Projects

MEGA PROJECTS Kenya to launch Sh1 trillion PPP projects by June 2021

06 April 2020

Some of the projects are currently at advanced stages of the PPP process.

Kenya has mooted a plan to roll out Sh1.14 trillion worth of projects under public-private partnership (PPP) model by end of the fiscal year 2020/21, as the country looks to wean itself off an addiction to growth fuelled by an expanding public debt bubble.

According to the National Treasury, a total of 80 projects have been listed in the national priority list of PPP projects, with plans underway to roll them out by June next year.

“The projects are in various sectors i.e. transport and infrastructure, energy, health, education, water and environment, housing, tourism, manufacturing, agriculture and livestock,” Treasury Secretary Ukur Yatani says in the 2020 Budget Policy Statement.

The projects listed for roll out under the PPP model include the much talked about Nairobi Expressway – the country’s first double decker road, Nairobi-Nakuru-Mau Summit Highway, the second Nyali Bridge, and Lamu-Garissa-Isiolo highway, among others.

Kenya has mooted a plan to roll out Sh1.14 trillion worth of projects under public-private partnership (PPP) model by end of the fiscal year 2020/21, as the country looks to wean itself off an addiction to growth fuelled by an expanding public debt bubble.

According to the National Treasury, a total of 80 projects have been listed in the national priority list of PPP projects, with plans underway to roll them out by June next year.

“The projects are in various sectors i.e. transport and infrastructure, energy, health, education, water and environment, housing, tourism, manufacturing, agriculture and livestock,” Treasury Secretary Ukur Yatani says in the 2020 Budget Policy Statement.

The projects listed for roll out under the PPP model include the much talked about Nairobi Expressway – the country’s first double decker road, Nairobi-Nakuru-Mau Summit Highway, the second Nyali Bridge, and Lamu-Garissa-Isiolo highway, among others.

In the transport sector, procurement is on-going for the Second Nyali Bridge and the much awaited Nairobi-Nakuru-Mau Summit Highway. Operation and maintenance for the Nairobi Southern Bypass, Thika Road, and Nairobi-Mombasa Highway are ready for tendering.

Phase 1 of the Road Annuity program – Lot 33 (Ngong-Kiserian-Isinya Road, and Kajido-Mashuru-Isara Road) – spanning 90.55 kilometres is currently underway.

Tharaka Nithi

Projects that have already been tendered include Lot 6 (the project is the construction and rehabilitation of 233.3 km comprising of Kilgoris – Lolgorian (B3) Kehancha – Lolgorian, Turbo – Shikhendu – Endebess, Kakamega – Ingotse – Namukoye – Nzoia River – Musikoma (JN C33) Road, Ugunja – Ukwala – Ruambwa, Ruambwa – Port Victoria and Kimaeti – Malakisi – Lwakhakha through Njukini).

Contract negotiations have been on-going for the Nairobi-Nakuru- Mau Summit Highway; Lot 8 (construction and rehabilitation of the 71.5 km roads to augment the existing roads from Bomas to Magadi; Bomas to Ruiru via Dagoreti and other link roads).

Negotiations are on-going for Lot 10 (Nanyuki – Gwa Kungu (B22) Road- 83.6 km and Laisamis – Ngurunit – Nursery (South Horr) (B74) Road- 136 km), and Lot 20 (construction and rehabilitation of a total 65.5 km comprising of Kamiti-Roysambu-Kasarani-Mwiki Roads, James Gichuru-Thika Bypass, Kajiado By-pass, Komarock road).

Other projects whose contract negotiations are on-going include Lot 8 (Bomas – Kiserian – Magadi, Bomas – Karen – Dagoret – Ruiru, Uplands Githunguri-Ngewa-Ruiru) – 71.46 km; and Lot 10 (Nanyuki- Gwa Kungu, Laisamis-Ngurunit-Nursery (South Horr)- 219.6 km.

Lamu Port

Negotiations with private party are also on-going for the Lamu – Garissa- Isiolo Highway as well as the operation and maintenance for the first three berths of the Lamu Port.

PPP project agreements have been signed for the Likoni Aerial Cable Car and conditions precedent to financial closing are being addressed. The operation and maintenance for the Shimoni Port is ready for tendering.

In the energy sector, PPP project agreements have been signed for the following projects and conditions precedent to financial closing are being addressed: 1050MW Coal Power Plant in Lamu, 105 MW Menengai Phase 1 (35 MW Sosian Menengai Geothermal Power Plant, 35 MW Quantum Menengai Geothermal Power Plant), 35MW Sosian Menengai Geothermal Power Plant Project, 35MW Quantum Menengai Geothermal Power Plant Project, and 35MW Orpower 22 Geothermal Power Plant Project.

Talks are underway for 105 MW Menengai Phase 1 (35 MW Ormat Orpower Geothermal Power Plant), while 140 MW Geothermal PPP project at Olkaria has been tendered.

Private hospital

In the health sector, construction of a 300 bed private hospital at the Kenyatta National Hospital has been tendered. In addition, preparations for procurement of transaction advisor are underway for the Pwani University Teaching and Referral Hospital, Amenity Wing at Kisii Teaching and Referral Hospital, Cancer Centre at Meru Teaching and Referral Hospital, and Upgrading of Nyamira Level 5 Hospital.

In the education sector, PPP project agreements have been signed for Kenyatta University student hostels, while Moi University student hostels, University of Embu student hostels, and South Eastern Kenya University student hostels are at RFP (request for proposal) stage of procurement. Projects for Egerton University and KTCC are ready for tendering.

In the tourism sector, feasibility study has been completed for the proposed Nairobi International Convention and Exhibition Centre.

In water and environment, the Nanyuki Bulk Water Supply is ready for tendering, while feasibility study has been completed for Murang’a Water Supply, and Nakuru Integrated Solid Waste Management.

In housing, negotiations with private party are on-going for KCB Usalama Police Housing while the Civil Servants Housing project is at procurement stage.

In manufacturing, negotiations with private party are on-going for Dongo Kundu Special Economic Zone, and the Naivasha Special Economic Zone, while preparations for procurement of transaction advisor are underway for Muguga Agri-City in Kiambu.

In agriculture and livestock, project structuring for procurement is on-going for the proposed Export Quarantine Station & Livestock Export Zone.

The estimated total value of these projects is Sh1.14 trillion.

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