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P3s give option to single-source projects under new law


Construction underway of the Nairobi highway along Waiyaki Way. PHOTO | JEFF ANGOTE | NMG

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Summary

  • In order to address concerns about transparency in a country where a third of the budget would be lost each year due to corruption, the law limited the option of direct procurement to exceptional circumstances.

Parties to public-private partnerships (PPP) have the option of direct procurement to reduce costs and protect Kenya’s national interest after President Uhuru Kenyatta enacts the projects bill as part of the agreements of build-operate-transfer (BoT).

The PPP law allows entities participating in PPP agreements to work at a single source with the aim of accelerating projects in a context where the state has struggled to attract private investors since its entry into force in 2013.

The direct procurement option in the new law, which repealed the previous one enacted in 2013, allows “partnerships to be entered into competitively or single-source through direct purchases or initiative proposals. private ”.

Direct procurement, according to the memorandum, “simplifies the procedural elements of conducting feasibility studies, bid evaluations, contract negotiations and requests for approval.”

In order to address concerns about transparency in a country where a third of the budget would be lost each year due to corruption, the law limited the option of direct procurement to exceptional circumstances.

These include situations where services can only be offered by a limited number of suppliers or contractors, where a single procurement will ‘significantly’ reduce the cost of projects, or where Kenya has a national interest through procurement. ‘bilateral or international cooperation.

“The new law on public-private partnerships repeals the 2013 legislation by providing an elaborate legal framework to cover PPP projects at the national level and at the county level,” the State House said in a statement Tuesday.

“In addition, the new law expands the role of the private sector in PPP initiatives beyond finance to include construction, operation and maintenance of projects.”

By law, governors of decentralized units will now undertake PPP projects in line with integrated county development strategies without national government approval. They only need the approval of the county assemblies.

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