Kenya picks PwC as transaction advisers for Sh50b Bomas complex

Commerce and Tourism PS Ibrahim Mohamed (centre), Bomas of Kenya General Manager Quresh Ahmed (left) and PwC Country Director Almasi Timor during the signing of a contract for transaction advisory services for the proposed Bomas International Convention and Exhibition Centre.

NAIROBI: The Government has appointed audit firm PriceWaterHouse Coopers (PwC) as transaction advisers for the construction of the multi-billion Bomas International Convention Centre.

The facility, which is estimated to cost about Sh50 billion, is expected to be Africa’s largest. It is anticipated that the centre will add impetus to the country’s efforts to boost conference tourism in the region.

Currently, Kenya has one large facility, Kenyatta International Conference Centre (KICC), which cannot meet demands of large international conferences due to limited bed capacity within Nairobi city.

The centre, expected to be operational by end of 2016, will be located within Bomas of Kenya. Kenya’s tourism industry has suffered greatly following a spate of terror attacks, leading to closure of several hotels mainly at the Coast. Ministry of East African affairs, Commerce and Tourism Cabinet Secretary Phyllis Kandie said yesterday that the funds to set up the structure will be sourced through a Public Private Partnership (PPP) programme.  PwC will advise the State on sourcing funds for the project.

While witnessing the signing of the contract between PwC and Bomas of Kenya at her Teleposta office, Ms Kandie said the integrated facility will host an exhibition centre for 15,000 exhibitors and a convention centre capable of holding more than 10,000 participants.

It will also have several hotels ranging from three-star to seven-star rating and a presidential pavilion.

“This initiative is part of our strategy to diversify tourism by creating a niche in the business and conference tourism under the Meetings, Incentives, Conferences and Exhibitions (MICE) sub-sector and is part of Vision 2030,” said Ms Kandie.

PPP MODEL

Tourism industry players estimate the new centre will cost Sh50 billion, but Kandie said the actual cost will be determined after the completion of feasibility study and master plan, during the first half of 2015.

Principal Secretary Dr Ibrahim Mohamed and Bomas of Kenya General Manager Quresh Ahmed signed the contract on behalf of the Government and PwC country director Almasi Timor on behalf of his company.

Ahmed said that Government will fund the construction of the convention and exhibition centres, while the hotels, which are expected to provide more than 2,000 beds and presidential pavilion will be financed through the PPP model.

“Work on the mega project will kick off early next year with the roll-out of the feasibility studies and development of the master-plan. Completion of the two major activities will determine the entire cost of the project and give direction on the date of the start of the actual construction works,” said Mr Ahmed.