@eboomerang..
From the information available publicly on Konza, it seems it will be modeled and actualized following the Tatu City method.
In Tatu city, the developers bought the 2000 acre coffee farm from Socfinaf.
After buying, they zoned the land in several zones such that buyers into a specific zone will have to build houses as suggested e.g buyers into an educational zone have to build schools, buyers into an industrial zone build industries e.t.c
In such a model, 99.9% of the funds are spent in buying the land.
After buying and zoning the land, individual investors like you and me can now develop and use our own sources of money to construct.
Other models such as Thika Greens are slightly different in that the developer buys land and develops houses for sale to the public. In such a model,land becomes around 15 to 30% of the cost since actual construction takes the rest of the cost.
In Konza city, 99.9% of cost i.e buying land has already been done using tax payer money of KES 1B.
Investors will look for their own private funds to construct the universities, offices e.t.c within Konza.
The KES 800m that the Worldbank/IFC financial advisory to Ministry of Finance is mentioning will have to be explained in more details.
I dont understand where this money will be spent,who will be paid and who will repay it back.
Ministry of Info should give us the 800m breakdown.
Information available publicly is that Ministry of Info has hired Worldbank/IFC for Financial Advisory services.
Wordbank/IFC has in-turn hired London based Engineers/Architects.
LOCAL FIRMS.
If Ministry of Info hired KCB,CooP bank,Housing Finance as the financial advisors instead of Worldbank/IFC, and Otieno Odongo Engineers or Wanjohi Consulting Engineers or any Kenyan firm instead of the London based Engineers for the Infrastructure Engineering master planning services, the tax payer resources would largely remain in Kenya and more Kenyans will get empowerment and job opportunities.
Unless the debt will go into financing these consultancy services or infrastructure, am yet to see other need for 800m funding.
For infrastructure e.g roads, in well-planned projects, this cost is loaded into the cost of buying land such that it self-funds itself. If someone buys an acre for example, a part of this money goes into laying infrastructure.
To enable this effectively, the project is zoned into phases such that phase 1 profits fund Phase 2 hence no need of borrowing.
Zoning the project in phases also makes it easier and more cost-effective to lay infrastructure.
Another method is to lobby Government Ministry of Roads to use tax payer money to lay the infrastructure.
For banks to finance investors, they need to do so on land that has real intrinsic value as opposed to inflated value such that if someone defaults, banks can recoup their money through forced sale. Creation of this real value is mostly achieved through input of infrastructure.
As Iron Sharpens Iron, So one Man Sharpens Another.