Twenty-three international firms have expressed interest in the construction of the 33 multibillion-shilling dams recently tendered, MPs heard Tuesday.
Water Secretary Samuel Alima told the National Assembly’s Blue Water Committee that each of the dams attracted an average of eight bidders.
The ministry tendered for the projects in May, with bidders being given until June 6 to submit the necessary documents.
The projects, spread across the country, include Keben (Nandi), Bonyunyu (Nyamira), Saimo Soi (Baringo), Londiani (Kericho) Kiambaa Dam (Kiambu), Rare (Kilifi) and Yatta (Machakos) dams.
Others are Thuci dam (Embu), Badasa (Marsabit), Umaa Dam (Kitui), Bute dam (Wajir) and Naromoru dam (Nyeri).
“We had a good response from international bidders. Each of the dams had a minimum of four investors competing for it,” Alima said.
He was responding to questions from members, who included William Kamket (Tiaty) and Charles Were (Kasipul).
The programme intends to supply water to six million households and put one million acres under irrigation by 2030.
Estimates suggest that investments of around Sh1.7 trillion will be needed to adequately address the growing water needs.
In April, President William Ruto said the government had prioritised the construction and expansion of dams to boost the agriculture sector.
Ruto said the dams hold immense power to stimulate food production as it cuts over-reliance on rain-fed agriculture.
The projects are being undertaken under the public-private partnerships (PPP) model.
A bill to amend the Water Act has already been tabled on the floor of the House.
The Bill seeks to introduce PPP in the implementation of all key projects, including provision of bulk water by the project investor.
Yesterday, MPs raised concern over the move to embrace the model in the implementation of water projects and the provision of bulk water.
“Chairman, can the CS also tell us if there are people seeking to benefit from this model, and if there are investors knocking on her door pushing for the contracts?” Kamket asked.
Alima had appeared alongside Water CS Alice Wahome before the committee chaired by Marakwet East MP Kangogo Bowen to give their presentations regarding the Water Amendment Bill, 2023.
Wahome said the government is seeking PPPs to enhance essential infrastructure in the provision of the commodity.
She said the approach would attract the financing required by the government in constructing dams across the nation.
“We have 50 million Kenyans who need water, and we need infrastructure,” the CS told MPs.
“This is why we are adopting the PPP model as we have a huge financing gap.”
Wahome said the government seeks to attract funding of up to Sh500 billion from investors ready to develop the various projects across the country.
The dams, Alima said, are classified as commercial and social.
Social dams are those that are not commercially viable and can be financed by the government through the Engineering, Procurement and Construction and Finance model.
While also defending the PPP financing, he said the government stands to benefit since the loan is paid from the proceeds of revenue streams, which include the sale of water and power.
Under EPCF, the government finances a project through a loan and it is based on the balance sheet of the government.