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Wednesday 6 September 2017

KENYA AWARDS MAJOR CONTRACT FOR CONSTRUCTION OF CORE INFRASTRUCTURE FOR SMART CITY

Government plans to establish Kenya as the “silicon savannah” received a boost with the awarding of a $390m contract to build key infrastructure for Konza Technopolis, a master-planned property development targeting Kenya’s ICT sector.




In early July the government contracted Italian construction firm ICM to build roads, water and sewerage systems for the $14.5bn smart city project, which is under way 60 km south of Nairobi.

The KSh40bn ($390m) deal covers engineering, procurement, construction and financing. Work has already begun on the sewer system and access road, as well as internet, power and water infrastructure, according to Victor Kyalo, principal secretary at the Ministry of ICT.

Construction broke ground last November on the city’s first building, an eight-storey unit of the Konza Complex that will house early investors along with the city’s administrative functions. It is scheduled to finish by the end of 2018.


Government and private players to finance $6bn Konza project

The construction developments are part of the Konza project’s first phase, a 400-acre development being readied for 2022 that officials project will cost over KSh600bn ($5.8bn). The government has committed to financing 10% of this to develop core infrastructure, with the rest to be funded by the private sector. Cumulative state investment as of end-2016 reached some KSh3bn ($28.9m).

When completed, Konza – which also includes plans for schools and universities, housing, offices and room for light manufacturing – will have the capacity to provide space for up to 230,000 people, generating 17,000 direct and 68,000 indirect jobs.

In July the Konza Technopolis Development Authority (KoDTA), which is responsible for the project, opened invitations to investors to bid for more than 150 parcels of land across the first phase’s 400 acres. Meanwhile, John Tanui, CEO of KoDTA, told local media earlier this year that he expected up to 10 lots to be allocated in September. Tanui said Konza had received more than 400 expressions of interest over the past year from investors looking to set up a base there, including seven local universities.

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