The Government has signed two Public Private Partnership (PPP) Project Agreements under the Roads Annuity Program (RAP) for the construction & maintenance of 80km of urban roads in 10 counties, for a period of 10 years.
The deal will see the counties of Embu, Tharaka Nithi, Kakamega, Bungoma, Nyeri, Busia, Kirinyaga, Vihiga, Muranga, & Laikipia from quality completion of roads and performance-based maintenance.
Under the deal, Payments to the contractors will be made through quarterly annuity payments over a period of ten (10) years.
Speaking at Transcom House when he witnessed the signing of the deal, Transport CS James Macharia noted that the roads will play a big role in bolstering the local economies, ensure high-quality construction & proper maintenance of the roads throughout the period.
The Annuity Program ensures that payments to the contractor are made throughout the life of the projects rather than upfront during construction thus ensuring ease of movement and high quality construction and maintenance works.” CS Macharia said.
Under the Annuity Program, contractors will design, finance and construct the roads within a stipulated time and guarantee construction quality.
Successful bidders will be required to raise at least 70% of the total cost of a project, before the award of a contract. Contractors will also maintain the roads post-construction for a maximum of eight (8) years, based on fixed annual payments by the Government, which will be extended after construction.