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"id": 854930,
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"speaker_name": "Sen. (Eng.) Mahamud",
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"legal_name": "Mohammed Maalim Mahamud",
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"content": "private sector and the Government will discuss when there will be financial closure and the project will kick on. Therefore, this is a very important model which was tried in the country on Uhuru Highway from Nyayo Stadium to Rironi. In fact, I remember that when I was in the Ministry of Roads, we did a tender for an overpass road between Nyayo Stadium to Rironi and STRABAG International was rated the best but later on it was discovered that it had one Russian in their partnership who was corrupt. Therefore, the project never took place. In fact, up to now, the project has not been implemented. The discussion on the road mentioned by the Senate Majority Leader between Mombasa and Nairobi is that the Government should borrow. However, the Government should not borrow because PPP means that the private sector will bring the finances and the Government will partner with them. Mr. Speaker, Sir, we saw the Bill that came from the National Assembly which proposes that we give a chance to the disadvantaged people in terms of finances. However, this model will not allow that because this project is for people who are able to source for funds. We have looked at the Bill and proposed a lot of amendments and our report was tabled. In some areas our colleagues in the other House rushed over it. However, it is a very important Bill. One thing that must be clear is that PPP is not privatization. Therefore, it is important for Kenya because it has worked elsewhere. Since the law of 2013 was enacted, no project has ever taken place. However, with these amendments, we encourage the national Government and the counties to do that. This Bill proposes that the Government will have a transaction advisor whose job is to advise the entity on the contracting process. Where there is no capacity, the advisor will do what is needed. The Government and the private party will have their own designs which must be challenged. If not, we will have projects that will be very expensive and whose tolls and tariffs will be too high for anybody to take. Mr. Speaker, Sir, when the Lamu Port-South Sudan-Ethiopia-Transport (LAPSETT) Corridor model initially came up, some of us were very scared because it was a large project which had a railway, a pipeline, roads, resource cities and harbors. It was to concession at a go which was something very ambitious. That is why from 2003 up to date, we are slow on that project. In fact, by that time, if we had invested on Mombasa-Malaba Corridor and done six lanes, deepened the harbor or the railway, we would have done much better. I am not criticizing the project. However, we are stuck because it is not easy to get revenues from the toll stations to pay for the project. Therefore, as we move forward, it is important for Kenyans to be educated about these important models. We must also differentiate them from the traditional procurement process where public money is applied directly to the project. In these models, money is applied from the private sector and the project infrastructure reverts back to the Government after the number of years of concession has been agreed which is 20 or 30 years or so after the private sector has recouped its financing. Mr. Speaker, Sir, with those many remarks, I beg to second."
}