New date for ICT park takeoff
By MUGAMBI MUTEGI
pmutegi@ke.nationmedia.comPosted Wednesday, August 10 2011 at 18:00
The groundbreaking ceremony of the proposed Konza City ICT park is expected to take place next month, paving the way for investors to begin construction of the Sh900 billion project.
The master plan for Phase One of the park has been approved and will see the construction of a business process outsourcing (BPO) park, world-class hotels, residential areas, and a financial park.
The first phase of the four-phase Konza City project is expected to cost about Sh207 billion and to be completed in four years.
“Some organisations have shown an interest and want to start construction, but we must first complete the land topography work that is going on,” said Information permanent secretary Bitange Ndemo. “If this is completed on time, the President is expected to break the ground next month.”
The new date comes several months after an earlier one slated for April aborted due to a court case related to the Malili Ranch, where the ICT park will be located.
The technopolis, a city built mainly as a technology hub, is expected to create 100,000 new jobs in the first four years as part of the Vision 2030 development blueprint. The other phases will generate 39,000 jobs, with half of them directly from the park.
“A new town will be created around the BPO park, providing different options and all required city amenities,” the PS said.
Construction will be carried out through public-private partnerships in which the government will commission a private developer to build the property.
Upon completion, the park will be leased out for 99 years or sold to interested buyers.
A separate group of developers will build the city’s infrastructure and levy service charges under the build, operate, and transfer model.
“The developer will oversee the entire project, including part of the financing, project management as well as the actual construction,” said the Kenya ICT Board chief executive, Mr Paul Kukubo.
Already, the International Finance Corporation has commissioned international consultants to look at the master plan of the hub and its economic viability and create detailed proposals. The corporation has expressed its interest in financing potential developers.
However, the actual cost of individual buildings to be constructed are yet to be determined, even as concrete details on specific companies eyeing the project remain unknown.
Top on the list of contenders to build the park are India’s Mahindra, Tata Infrastructure, and Infrastructure, Leasing and Financial Services, as well as Wipro from America.
Other firms from the UK and US as well as several Scandinavian countries are also said to be eyeing projects at the park.
“An Indian hospital is planning on constructing a research centre, hoping to tap into the large number of Kenyans who travel to the Asian country seeking medical care, “ said Dr Ndemo.
Once completed, lease periods for buildings will be hinged on the time it takes to recoup costs without imposing a heavy cost burden on users.
To dissuade successful contractors from extending projects well beyond their intended timelines, the government is considering entering into guarantee partnerships with them.