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"content": "ministerial roads budget while Kshs6.7 billion will be from the Equalisation Fund specifically for the marginalised areas. With regard to the ports, I have allocated Kshs0.8 billion for the ongoing upgrading of Malindi Airport, Isiolo Airport, Suneka Airstrip and Lokichoggio Airport. I have also allocated Kshs0.5 billion for the acquisition of two ferries for the Likoni Channel, Kshs5.5 billion for the Mombasa Port Development Project financed by development partners and Kshs10 billion for the LAPSSET project. In order to boost regional trade, the Government will prioritize the construction of the East Africa Road Network (Voi-Mwatate-Wundanyi and Malindi-Mombasa-Lungalunga Road sections), the construction of the Kisumu-Kakamega Road under the Kenya Transport Sector Support Programme and the construction of the 600-kilometre South Sudan link road. Our commitment to provide affordable and competitive electrical energy remains on course. Significant progress has been made towards generation of 5,000 megawatts of power. To date, 615 megawatts of power have been added to the national grid. This has significantly reduced the cost of power. We will continue to exploit the vast geothermal resources that Kenya is endowed with by creating a conducive environment for investors to invest, including providing a competitive Power Purchase Agreement (PPA), letters of support and risk guarantee arrangements. Further, we expect to produce 300 megawatts of power from wind in the next one year with the ongoing works at the Lake Turkana Wind Project. Those resources are expected to increase our clean energy mix, cementing Kenya’s position as world leader in renewable energy. The additional power supplies will significantly reduce the cost of doing business, spur growth of enterprise and industries and accelerate the creation of jobs in the industrial and other sectors. We are implementing a programme to connect, at least, 70 per cent of Kenyan households to electricity by 2017 and, subsequently, reduce the connection cost and time by at least 60 per cent in the medium-term. Already, about 5 million households, 14,950 public primary schools and 980 public facilities have been connected to electricity under that programme. To fund specific intervention in the energy sector, we have allocated Kshs120.2 billion of which Kshs81.6 billion is from our development partners and Kshs38.5 billion is from the GoK in the 2016/2017 Financial Year. This will cater for geothermal development; power transmission; Rural Electrification Programme; Last Mile Connectivity; National Street-Lighting Programme; electrification of public facilities; exploration and distribution of oil and gas; installation of transformers in constituencies; connectivity subsidy and Liquefied Petroleum Gas (LPG) distribution and infrastructure programme. Since 1996, Kenya has continued to attract private investment into the infrastructure sectors including sectors such as telecommunications, energy, transport, water and sewerage. Available public sector resources are limited to finance competing and critical infrastructure needs. In this context, the Government has recognized the critical role that can be played by the private sector in mobilizing resources for infrastructure development, and is using the Public Private Partnership (PPP) arrangement to accelerate infrastructure development, including the development of the 500 kilometres of roads under the annuity approach; the ongoing development of geothermal power; the construction of Kenyatta University hostels, the planned development of a seaport in Kisumu; the expansion of the Mombasa-Nairobi-Malaba Highway and the construction of the second Nyali Bridge in Mombasa among others. Specifically on the road annuity programme, we expect to commence the construction of the first batch of the roads with funding from the Annuity Fund which has currently received over Kshs9.5 billion. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}