The Transport Cabinet Secretary, the Honorable James Macharia has said that the government seeks to resuscitate the annuity financed roads project. The framework will complement the ministry’s low volume seal roads project in rural areas which is funded through the national budget. The framework had earlier in the year been shelved due to inflated costs and slow approvals.
The cabinet secretary indicated that this was a move to bolster roads construction in the country. He said that the sector can no longer depend only on the treasury for funding. The model seeks to welcome private contractors to design, build and maintain public roads using their own funds. A payment modality is then agreed upon between the National Treasury, contractor and participating commercial banks. Treasury is then supposed to reimburse lenders at a uniform rate over an agreed period of time.
The first road under this model will probably be the 91-kilometre Ngong – Kiserian – Isinya and Kajiado – Imaroro Road. It will be constructed using the model at a cost of Sh11 billion. Intex Construction Company will construct and maintain the project that is is to be commissioned in September 2017 and will take three years before completion. This translates to about Sh120 million per kilometer according to the CS.
“Being the first road under the model, we will closely monitor the progress because it will be the template for other roads coming up,” the CS said. The Nairobi-Mombasa road will also provide another avenue to test this model. The planned expansion of the highway into a six-lane super-highway through Public Private Partnership (PPP) is a major project that could impact transport in the country in a broad way.


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