The Government of Kenya (GoK) has since 2009 rolled out deliberate measures to strengthen PPPs to deliver the country’s Vision 2030 goals on infrastructure development and public service provision. In March 2009, GoK under the Public Procurement and Disposal (Public Private Partnership) Regulations 2009, established an institutional framework that empowered the National Treasury to put in place the PPP Secretariat to undertake the recruitment of private interests aspiring to participate in the provision of public services.
The PPP ecosystem was further strengthened in 2011 when GoK adopted a PPP Policy that articulated and underscored the Government’s commitment to PPPs and laid the foundation for an enabling environment for attracting private sector partners in financing and managing infrastructure services.
The most significant boost to the country’s PPP architecture, however, came on 8th February 2013 when the Government enacted the PPP Act 2013 that provided for Institutional and Procedural Benchmarks to among others: set up critical institutions to chaperone the PPP life-cycle; provide a clear mechanism for project identification/origination, development and implementation; and prescribe a structured and predictable process and method to be followed in undertaking PPPs. The Act set up the PPP Committee and established the PPP Unit within the National Treasury.
Mandate of the Directorate
The Directorate is mandated to facilitate the implementation of the Public Private Partnership Programme and Projects in Kenya. As the secretariat and technical arm of the PPP Committee, the Directorate is the nerve centre of PPP expertise and operations in the country.
It’s key technical roles include providing support to Implementing Agencies (otherwise called Contracting Authorities) through the various stages of infrastructure project life-cycle from project identification, appraisal, procurement through to the phases of negotiation, contracting and operational stages – ensuring the projects are bankable, well-structured and of public benefit. It also provides legal, financial and communications advisory services to Contracting Authorities (CAs). Further, the Unit empowers CAs by building their capacities on PPPs. More importantly, the Unit champions policy initiatives aimed at improving the legal and regulatory environment governing the PPP Programme in the country.
The Programme’s scope of operations include national and county government entities, state corporations as well as the private sector with regard to developing and implementing critical infrastructure and other development projects. Key works covered by the Programme include expansion and refurbishment of existing assets such as:
- inland container depots and logistics hubs
- petroleum infrastructure, such as storage depots and distribution pipelines etc.
- power generation plants and transmission/distribution networks
- roads and bridges
- social infrastructure for health care, prisons, education
- solid waste management
- water supply, treatment and distribution systems
The Directorate runs a Fund – the Project Facilitation Fund – which is available for access by Contracting Authorities to support:
- The preparation of PPP projects through project identification, screening, feasibility study and project appraisal to ensure that projects are bankable and attractive to potential bidders;
- PPP projects by financing project development expenditure, transaction advisory and advisor fees, feasibility studies and viability gap funding and
- liquidity support for fiscal commitments and contingent liabilities accruing from PPP projects.
- Serve as a resource centre on matters relating to public private partnerships
- Conduct civic education to promote the awareness and understanding of the public private partnerships process amongst stakeholders
- Provide capacity building to, and advise contracting authorities or other parties involved in the planning, coordinating, undertaking or monitoring of projects under the PPP Act
- Rate, compile and maintain an inventory of public private partnership
projects that are highly rated and which are likely to attract private sector investment
- Develop an open, transparent, efficient and equitable process for managing the identification, screening, prioritization, development, procurement, implementation and monitoring of projects, and ensure that the process is applied consistently to all projects
- Conduct research and gap analysis to ensure continuous performance improvement in the implementation of public private partnerships
- Collate, analyze and disseminate information including data on the contingent liabilities of the Government in relation to a project
- Make recommendations on the approval or rejection of projects prior to submission to the Committee for approval
- Assist contracting authorities, where the unit considers it necessary, to design, identify, select, prioritize, appraise, evaluate and negotiate projects
- Maintain a record of all project documentation
- Review and assess requests for Government support in relation to a project and advise the Committee on the support that should be accorded in relation to the project
- Assist the Committee in formulating guidelines and standard documentation required under the PPP Act
- Liaise with and assist the contracting authorities in their roles in the various stages of a project cycle
- Ensure that the tendering process relating to a project conforms to this Act and to procurement best practices
- Put in place measures to eliminate constraints limiting the realization of benefits expected from a public private partnership
- Monitor contingent liabilities and accounting and budgetary issues related to public private partnerships with the relevant offices within the State Department responsible for finance; and
- Carry out such other functions as may be conferred on it by the PPP Committee and the PPP Act