Skip to main content

Kenya plans road toll tenders

Kenya plans to start tendering in May for toll-road contracts estimated by the government to be worth $2 billion to improve the efficiency of the East African nation’s biggest commercial routes, according to Bloomberg. The contracts will be in addition to the 45 deals worth about US$3.2 billion that the government will start awarding as early as next week, to double the nation’s paved-road network through an annuity program. The government is planning to introduce five toll projects covering about 800 kilom
March 25, 2015 Read time: 2 mins
RSSKenya plans to start tendering in May for toll-road contracts estimated by the government to be worth $2 billion to improve the efficiency of the East African nation’s biggest commercial routes, according to Bloomberg.

The contracts will be in addition to the 45 deals worth about US$3.2 billion that the government will start awarding as early as next week, to double the nation’s paved-road network through an annuity program.

The government is planning to introduce five toll projects covering about 800 kilometres (500 miles), including a new 482-kilometre dual-carriage highway between the port city of Mombasa and the capital, Nairobi, Stanley Kamau, director of the Public Private Partnership Unit at the Treasury, said in an interview this week.

Kenya is retaining 5019 PricewaterhouseCoopers to advise on the development and maintenance of the Nairobi-Mombasa highway, while it hired Intercontinental Consultants and Technocrats of India for the same scope of work for a new 176-kilometre highway connecting the capital to the south-western city of Nakuru. Intercontinental consultants will also advise on the operation and maintenance of the 80-kilometer Nairobi-Thika road, according to the Treasury.

The Treasury is drawing from a US$40-million World Bank loan to carry out feasibility studies for the projects and partly finance land acquisition.

Kenya is seeking funds from private sources to support its plans expand transport infrastructure and create a regional transportation hub that will help it accelerate economic growth to 10 percent by 2017 from 5.4 percent last year.

“With the private sector, we can do what government aspires for in infrastructure development faster, than when relying on public funds alone,” Kamau said. “We should have toll guidelines by April, then start the tendering process.”

John Musonik, infrastructure principal secretary at the Transport Ministry said winners of the first contracts under the road annuity program could be announced next week. The government is setting up a Road Annuity Fund to expedite construction of roads in a country where less than 10 per cent of the 161,000-kilometer network is paved, according to the Kenya Roads Board.

For more information on companies in this article

Related Content

  • Value of time – the key decider
    March 4, 2014
    The ‘value of time’ concept can be a vital decider in prioritising transport projects, as Lorenzo Casullo and Serbjeet Kohli of Steer Davies Gleave explain. How much do travellers value their time and how much would they be willing to pay for a better and faster transport option? For many years Steer Davies Gleave (SDG) has been collecting this type of information from thousands of people across the world as it researches travellers’ behaviour. And given the importance of this parameter for transport mo
  • Uber IPO ‘could be valued at $120 billion’
    October 17, 2018
    Uber could be valued as high as $120 billion if the ride-hailing company goes public, as expected, in 2019 – despite being permanently in the red. Major US banks Goldman Sachs and Morgan Stanley have made valuation proposals to Uber, according to a report in the Wall Street Journal this week. This means the initial public offering (IPO) could be one of the largest in history – and Uber has yet to record a full-year profit. If the figure is correct, it would mean that Uber is worth more than three of the
  • Ricardo to acquire international rail business
    April 20, 2015
    International engineering and technology company Ricardo has announced an agreement to acquire the business, operating assets and employees engaged in the businesses of LR Rail, from Lloyd's Register Group. The acquisition will be materially complete on or before 1 July 2015 and the business will operate as the core of a new international rail business within Ricardo and combined with Ricardo's existing rail industry expertise, to be branded Ricardo Rail. Current LR Rail managing director Paul Seller wi
  • Transport problems need ''strong action from policymakers”
    June 7, 2012
    Taking advantage of the attendance of the heads of ITS Asia-Pacific, ITS America, Ertico – ITS Europe, and ITS Malaysia as the host nation of the recent 12th ITS Asia-Pacific Forum in Kuala Lumpur in April, ITS International initiated a round table discussion on the big ITS issues confronting the individual regions. For such a diverse collection of advanced and emerging nations spanning the globe, in terms of the advancement of ITS, a common single issue emerges above all others