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Kenya’s technopolis dream gets a boost from European, Asian firms |
Source: |
http://www.businessdailyafrica.com/Corporate+News/-/539550/1112260/-/rlcng4/-/ |
Source Date: |
Tuesday, February 22, 2011 |
Focus: |
ICT for MDGs
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Country: |
Kenya |
Created: |
Feb 22, 2011 |
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By Okuttah Mark
At least six firms have expressed interest in competing for
contracts to build Kenya’s multi-billion Shilling dream ICT park on a
5,000-acre site south of Nairobi.
Winners of the
contracts will become master builders of the $10 billion (Sh800 billion)
project, whose construction begins next month at a ground-breaking
ceremony to be presided over by President Kibaki.
In
the list of contenders are India’s Mahindra, Tata Infrastructure,
Leasing and Financial Services, Wipro from America and global technology
firm IBM.
Swedish, South Korean and American firms —
whose names could not be immediately verified — are also eyeing
infrastructure projects at the park.
Construction of
the technopolis is hinged on a model that puts third parties at the
centre of its execution with the owners — the government — offering the
land, legal backing and architectural plans.
Winners of
the master builder tender are expected to develop property on location
and upon conclusion lease it out (for 99 years) or sell it to interested
buyers, the master plan crafted by the Ministry of Information says.
A
separate group of bidders will build the city’s infrastructure and levy
service charges under the build, operate and transfer (BoT) model.
Lease periods will be hinged on the length of time it takes them to recoup costs without imposing a heavy cost burden on users.
People
familiar with the bidders’ plans said a Swedish company is gunning for
the tender to construct and manage the technopolis’ sewerage system
while the Korean firm wants to build the Business Process Outsourcing
(BPO) park.
Infrastructure development at the park
situated 41 kilometres South of Nairobi begins next month paving the way
for invitation of the initial tenders worth $3.8 billion (Sh304
billion).
“The official launch should make it possible
for the government to actively market the project to potential investors
throughout the world,” said Dr Bitange Ndemo, the Information permanent
secretary.
Prime minister Raila Odinga is expected to
lead a team of top government and private sector personalities who will
leave the country in April for a road show in New York.
Service
providers, including a leading hospital, an international school and an
investment group have expressed interest in putting up units at the
park, Mr Ndemo said.
Next month’s launch of
infrastructure development projects will also see the grounds zoned for
planned activities such as IT, hospitality, education, health and
finance.
The ICT park is expected to create 80,000 new
jobs in the first four years as part of the government’s Vision 2030
development blueprint.
Last Friday, the parliamentary accounts committee team led by
Gichugu MP Martha Karua, Nairobi Metropolitan and Ministry of
Information officials toured the site to ascertain whether the public
had got value for the Sh1 billion that has so far been pumped into the
project.
Kenya intends to use the facility to promote conference tourism and is preparing a bid for the 2018 GSMA World Congress.
The
annual meeting brings together 800 of the world’s mobile operators,
more than 200 technology companies and about 50,000 IT executives.
Successful
execution will make Konza technology city Eastern Africa’s first and
only technopolis – a city built specifically for technology firms.
It
will host Business Process Outsourcing (BPO) ventures, a science park, a
convention centre, shopping malls, hotels, international schools and
health facilities.
Similar cities already exist in Malaysia (PutraJaya), Panama (Pacifico), the Philippines (Subic-Clark) and China (Shenzhen).
Mr
Mugo Kibati, the director general of Vision 2030 said execution of the
plan is hinged on the allocation of money in the next budget to
kick-start the initial phase.
“We are now packaging the project ready for show casing to potential investors,” he said.
The
technopolis has faced numerous hurdles, including encroachment on its
land by private developers, since its inception in 2008.
There
is also fear that implementation of the project may be mired in
politics as the Kenya moves into the next general election.
“This
is the worst time to implement a project of this magnitude as
politicians can go promising investors anything to get campaign money in
exchange,” Dr Ndemo said.
The ICT park was initially
embroiled in a fierce disagreement between shareholders of Malili Ranch,
its directors and area politicians.
Shareholders of
the ranch accused brokers of cheating them out of their land and
threatened to block the project unless they were paid more.
The
Ministry of Information, entered into an agreement with the directors
of Malili Ranch on June 17 last year to purchase 5,000 acres of land at a
price of Sh200,000 per acre and made a down-payment of Sh400 million.
The Sh600 million balance was paid in January paving the way for work to begin.
Malili Ranch belonged to 606 farmers who owned 7.8 acres each and were paid Sh1.56 million each for their shares.
Mr
Mugo advised land owners in the area to stop subdividing it because
they could end up getting more value for consolidated units in mega
projects around the technopolis.
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Kenya’s technopolis dream gets a boost from European, Asian firms At least six firms have expressed interest in competing for contracts to build Kenya’s multi-billion Shilling dream ICT park on a 5,000-acre site south of Nairobi Winners of the contracts will become master builders of the 10 billion Sh800 billion project whose construction begins next month at a ground-breaking ceremony to be presided over by President Kibaki
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