Road usage fees may start in March, says PS
KeNHA wanted to implement the toll stations early this year but the plan was suspended byTransport ministry for lack of policy
The Ministry of Transport and Infrastructure expects to conclude negotations with private investors for building and maintaining major highways by March next year.
Infrastructure PS John Mosonik said the deals with investors will pave the way for the introduction of toll stations where investors will recoup their investment from fees paid by motorists for use of the roads. The negotiations are set to begin this month, he said.
Tolling, which will see motorists pay for road use in addition to the Sh18 road maintenance levy per litre of diesel or petrol, could start as early as next year, Mosonik said.
This is in a bid to attract private investment into five earmarked road projects under the first phase.
The projects include the dualing and upgrade of the Nairobi-Mombasa road, Nairobi-Nakuru-Mau Summit road and the construction of a second bridge in Nyali to ease congestion in Mombasa.
Other projects to be executed through private capital includes the operation and maintenance of the Nairobi-Thika Road and the just completed Southern Bypass.
“The projects require a total investment of about Sh380 billion, which is only viable through a Public Private Partnership,” the PS said yesterday in a media briefing in Nairobi.
In the case of road projects, investors are allowed to operate toll stations in order to recover their investment in the course of the life of the projects.
Kenya National Highways Authority had planned to implement the toll stations early this year but the plan was suspended by the Ministry of Transport for lack of an elaborate policy.
Motorists were also against the plan, claiming tolling would amount double taxation since the government has been collecting the road maintenance levy which is charged on fuel.
The PS said the lead transaction advisers for the projects include a consortium of PricewaterhouseCoopers, International Technocrats and Consultants and Partners and Deloitte. They will report to the Private Public Partnership Unit, which is under the National Treasury. “The PPP model is expected to enable the country to undertake more infrastructure projects.”
Infrastructure PS John Mosonik at the launch of a private-public partnership project in Nairobi yesterday