CS Chirchir Reveals PPP Model Gov't Wants to Explore in JKIA Infrastructure Plan

Transport Cabinet Secretary Davis Chirchir has revealed that the government is keen on pursuing the development and expansion of JKIA through the Design, Build, Finance, Operate, and Transfer (DBFOT) model.

During a meeting with the National Assembly's Transport Committee on Friday, February 15, Chirchir detailed that DBFOT was a model under the Public-Private Partnership (PPP).

Under the model, the company chosen by the government will be responsible for designing the new terminal, financing the project and building it.

The private company will also operate the new airport before it is transferred to the government after a specified period detailed in the contract.

According to Chirchir, the model was viable given the significant investment needed to improve JKIA.

"Chirchir also added that in the case of JKIA, a significant investment will be required and the Government is open to private participation. A DBFOT concession ( Design, Build, Finance, Operate and Transfer) strikes a sensible balance between the obligation and risks that are transferred to the private sector and the ownership and strategic control retained by the Government."

"The CS stated that such a model will see the private sector be responsible for the financing and execution of the development plan, and would bear a significant share of the project risk such as design, construction, demand and commercial responsibility," read the statement by Parliament in part.

Already, the government had commenced plans to improve JKIA under a PPP agreement with Adani.

However, the deal was cancelled by President William Ruto after public uproar and corruption reports touching Adani in the US and India.

In the deal, Adani was to construct a new terminal and improve various infrastructures to the tune of Ksh260 billion.