Infrastructure
Kenya Sets Tough Rules for 10,000km Roads Tender
Bidders must demonstrate their ability to raise at least 70pc of construction costs.
The government has set tough financial conditions for builders seeking tenders under the 10,000-kilometre roads annuity programme.
Bidders will now be required to demonstrate their ability to raise at least 70 per cent of construction funds before they can be awarded a contract.
Under the new financing model christened annuity financing framework, a contractor who wins a road construction bid will be required to design and raise funds for the project. The contractor will also be required to maintain the road for between five and eight years.
The government, which plans to build a 10,000km road network in the next three years, will provide 30 per cent of the funds, with the balance financed by commercial banks with repayment done over 10 years.
RELATED: Roads Project to Boost Demand for Construction Equipment
The programme is aimed at improving efficiency among local contractors while ensuring the availability of funds to prevent time and cost overruns that have been experienced in the past.
“The financing models are being completed and the contractors are expected to be on-site by the end of March when the construction is scheduled to start,” Infrastructure PS John Mosonik said last week.
Under this programme, 2,000km of small roads will be built this fiscal year. In the 2015/2016 year, 3,000km made up of 80 per cent small roads and 20 per cent highways will be completed, whereas in the 2016/2017 year 5,000km, 80 per cent of which will be small roads and 20 per cent highways, will be delivered.
Pre-qualification of contractors, which closed on August 29, 2014, attracted more than 147 bidders – of which 49 contractors were pre-qualified to undertake the first phase of the project.
The project is being undertaken jointly by the Kenya Urban Roads Authority, Kenya National Highways Authority, and Kenya Rural Roads Authority.
Kenya has only managed to pave 14,000km of roads in 50 years of independence.
China on Brink of Sh180bn Highway Deal with Kenya
Talks are underway for China to fund a new highway and rail extension.
Work Begins on Sh11.6bn Geothermal Plant in Nakuru
The Chinese-funded Orpower 22 power plant will take 17 months to complete.
Turkish Firm Inks $3bn Deal for Uganda Electric Railway
Yapı Merkezi is expected to complete the 272-kilometre railway in 48 months.
Mukuru Affordable Housing Handover Set for December
Bedsitters will rent for Sh3,200 per month on a 30-year rent-to-own plan.
Work Begins for Sh3.6bn Ngong Road Flyover
The new flyover, funded by Spain, is expected to open in 2027.
Mammoet Unveils the World’s Largest Ring Crane, SK6000
The SK6000 could help improve the efficiency of offshore construction.