The Public Private Partnership Directorate takes note of the story published on Page 8 of The People Daily titled “Ruto’s First Public Private Partnership sends Sony Sugar employees home”. The PPP Directorate clarifies that the leasing of Sony Sugar does not fall under the Public-Private Partnership (PPP) initiatives.
The piece is therefore erroneous as it presents a privatization initiative as a Public-Private Partnership (PPP). Privatization is a transaction or series of transactions by which Government sells off all or part of an interest in a state owned asset.
For PPP contractual arrangements, the Government partners with a private party to build, finance, manage or operate a public asset or service for a specific period, often between 10 to 20 years. Under a PPP, the private party typically bears significant risk and management responsibility of the asset or service and is remunerated based on performance. The Government’s role continues throughout the PPP contract, and it retains ownership when the asset or service returns to Government control on expiry or termination of the PPP.
Current PPP projects under implementation include:
- 35MW Quantum Menengai Geothermal Power Plant Project: A green field geothermal electricity generation project whose objective is designed to expand high-voltage transmission capacity, modernise substation infrastructure, and integrate renewable generation into the national grid.
- Kenya Defence Forces Residential Accommodation: The Ministry of Defence is constructing 3,069 housing units across the country at five project sites namely; Roysambu (Nairobi County), Kwambuzi (Laikipia County), Mariakani (Kilifi County), Lanet and Gilgil (Nakuru County). Through a Public-Private Partnership (PPP) arrangement there is construction of 500 units in 26 blocks on-going at Roysambu in Nairobi County. The single and married quarters is 93% complete. Phase two of the housing programme that will deliver 10,000 houses is also underway in Embakasi, Kahawa and Lang’ata Barracks.
- Nairobi- Expressway: Development, operation, and maintenance of a 27.1 kms dual carriageway with Class A standards, that connects Mlolongo with James Gichuru Road along the medium strip of the A8 National Road
- Lot 18 of Road Annuity Programme: Construction and rehabilitation of urban roads in select 4 Counties namely: Kakamega (10.6km), Vihiga (6km), Bungoma (13.5km) and Busia (5.2km).
- Lot 15 of Road Annuity Programme: Construction/ rehabilitation of urban roads in select 6 Counties namely: Nyeri (11.51km), Kirinyaga (4.10km), Murang’a (8.9km), Embu (10.06km), Tharaka Nithi (6.97km) and Laikipia (3.18km).
