Road contract bidders to know results Tuesday

What you need to know:

  • Contracted private firms will source funds from local banks on the strength of ‘letter of comfort’ provided by the government and annuity repayments made by the Treasury over several years.
  • In December 2013 pending bills stood at Sh25.3 billion, with the value of ongoing commitments that were yet to be billed and certified at Sh88.3 billion.
  • They will be expected to design and implement the projects using local materials where possible and maintain the same for between five to eight years.

The government is to release the names of construction firms that will set up 2,000 kilometres of new roads following completion of the tender process.

In September, 49 companies out of which 22 are local, passed the first bidding stage and the final list will be announced Tuesday.
Some Sh260 billion will be spent in constructing the first roads of the 10,000 kilometres targeted in the next three years.

Contracted private firms will source funds from local banks on the strength of ‘letter of comfort’ provided by the government and annuity repayments made by the Treasury over several years.

They will be expected to design and implement the projects using local materials where possible and maintain the same for between five to eight years. The firms that will qualify will be allocated between 30 kilometres and 300 kilometres.

SHIFT TOWARDS FINANCNG

“Unless a shift towards financing and delivery methodology is identified, the sub-sector will be unable to take on board any new projects in the future, and may not deliver on the government’s objectives and targets in Jubilee manifesto,” general manager in charge of planning and environment at Kenya National Highways Authority Samuel Omer said.

In December 2013 pending bills stood at Sh25.3 billion, with the value of ongoing commitments that were yet to be billed and certified at Sh88.3 billion.

The roads sector receives an average annual budget of Sh20 billion, which is inadequate for opening up new routes and paying pending bills.
Out of 161,000 kilometres of national road network, only 14,100 kilometres are paved.

For 50 years, Kenya had only 2,000 kilometres paved out of 45,000 kilometres identified in 1963 when the country gained independence.

This translates to construction of 242 kilometres every year in the last 50 years. “A major shift in approach is required to deliver the quantum leap in paved road output. This shift needs to address issues of financing and (road) design,” Mr Omer said.