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Wednesday 12 March 2014

Kibaki projects face greatest test of time as regime changes

PHOTO | FILE An artist's impression of the Konza Technology City.
An artist's impression of the Konza Technology City.
   
In Summary
When President Mwai Kibaki was handing over the reins of power, he said his regime had laid the foundation for future growth.
This included numerous infrastructure projects that had been proposed and others that were ongoing. The assumption was that the Jubilee government would accelerate these projects as key drivers of economic growth.
But a year down the line, most of the big projects initiated under the Kibaki regime are suffering from what experts term as lack of leadership and commitment from the government to push them to completion. Some have stalled amid accusations of corruption while others have been affected by shifting priorities.
KONZA TECHNO CITY
Then President Mwai Kibaki commissioned the planned Konza Technopolis on 23 January, 2013. In the months following the pomp of the ground-breaking ceremony, Konza has remained dormant.
With Mr Kibaki and his technology point man, Dr Bitange Ndemo, out of office, Konza seemed to lose steam. 2013 closed without the promised construction taking off as key legislation stalled.
At a forum last month, Makueni Governor Kivutha Kibwana complained that the allocations made in the Jubilee government’s first budget barely scratched the surface of what is needed to be done. In the 2013/2014 budget, Konza was allocated Sh793 million.
The project is expected to cost Sh800 billion over two decades. Most of this will come from the private sector partners but the government is expected to invest heavily in basic infrastructure.
Prof Kibwana called on President Kenyatta to take a more proactive role in steering its development.
While Konza has stalled, Machakos Governor Alfred Mutua is forging ahead with his own techno city, which some stakeholders see as rivalling Konza.
President Kenyatta has supported this project, having presided over its launch in November last year. In the early months of 2014, the government seems to be regaining interest in Konza. National Environmental Management Authority approval was granted in February while the University of Nairobi has been commissioned to carry out a survey to pave the way for construction.
KRA’s PROPOSED SPLIT
Nearly two years after the government first announced plans to establish an independent customs unit, the plan is yet to take shape.
In his first, and last, budget speech in 2012, former Finance minister Njeru Githae said the government would hive off customs from the Kenya Revenue Authority (KRA).
The creation of an independent customs department was to prepare Kenya for the establishment of the Customs Territory as envisioned in the East African Community Common Market Protocol.
In June 2013, Treasury Cabinet Secretary Henry Rotich reiterated the statements. The envisioned Customs Services Department was to be given the “primary mandate of trade facilitation and effective border control”.
However, in an interview last month, Mr Rotich said Treasury was still grappling with an ideal model for the new customs unit.
Further, the Treasury is considering retaining collection of duty at ports of entry with KRA.
MAVOKO HOUSING UNITS
Then President Kibaki launched a housing scheme of 30,000 units, expressing confidence that construction would commence in a few months.
“It is commendable that the National Social Security Fund (NSSF) will shortly embark on developing (the housing scheme),” said Mr Kibaki at the fund’s first annual general meeting in 47 years.   
But the project that he said would include infrastructure to transform Mavoko Municipality into a city-within-a-city is yet to take off. The project was to be funded by NSSF and was touted as one the flagship initiatives under the Vision 2030 blueprint.
The project has experienced difficulties due to the goings-on at the pension fund, first with Cabinet secretary Kazungu Kambi suspending all projects to pave the way for an audit amid corruption claims. The latest information has it that the time extension was meant to attract investors with the required funds. “We did not get the right investors and because it is a public-private partnership, we had to extend the period,” said
communications manager Christopher Khisa. The houses, which were to be built on a 960-acre piece of land, would be the fund’s largest real estate project.
HIGH GRAND FALL DAM
The 96km² dam was proposed under then President Kibaki’s administration and was to border Tharaka-Nithi, Kitui, and Tana-River counties at Kivuka along the Tana River.
Construction was approved in 2009 as part of an ambitious effort to build 1,000 water reservoirs across the country to revolutionise irrigation-based farming.
It was also to generate between 500MW and 700MW to feed the proposed Lamu resort city and port. All indications were that the government had secured funding from the Chinese government and the only thing that was subject to discussion was the make of the turbines for the power generation part of the project.
While the ministry insisted on getting German-made turbines — which are widely used — China demanded use of Chinese turbines.
Mid last year, Deputy President William Ruto reversed all this by halting the project on grounds that a cartel had over-estimated the actual construction cost and that the government stood to lose a lot of money.
A fresh technical evaluation was ordered, the report of which was handed in on January 8, 2014.
THE MISSING ROADS
Two major road expansion projects meant to ease movement of traffic in Nairobi are yet to take off despite the fact that the government has secured funds from donors.
Nairobi’s first double-decker highway, which is to cover the traffic bottleneck stretch between the Nyayo Stadium roundabout and Westlands and funded through a Sh25.5 billion loan from the World Bank, is yet to start. The government is expected to provide Sh9.5 billion.
It includes expansion of Waiyaki Way that begins at the Westlands roundabout to create an extra lane for commuter buses up to Rironi.
The double-decker road project is expected to ease the gridlock on the Northern Corridor that passes through Nairobi while facilitating faster movement of traffic from the suburbs.
Those expected to benefit include travellers heading to Jomo Kenyatta International Airport.
Heavy traffic on the road slows movement of vehicles, inconveniencing both local and international travellers. The government had said the road would be completed by 2016.
Expansion of Ngong Road into a dual carriageway received funding of £20 million (Sh1.7 billion) from the Japan International Cooperation Agency (JICA) in June 2012 but the construction is yet to begin.
During the signing of the funding agreement on the road upgrade, the government said the work was expected to commence in a few months, with a projected completion date of February 2015.
The road, which leads to Nairobi’s central business district and the south-west suburb of Karen, is a constant gridlock for city motorists, particularly the stretch between the Adams Arcade roundabout and the Kenyatta Avenue crossroad.
Completion of the road project was expected to lead to a significant decrease in congestion.
It is estimated that Kenya loses over $500,000 (Sh42.5 million) a day due to traffic congestion in the greater Nairobi area, primarily due to non-productive time spent on the road, a recent study by IBM Corporation shows.
According to the Kenya National Highways Authority director general Meshack Kidenda, the new road will transform Nairobi’s infrastructure setup to that of a modern city with service lanes, allowing rapid movement of commuter buses and connections with other transport services like railways and airports.
IRRIGATION SCHEME THAT FAILED TO GROW RICE
In 2008, the Grand Coalition Government of Mwai Kibaki and Raila Odinga had a dream of expanding the Mwea Irrigation Scheme by another 16,000 hectares. Six years later, the Sh12 billion ambitious project remains just that — a dream.
The people of Kirinyaga County have learnt to suppress bouts of hope as the relocation process hits a snag, year after year.
The matter is further exacerbated by the fact that the Jubilee government no longer counts it as a key project.
Here is the irony: It was Mr Uhuru Kenyatta who penned the deal with Japan in 2010 to facilitate expansion of the irrigation scheme when he was Finance minister. The Mwea Irrigation Scheme has 30,350 acres, out of which 16,000 are under paddy production every year.
Construction of a water dam project at Rukenya village in Gichugu constituency, which is an integral part of the expanded scheme, is yet to take place.
The board facilitated with the process is still holding talks with landowners who have refused to surrender their farms because of “unreasonable” compensation.
The expansion is meant to unlock production of about 300,000 tonnes of rice annually against the current 80,000 tonnes.

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