IFC advising Kenyatta University on funding for hostels

IFC says in its disclosures that it is offering technical advisory to the learning institution worth Sh7 million. FILE PHOTO | NMG 

In Summary

• IFC says in its disclosures that it is offering technical advisory to the learning institution worth Sh7 million.
• The IFC added that the process of identifying and signing up investors should be concluded by September.
• IFC added that successful negotiation would unlock funding to the successful bidder enabling them to implement the project.

By IVY NYAYIEKA
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The International Finance Corporation (IFC) is offering advisory services to Kenyatta University (KU) in its plan to build student hostels through a public-private partnership (PPP).

The university intends to build hostels to accommodate up to 10,000 students and is currently seeking to partner with private investors to this end, according to documents from the Treasury.

IFC says in its disclosures that it is offering technical advisory to the learning institution worth $64,981 (Sh7 million).

The IFC added that the process of identifying and signing up investors should be concluded by September.

“The IFC team will be the lead transaction advisers working with external consultants (technical and legal) to provide the expertise required to enable KU to engage with the successful bidders, financiers in financial close negotiations and signed PPP agreement amendments if any,” the global financier said.

“The objective of the projects is to provide post-transaction advisory services to KU in negotiating and amending the PPP Agreement if necessary for the student hostels project with the aim of achieving financial close.”

IFC added that successful negotiation would unlock funding to the successful bidder enabling them to implement the project.

As part of the post-transaction advisory work, the IFC will act as lead transaction advisers and will procure external consultants such as technical and legal experts to assist in the negotiation up to the signing of the financing agreement and meeting conditions up to the first disbursement.

“The private sector entered into a PPP contract with Kenyatta University in design, finance, build, operate and transfer model for a 20-year period.

“The project’s contracting authority is Kenyatta University. The project is currently in negotiations towards a financial close,” reads part of the disclosures.