Roads agencies hopeful as Covid stalls big projects

Health Cabinet Secretary Mutahi Kagwe (left) explains something to his counterpart from the Interior and Coordination of National Government Fred Matiangi (third left) during a stop to inspect ongoing construction works along Kanyagia-Naro Moru road in Kieni West, Nyeri County, August 28, 2020. [Mose Sammy, Standard]

The Covid-19 pandemic has slowed down construction, causing uncertainty on the completion of multiple projects across the country.

Planned road works have stalled, as workers are unable to deliver as much as they would have due to restrictions of movement and reduction of time allowed in sites. Physical distancing guidelines have also reduced the number of workers in the field, among reasons that have slowed down activity.

Supply chains have been hurt greatly due to restrictions of travel and restructuring of spending, meaning materials needed for construction have been largely unavailable.

Infrastructure Secretary Francis Gitau admits that even though there are a few projects still limping to completion, many are in limbo.

“We look at two triangles of performance when considering infrastructural works. One is the scope, cost and timeline within which the project will be implemented. The other is the management cycle. Who owns the project, who is the contractor, and who conducts the supervisory activity? Projects have been affected as supervision has been affected,” says Gitau.

According to the Kenya National Bureau of Statistics’ (KNBS) Economic Survey 2020, the total government expenditure on roads was expected to rise by 10 per cent to Sh169.9 billion in 2019/20 from Sh154.5 billion in 2018/19. It was at Sh158.6 billion in 2017.

Development expenditure was also expected to rise by 15.5 per cent to Sh111.7 billion in 2019/20. The expenditure on road maintenance and repair was also expected to increase to Sh58.2 billion during the same period.

But a flurry of problems that set in early in the year in the wake of Covid-19 has led to reduction of activity in construction.

As such, he says, protocols were adjusted, with delays inevitable. Many works have had to depend on force majeure provisions in contracts.

“Now contractors are forced to conduct meetings through (online platform) Zoom. Supply chains networks have also been affected. Key personnel (crucial during construction processes) are not always available on site,” says Gitau.

This situation now means projects will take longer to complete. Gitau says some contracts have weathered the storm and proceeded without delay, but many others lie in uncertainty.

According to Roads and Civil Engineering Contractors Association (RACECA) Chief Executive Officer Joseph Anvar, construction of roads is taking longer as materials are not able to move in good time.

That works cannot proceed at night due to the ongoing curfew is also an impediment to completion of many activities that were previously unaffected by nightfall.

“We have had to redo work plans. There are now shorter working hours available. Some of these are things not envisioned in contracts and of course are bound to have financial implication to projects,” says Anvar.

Gitau says the Government is keen on ensuring “what has been delivered has been paid for”, referring to contracts that have in the past been marred by claims of delayed or no payments made by the Government.

Pending bills

The pending bills debate has been a constant thorn in the flesh for both national and county governments, with unpaid dues sometimes pushing contractors out of business.

In July, Housing and Urban Development Principal Secretary Charles Hinga said over 270,000 youths were set to benefit from the second phase of National Hygiene Programme (NHP) better known as Kazi Mtaani.

In Phase One, 31,689 youth were recruited between April and May.

This programme was initiated to help youth make earnings that could help them weather the harsh economic times brought about by Covid-19. The daily rate for those selected to provide labour in community and infrastructure projects was set at Sh455.

Kenya Rural Roads Authority (Kerra) Acting Director General Philemon Kandie says the agency has set aside funds to cushion the most vulnerable in the rural roads construction and management ecosystem.

He says Kazi Mtaani is a great initiative that helps this motive, as low wage earners remain at the greatest risk of being completely destroyed by Covid-19.

“The funds will help those involved in activities such as bush clearing and opening of drains,” says Kandie.

He agrees that there is little progress of notable works in the country. “Extra costs are incurred to meet protocols as contractors have had to reprogramme in order to deliver.”

But while it has been hard to raise money to keep works on track, Kerra has leant back on annuities and public private partnerships (PPPs) to ensure they have financing for the works. They have been thus not entirely abandoned activity and are not far off from satisfying demand.

According to Kandie, the onset of devolution was a crucial step in opening up the country and creating interconnectivity.

Interconnectivity

“We have been seeking to create interconnectivity to access resources coming from our counties. Roads help us sell the counties as tourist destinations and this is a way to generate income. The interconnectivity helps in accessing the 45 million Kenyans. Kerra is present in every county and every constituency,” he says.

And Gitau is happy with the county development plans, which chart a clear course of development, saying the two levels of government are interdependent, and counties should not lag behind in development.

Even as the youth benefit from the Kazi Mtaani programme, Kandie says Kerra has ensured they are considered specially and given preference in all procurements done.

“We always set aside 30 per cent of all our procurements for special groups, that is, women, youth and people living with disability,” he says.

Fourteen per cent of the works goes to the youth.

But Gitau is aware of the possibility of people taking advantage of the law and registering companies in the names of members of the special groups.

“It is a matter of integrity,” he says, adding that a lot of training will enable the youth to compete for the tenders and show competence once awarded.