Investor conference in Nairobi kick starts plans to build hostels for 25 000 Kenyan students
29 January 2018
Three public universities in Kenya are set to benefit from the construction and operation of student hostel accommodation under a public-private partnership (PPP) framework.
This will see the development of approximately 25 000-bed capacity hostels in Moi University, Embu University and South Eastern University of Kenya (Seku).
The advertisement to solicit a response from the development market was released early December 2017. Further details of the transactions’ emerged during a one-day developer/investor forum, which brought together more than 100 local and international delegates on 23 January 2018.
Under the PPP agreement, Moi will boost its bed capacity by 15 000, Seku by 5 400 beds and Embu University College by 4 000 beds. Genesis Analytics is the lead partner in a consortium that has been retained to provide Transaction Advisory services for the project.
“One of the major challenges facing students is their proximity to reside in a comfortable and secure environment that is conducive to learning. In addition to fulfilling this need, these projects will reduce the time and associated costs to students for travelling to and from campus. In turn, the universities are hopeful that will also relate to improved academic results,” said Malcolm Pautz of Genesis Analytics, lead transaction adviser.
The forum cum pre-bid meeting follows the release of a request for qualification (RFQ) on December 11 2017 for start of competitive procurement. The RFQ closes on February 28 2018, after which the pre-qualified private firms will be invited to submit financial and technical bids for the projects.
Each project will be procured separately though prospective developers/investors, who are allowed to bid for more than one project as long as they can demonstrate sufficient capacity and competency to implement the same.
The Daily Nation reported that PPP Unit director Stanley Kamau said most public universities have expressed interest in developing various education facilities through the PPP model.
“The PPP model has attracted most public institutions in the country keen to attract private investment in a context of competing public needs. The PPP model is also preferred mainly due to its ability to tie in the operation and maintenance aspect of an infrastructure asset, meaning facilities developed are able to remain in a great condition for the entire life of the contract,” said Mr Kamau.
According to the Education ministry, universities are facing a major bed capacity shortage, which is a hindrance to providing access to higher learning both within the public and private sector.