News / Kenya to have airport and port tenders in 2011

Kenya to have airport and port tenders in 2011

🕔 June 28, 2011

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The Kenya Vision 2030recognizes the importance of  development infrastructure as critical for socio-economic transformation. It is "critical" in pushing forward Kenya's vision for a 10% GDP growth every year for the next 20 years
The Physical infrastructure sector MTEF report 2011/12 - 2013/14 prepared by the Government of Kenya (GOK) states that "encouraging Private Sector participation in the provision of infrastructure services through the Public-Private-Partnerships (PPPs) framework" is a key element for the development of the nation.
The strategies and measures to be pursued to make Kenya a globally competitive and prosperous country in the medium term also include:
  • supporting the development of infrastructure initiatives around flagship projects,
  • strengthening the institutional framework for infrastructure development,
  • raising the efficiency and quality of infrastructure
  • increasing the pace of infrastructure projects so that they are completed as envisaged, protecting the environment as a national asset and conserving it for the benefit of the future generations and the wider international community
The Kenyan government needs the help of the private sector to finance its US$40 billion funding shortfall (over a five year period, from 2010 to 2015) on infrastructure.
Under this framework of potential private investment and funding shortfall, Kenya plans to tender the construction of a new terminal and ther associated works at its main international airport (Nairobi's Jomo Kenyatta International Airport) by the fourth quarter of 2011. The cost will be roughly $500 million. Kenya wants to become Africa's leading air transport hub, but  has only one terminal that handled 6.5 million travellers in 2010.
The runway was to be constructed last year but the project stalled after failing to secure the necessary loans or grants.
The PPP division has asked the International Finance Corporation to help structure the airport project, which is expected to take about three months. Kenya Airport Authority has been trying to sell the project for about one year but they had not prepared it properly (for a PPP) so investors were not able to participate.
Tenders for Kenya's first offshore oil pontoon are also expected by December, after the National Oil Corporation completes a 3-month study. Congestion at Kenya's main jetty at the port of Mombasa slows down ships docking there.

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