KeNHA Discloses PPP Agreement for Gilgil–Nakuru–Mau Summit Road Project
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The Kenya National Highways Authority (KeNHA) has disclosed details of the Project Agreement for the Gilgil–Nakuru–Mau Summit (A8) Public-Private Partnership (PPP) Road Project, signaling a step toward implementing the highway upgrade.
In a notice dated July 7, KeNHA said the project will be delivered under a Design, Build, Finance, Operate, Maintain, and Transfer (DBFOMT) model through a Public-Private Partnership (PPP), with Shandong Hi-Speed Road & Bridge International Engineering Co., Ltd. (SDRBI) serving as the project proponent.
According to the authority, the disclosure has been made in line with the Public Private Partnerships Act (Cap 430) and the National Treasury’s public disclosure requirements for privately initiated proposals.
“This disclosure is made pursuant to Section 69 (1) of the Public Private Partnerships Act (Cap 430) to notify members of the public of the PPP Committee’s decision approving the Project and Financial Risk Assessment Report, and the subsequent execution of the Project Agreement,” KeNHA stated.
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KeNHA further explained that it initially received a Privately Initiated Proposal (PIP) from SDRBI to develop the approximately 94-kilometre Gilgil–Nakuru–Mau Summit road.
As a result, the proposal underwent feasibility studies, technical evaluations, and financial risk assessments before the PPP Committee identified SDRBI as the preferred project proponent.
Following negotiations, KeNHA submitted the Project and Financial Risk Assessment Report, together with the initialled Project Agreement, to the PPP Directorate before the PPP Committee approved them.
In addition, the authority stated that an Early Works Agreement has already been signed and that the final Project Agreement has been executed, allowing the commencement of the project.
According to KeNHA, the road will be developed under a 30-year concession, covering the design, financing, construction, operation, and maintenance of the highway before it is eventually transferred back to the authority.
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Benefits of the Highway
Meanwhile, the authority also confirmed that the upgraded road will operate as a toll road. According to the Project Agreement, the applicable toll tariff has been set at Ksh 8.50, with future adjustments to be made in accordance with the agreement, government approvals, and applicable regulations.
KeNHA added that the project will primarily be financed by the private partner, with any government support limited to commitments outlined in the Project Agreement and the PPP Act.
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Additionally, the authority said the Gilgil–Nakuru–Mau Summit Road project is expected to deliver several economic and transport benefits, including:
- Improved road safety;
- Reduced travel time;
- Lower vehicle operating costs;
- Better connectivity between Nairobi and the Rift Valley region;
- Increased trade and tourism opportunities;
- Job creation during construction and operation; and
- Enhanced regional economic growth and investment.
KeNHA also noted that it will monitor the project throughout the concession period to ensure compliance with construction standards, maintenance obligations, environmental requirements, financial reporting and other contractual commitments.
It further stated that, once the concession period expires, the highway assets will be transferred back to the authority in accordance with the quality and performance standards outlined in the Project Agreement.
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KeNHA Releases Details of Gilgil–Nakuru–Mau Summit Road Project. Photo/ KeNHA