No free land for Adani: Chirchir says on proposal to surrender 30 acres near JKIA

Appearing before the Senate Roads and Transport Committee on Friday, CS Chirchir explained that in its proposal, Adani had requested 30 acres of land to build an 'airport city' or City Side Development that would consist of state-of-the-art recreational facilities.

According to Adani, the success of the city would enhance JKIA's identity as well as provide services for Kenyans at large. 

However, Chirchir told the Senator Karungo Thangwa-led committee that, upon review, the government excluded the request, saying that such a matter would need to have the approval of the Head of Public Service as stipulated by law. 

"The government is not offering any free land to Adani Airport Holdings in the proposal. Adani, in its proposal, included a request for 30 acres of land of JKIA for real estate and commercial development, what we're calling the city side," Chirchir explained. 

"This request has been excluded in the pending concession agreement but will be handled separately under the KAA policy on concession and leases like any other commercial operation including approval by the Head of Public Service which is the current policy on leasing out government property," he added. 

The senators pressed the CS to reveal the status of the agreement and whether a concession agreement exists between Adani and the Kenya Airports Authority (KAA).

In response, Chirchir said that the deal is yet to reach a contracting stage as KAA is still reviewing Adani's proposal. 

He, however, confirmed that KAA had approved an initial head of terms agreement that summarised key negotiation items before all stakeholders engage and agree on a final document. 

The Committee also questioned the tendering process and why the government settled for Adani for the leasing deal.

Chirchir noted that the Public Private Partnership (PPP) agreement allows a private investor to provide a proposal of their intentions which goes under review before the government agrees to the terms. 

"The tendering process is not in the form of procurement Act that we employ everyday where we can do a limited or competitive because it's an area where you allow private investors to approach you and say they want to build an airport, road, and this is where you do the due diligence," the CS noted. 

The government has been on the receiving end of heavy criticism over the Adani proposal to take over operations at JKIA on a 30-year leasing agreement.

The deal was cloaked in secrecy, leading to speculations over the government's intentions to lease the busiest airport in East Africa.