The establishment of the PPP Program in Kenya was supported by both the government and the Infrastructure Finance and Public Private Partnerships (IFPPP) Project of the World Bank.
The Infrastructure Finance and Public Private Partnerships (IFPPP) Project is a Government of Kenya “first of a two-phased” Adaptable Lending Program (APL) financed by a credit from the International Development Association (IDA). The credit became effective on 12thFebruary 2013.
The overall objective of the IFPPP Project is to provide technical assistance to increase private investment in the Kenyan infrastructure market and to sustain this participation over an extended period of time.
By helping strengthen the PPP enabling environment/framework, the IFPPP APL phase I project has assisted the GoK develop a solid foundation to systematically prepare PPPs and realize the benefits of PPPs more effectively, including:
- Increased private investments in infrastructure
- Increased employment opportunities
- Improved service delivery to enterprises and the population in general
- An improved fiscal impact on government from better project preparation
- More balanced risk allocation
- Increased transparency
- Wider quality control
- Greater efficiency
- Enhanced financial sector support
This framework has also enabled an increase in the availability and quality of infrastructure in different sectors to boost enterprise growth and productivity and improve the well-being of Kenyans.
The IFPPP Project comprises of four components:
- Component 1: Support institutional development and regulatory reform
- Component 2: Support preparation of a pipeline of PPP transactions
- Component 3: Support improvement of the Fiscal Commitment Contingent Liability (FCCL) framework associated with PPP Projects especially infrastructure
- Component 4: Support program implementation
The PPPU, under the authority of the Director, acts as the overall Implementing Agency for the IFPPP project. The project is implemented with the support of a Project Implementation Unit (PIU) reporting to the Director – PPPU.