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"speaker_name": "Sen. (Eng.) Mahamud",
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"legal_name": "Mohammed Maalim Mahamud",
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"content": "The idea is, therefore, to provide for the counties as contracting agencies for them to take part in the PPP. The question that we need to ask is; why PPP? An increased demand for infrastructure like roads, water, telecommunication and power on government requires that we need other sources of funding. In fact, PPP is meant to provide the funding gap for infrastructure. In the arrangement of PPP, contracting entities like the national Government and the counties will engage private sectors to provide the needed infrastructure which will be preceded with a lot of preparation in terms of the design and feasibility study which the private sector must also take part in. The Government entity must have its own model so that when the private sector proposes to fund a project and say that it is going to generate revenue through the tolls and the rest, then the fees charged must be reasonable and the contracting agency must have its own financial model to agree with that. Mr. Speaker, Sir, Public Private Partnership (PPPs) have been accepted and in many parts of the world, infrastructure projects, for example, toll roads are funded through the private sector so that they can get their funding back. Mr. Speaker, Sir, the procurement is a bit different from the normal traditional procurement where a person tenders then gets a responsive offer to do the job. In this kind of procurement, there must be interested parties from the private sector who must have the capacity to undertake that work. In most cases, the project is the collateral and the risk is apportioned to the party that can best take it. Government can only take the political risk while the private sector takes the financial risk. Mr. Speaker, Sir, we have looked at this Bill as a Committee. We carried out public participation and had a lot of submissions from various entities including the private citizens. The Council of Governors (CoGs) presented their memorandum to us. In fact, they had issues with the few Clauses in the Bill. When the Senate was sitting in Eldoret, we conducted public participation and what we got from the public was very encouraging and we will incorporate it in our proposed amendments. Mr. Speaker, Sir, the fundamental of PPPs is that there must be a feasibility study to ensure that the project can be undertaken especially for large projects. There is a proposed project Committee which is composed of the national Government, the CoG and a nominee from the private sector; these are people who are not in the Government but nominated by the Cabinet Secretary (CS). There is also a proposed specialised unit in the National Treasury called the PPP Unit. In fact, the approval of this process down from the county level to the national Government will be done at the Cabinet level, Parliament and the county assemblies, which must have a say in what is being done in the county. Once the project is approved, the approval will be subjected to competitive dialogue and bidding. People who are interested can dialogue or bid with the private sector. That way, they will know the cost and the revenue that will accrue from the project. This is because after a concession period of about 30 years, the project will be handed over to the Government. Mr. Speaker, Sir, there is also the approval by the PPP Committees both at the national level, Parliament and at the county assemblies as required. From there, the The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}