'Adani or not, someone must do our airports!' CS Mbadi says amid uproar over JKIA lease deal
National Treasury Cabinet Secretary John
Mbadi has defended the Public Private Partnerships (PPP) deal involving the
government and Indian conglomerate Adani Group to upgrade the Jomo Kenyatta International
Airport (JKIA), citing that the project must be done.
Speaking during the Kenya Bankers Association
(KBA) exhibition, CS Mbadi emphasised that PPP deals aid the government to
complete or renovate mega projects by involving the private sector.
He clarified that such projects are not
funded through the exchequer hence ease the burden on the taxpayers.
"We must look for alternative financing
and therefore PPP, new as it is, we must make the citizens of Kenya understand
PPP and understand that when we give out a project to be done through PPP it is
not selling," the CS said.
"It is about concessioning a project to
a private developer who works with us collaboratively to ensure we have
infrastructure that is competitive."
He further referenced the airport situation
in the country, citing that JKIA is in a degraded state due to poor
infrastructure.
The CS noted that JKIA, the busiest airport
in East Africa, cannot lose its competitive edge to other neighbouring
countries.
Data from the Airports Council International
(ACI) showed JKIA among the top 10 busiest airports at 6.56 million visitors in
2022.
According to the CS, PPP deals will be vital
for JKIA to be upgraded to international standards. He called on Kenyans to
embrace PPP projects regardless of the private investor involved.
"Rwanda has developed a serious airport,
Ethiopia has an airport. Kenya cannot lag behind. We're losing our
competitiveness as a hub," Mbadi remarked.
"Therefore whether it is Adani or not,
we must agree that someone must do our airports. It is not just airports alone,
major projects. Let us not shy away from engaging Kenyans."
Adani, an Indian conglomerate, has fronted a Ksh.238 billion deal to
take over operations at JKIA for 30 years before returning it to the
government. The public has, however, criticised the deal, questioning its
opaque nature.
In response, the government has clarified
that the deal is still in the auditing stage and no
agreement has been signed.
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