Billion-dollar PPP Kenyan highway for Vinci
02 October 2020
A Public Private Partnership (PPP) agreement has been reached between the republic of Kenya and a group led by Vinci Highways for the building of the €1.3 billion (US$1.5 billion) Nairobi-Nakuru-Mau Summit Highway project in Kenya.
The signature occurred in Paris on September 30, 2020, in the presence of Emmanuel Macron, President of the French Republic, and Uhuru Kenyatta, President of the Republic of Kenya. This is the first PPP won by Vinci Concessions in Africa.
The agreement has been reached through Kenya’s Public Private Partnership Unit and the Kenya National Highways Authority and Rift Valley Highway, a company owned by Vinci Highways, Vinci Concessions, and Meridiam SAS, for the development of the highway.
The project will transform the existing trunk road into a 175km dual two-lane motorway. Through an availability payment based PPP, Rift Valley Highway will finance, design, widen, upgrade, operate and maintain this road corridor for 30 years.
The construction works, scheduled to last 42 months, will be carried out with a consortium comprised of Vinci Construction subsidiaries: Sogea-Satom, locally rooted in Kenya and Vinci Construction Terrassement, specialised in large infrastructure projects.
It is reported that the highway will improve the road safety and reduce travel time between Kenya’s capital city Nairobi, Nakuru and Mau Summit. Crossing along the Rift valley, the highway will also serve as a gateway to touristic development.
The agreement will become effective following the performance of an Environmental and Social Impact Assessment in compliance with the standards of the World Bank. The financial close of the project is expected to occur by the end of 2021.
