The two roads, developed by Intex Construction Ltd, are the first in the country to be constructed on a new Annuity Public Private Partnership (PPP) arrangement.

President Kenyatta and Mr Odinga drove to Kajiado County where he opened the 48 kilometre Ngong-Kiserian-Isinya and the 43 kilometre Kajiado-Imaroro roads.

The two roads are the first in the country to be constructed under the Annuity Public Private Partnership (PPP) arrangement at a cost of Kshs 7.8 billion.

President Kenyatta said the two roads will help open up Kajiado County for rapid economic development.

“The completion of this road has eased transport in this area. Now travelling to Maasai Mara from Loitoktok, one does not have to pass through Nairobi. You can just go through Imaroro to Isinya and from Isinya, Ngong to Suswa,” President Kenyatta said.

Annuity Concessions are a variant of the Build Operate Transfer (BOT) PPP model in which the private operator is remunerated via a fixed, periodic payment (“annuity”) from the government rather than through toll proceeds. Under these PPP contracts, the private operator is responsible both for constructing the road, as well as for operating and maintaining it for a fixed period of time. However, this option significantly reduces revenue risk for the private sector and also incentivizes the private sector to then propose innovative financing and construction options.

Source:  The Presidency KenyaIntex Construction Ltd

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