Treasury revises PPP framework after public outcry over controversial Adani deals
The review follows warnings from international partners about weaknesses in Kenya's PPP approach.
The National Treasury is re-evaluating the process of identifying and procuring public-private partnership (PPP) projects following the cancellation of high-profile deals involving India's Adani Group, which triggered widespread public criticism.
President William Ruto scrapped the proposed Jomo Kenyatta International Airport (JKIA) deal with Adani in November following concerns over potential job losses and lack of transparency.
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The Treasury has now called for consultancy services to assess the effectiveness of its PPP framework and procurement methods.
"Assess the extent to which project development process is fit for purpose for PPP projects prepared and procured through the procurement methods provided for in the PPP Act of 2021, through an evaluation of a sample of those projects," reads Treasury's latest tender documents.
Warnings
The review follows warnings from international partners about weaknesses in Kenya's PPP approach.
The World Bank has cautioned against unsolicited deals, warning that they could trigger public protests and erode investor confidence, particularly after the cancellation of nearly Sh387.6 billion ($3 billion) in contracts involving the Adani Group.
Facing tight fiscal constraints due to high public wage expenditures and debt repayments, the Treasury has increasingly relied on PPPs to fund infrastructure projects.
However, critics argue that many of these deals lack transparency, particularly those initiated without competitive bidding.
Transaction advisors
The upcoming review will evaluate how projects are identified, the feasibility study process, and the role of the PPP Directorate in working with contracting authorities.
It will also scrutinise the selection of transaction advisors and the processes governing tendering, construction, and long-term project management.
According to the Treasury, Kenya's PPP portfolio has expanded rapidly, necessitating a reassessment of existing regulations.
Currently, five projects worth Sh129.2 billion ($1 billion) are under implementation, including the Nairobi Expressway and the Sosian Menengai Geothermal Power Plant.
The PPP portal lists 32 other projects at various stages of development, from feasibility studies to operational phases.
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