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National Treasury to disclose key project information on PPP deals

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National Treasury Cabinet Secretary Henry Rotich.
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The National Treasury and Planning will henceforth disclose to members of the public, media, civil society and other interested parties key project data on Public Private Partnerships (PPPs) deals signed in the country.

This was announced by National Treasury Cabinet Secretary Henry Rotich when he launched the PPP Projects Disclosure Portal, a website portal that will provide timely data on the infrastructure investment deals with the private sector. The new portal is available on the link www.pppunit.go.ke/disclosure portal.

“As we partner more with the private sector in modernizing the country’s infrastructure, we are keen to enhance openness and transparency in all contracts signed. This will ensure Kenyans are well aware of the expected level of services, key commercial terms in all signed contracts, and obligations on both sides,” said Rotich at the launch. He went on to observe that “this Disclosure Portal is unique, the first of its kind in Kenya, bringing all programmatic data under one roof.”

This development comes at a time when the government has rolled out an ambitious pipeline of infrastructure projects, which it hopes to undertake in conjunction with the private sector. The partnership with private sector will be key in supporting the four key strategic areas – manufacturing, housing, universal health and food security – that the government has identified to drive economic growth, under the Big 4 plan.

Currently Kenya has a PPP Project Pipeline of over 70 projects at various stages of implementation. Among these are major projects in the transport, housing, energy, water, health, agriculture, manufacturing, education, and tourism sectors, drawn from both National and County Governments.

Speaking during the portal Launch, World Bank Country Director Diarietou Gaye hailed the move as one that will improve citizen’s support of government’s infrastructure agenda and ensure quality contracts are entered into.

“This proactive disclosure by Kenya is highly commendable. It will undoubtedly result in better projects that will deliver value to Kenyans and also enhance the overall credibility of Kenya’s PPP program in the eyes of her citizens, investors as well as development partners,” said Ms Gaye.

The disclosure framework adopted will see the Government now reveal key information data on projects during project identification and preparation, procurement phase, at the point of contract signing, as well as during construction and operation.

Speaking at the launch ceremony, National Treasury Principal Secretary Dr Kamau Thugge emphasised that the PPP Disclosure Portal “will be the Government’s yardstick and promise to the people of Kenya, that the Government is committed to the highest standards of fidelity in project development, and to transparency and accountability by making key public decisions and actions readily available to all Kenyans, in real time.”

“By creating deeper awareness across all critical stages of a project, the Portal establishes a level playing field across all stakeholder groups, promoting equality of opportunity, and providing opportunities for broad-based public participation in development planning, thereby guaranteeing closer alignment between the citizen’s entitlement to self-determination and convergence on priorities in the consolidation of public goods,” observed Dr Ronoh Tuimising, the Legal Expert at the PPP Unit.

Senior Deputy Director at the PPP Unit Judy Nyakawa noted that by enhancing more openness on PPPs will enhance the credibility of the PPP programme. “Kenya’s PPP programme has gained good momentum and will help the country develop faster by having modern and well maintained infrastructure across various sectors. We aim through the Disclosure Portal to have every Kenyan become keenly aware of what level of service to expect and demand such from projects executed,”’ said Nyakawa.

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The disclosure portal will be guided by a framework that details which information will be released at which stage to ensure project procurement and negotiations benefit from good governance practices. The framework also provides templates to be used while disclosing and the timelines within which required information must be made public.

The table below indicates which information will be provided and at what stage of the PPP Project Life Cycle:

  Project Stage Information/Document Disclosed
Project Identification& Preparation
  • National Priority List of Projects
  • Basic Project Information
  • Project Information Memorandum
  • Project Progress Tracker
      2. Pre-Procurement
  • Brief description of Project
  • Services sought
  • Project estimated costs
  • Likely sources of revenue
  • Tentative procurement dates
     3. During Procurement
  • Request for Qualification (RFQ)
  • Shortlisted bidders
  • Winning Bid
     4. Post Tender
  • Elements of the Feasibility Study Report
  • Request for Proposal (RFP)
     5. After Execution of Project Agreement
  • Key project risks and their allocation between public and private parties.
  • Financing structure
  • Guarantees, grants, annuity/availability payment schedule, land& asset transfers, revenue share and any other government support.
  • Service Tariffs/ Rates
  • Project documents i.e. Redacted agreements, elements of the feasibility study.
  • Performance reports
  • Termination and hand back provisions
  • Material renegotiations or change

In making these proactive disclosures, the PPP Unit shall be guided by the principles enshrined in the Constitution of Kenya, as well as the edicts of the Access to Information Act, 2016, and the Public Private Partnerships Act, 2013.

Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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