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Treasury seeks private financing to fund projects

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Economy

Treasury seeks private financing to fund projects

Treasury Secretary Ukur Yatani. PHOTO | SALATON NJAU 

The Treasury is betting on the public private partnership (PPP) model to finance up to one third of President Uhuru Kenyatta’s projects in the wake of growing public debt.

The Treasury disclosed that 80 projects valued Sh1.1 trillion will be rolled out under the model in the year to June 2020.

“The estimated total value of these projects is $11,422 million (Sh1.14 trillion),” Mr Ukur Yatani, the Treasury Secretary, disclosed in the 2020 Budget Policy Statement (BPS) tabled in Parliament last Thursday.

The Treasury said that projects cut across diverse sectors of the economy with the bulk in transport and infrastructure, energy, health and education.

The projects include the ongoing procurement of toll road projects for second Nyali bridge, Nairobi-Nakuru-Mau-Sumit road as well as operation and maintenance of Thika Road, Nairobi Southern Bypass and Nairobi-Mombasa highway that are ready for tender.

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Under phase 1 of the road annuity programme, the PPP projects at construction phase include the 90-kilometer Ngong-Kiserian-Isinya to Mashuru-Isara road.

The government has signed project agreements for five other roads, including the Sh65 billion Kenya’s first double-decker Nairobi-James Gichuru Expressway.

A total of 233.3 kilometres of road projects have been tendered in Kilgoris, Kehencha, Turbo, Kakamega and Ugunja.

The Treasury has signed a PPP project agreement for the construction of Likoni channel Aerial Cable Car. The operation and maintenance contract for operation of Shimoni Port is ready for tender.

Also signed are agreements for construction of 1,050 megawatt (MW) Coal Power Plant in Lamu and geothermal projects with a total 210MW potential.

Negotiations are ongoing for operation and maintenance of the first three berths at Lamu Port and the building of the Lanu-Garissa-Isiolo highway.

In health, the government has tendered for construction of a 300-bed private hospital at Kenyatta National Hospital and preparations for procurement of transaction advisers are under way for three teaching and referral hospitals.

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