PPP PIPELINE /
The Kenya PPP Program currently has a pipeline of projects at various stages of development, from different sectors among them roads, education, health, energy, water& sanitation. As of June 2018, there are 72 PPP Projects in the pipeline, 67 of which were approved under the solicited process and 5 approved as Privately Initiated Investment Proposals (PIIPs). Out of the 67 approved under the solicited process, 61 are under the National Government and 6 are under County Governments.
The report below provides the status of the pipeline as of June 2018.
ADVANCED PPP PROJECTS
The PPP Act, 2013 has laid down a straightforward process for implementing PPP projects to ensure quick execution. In this report, we provide you with information on projects at the following stages:
- Financial close (ready for construction)
- Commercial close (signed PPP contracts)
- Contract Negotiations
Past Projects before the PPP Act 2013
Kenya has had significant private sector participation in the provision of public infrastructure. This is especially so in the energy sector where Independent Power Producers (IPPs) have supported the government expand power generation capacity in the country for over two decades now. The table below captures the private sector investment in the energy sector, covering both past and currently operational IPPs
1ST Nyali Bridge, 1930’s
The Nyali Bridge Concession was operational from 1931 to 1980. The floating pontoon bridge connected Mzizima District of Mombasa to Nyali area.
The bridge has various toll charges with pedestrians paying 10 cents, cattle head 20 cents, motor cycle 50 cents, a saloon car 2 shillings, a station wagon 2.50 shillings, lorries from 4.00-7.00 shillings and a bulldozer at 10 shillings.
The old bridge was superseded by the New Nyali bridge in 1980, leaving the steel bridge to be dismantled for scrap metal
Grain Terminal, Port of Mombasa, 1998
The project was structured as a Build Own and Operate (BOO) bulk grain handling terminal and attained financial close of US$ 35m in 1998. Construction of the project was completed in 2000, providing a modern dry bulk cargo handling facility that addressed low vessel discharge rates, spillage during discharge and poor accounting for cargo quantities among other challenges. discharged
Malindi water utility, 2000
The project involved a 5-year operation and maintenance of the water services. The project was largely successful with significant improvements across various service level outputs among them, the amount of water being supplied to residents, reduction for un-accounted water, number of connected customers and the overall revenue collection.
Adopt a Light, 2002
The Project initiated in 2002 between the Nairobi City Council and the Adopt-a-Light Company. The street lighting project involved restoration of broken down street lighting in Nairobi and its outskirts in exchange for advertising rights on the lampposts which the private party was to commercialize. The project won the 2009 UN Habitat Business Award for best practices regarding sustainable infrastructure.
KPLC Management Contract, 2005
In June 2006, Kenya Power &Lighting Company (KPLC) signed a two-year management contract with Manitoba Hydro International (MHI). This was a condition precedent for disbursement of the $153 million donor funded Energy Sector Recovery Project (ESRP).
The contract provided for defined and stringent performance targets among them, 120,000 new customer connections per annum, reduction of system losses by 4%, reduction of supply outages from 11,000 per month to 3,000 and improvement of operational efficiency.
Rift Valley Railways Concession, 2005
The Kenya-Uganda Railways is 2,350km line that was constructed in the 1900’s. A World Bank study in 1998 recommended a concession in the running of the rail. In 2003 Kenya and Uganda agreed to concession the railway with IFC appointed the Transaction Advisor.
The dual concession was awarded to Rift Valley Railways in 2005 with a financial close in Dec 2006. The concession however largely struggled to meet performance standards. This has been attributed to a host of challenges among them, a lightly capitalized consortium, tension and litigation among shareholders, frequent change of control of the consortium. The concession was finally cancelled in 2017.