Treasury denies major projects cash

Cabinet Secretary for Transport and Infrastructure Michael Kamau meets senior officers from the ministry at his Public Works offices in Nairobi. FILE

What you need to know:

  • Transport and Infrastructure secretary Michael Kamau told Parliament that projects such as Mombasa port dredging, Lapsset and standard gauge rail were at risk of stalling for lack of funding.
  • He said the Treasury had allocated the ministry only Sh53.9 billion out of which Sh20 billion would settle pending bills.
  • Mr Kamau said Sh13 billion of the money allocated would be diverted to the repair of roads recently washed away by heavy rains, cutting further on spending on the new projects.

Key projects at the heart of former President Mwai Kibaki’s legacy may not take off after the Cabinet secretary in charge of their implementation said the Treasury did not provide enough money for them.

Transport and Infrastructure secretary Michael Kamau told Parliament the drivers of Vision 2030 such as the Integrated Transport Management System, the Lamu Port South Sudan Ethiopia Transport corridor, the Standard Gauge Railway and the Nairobi Commuter Rail were at risk of stalling for lack of funding.

“The ministry will only undertake ongoing projects without starting new ones under such inadequate funding,” he told the Committee on Transport, Public Works and Housing.

He said the Treasury had allocated the ministry only Sh53.9 billion out of which Sh20 billion would settle pending bills.

He said Sh13 billion of the money allocated would be diverted to the repair of roads recently washed away by heavy rains, cutting further on spending on the new projects.

He asked the committee chaired by Starehe MP Maina Kamanda to at least secure Sh15 billion more for the ministry to upgrade roads, rail and port infrastructure with. Overall, he said the ministry required Sh67 billion more to fund the projects.

Fronted by all parastatals heads in the ministry he told the MPs scrutinising the budget that projects worth Sh24.46 billion that had been earmarked for construction had not been funded.

The projects include the Transport Integrated Management System (Sh435 million), Nairobi Commuter Rail (Sh11.18 billion), Standard Gauge railway (Sh4.19 billion), Lamu Port South Sudan Ethiopia Transport (Lapsett) rail line (Sh3 billion), Nairobi Metro and Light rail (Sh2.5 billion) and purchase of two ferries at Sh500 million among others.

Mr Kamau said three projects, the Lapsset, Relocation Action Plan and Dredging of Mombasa port “have not been funded to the level of the ministry’s request in 2013/14 financial year.”

He said Lapsset had been given Sh3.7 billion, a quarter of the Sh14.8 billion needed. The Relocation Action Plan got only Sh72 million against a request of Sh1.32 billion.

The plan entails compensation of properties that will be affected in the construction plans and resettlement of those who have encroached on government land where works are to be undertaken.

Mr Kamau said the Treasury only provided Sh300 million against a request of Sh3.6 billion for the Dredging of Mombasa port. He said the ministry was only allocated Sh39.3 billion for roads against a funding request of Sh60 billion.

Transport Permanent Secretary Karanja Kibicho said the standard gauge railway, once complete would see one train carry 10,000 tonnes of goods at a speed of 120 kilometres per hour thereby easing movement of goods and services. However only Sh4 billion had been allocated against a cost of $2.9 billion for the line and $1.2 billion for rolling stock.

“We have signed a commercial contract and the ministry is negotiating for funding from China Exim Bank,” Mr Kibicho told the MPs, saying this years allocation would be used for preparatory work.

“We need an injection of funds to begin building even the first one kilometre of the standard gauge rail which will run from Mombasa Port to Malaba border.

An injection of Sh50 billion for the next three years gives the possibility that the rail which will run from Mombasa Port to Malaba border will be in Nairobi by 2016,” Dr Kibicho said.

Mr Kamau said President Uhuru Kenyatta had directed that the standard gauge railway be completed over a period of four years.

“The President asked me to confirm whether I will be able to deliver the rail line within four years. If not, then I should tell him so that he considers other options.

“He told me in no uncertain terms that the British used six years to construct the current railway line from Mombasa to Port Victoria and therefore there was no excuse for not delivering the new line,” Mr Kamau said.

Mr Kamanda (Starehe) said MPs would seek additional resources for the ministry through Parliament which is allowed to revise the budget. Committee members asked the ministry to ensure that development projects that have been started are completed even with the funding deficit.

According to the Budget tabled in Parliament in April, the ministry will get Sh125.72 billion. Of the amount Sh102.92 billion will go towards infrastructure development and Sh22.79 billion for recurrent spending.

Road development, maintenance and management will receive Sh77.17 billion, transport management and safety (Sh4.27 billion) and administrative services (Sh44.27 billion).

The amount, however, is less than half the Sh268 billion allocated in last year’s budget calling into question the Jubilee government’s commitment to fast track projects meant to propel the county into a middle-income status by 2030.

Mr Kibaki secured his legacy through expansion in physical infrastructure through projects like Thika Road, the by-passes around Nairobi and laying the foundations for Lapsset and the Konza ICT Park.

He also oversaw expansion in social services through the free primary education, subsidised secondary education and selected free services in public hospitals.

Even before he handed over power on April 9 the jury was out on whether the ambitious projects would be completed by the incoming administration.

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