Jubilee Dev - Kshs 15 billion, 143 kms Modogashe-Habaswein-Samatar and Rhamu-Mandera tarmac roads by PPP

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BEIJING, China, Sep 6 – The second annuity programme sponsored by the Government of Kenya for infrastructure development has been awarded and a funding arrangement completed.

The $150 million project has been awarded to Hass Consortium-GVR Infra Limited, Shandong Hi-Speed Nile Investment Company and Stanbic Bank of Kenya who signed an indicative term sheet for the financing on the side lines of the Beijing 2018 Forum for China-Africa Cooperation (FOCAC).

Welcoming the tripartite-agreement, Transport Cabinet Secretary James Macharia said the project would go along away in realising the government goal of tarmacking 10,000 kilometres of road under the annuity programme.

“When we began this programme stakeholders were slow in picking it up but I am glad it now on top gear and stakeholders have realised the returns from the investment is good,” said CS Macharia.
The project will see the 143 kilometres of tarmac laid between Modogashe-Habaswein-Samatar and Rhamu-Mandera roads.

While Stanbic and China Exim Bank will fund the project to the tune of $81 million, the rest will be taken care of as equity. Hass Consortium-GVR Infra Limited was awarded a tender under Phase 1 of the 10,000kms of the annuity programme, and has already mobilised and will begin construction on October 1, 2018 which will be completed within 30 months.

The roads will be constructed and maintained by Shandong Hi-Speed Nile Investment Company under a design-Build-Finance-Maintain and transfer contract structure under a 10-year public private partnership model.

The brief ceremony was witnessed by among others Cabinet Secretaries Henry Rotich of National Treasury and Planning, and Principal Secretaries Kamau Thugge (Treasury) Esther Koimett (Transport) and Julius Korir (Infrastructure).

Long overdue hio barabara inafaa ifike mandera

Hiyo baro ni noma.ukitoka mandera ukifika Nairobi ni kama ulikuwa kwa shamba ukilima jo

how will investor recoup their money?

@spear how many kilometres of roads have been tarmacked since 2013?

kuna some roads zinajengwa by KERRA huko Mandera, seriously this is the only period those people feel like they are part of Kenya.

Its annuity program which means Treasury will pay them annually I.e Kshs 1.7 billion a year for 10 years after they complete construction.

good to see the annuity programme take off. So there’s no loans or there is interest that treasury will pay?

mbona waundie wasomali njia ? wangeunda njia all over kenya before kuenda north eastern but tufukuze hao walalo warudi somalia wakenya wahamie huko N.E after hio njia imeisha

You have given me homework to do. Last time I checked in Jan 2017, over 3000 Kms of roads had either been built or under construction across the country. 3000 kms were in advance stages of approval for award of construction. 4000 kms of road were in the various planning stages. The key to get them done now lies more on PPP, annuity rather than taking up loans to build them. Once they are all done people will remember UhuRuto for opening up the whole country for vehicular transport in its entirety. It will be good if you can drive on good tarmack road from any end of the country to the other end in under a day (12 hrs) or in a day (24 hrs). The people complaining now about the loans will understand the long term view of this project specific loans in 5 years time when economic activity takes place from rural to urban areas due to the ease of transport in the country. Remember people were hating on former President Kibaki while he was in office only to turn around and praise him as a visionary after he left when the projects benefits were now being felt.

Yes, the package is that government will pay a fix amount annually which includes (cost of construction, maintenance and interest rate) to the contractor for a decade for them to recoup their investment plus profit. That is a decade after the road is complete, has passed inspection and open to traffic. Over that period the same contractor is to maintain the road to perfect conditions throughout. It had failed to take off since Kenyan banks demanded a very high interest to fund the projects which both the contractor and Treasury dismissed as too expensive. Well Chinese banks felt its a good longterm venture and the formed a joint Chinese, Kenyan contractor bid funded by them to build this two roads. Others of the same have also bid for other several roads projects on the same annuity program. In total I can see the whole 2000Kms being taken up in the next 1 year starting with Kshs 60 billion Lamu-Garissa- Isiolo road funded by development bank of South Africa.

@spear niko na swali ile kenya somoli border walimaliza kuweka barbed wire ama bado

Habaswein ni noma, joto kama paja ya mkamba.
But Hass Consortium, is it the infamous Hass petroleum?
If its part of the Hass Petroleum, Then with the locality of the project then tuwetayari bila lube, hawa nimapateli wa noma sana who were the biggest beneficiary/conduit of pirates money in around 2007-09.
They are building now the biggest building in Africa.

Zile business opportunities zenye ziko NEP ni nyingi Sana if only the locals could embrace non locals

Tumia tu handle yako ya kawaida.

This border fence project is very important and the recent development has gone to reinforce that decision 100%. Its still under construction by KDF engineering corps with help from Israel. Its a two fences with sharp chain link curved wire in the middle. Their are two trenches on either side of the border to stop any vehicular movement near the fence. The monitoring sensors will remain unknown. Either way you will lose all your skin and damage your body to cross over it. By that time KDF will have been waiting for you at the other side. Its working perfectly in the areas that’s its complete. Infact some smugglers who had unrestricted access across the border, criminals and terrorists are trying their best to stall its completion up to Lamu because its working. They are now using IED’s to intimidate the soldiers and construction crews from continuing with work. This is why command is determined to see through the project. On completion we will have between 3-5 one stop bordet points to enter Kenya from Somali. That way we can finally control whom, what cargo come in and goes to Somali. Those border post will recoup the cost of the border fence, maintenance and cost of KDF patrols.
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That’s is the part that our relevant authorities fail miserably , I am sure even Baboons wouldn’t accept some workmanship.
How do you put hills for bumps or build a road with no marks ama signs.
Look at how RCC has screwed us with poorly done roads in industrial area with some concrete parts protruding on the road (hapo inje ya Vehicle Inspection Centre) .Drainage system on those roads are non existent.

Asande sana nilithani ni propaganda tu. Alafu wanafai waweke shoot to kill kama ile india Pakistan border

Progress report ya Garsen - Lamu Road?

It was delayed by a year due to insecurity originating from Boni forest but now construction is back on. President Uhuru conducted an impromptu visit to the site a few months ago. Contractor is hiring more staff and putting more equipment to recover lost time.

Kiyana ya Isiolo mambo ?