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Kenya in major policy shift on support for PPPs

Over 70 projects being implemented under the public-private partnership framework in Kenya face an uncertain future, after a government decision to withdraw financial and risk guarantees. Despite a push by the government for the private sector to be actively involved in cash-intensive infrastructure projects, the National Treasury has unveiled a new policy that is bound to have far-reaching ramifications for PPP projects.

Bechtel urges no PPP for historic Mombasa highway

US giant Bechtel wants the government of Kenya to borrow the cash needed for the $3bn highway from Mombasa to Nairobi, which Bechtel had been picked to build, and says the toll revenues will nearly double the government’s money in 25 years. That would be far more advantageous for the debt-laden government in the long run than a public-private partnership (PPP), which would mean Bechtel raises the cash itself through financial markets, the company says. But a Kenyan minister said the preferred approach is still PPP, which would keep the capital cost of the game-changing expressway off its books.


The World Bank is aggressively pushing the infrastructure “public private partnership” model

The government should create a facilitative framework that promotes increased private sector investments in infrastructure development to ease rising burden of public debt, the World Bank Group has said.  The lender says in the annual Africa’s Pulse report, a bi-annual analysis of the state of African economies, that at least half of infrastructural finance needs in sub-Saharan countries should be met through Public-Private Partnership initiative.

Source: The Star, Kenya

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