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Kenya to meet investors keen on road building partnerships
November 7, 2016 / 11:23 AM / a year ago

Kenya to meet investors keen on road building partnerships

NAIROBI, Nov 7 (Reuters) - Kenya will meet potential investors later this month to discuss plans to build roads jointly with the state under a model that allows them to recoup their funds and make a return after completion, a top official said on Monday.

The East African nation is seeking more private investment to maintain the pace of spending on highways, railways and other vital assets while reducing the budget deficit.

John Mosonik, the principal secretary for infrastructure, said the country planned to add new lanes to the Nairobi-Mombasa highway and build a new bridge to help ease traffic in Mombasa’s Nyali area, using the Public Private Partnership (PPP) model.

“We have deliberately decided to focus on major highways and trade routes in a bid to improve transport infrastructure and reduce costs of business,” he said in a statement.

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.

Kenya’s government has picked PriceWaterhouseCoopers, Deloitte and other firms as transaction advisers for the projects. Winning bidders will be expected to fund the building of roads and maintaining them.

Kenya set a budget deficit of 8.1 percent for the fiscal year starting in July but it plans to cut it in the medium-term. (Reporting by Duncan Miriri; Editing by Edmund Blair and Mark Potter)

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