Under the programme road contractors approach financial institutions for financing while the government pays the banks after the roads have been constructed. The contractors will be responsible for the maintenance of the roads for 12 years after which the government tales up the responsibility.
Money for the newly established fund shall include that appropriated by Parliament for the purpose of the fund and money allocated from fuel taxes as assigned by an Act of Parliament.
Others sources of funds include income from investments of any balances of the fund, grants, donations or other bequests made to the fund and monies paid to the fund from any other source as may from time to time be approved by the Cabinet Secretary.
The Fund shall be administered by the ministry of infrastructure and will have an oversight committee with members from the National Treasury, the Office of the Attorney General and representatives of engineers and accounting professionals.
An independent engineer will only pay contractors upon a thorough scrutiny and approval of the project.
Infrastructure Principal Secretary John Mosonik said that phase one of this programme will be held on 20th of this month where a programme for tarmacking 650 kilometres will be unveiled.
“In the course of the month, a programme to tarmac 650km out of the targeted 2000km will be rolled out in phase one,” he said.
He said that all arrangements have been put in place to ensure the entire programme runs smoothly. Treasury Principal Secretary Kamau Thugge said Sh500 million as appropriated in the financial year 2014/2015 will be released towards the fund.
He said disbursement of the fund will be on a monthly basis adding that sufficient funds will be availed to the Annuity Programme bank account in accordance with the obligations set out in the project agreements.
“We will ensure that a minimum of 5 percent of the annuity obligations is maintained in the annuity payment obligations bank as required by,” he said.
He was responding to concerns from players who wanted to be assured that funds to the programme will be released in a structured manner.
