KeNHA tenders for Nairobi-Nakuru highway under PPP framework

The government has tendered for the construction of the Nairobi, Nakuru Mau Summit highway to be built under the public private partnership (PPP) framework.

The Kenya National Highways Authority (KeNHA) is looking for both local and international contractors who will construct, repair and maintain the road over an agreed period of time.

The project will cover a total of 216 kilometers.

The tendering comes just three days after the government announced plans to privatize the construction of five key roads expected to cost Sh380 billion.

“The project consists of widening, improvement, operation and maintenance of various sections of the highway between Nairobi and Mau Summit,” KeNHA said in a statement in the dailies.

The government revived plans for PPP road construction after it ditched plans for the much hyped road annuity program.

Under the annuity financing model, local contractors were expected to build roads using their own funds and later recoup their investment from the National Treasury.

Local contractors were expected to build 10,000 kilometers of road under the project, with the government in talks with the World Bank’s private lending arm, the International Finance Corporation for funding.

Through the PPP agreement, the private financiers will be allowed to charge motorists who use the roads as part of a plan to enable them make back their investment.

Infrastructure Principal Secretary Eng John Mosonik said on Monday, bringing on board private financiers would free up government resources to finance other mega projects.

“Quite often people want to see it from how much you will pay rather than the benefit once you put in a good road and the impact it will have on the economy,” Eng Mosonik said.

The Principal Secretary however said a study had been commissioned to ensure the tool charged would not make it overly costly for motorists.

“We are going to better harmonize so that whatever we do, we put to better use the tolling charges to make sure its sustainable,” he said.

Motorists have however opposed plans to introduce road tolls arguing it amounts to double taxation as Sh18 off a liter of fuel goes towards the roads maintenance levy.