Construction of new airport terminal on course, says KAA

The Kenya Airports Authority has maintained that the planned construction of a $500 million (Sh42.5 billion) new terminal complex at Jomo Kenyatta International Airport is on course, refuting claims that delays in securing a financier would jeopardise it.

The firm’s managing director, Mr Stephen Gichuki, said his authority has set aside 10 per cent of the actual cost of the project to be known as the Greenfield Terminal, even as it emerged that the project is already behind its initial plan.

“Finance is not a concern given that we have set aside 10 per cent of the cost in our budget. This is enough to get us started.

“The rest will be paid as the project continues. We are also in talks with two financiers to support the deal,” Mr Gichuki said on the sidelines of a function to renew Kenya Airways’ international air safety licences on Thursday.

The authority makes about Sh6.8 billion ($81 million) on average in revenue per year.

Mr Gichuki who refused to reveal the names of the financiers, however, confirmed that the government is yet to land any deal with any other financier.

But according to a blueprint of the initial plan of the project presented to investors at the Africa Investment Conference last year, KAA was expected to have secured a financier between April and August last year.

The initial plan also shows that the government was to finish a detailed design before May last year to allow for the construction from August last year to December 2013.

KAA said it was still reviewing tender documents for firms interested in constructing the new airport terminal.

Last year, the authority said more than 100 local and multinational firms mainly from North America, Europe, Asia and Africa had shown interest in the project.

The Greenfield airport terminal is a Public Private Partnership (PPP) scheme. The government is working on raising funds from both domestic and foreign investors.