IL&FS wins road concession in Kenya

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IL&FS wins road concession in Kenya

ITNL International, a wholly owned subsidiary of IL&FS Transportation Networksand Hemby Holdings (a 20% Kenyan JV Partner) have won a 175 Km road concession in Kenya.

The concession, awarded by the Kenya National Highways Authority (KeNHA), involves the design, build, finance, maintain and transfer of 175 Kms of road. The road PPP project has a concession period of 10 years (incl. construction period of 2 years).

The total project investment is estimated at US$325 million. The Semi-Annual Annuity payable will be US$47.50 million, which will commence after 6 months from the commencement of the concession period. The concession agreement also provides for protection from foreign exchange fluctuation and indexation in annuity to Consumer Price Index (CPI) changes.

The government of Kenya has adopted an ambitious plan to develop and rehabilitate 10,000 km of the roads network within the next five (5) years.

The 3,000 km Phase 1 of the Programme adopts a "Finance-Design-Build-Maintain-Transfer" PPP scheme.

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