Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Githae emphasised that they must create efficiency in the way they deliver their infrastructure projects/FILE

Kenya

Government urges private sector to PPP’s

Githae emphasised that they must create efficiency in the way they deliver their infrastructure projects/FILE

Githae emphasised that they must create efficiency in the way they deliver their infrastructure projects/FILE

NAIROBI, Kenya, Feb 12 – The government is urging the private sector to partner in Public Private Partnerships in order to address the lack of adequate infrastructure in the country by increasing investments in roads, rail, sea and air transport – along with focusing more on improving the energy supply, water and sanitation systems.

Speaking at the Public Private Partnership Workshop organised by the Ministry of Finance in conjunction with the World Bank, Finance Minister Robinson Githae said that the focus of the workshop would be on electricity generation in order to reduce the cost of business.

“An area of concern which has affected businesses in Kenya is the adequacy and reliability of electricity supply,” he said.

Githae emphasised that they must create efficiency in the way they deliver their infrastructure projects and added that transport and energy sectors should be delivered through a PPP approach to reduce the sovereign borrowing by the government and to increase efficiency in delivering services to Kenyans.

“The lack of adequate infrastructure is a top constraint of doing business in Kenya and particularly infrastructure bottlenecks related to transport,” he said.

He pointed to the inadequate terminal capacity at the port of Mombasa and the need to enhance road and rail interfaces to improve efficiency on the Northern Transport Corridor.

“The main focus on our first phase of our PPP program will be in transport (roads, rails, sea and airports) and electricity generation in order to address the key bottlenecks and reduce the cost of doing business in the country,” he said.

“The public private partnership arrangements offer an opportunity for Kenya to attract enhanced private sector participation in financing, building and operating infrastructure services and facilities in order to close the huge funding gap,” he added.

Githae revealed that the World Bank recently extended financial support to the government for a credit of Sh3.49 billion to help Kenya increase the level of service and quality of targeted infrastructure services by mobilising private sector participation through a PPP model.

“This assistance will go a long way in helping the government prepare and implement a pipeline of a bankable PPP program in a systematic way,” he said.

Advertisement. Scroll to continue reading.

“In addition, it will help the government develop a framework for managing contingent liabilities associated with the PPP program, which is critical for the country’s fiscal risk management and overall debt sustainability,” he added.

He explained that since the government issued the PPP Regulations in 2009, a lot has done to further the initiative through government programs and partnerships.

“In 2011, the government approved a PPP policy framework and in December 2012, the PPP Law was enacted after a prioritised PPP project pipeline providing a list of projects that can be implemented through a PPP approach was completed in June 2012,” he said.

He revealed that the Ministry of Finance has also organised several stakeholder workshops and trainings for both private and public sector players and several PPP project proposals have been reviewed by the PPP Steering Committee.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...