{"id":104063,"date":"2024-12-03T08:03:37","date_gmt":"2024-12-03T08:03:37","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/index.php\/2024\/12\/03\/treasury-exploring-ppps-for-mega-projects-after-adani-exit\/"},"modified":"2024-12-03T08:03:37","modified_gmt":"2024-12-03T08:03:37","slug":"treasury-exploring-ppps-for-mega-projects-after-adani-exit","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/treasury-exploring-ppps-for-mega-projects-after-adani-exit\/","title":{"rendered":"Treasury exploring PPPs for mega projects after Adani exit"},"content":{"rendered":"

NAIROBI,Kenya Dec 3 The National Treasury is exploring alternative public-private partnerships (PPP) to finance the country\u2019s mega infrastructure projects following the cancellation of Adani Group-led initiatives for the Jomo Kenyatta International Airport (JKIA) and the Kenya Electricity Transmission Company (KETRACO).<\/strong><\/p>\n

Principal Secretary Chris Kiptoo stated that the country\u2019s fiscal position is untenable, making it impractical to finance key infrastructure projects like the upgrading and modernization of JKIA through the national budget.<\/p>\n

He emphasized that taxpayers are already burdened by the current tax regime.<\/p>\n

Appearing before the National Assembly\u2019s Public Accounts Committee (PAC), Kiptoo highlighted the urgent need for JKIA\u2019s modernization.<\/p>\n

He noted that the airport, designed in 1978 to handle 5\u20137 million passengers annually, is now managing over 10 million passengers, straining its capacity and functionality as East Africa\u2019s primary aviation hub.<\/p>\n

\u201cJKIA, when it was built and designed, was meant to handle about 5\u20137 million passengers. Today, as the East African hub, it is handling in excess of 10 million passengers. Therefore, it is in dire need of upgrading and modernization to accommodate these numbers,\u201d Kiptoo told MPs.<\/p>\n

The PS explained that the amount required for such a significant project cannot be raised through the national budget.<\/p>\n

\u201cThe only viable way to finance this is through a public-private partnership (PPP) model. Since Kenyans have rejected the Adani Group, we will need to identify a partner with better ideas and options to execute the project, not necessarily Adani,\u201d he stated.<\/p>\n

The PS had appeared before the Butere MP Tindi Mwale led-committee to respond to and address the Auditor General\u2019s report for the financial year ending June 30, 2022, concerning the State Department for the National Treasury.<\/p>\n

Funyula MP Wilberforce Oundo, emphasized that a majority of Kenyans now favor public-private partnership (PPP) models, citing the successful completion of the Nairobi Expressway as a prime example.<\/p>\n

However, he argued that projects like the modernization of Jomo Kenyatta International Airport (JKIA) present challenges that might make them unsuitable for PPP models under certain circumstances.<\/p>\n

\u201cPPP is the way to go when it comes to financing mega projects, given the limited and constrained fiscal space our country is currently facing,\u201d Oundo stated.<\/p>\n

He underlined the necessity of PPP models to bridge the gap between ambitious infrastructure goals and the reality of strained public resources.<\/p>\n

On his part, Bura MP, Yakub Adow, also voiced support for PPPs but stressed the critical need for transparency and public engagement in their implementation.<\/p>\n

He stressed the importance of conducting thorough public participation to educate citizens, ensuring legitimacy and widespread acceptance of such partnerships.<\/p>\n

\u201cThe National Treasury must involve the public sufficiently to enlighten the masses and secure legitimacy for these projects. If these deals are shrouded in secrecy, as was perceived in the case of the Adani Group\u2019s proposals for JKIA and KETRACO, it will be disastrous,\u201d Hon. Adow warned.<\/p>\n

Chepalungu MP Victor Koech-Mandazi also agreed that while PPPs represent a viable path forward for financing large-scale projects in Kenya, the government must adopt a transparent, inclusive approach to avoid public mistrust and opposition.<\/p>\n

According to Koech, it state should ensure that all agreements align with the interests of the nation and address concerns raised by all stakeholders.<\/p>\n

\u201cIf executed properly, PPPs, can play a transformative role in advancing Kenya\u2019s infrastructure agenda without overburdening taxpayers. However, success hinges on transparency, accountability, and meaningful public engagement at every stage of the process,\u201d Koech stated.<\/p>","protected":false},"excerpt":{"rendered":"

NAIROBI,Kenya Dec 3 The National Treasury is exploring alternative public-private partnerships (PPP) to finance the country\u2019s mega infrastructure projects following the cancellation of Adani Group-led initiatives for the Jomo Kenyatta International Airport (JKIA) and the Kenya Electricity Transmission Company (KETRACO). Principal Secretary Chris Kiptoo stated that the country\u2019s fiscal position is untenable, making it impractical […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-104063","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/104063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=104063"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/104063\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=104063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=104063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=104063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}