Tender winners for 2,000km road projects to be announced this week

Nairobi; Kenya: The Government will this week announce prequalifed winners of the tenders to develop 2,000 kilometres of road under a new programme.

The initiative involves a programme where the State sources for funds on behalf of contractors who are then paid after completion of the agreed work.

The Ministry of Transport and Infrastructure yesterday said it had received bids from 147 contractors intrested in participating in the first phase of a programme that aims to develop and rehabilitate 10,000 kilometres of road in  five years.

Out of these, 49 applicants who met the requirements for qualification have been shortlisted for various lots.

Foreign contractors

Of the 49 qualifying applicants, 43 per cent were local consortia or single entity applicants, while 57 per cent are foreign contractors.

“All the 45 lots received adequate response to guarantee competitiveness in the procurement,” Infrastructure Principal Secretary John Mosonik said yesterday.

The Government plans to raise Sh260 billion for the initiative from the private sector.

This financial year, the Government will help source for Sh40 billion for developing the 2,000 kilometres of roads.

The amount will rise to Sh60 billion in the 2015/16 financial year, and then to Sh160 billion in the following financial year.

The second phase will see 3,000km of roads paved, and an additional 5,000 kilometres will be developed in the third phase.

The Government has resorted to using the annuity model, which involves engaging a private entity to finance, design and construct or maintain a road based on agreed periodical payments.

Through this model, the Government hopes that pressure will be eased on the national budget. This is also a departure from the existing arrangement where projects have been underfunded, resulting in pending bills and stalled projects.

Tenders for the first phase of the programme will be issued in two weeks, the PS said adding that the phase should commence some time in December or January since some roads have already been designed.

“The ministry intends to launch the next stage of the selection process next month, when all applicants will have been informed on the outcome of the prequalification process,” the PS said.

Economic growth

Through the programme, the Government hopes to accelerate economic growth, create employment opportunities targeting the youth, ease movement of goods and services and in the process support primary growth sectors of the economy.

“This situation calls for alternative financing and delivery methodologies to achieve the set targets of 10,000 kilometres of new paved roads,” he said.

It is anticipated that the programme will help create employment for 20 per cent of the youth in the country.

The PS said he would travel to Brazil to look for investors to help in road projects to decongest Nairobi.

He also announced that the contracts for the expansion of the busy Outering Road have been signed.