Kenya: Kenya's private sector stands to win big as the Government opens up dozens of multi-billion dollar projects to be developed in a new Private-Public Partnership (PPP) formula.
The 59 projects mainly in infrastructure and transport are the first tranche of public tenders under the new Public Private Partnership Act, 2013 signed into law by former president Mwai Kibaki in January last year.
"The pipeline of PPP projects has garnered the requisite approvals and clearance by both the PPP committee and the Cabinet as provided by the Section 24 of the PPP Act, 2013," read a statement by the National Treasury Principal Secretary Kamau Thugge.
The projects include a total of 2,300 MW geothermal projects by the Geothermal Development Company, (GDC), dualling of the Mombasa - Nairobi and Nakuru - Nairobi Highways and the construction of the Nairobi commuter rail services.
Other projects that have been cleared include solid waste management systems for Nairobi, Nakuru and Mombasa, construction of a sea port in Kisumu, Lamu and a second container terminal in Mombasa and housing projects for prison and police staff.
"This pipeline has the potential of supporting the government's quest to realize double-digit growth in line with the country's development strategy," said Dr Thugge in part.
However, the avalanche of lucrative Government development tenders is expected to heighten tender disputes which have been referred to parliament or the judiciary stalling several projects and increasing the cost of the eventual cost of execution.
Currently, the 15 billion security tender awarded to mobile service provider Safaricom is awaiting debate in Parliament following its suspension three months ago and a Parliamentary committee probe into alleged tender irregularities.
The Government is looking to avoid the legal and parliamentary pitfalls that have befell some its parastatals ending up in costly legal battles and delays.
"This is to inform the public that the national list of PPP projects has been subjected to a series of suitability checks and has been granted formal clearance to proceed for development as PPPs," stated Dr Thugge.
Kenya is currently developing energy, transport, and infrastructure projects with a combined price tag of close to Sh4 trillion. Konza technopolis is one of the mega-projects.
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