Value for Money

The undertaking of a public function of the contracting authority by a private party under a public private partnership results in a net benefit accruing to that contracting authority defined in terms of cost, price, quality, quantity, timeliness or risk transfer.

Transaction Advisor

A person appointed in writing by a contracting authority who has the appropriate skill and experience to assist and advise the contracting authority or the unit on matters related to a public private partnership, including the preparation, accession and conclusion of a project agreement and the financial close.

Public Private Partnership

An arrangement between a contracting authority and a private party under which a private party undertakes to perform a public function or provide a service on behalf of the contracting authority; receives a benefit for performing a public function by way of compensation from a public fund; charges or fees collected by the private party from users or consumers of a service provided to them; or a combination of such compensation and such charges or fees; and is generally liable for risks arising from the performance of the function in accordance with the terms of the project agreement.

Special Purpose Vehicle

A company incorporated in Kenya by the successful bidder, the sole purpose of which shall be to execute the public private partnership contract awarded.

Privately Initiated Investment Proposal

A proposal that is originated by a private party without the involvement of a contracting authority and may include information that enables a complete evaluation of the proposal as if it were a bid.

Commercial Close

At Commercial Close, both the Bidder and the Authority will have reached agreement on all the contractual documents, in addition to all relevant technical issues. All other matters affecting the Unitary Charge having been agreed, the only remaining issue is for the Bidder to fix the interest rate incurred on the bank debt taken out to finance the project. This is known as Financial Close.

Contracting Authority

A State department, agency, state corporation or county government which intends to have a function undertaken by it performed by a private party.

Feasibility Study

A study undertaken to explore the technical, financial, legal, social and environmental feasibility of undertaking an infrastructure or development facility as a Public Private Partnership (PPP).