Nairobi; Kenya: Local cement manufacturer Savannah Cement, has expressed interest to join pre-qualified road contractors as a materials supplier in the new Sh260 billion annuity financing programme.
The new programme, which is expected to kick off in January next year, will see a pool of 49 short-listed road construction contractors commencing works to develop the first phase of a projected 10,000km tarmacked roads in the next five years. Under the annuity programme, government will negotiate uniform loans from banks while the contractors will design, build and maintain the roads. The first phase of the programme will cover a projected 2,000km at an estimated cost of Sh40 billion and is expected to act as a pilot for the new alternative road construction financing model.
By expressing commitment to partner with the short-listed contractors, Savannah Cement becomes the first cement firm and major materials supplier to endorse the new road construction financing model.
Speaking at an Institute of Engineers of Kenya (IEK) symposium on annuity financed road projects, Savannah Cement Managing Director Ronald Ndegwa, said the firm will be at hand to support the pre-qualified contractors through the supply of specially formulated road construction cement products. During the symposium officiated by Infrastructure Principal Secretary John Mosonik, Ndegwa pointed out that Savannah Cement will also provide technical support and logistics solutions to the contractors to guarantee cost efficiencies.
“As a key materials supplier, Savannah Cement acknowledges that existing infrastructure funding gaps can be drastically reduced by eliminating inefficiencies and adoption of appropriate technologies and financing strategies such as the annuity programme,” Ndegwa noted. “In addition to such support, we have also gone a step further to develop a Hydraulic Road Binder (HRB) to be used in stabilisation of soils and gravels in road construction projects,” he added.
The new Savannah Cement HRB product, he disclosed, will retail at cheaper cost than conventional cement and lime mixes, which are routinely used for soil stabilisation in road construction. Consequently, the new Savannah Cement HRB product is expected to contribute at least 30 per cent approximate cost savings in stabilisation costs.
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