Public Private Partnerships Act — Esheria

Statute

Public Private Partnerships Act

Cap. 430 Country: Kenya As of: 31 Dec 2022 Status: In force Sections: 92
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Section 1

PRELIMINARY - 1. Short title

Part I: PRELIMINARY

Section 1. Short title Section This Act may be cited as the Public Private Partnerships Act.

Section 2

PRELIMINARY - 2. Interpretation

Part I: PRELIMINARY

Section 2. Interpretation Section designated within the existing budget of the contracting authority for its function for which the agreement relates; and;

Section 3

PRELIMINARY - 3. Object of the Act

Part I: PRELIMINARY

Section 3. Object of the Act Section prescribe the procedures for the participation of the private sector in the financing, construction, development, operation or maintenance of infrastructure or development projects through public private partnerships;

Section 4

PRELIMINARY - 4. Application of Act

Part I: PRELIMINARY

Section 4. Application of Act Section 4(1) This Act shall apply to every project agreement for the financing, design, construction, rehabilitation, operation, equipping or maintenance of a project or provision of a public service undertaken as a public private partnership. Section 4(2) The provisions of the Public Procurement and Asset Disposal Act (Cap. 412C), shall not apply to a public private partnership. Section 4(3)(a) not apply to a public private partnership project, if all the monies for the project are from the private party; Section 4(3)(b) apply if there is counterpart funding that is, including public funds, for the public private partnership project.

Section 5

PRELIMINARY - 5. Act to prevail

Part I: PRELIMINARY

Section 5. Act to prevail Section Where there is a conflict between the provisions of this Act and the provisions of any other written law, the provisions of this Act shall prevail.

Section 6

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 6. Public Private Partnership Committee

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 6. Public Private Partnership Committee Section 6(1)(a) the Principal Secretary in the State department responsible for matters relating to finance, who shall be the chairperson; Section 6(1)(b) the Principal Secretary in the State department responsible for matters relating to planning; Section 6(1)(c) the Principal Secretary in the State Department responsible for matters relating to infrastructure; Section 6(1)(d) the Solicitor-General; Section 6(1)(e) two persons nominated by the Council of County Governors; Section 6(1)(f) three persons, not being public officers, appointed by notice in the Gazette by the Cabinet Secretary; and Section 6(1)(g) the Director-General, who shall be the secretary. Section 6(2) The Committee shall co-opt the Principal Secretary responsible for the contracting authority whose public private partnership project is the subject of discussion at a meeting. Section 6(3) The Committee may co-opt any person or public officer whose knowledge or experience is necessary for the public private partnership under discussion. Section 6(4) A person who is co-opted shall not vote at a meeting and shall only be a member of the Committee for a period not excee...

Section 7

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 7. Qualification and terms of members

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 7. Qualification and terms of members Section 7(1) A person is qualified to be appointed as a member of the Committee under section 6(1)(f) if that person has at least ten years’ professional experience in matters relevant to public private partnerships. Section 7(2) The members appointed under section 6(1)(f) shall hold office for a period of three years and may be eligible for re-appointment for one further term. Section 7(3) The persons appointed under section 6(1)(f) shall be appointed at different times so that the respective expiry dates of their terms of office shall fall at different times.

Section 8

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 8. Functions and powers of the Committee

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 8. Functions and powers of the Committee Section 8(1)(a) formulating policies on public private partnerships; Section 8(1)(b) overseeing the implementation of public private partnerships contracts; Section 8(1)(c) approving standardized public private partnership bid documents; Section 8(1)(d) approving feasibility studies; Section 8(1)(e) approving privately-initiated proposals; Section 8(1)(f) approving negotiated contract terms, the cancellation of procurements or termination of project agreements, and the variation of project agreements; Section 8(1)(g) monitoring the implementation of this Act, including the sustainability of contingent liabilities that may be incurred by a contracting authority for projects approved under the Act; and Section 8(1)(h) carrying out any other function that may be conferred on it under this Act. Section 8(2) The Committee shall have all the powers necessary for the proper discharge of its functions under this Act.

Section 9

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 9. Vacation of office

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 9. Vacation of office Section 9(1)(a) is unable to perform the functions of his or her office by reason of mental or physical infirmity; Section 9(1)(b) is removed from office for breach of the provisions of chapter six of the Constitution; Section 9(1)(c) is deregistered by a professional body for professional misconduct; Section 9(1)(d) is adjudged bankrupt; Section 9(1)(e) is convicted of a criminal offence and sentenced to a term of imprisonment of not less than six months; Section 9(1)(f) is convicted of an offence under section 84 of this Act; Section 9(1)(g) is absent, without reasonable cause, from three consecutive meetings of the Committee; Section 9(1)(h) resigns in writing addressed to the Cabinet Secretary; Section 9(1)(i) fails to declare his or her interest in any matter being considered or to be considered by the Committee; Section 9(1)(j) dies; or Section 9(1)(k) is removed from office by the Cabinet Secretary. Section 9(2) A member of the Committee may be removed from office on the ground of gross misconduct, incompetence, conviction for a cognizable offence, or violation of the Constitution. Section 9(3) Before a member of the Committee is removed from of...

Section 10

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 10. Subcommittees

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 10. Subcommittees Section The Committee may establish such subcommittees as it may consider necessary for the proper performance of its functions and exercise of its powers under this Act.

Section 11

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 11. Delegation by the Committee

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 11. Delegation by the Committee Section The Committee may, by a resolution either generally or in a particular case, delegate to a subcommittee or to a member, officer, employee or agent of the Directorate, the exercise of any of the powers or performance of any of the functions of the Committee.

Section 12

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 12. Conduct of the business of the Committee

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 12. Conduct of the business of the Committee Section 12(1) Subject to subsection (2), the business and affairs of the Committee shall be conducted in accordance with the First Schedule. Section 12(2) Except as provided in this Act, the Committee may regulate its own procedure. Section 12(3) The Committee shall maintain a proper record of its meetings of the Committee, including minutes, in such manner as it may determine.

Section 13

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 13. Code of conduct

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 13. Code of conduct Section The Cabinet Secretary may make Regulations prescribing a code of conduct for Committee’s members and officers, employees and agents of the Directorate.

Section 14

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 14. Remuneration

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 14. Remuneration Section There shall be paid to the members of the Committee such remuneration or allowances as the Cabinet Secretary may, in consultation with the Salaries and Remuneration Commission, determine.

Section 15

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 15. Directorate

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 15. Directorate Section 15(1) There shall be established a directorate to be known as the Directorate of Public Private Partnerships. Section 15(2) The Directorate shall be headed by the Director-General.

Section 16

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 16. Director-General

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 16. Director-General Section 16(1)(a) finance; Section 16(1)(b) economics; Section 16(1)(c) law; Section 16(1)(d) engineering; Section 16(1)(e) project management; or Section 16(1)(f) any other related and relevant field. Section 16(2) The Director General shall be competitively recruited and appointed by the Public Service Commission. Section 16(3) The Director-General shall hold office for a period of four years, and may only be re-appointed once for a further period of four years, subject to the terms of appointment.

Section 17

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 17. Staff of the Directorate

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 17. Staff of the Directorate Section Subject to section 31 and 37 of the Public Service Commission Act (Cap. 185) the Cabinet Secretary shall, in consultation with the Director-General, appoint the staff of the Directorate.

Section 18

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 18. Secondment of staff to the Directorate

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 18. Secondment of staff to the Directorate Section 18(1) The Directorate may request the secondment of staff from a contracting authority, county government, county corporation or a development or strategic partner on such terms and for such duration as may, on the consultation with the contracting authority, county government, county corporation or a development or strategic partner, be needed. Section 18(2) The staff seconded to the Directorate shall be deemed to be the staff of the Directorate and fall under the authority of the Directorate for the duration of the secondment.

Section 19

PUBLIC PRIVATE PARTNERSHIP COMMITTEE - 19. Functions of the Directorate

Part II: PUBLIC PRIVATE PARTNERSHIP COMMITTEE

Section 19. Functions of the Directorate Section 19(1)(a) originating, guiding and co-ordinating the selection, ranking and prioritization of public private partnership projects within the public budget framework; Section 19(1)(b) overseeing project appraisal and development activities of contracting authorities including providing technical expertise in the implementation of projects under this Act; Section 19(1)(c) guiding and advising contracting authorities in project structuring, procurement and tender evaluations; Section 19(1)(d) leading contracting authorities in contract negotiations and deal closure; Section 19(1)(e) on its own motion, originating and leading in project structuring and procurement, in liaison with a contracting authority; Section 19(1)(f) supporting the development of public private partnerships programmes in the country; Section 19(1)(g) overseeing contract management frameworks for projects under this Act; and Section 19(1)(h) undertaking any other activity necessary for the fulfilment of any of the functions of the Directorate. Section 19(2)(a) establish an open, efficient and equitable process for the management of the identification, screening, prior...

Section 20

PUBLIC PRIVATE PARTNERSHIPS - 20. Project agreements

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 20. Project agreements Section 20(1) A contracting authority intending to finance, operate, equip or maintain an infrastructure facility or provide a public service may enter into a project agreement with a qualified private party for the financing, construction, operation, equipping or maintenance of the infrastructure facility or provision of the public service in accordance with the provisions of this Act. Section 20(2) A contracting authority that enters into a project agreement with a private party under subsection (1) may, where it is appropriate, designate its property for the use by a private party, in relation to, and for the duration of, a project on such terms and conditions as the contracting authority shall consider appropriate. Section 20(3) A contracting authority shall implement the directions of the Directorate at every stage of a project. Section 20(4) Where a project involves more than one contracting authority, the Directorate shall designate one of the contracting authorities to be the lead contracting authority.

Section 21

PUBLIC PRIVATE PARTNERSHIPS - 21. Public private partnership arrangements

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 21. Public private partnership arrangements Section 21(1) Subject to the provisions of this Act, a contracting authority may enter into a public private partnership arrangement with a private party in accordance with the Second Schedule. Section 21(2) Without prejudice to the periods specified under the Second Schedule, a contracting authority shall not enter into a public private partnership arrangement for a period exceeding thirty years.

Section 22

PUBLIC PRIVATE PARTNERSHIPS - 22. Duties of contracting authorities

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 22. Duties of contracting authorities Section 22(1)(a) in liaison with the Directorate, identify, screen and pioritize projects based on a guidance issued by the directorate; Section 22(1)(b) prepare and appraise each project to ensure its legal, regulatory, social, economic and commercial viability; Section 22(1)(c) undertake the tendering process in accordance with this Act; Section 22(1)(d) provide such technical expertise as the Directorate may require to evaluate and appraise a project; Section 22(1)(e) monitor the implementation of a project agreement; Section 22(1)(f) liaise with all key stakeholders during the project cycle; Section 22(1)(g) oversee the management of a project in accordance with the project agreement; Section 22(1)(h) submit to the Directorate annual or such other periodic reports on the implementation of project agreements; Section 22(1)(i) maintain a record of all documentation and agreements entered into relating to the implementation of a project agreement under this Act; Section 22(1)(j) prepare project agreements in accordance with standard documents and other guidance issued by the Directorate; Section 22(1)(k) ensure there is public particip...

Section 23

PUBLIC PRIVATE PARTNERSHIPS - 23. Determination of the duration of public private partnership agreements

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 23. Determination of the duration of public private partnership agreements Section 23(1)(a) the provisions of this Act and any other relevant written law; Section 23(1)(b) the life span of the technology to be employed under the agreement; Section 23(1)(c) the investment standards that are required to be maintained by each party to the project agreement throughout the duration of the public private partnership agreement; Section 23(1)(d) the economic and financial viability of the project and the economic life of the facilities to be provided; Section 23(1)(e) the depreciation of the project assets during the life of the public private partnership agreement; and Section 23(1)(f) maintain service delivery standards and investment levels during the life span of the public private partnership agreement; and Section 23(1)(f)(i) maintain service delivery standards and investment levels during the life span of the public private partnership agreement; and Section 23(1)(f)(ii) recoup the parties’ investment. Section 23(2) The Directorate may issue guidelines in respect of the determination of the duration of a public private partnership agreement. Section 23(3) The Directorate may...

Section 24

PUBLIC PRIVATE PARTNERSHIPS - 24. Execution of project agreements

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 24. Execution of project agreements Section Where a contracting authority intends to enter into a public private partnership, a person shall not, unless that person is the accounting officer of the contracting authority, enter into a project agreement in relation to that project on behalf of the contracting authority.

Section 25

PUBLIC PRIVATE PARTNERSHIPS - 25. Submission of project lists

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 25. Submission of project lists Section 25(1) A contracting authority, other than a county government or county corporation, shall prepare a list of projects that it intends to undertake on a priority basis under this Act and submit it to the Directorate for approval. Section 25(2) A contracting authority shall not submit a project list unless the projects are part of the national development agenda. Section 25(3) A project list prepared under this section shall be supported by appropriate project concept notes which shall be prepared in accordance with guidelines issued by the Directorate. Section 25(4) The Directorate shall notify the Committee, the Cabinet Secretary and Cabinet, bi-annually, on all projects it approves for implementation under the Act. Section 25(5) The Directorate may reject any project included in a proposed project list and shall specify the reasons for such refusal in writing. Section 25(6) Where the Directorate rejects a proposed project in a project list, it shall provide the respective contracting authority with the necessary guidance.

Section 26

PUBLIC PRIVATE PARTNERSHIPS - 26. National list and priority list of projects

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 26. National list and priority list of projects Section 26(1) The Directorate shall establish and maintain an up-to-date national list of projects that have been approved under sections 25 and 66 of this Act. Section 26(2) Subject to subsection (1), the national list shall be published on the Directorate’s website and the contracting authority’s website. Section 26(3) The national list shall be maintained in a publicly accessible database hosted by the Directorate. Section 26(4) The Directorate shall prepare a priority list of the projects specified in the National List for implementation under this Act.

Section 27

PUBLIC PRIVATE PARTNERSHIPS - 27. Prequalification procedures

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 27. Prequalification procedures Section the financial capacity to undertake the project;

Section 28

PUBLIC PRIVATE PARTNERSHIPS - 28. Government support measures.

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 28. Government support measures. Section 28(1)(a) a binding undertaking; Section 28(1)(b) a letter of support; Section 28(1)(c) a letter of credit; Section 28(1)(d) a credit guarantee, whether partial or full; Section 28(1)(e) approval for issuance of partial risk guarantees and political risk insurance; or Section 28(1)(f) any other instrument that Cabinet Secretary responsible for matters relating to finance may, on the advice of the Committee, determine: Section 28(2)(a) where it is necessary to support a project to lower premiums factored for the profiling of political risks; or Section 28(2)(b) to underwrite approved commercial risks under a negotiated project agreement. Section 28(3) The Cabinet Secretary may prescribe guidelines for the issuance of Government support measures under this section.

Section 29

PUBLIC PRIVATE PARTNERSHIPS - 29. Success fees and recoverable project development costs

Part III: PUBLIC PRIVATE PARTNERSHIPS

Section 29. Success fees and recoverable project development costs Section 29(1) The Directorate shall impose a success fee not exceeding one per cent of the total project cost of a transaction payable by a private party that achieves financial close on a project. Section 29(2) Where the Directorate or a contracting authority incurs costs for transaction advisory services offered in support of project preparatory and procurement activities or any other recoverable project development costs, such costs shall be recoverable in full, without any inflation adjustment, from the private party that enters into a project agreement with the contracting authority. Section 29(3) Success fees and recoverable project costs under subsection (2) shall be payable into the Public Private Partnership Project Facilitation Fund. Section 29(4) The Directorate may issue guidelines on the allocation of costs and disbursements on success fees imposed under this section in relation to recoverable project costs.

Section 30

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 30. Project identification, selection and prioritisation

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 30. Project identification, selection and prioritisation Section 30(1) A contracting authority intending to implement a project through a public private partnership under this Act shall, in consultation with the Directorate, be responsible for conceptualizing or identifying potential projects and undertaking the preparatory and tendering process of the project. Section 30(2) In conceptualizing, identifying and prioritizing potential projects under this Act, a contracting authority shall consider the strategic and operational benefits of the public private partnership arrangement compared to the development of the facility or, provision of the service by the contracting authority. Section 30(3) Where a contracting authority elects to implement a project prioritized under section 25 , it shall appraise the project for viability in accordance with section 32 . Section 30(4) The Cabinet Secretary shall, in consultation with the Directorate, make Regulations for the conceptualization, identification and prioritization of projects under this Act.

Section 31

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 31. Project preparation and implementation

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 31. Project preparation and implementation Section 31(1)(a) overseeing the conduct of feasibility studies; Section 31(1)(b) preparing the project for procurement; Section 31(1)(c) conducting the tender stage of the project; and Section 31(1)(d) negotiating project agreements for the project. Section 31(2) A project implementation team constituted under subsection (1) shall consist of a representative of the Directorate and such technical, financial and legal experts of the contracting authority as the contracting authority and the Directorate shall determine.

Section 32

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 32. Feasibility studies

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 32. Feasibility studies Section 32(1) A contracting authority shall, under the direction of the Directorate, undertake a feasibility study of the project it intends to implement under this Act in order to determine the viability of the project. Section 32(2)(a) the technical requirements of the project; Section 32(2)(b) the legal requirements to be met by the parties to the project; Section 32(2)(c) the social, economic and environmental impact of the project; Section 32(2)(d) the affordability and value for money proposition in the project; and Section 32(2)(e) the project’s land requirements and required site preparatory activities necessary for effective and efficient project initiation.

Section 33

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 33. Approval of feasibility reports

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 33. Approval of feasibility reports Section 33(1) A contracting authority intending to implement a project through public private partnership shall submit the feasibility report prepared under section 32 to the Directorate for evaluation. Section 33(2) The Directorate shall submit an evaluation report together with its recommendations to the Committee. Section 33(3) The Committee shall within twenty-one days of receipt of the evaluation report consider the feasibility report in determining whether or not the contracting authority may procure a project under this Act.

Section 34

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 34. Technical expertise of contracting authorities

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 34. Technical expertise of contracting authorities Section 34(1) The Directorate shall assess the technical expertise of the contracting authority to procure the development, preparation, procurement, contract negotiation and management of a project under this Act. Section 34(2) Where the Directorate determines that the contracting authority does not have the technical expertise to procure the project, the contracting authority shall, in consultation with the Directorate, appoint a transaction advisor to assist the authority in the preparation, procurement, contract negotiations and financial close phases of a project. Section 34(3) The engagement of a transaction advisor under subsection (2) shall be based on the principles of disclosure, transparency, equality, cost-effectiveness and equal opportunity in accordance with the procedure prescribed by the Cabinet Secretary in Regulations. Section 34(4) The Directorate may procure transaction advisors on a sectoral basis based on the projects contained in the National List under section 25 .

Section 35

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 35. Standards and procedures

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 35. Standards and procedures Section 35(1) The Cabinet Secretary shall, on the recommendation of the Directorate, prescribe the standards and procedures for the identification, selection, feasibility study, pre-tender approval, tendering, negotiation, post-tender approval, monitoring and evaluation of projects under this Act. Section 35(2)(a) on practice elements in the procuring of privately initiated project proposals; Section 35(2)(b) on the conduct of competitive tender processes under this Act; Section 35(2)(c) on the protocols to be observed in a direct negotiation process between a contracting authority and a private party; Section 35(2)(d) on disclosure requirements at every stage of a project; Section 35(2)(e) on standard contractual clauses applicable to the competitive procurement of principal subcontracts for Privately-Initiated Proposals in the interest of fair price discovery and higher value for money for Government; Section 35(2)(f) on procedures for benchmarking and market testing; Section 35(2)(g) on timelines and procedures for every stage of privately-initiated proposals; Section 35(2)(h) for public participation and stakeholder engagement during project...

Section 36

PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES - 36. Limitation of contingent liabilities

Part IV: PROJECT IDENTIFICATION AND SELECTION OF PRIVATE PARTIES

Section 36. Limitation of contingent liabilities Section 36(1) The Cabinet Secretary shall approve a limit for contingent liabilities that the Committee may assign to projects under the Act. Section 36(2) The Committee shall assign contingent liabilities to a project approved under this Act within the approved contingent liability limit. Section 36(3)(a) shall notify the Cabinet Secretary of the allocated quantum of the approved contingent liability portfolio at least once every six months; and Section 36(3)(b) shall notify the Cabinet Secretary of any requirement for additional contingent liability headroom where the approved limit is exceeded. Section 36(3) The Cabinet Secretary may, on the recommendation of the Committee, approve an increased contingent liability headroom to meet the objectives of the public private partnerships programme of the Government. Section 36(4) The Directorate shall prepare and submit to the Cabinet Secretary an annual report on contingent liabilities assigned during the year in question providing projections on future contingent liability requirements based on the projects portfolio in the national list of projects prepared under section 25 .

Section 83

MISCELLANEOUS PROVISIONS - 83. Local content

Part IX: MISCELLANEOUS PROVISIONS

Section 83. Local content Section 83(1)(a) give priority to services provided in Kenya; Section 83(1)(b) give priority to supplies manufactured in Kenya where the supplies meet the specifications applicable to the related industry; Section 83(1)(c) ensure mechanisms for technology transfer locally; Section 83(1)(d) optimise opportunities for trade concessions for Kenyan goods and services outside Kenya; Section 83(1)(e) promote structured corporate social responsibility programmes; and Section 83(1)(f) comply with local content requirements provided under any other written law and policy for the time being in force or applicable in Kenya. Section 83(2) The Committee, on the advice of the Directorate, shall issue such guidelines, standards and practice notes on local content as shall be deemed necessary based on the priority requirements of the Kenyan economy.

Section 84

MISCELLANEOUS PROVISIONS - 84. Offences and penalties

Part IX: MISCELLANEOUS PROVISIONS

Section 84. Offences and penalties Section 84(1)(a) obstructs or hinders a person carrying out a duty or function or exercising a power under this Act; Section 84(1)(b) knowingly lies to or misleads a person carrying out a duty or function or exercising a power under this Act; Section 84(1)(c) opening or evaluation of tenders beyond the prescribed period; Section 84(1)(c)(i) opening or evaluation of tenders beyond the prescribed period; Section 84(1)(c)(ii) awarding of a contract beyond the prescribed period; or Section 84(1)(c)(iii) payment of contractors beyond the period specified in the project agreement and performance obligations; Section 84(1)(d) unduly influences or exerts pressure on any member of an evaluation committee, or employee or agent of the Directorate or contracting authority, or the accounting officer to take a particular action which favours or tends to favour a particular party; Section 84(1)(e) divulges confidential information relating to any confidential processes under this Act; Section 84(1)(f) inappropriately influences tender evaluations; Section 84(1)(g) commits an act that is expressly prohibited under the terms of a tender document; Section 84(1)(h)...

Section 85

MISCELLANEOUS PROVISIONS - 85. Participation of State officers or public officers in tenders under this Act

Part IX: MISCELLANEOUS PROVISIONS

Section 85. Participation of State officers or public officers in tenders under this Act Section 85(1) A State officer or public officer shall not, directly or indirectiy, participate in any tender under this Act. Section 85(2) This section shall apply to a State officer or public officer who uses the officer’s spouse, child, or business associate or a company that officer holds shares in, or otherwise controls or directs to participate in a tender under this Act. Section 85(3) A State officer or public officer who contravenes the provision of this section commits an offence and shall be liable, on conviction, to a fine not exceeding two million shillings or to imprisonment for a term not exceeding five years, or to both.

Section 86

MISCELLANEOUS PROVISIONS - 86. Inspection of public private partnership premises, etc.

Part IX: MISCELLANEOUS PROVISIONS

Section 86. Inspection of public private partnership premises, etc. Section A private party shall, on the request of a contracting authority or Directorate, grant to an agent or employee of the contracting authority or Directorate, access to the project premises, site and storage facilities as well as records for the purpose of conducting an inspection in accordance with the terms of a project agreement.

Section 87

MISCELLANEOUS PROVISIONS - 87. Application of Part V and Part VI of (Cap. 65)

Part IX: MISCELLANEOUS PROVISIONS

Section 87. Application of Part V and Part VI of (Cap. 65) Section The Offences set out under Part V and the compensation and recovery of improper benefits set out under Part VI of the Anti-Corruption and Economic Crimes Act (Cap. 65) shall apply to this Act with the necessary modifications.

Section 88

MISCELLANEOUS PROVISIONS - 88. Annual report

Part IX: MISCELLANEOUS PROVISIONS

Section 88. Annual report Section 88(1) The Directorate shall, not more than three months after the 30th of June in each year, prepare and submit to the Committee a report on the state of public private partnerships in Kenya. Section 88(2)(a) the state of public private partnerships in Kenya; Section 88(2)(b) the number, types and value of public private partnerships being implemented in Kenya; Section 88(2)(c) the contracting authorities implementing public private partnerships in Kenya; Section 88(2)(d) the Government support measures that have been given by contracting authorities and to whom; Section 88(2)(e) the private parties that have been debarred or blacklisted under the Act; Section 88(2)(f) the number, types and values of public private partnerships tenders that have been cancelled; Section 88(2)(g) the value of contingent liabilities, if any, approved for any public private partnership; Section 88(2)(h) the financial reports of projects which have been completed and are being operated by a private party; and Section 88(2)(i) any other information that may be relevant. Section 88(3) The Cabinet Secretary shall submit a copy of the annual report to Parliament.

Section 89

MISCELLANEOUS PROVISIONS - 89. Regulations

Part IX: MISCELLANEOUS PROVISIONS

Section 89. Regulations Section 89(1) The Cabinet Secretary may make Regulations generally for the better carrying out of the provisions of this Act. Section 89(2)(a) the execution of the Committee’s or Directorate’s functions under this Act; and Section 89(2)(b) the financing, construction, operation, equipping and maintenance of infrastructure or development projects under this Act. Section 89(3)(a) the purpose and objective of the delegation under this section is to enable the Cabinet Secretary to make rules to provide for the better carrying into effect the provisions of this Act; Section 89(3)(b) the authority of the Cabinet Secretary to make regulations under this Act shall be limited to bringing into effect the provisions of this Act and fulfilment of the objectives specified under this section; Section 89(3)(c) the principles and standards applicable to the rules made under this section are those set out in the Interpretation and General Provisions Act ( Cap. 2 ) and the Statutory Instruments Act (Cap. 2A).

Section 37

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 37. Procurement methods

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 37. Procurement methods Section 37(1)(a) direct procurement; Section 37(1)(b) privately-initiated proposals; or Section 37(1)(c) competitive bidding; Section 37(1)(d) restricted biding. Section 37(2) In procuring a public private partnership project, a contracting authority shall be guided by the principles of transparency, cost-effectiveness and equal opportunity. Section 37(3) A contracting authority shall use standard bidding documents issued by the Directorate in all public private partnership procurements. Section 37(4) The Cabinet Secretary shall prescribe guidelines for the procurement of a public private partnership under this Part.

Section 38

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 38. Direct procurement

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 38. Direct procurement Section the private party possesses the intellectual property rights to the key approaches or technologies required for the project;

Section 39

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 39. Procedure for direct procurement

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 39. Procedure for direct procurement

Section 40

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 40. Privately-initiated proposals

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 40. Privately-initiated proposals Section 40(1) A private party may submit a privately-initiated proposal to a contracting authority. Section 40(2)(a) the project is aligned with national infrastructure priorities and meets a demonstrated societal need; Section 40(2)(b) the project provides value for money; Section 40(2)(c) the project proposal provides sufficient information for the contracting authority to assess fiscal affordability and the potential contingent liability implications of the proposal; Section 40(2)(d) the project can be delivered at a fair market price; Section 40(2)(e) the project is supported by all documents listed under subsection (3) for purposes of transparency and accountability; and Section 40(2)(f) the project supports the efficient transfer of risk from the public sector. Section 40(3)(a) a detailed description of the proposed project, including reference designs, sketches and alignment maps; Section 40(3)(b) detailed project needs analysis, including a description of the benefits to society and alignment with Government’s infrastructure plan; Section 40(3)(c) a description of the environmental and social features of the proposed project; Sectio...

Section 41

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 41. Due diligence on privately-initiated proposals

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 41. Due diligence on privately-initiated proposals Section has not been debarred by any country or any international organization from participating in public private partnerships or similar arrangement;

Section 42

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 42. Evaluation of privately-initiated proposals

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 42. Evaluation of privately-initiated proposals Section 42(1) The Directorate shall, in consultation with the contracting authority, in evaluating a privately-initiated proposal with a view to determining its suitability for further development as a public private partnership project, establish evaluation criteria for the proposal. Section 42(2) The private party shall not be required to submit additional proposals to the contracting authority or the Directorate during the evaluation of the privately-initiated proposal. Section 42(3)(a) public interest criteria; Section 42(3)(b) project feasibility criteria; Section 42(3)(c) public private partnership suitability criteria; and Section 42(3)(d) affordability criteria. Section 42(4) If requested by the Directorate or a contracting authority, the private party shall provide any clarifications or additional information on the privately-initiated proposal in written form. Section 42(5) The Directorate and contracting authority shall, in consultation with relevant government departments, evaluate the proposal against the evaluation criteria within ninety days from the date the proposal is submitted to the Directorate. Section 42(...

Section 43

PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS - 43. Project development of privately-initiated proposals

Part V: PUBLIC PRIVATE PARTNERSHIPS PROCUREMENT METHODS

Section 43. Project development of privately-initiated proposals Section 43(1) Where the Committee approves a privately-initiated proposal, the proposal shall proceed to the project development phase, during which a private party shall prepare specific project development activities before the project can be approved. Section 43(2) The project development phase shall be completed within six months from the date of the approval by the Committee. Section 43(3) Despite subsection (2), a contracting authority may apply in writing to the Directorate for the extension of time for the completion of the project development phase, specifying the justification for the application for additional time, and proposing a new timeframe and mitigation measures to prevent any further delays. Section 43(4) Where the Directorate is satisfied with the justifications of the contracting authority under subsection (3), it shall grant the application. Section 43(5)(a) a detailed geographical, temporal and functional scope of the proposed project, including any right of way or land acquisition or human resettlement plan, where applicable; Section 43(5)(b) a technical feasibility study, including a technical...