2) Project Change Management

3) Financial Management

4) Contract Management

5) Tracking & Updating Status

Report

6) Stakeholders Management

Quadrant 3:

Maintenance and Project Performance Management

Quadrant 4:

Thank You