Red tape keeps contractors guessing on 10,000km roads

Red tape among State agencies has delayed efforts to start the construction of 10,000-kilometre roads under the Treasury’s annuity programme announced last year, officials have said.

Successful contractors were supposed to be known by February but this was put on hold to boost co-ordination among the road sector agencies that are overseeing the multi-billion shilling project.

“The tenders for this project will be given soon after the relevant bodies finalise on all logistical issues harbouring the process”, said Institution of Engineers of Kenya chairperson Reuben Kosgei yesterday as the 22nd international engineers’ conference was opened in Nairobi.

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The annuity project which aims to upgrade 10,000km roads in the next five years will be done in phases, the first covering 2,000km this year.

At the event, the Kenya National Highways Authority chairman Erastus Mwongera said the annuity road programme would ensuring the transfer of technology necessary in enhancing local engineering and technical capacity.

The annuity financing model was crafted to accelerate construction and will see contractors design, build, finance, operate and maintain the roads for eight years with the Treasury as the guarantor for their bank loans.

Apart from accelerating the pace of work through a steady flow of cash, the model will see the government transfer construction, operation and maintenance risks to the private sector.

Among others, the business opportunities under the programme are development of roads, financing consultancies and supervision of works, and supply of materials, he said.