The Public Private Partnerships (Amendment) Bill, 2016 makes further provisions to facilitate the way in which county governments may deal with PPP arrangements.
PPP director Stanley Kamau told the Senate Finance, Budget and Commerce that the law will require county PPP projects to get the approval from the Treasury.
PPPs have been touted as a promising route to fund new infrastructure across Africa, a continent that struggles with poor transport networks.
The Bill mandates a county government to implement a PPP project if the project provides value for money.
The Treasury wants power to approve all projects that devolved governments seek to contract to private investors through the Public Private Partnership (PPP) model in new measures aimed at managing the country’s ballooning public debt.
The Treasury has proposed significant changes to the PPP Act, 2013 to recognise county governments as distinct contracting authorities for public-private partnerships projects.
The Public Private Partnerships (Amendment) Bill, 2016 makes further provisions to facilitate the way in which county governments may deal with PPP arrangements.
“Upon receipt of the project lists from the national government contracting authorities, the committee (PPP Committee) shall consider the lists and the recommendations of the PPP unit and prepare and submit to the Cabinet for approval a national priority list which shall include county approved priority lists of public private partnership projects that have been submitted to the Unit,” section 7(2) of the Bill states.
PPP director Stanley Kamau told the Senate Finance, Budget and Commerce that the law will require county PPP projects to get the approval from the Treasury.
“For every county PPP project, the PPP committee shall approve the feasibility study report prepared by the county government on each proposed PPP arrangement, approve the negotiated commercial, financial and technical terms of a proposed PPP project and approve any proposed variations to a project agreement,” a new Section 54A states.
Kenya is seeking more private investment to maintain the pace of spending on highways, railways and other vital assets while reducing the budget deficit.
PPPs have been touted as a promising route to fund new infrastructure across Africa, a continent that struggles with poor transport networks. But analysts say financing has often stumbled over government guarantees and revenue sharing deals.
The Bill mandates a county government to implement a PPP project if the project provides value for money.
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