Market public-private projects to get cash, Kenya told

Members of the public look on at a road construction site on Upper Ronald Ngala road in Eldoret town being done by Kenya Urban Roads Authority on March 04, 2015. A global audit firm has called on Kenya to step up marketing of projects under public-private model to investors to attract funds. PHOTO | JARED NYATAYA 

In Summary

• Mr Parag Shah, an advisory partner at Grant Thornton, said the government needs to promote the new model to investors to enable them understand it and make critical decisions on projects.
• Last year, the government convened an international investment conference that attracted more than 1,000 investors. During the meeting, the government presented a list of mega projects envisioned under the PPP model.

By EDWIN OKOTH
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A global audit firm has called on Kenya to step up marketing of projects under public-private model to investors to attract funds.

Grant Thornton, which is also a tax and advisory firm, lauded the public-private partnership saying it would enhance economic growth and uplift the country’s profile globally.­

Mr Parag Shah, an advisory partner at Grant Thornton, said the government needs to promote the new model to investors to enable them understand it and make critical decisions on projects.

“Since independence, Kenya has not been able to mobilise adequate funds to finance projects in energy, road, and water among other sectors.

The government, therefore, needs to work closely with private sector in order to assemble resources to fund the outlined mega projects, reduce cost of doing business and enhance communication,” said Mr Shah.

SLOW PACE

He made the remarks during a forum organised by Grant Thornton in conjunction with International Project Finance Association, at Villa Rosa Kempinski hotel, in Nairobi.

National Treasury’s Public-Private Partnership Unit director Stanley Kamau said the model has been identified as the new frontier for economic take-off.

The forum, which was attended by institutional investors, road contractors and bankers, discussed financing of projects in infrastructure and energy sectors in the East African Community.

“Some of these projects have taken a slow pace subjecting the country to experience huge power deficits and challenges in transport. Investors have been slow in taking up the projects two years after the enforcement of the PPP Act,” Mr Kamau said.

Last year, the government convened an international investment conference that attracted more than 1,000 investors.

During the meeting, the government presented a list of mega projects envisioned under the PPP model.

Outlining the progress Kenya has made in energy and infrastructure sectors, Mr Kamau said PPPs have made little progress due to a number of challenges, including inadequate financing.

Mr Kamau said mega projects should be remodelled with a view to attracting more finance from the private sector.

Since the PPP Act become effective in 2013, however, Kenya has made progress in a number of energy projects.

Currently, 10,000km of roads network is expected to be built across the country under the PPP programme.