The ambitious 10,000km of roads construction project embarked by the government of Kenya has finally kicked off. The roads are going to be constructed in three phases, which will be divided into 2000km, 3000km and 5000km. The first phase has been subdivided into 45 lots.
The Permanent Secretary for the Ministry of Transport and Infrastructure, Eng. John Mosonik indicated that the government has already received bids from 49 individual bidders who have also been pre-qualified.
He also said that they are currently accepting bids for the first nine out of the total 45 lots in the country. This covers 720km of road network. The bids for the remaining 36 lots are to be received by February 6th this year. The successful completion of this process will then make way for the launch of the second phase of the construction project.
The roads project will be undertaken within a period of three years under a Public Private Partnership (PPP). The total estimated cost of the project is USD 9bn. Other source of funding will be local banks and other financiers under the annuity model with minimum state funding. In this model, the contractors will be tasked with constructing, operation and maintenance of the roads.
The commencing of the project is good news to all stakeholders. For the public, it is estimated that almost 137,000 jobs will be made available through the project. Other stakeholders include banks that will provide the loans needed by the contractors, manufacturers of cement and other construction related materials and companies involved with leasing construction equipment.
Once completed, the cost of doing business in the country will be reduced due to better connectivity. This will improve trade and investor interest in the country.