State invites bids for Sh602 billion Konza City masterplan

By Macharia Kamau

KENYA: The Ministry of Information and Communication has started the search for a consultant to draw up a strategy that will facilitate putting up the second phase of the proposed Konza Technology City.

The master delivery partner will have to develop a plan for implementation of the detailed design, undertake construction works for physical structures and put up necessary infrastructure in the city.

 The partner will also facilitate the development of the city governance structures and look for developers and tenants to drive private real estate in the city.

The ministry said the Master Delivery Partner for the first phase of the city has finalised a detailed economic development blueprint and the physical master plan will be developed for the next five years. The first phase will be built at a cost of $2.3 billion (Sh200 billion).

“The Ministry seeks expressions of interest from firms or consortia to be considered for the short-listing as the master delivery partner – phase two (MDP2) who will provide advisory and support services to the Konza Technopolis Development Authority,” said the ministry in a request for the expressions of interest.

 “The MDP2 will be hired and work under the oversight of the Konza Technopolis Development Authority, a State corporation under the ministry of Information and Communications, responsible for the development of Konza.” The proposed city will be developed in four phases over 20 years. It is projected to take $7 billion (about Sh602 billion). The ground breaking and commencement of the initial phase has been set for January 23, next year.

 Social amenities

In the first phase, the master developer will put up a Business Process Outsourcing (BPO) park in part of the Konza City central business district (CBD) and some residential houses with social amenities.  The second phase will entail setting up of a second BPO park, increasing the number of residential and commercial houses and the completion of the CBD. The master developer will construct the structures that will be leased to investors. According to the ministry, this approach aims to prevent a situation where speculative investors hold back land and delay the development of the city.

The Technopolis is a flagship project of development blueprint Vision 2030. It is expected to be a boost to the ICT sector, which is itself one of the six anchor sectors for the Vision 2030, by creating BPO and IT enabled services parks as well as host major ICT firms.

It is expected to create about 200 000 jobs on completion, over 80 000 of which will be in the BPO industry.  Konza Techno City will run as a Special Economic Zone set to offer incentives to investors into the area, who will be exempted from payment of certain duties and taxes as they will be operating outside the customs territory.

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