Sh131.9bn PPP projects set for ground breaking

The proposed Nairobi-Mombasa expressway.

Photo credit: Shutterstock

Ten public-private projects valued at Sh131.9 billion are set to break ground in the next fiscal year including the Galana Kulalu Food Security Project.

The Sh12.5 billion irrigation project which reached commercial close in December last year seeks to enhance food security by bringing under production 20,000 acres of land to make available an estimated 720,000 bags of maize and 160,000 bags of soybeans per annum over a term of 30 years.

The government says it expects to contribute a funding of Sh70 billion in the 2025/26 fiscal year to break ground on the projects in partnership with private sector players.

“Currently, the PPP Directorate has a pipeline of 35 projects at various stages of the PPP project cycle. The government envisages mobilizing Sh70 billion in the FY 2025/26,” the National Treasury said in fresh budget documents.

Other projects listed for groundbreaking in the fiscal year include the Sabaki Water Carrier Project which is valued at Sh27.9 billion which entails the abstraction of 80,000 cubic metres of water a day from the Baricho Aquifer on Sabaki River, the development of a water treatment and storage plant and sewerage treatment units.

Africa 50 and PowerGrid are also set to begin developing two power transmission lines and substations-the 177-kilometre 400kV Loosuk-Lessos Transmission Line, 64 kilometres of the 220kV Kisumu-Musaga Transmission line.

Two geothermal projects- the 35-megawatt Quantum and 35-megawatt Orpower 22 will also be constructed under the build-own-operate model.

The three energy sector projects have been valued at Sh68.5 billion representing the largest PPP projects set to commence in the new financial year starting July 1.

Two housing projects valued at Sh13 billion are also priced in under the Stoni Athi Affordable Housing Units and involve the development and offtake of Sh2,820 affordable housing units, cross-subsidized with 200 market rate units in Athi River on the National Housing Corporation (NHC) land.

The University of Nairobi is also set for a purpose-built student accommodation hostel that seeks to develop a minimum of Sh4,000 beds.
Health is set for three projects valued at Sh10 billion and which include the construction of the Pwani Teaching and Referral Hospital, to be adjacent to Pwani University and the development of the 50-bed Meru Cancer Centre.

Moi Teaching and Referral Hospital will meanwhile see the expansion of its teaching facility to host up to 3,000 students.

So far, five projects have been completed under the PPP framework and are currently in the operations and maintenance stages.

They include the Nairobi Expressway, the 35-megawatt Sosian Menengai Geothermal Power Plant Project and road annuities Lot 33, Lot 18 and Lot 15.

Other projects outlined by the PPP Directorate but not expected to break ground in the near term include the Nairobi Tolling Operator, the Galana dam and the supply of smart driving licenses and associated services.

The controversial Kimwarer and Arror dams are also set for revival under PPP financing but are yet to be picked out by the Directorate at the concept stage.

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