If enacted, the law would put in place procurement and management structures to promote public private partnership (PPP) projects in that are expected to significantly boost the country’s economic growth.
Mr Stanley Kamau, the PPP director at the Ministry of Finance, said the private sector is better placed to promote efficiency and competitiveness in national development, hence the need for the partnership.
Mr Kamau identified some of the high-potential sectors for the partnership as information and communications, tourism, land reclamation, sports facilities and business process outsourcing (BPO).
He said national legislation is also attractive to investors, arguing that the Water Act and Energy Act provide a strong regulatory framework to protect investor interests.
Dose of competition
Mr Kamau said bringing the private sector into the country’s development structure would inject a dose of competition and efficiency.
The approach, he added, would improve the debt-gross domestic product ratio and the circulation of money in the local economy.
“The government honours contracts, thus providing a favourable investment climate for the private sector to thrive in,” he said.
He explained that Kenya requires about Sh5.6 trillion ($60 billion) in the next eight years to develop infrastructure.
“The government can provide about Sh1.8 trillion ($20 billion), and the funding gap has to be filled by the private sector,” he said.
Independent Power Production (IPP) is a key area where the arrangement is expected to produce get enough energy to improve economic growth and industrialisation.
Concession of the Kenya Uganda railway to capital funds Citadel and TransCentury is another area.
The line is to be improved to open up economic opportunities in the East African region by easing the cost of transport.
The Konza ICT Park, for example, requires more than Sh1 trillion to realise its potential, and this can only be achievable through a public private partnership.
- Public Procurement and Disposal Act 2005 (docs.google.com)