By GEORGE OMONDIMore by this AuthorKenya has abandoned its annuity roads financing model citing inflated costs and the slow pace of project approvals despite support from the World Bank. “The 10,000km of low volume seal roads will now be funded through the national budget.”Under the annuity model, private contractors were expected to design, build and maintain the public roads within three years using their own funds. The State had set unit costs for construction of roads between Sh40 million to Sh100 million per kilometre depending on scope of works. A payment modality would then be agreed upon between the National Treasury, contractor and the participating commercial banks. Under the model, the Treasury was supposed to reimburse the banks at a uniform rate over an agreed period of time.

Source: Daily Nation May 07, 2017 18:11 UTC