Private sector lauds State for passing PPP Bill

By Frankline Sunday

Players in the private sector have welcomed the passing of a law that will broaden business opportunities, even as it eases the burden of financing several multi-trillion shilling long-term development projects.

Earlier  this week, President Kibaki assented to the Public Private Partnerships Bill 2012, which seeks to increase the capacity for funding for key infrastructure development projects in line with Vision 2030.

Kenya is in the middle of more half a dozen energy, transport, and infrastructure projects whose combined cost is close to Sh4 trillion. Just two days ago, the Ministry of Information appointed board members to manage the Konza Technopolis Development Authority ahead of the planned ground breaking of Kenya’s first technology city later next week by the President.

Konza technopolis is expected to be East and Central Africa’s first ICT metropolis, with an estimated price tag of Sh1.2 trillion, most of which is expected to be funded by the private sector.

The construction of the Lamu Port and the Lamu Southern Sudan-Ethiopia Transport Corridor, LAPSSET is another mega-project part of Vision 2030 whose cost has been pegged at Sh2 trillion and is expected to be financed by the East African countries and development partners.

Mega projects

Other mega-projects include an overhaul of the country’s rail network and introduction of commuter rail transport in major urban centers, the Nairobi metropolis project, and the development of nuclear energy.

It is impossible for the Government to enforce these projects single-handedly by the year 2030 and players in the private sector states say the new law will go a long way in facilitating the funding of the said projects.

 “The passing of the Public Private Partnerships Bill 2012 gives the much needed impetus for the realisation of the Vision 2030,” says  Carole Kariuki, the CEO of the Kenya Private Sector Alliance, Kepsa.

“Most of the Vision 2030 projects require massive financing, which the Government cannot marshal at once. This law brings in the private sector to finance the projects and share the benefit with the public sector.”

Kariuki further states that the new law provides some level of security and confidence to the private sector in their engagement in public-private partnerships.